Nigeria's excess oil revenue rises to N610m per day

Opec and other producers including Russia pledged to reduce oil output by about 1.8 million barrels a day through March

Opec and other producers including Russia pledged to reduce oil output by about 1.8 million barrels a day through March

That's because Texas is home to twice the oil consumption per capita of Florida.

Harvey's negative impact on demand will remain larger, however, given the large concentration of energy-intensive petrochemical activity in its path. A quarter of US refining capacity to be taken off-line due to the hurricane, sapping demand. The price for oil in recent weeks is inflated because of the market strains from Hurricanes Harvey and Irma.

Backwardation in Brent is consistent with a tightening global oil market while contango in WTI is consistent with local oversupply of crude as a result of refinery shutdowns and the closure of export terminals. On Sunday, five refineries in the Gulf Coast region were still shut down, with a combined refining capacity of 1,069,300 bpd, equal to 11% of total Gulf Coast refining capacity and 5.8% of total USA refining capacity, according to the DOE.

Over the next several months, we believe that the post-storm recovery will likely bring oil demand to a higher level, helping to gradually offset this negative initial impact.

Restarting refineries after flooding is a slow and complicated process plagued with safety risks ("After Harvey: precautions needed during oil and chemical facility start up", U.S. Chemical Safety Board, Aug 2017). Still, Hurricane Irma knocked out power to almost 4 million homes and businesses in Florida on Sunday as it drifted up the west coast of the state toward southern Georgia on Monday as a tropical storm. Harvey slashed refining capacity across Texas, forcing shutdowns of key refineries from Corpus Christi and Houston to Port Arthur, including the largest US fuel-making plant.

USA crude settled up more than 1% on Monday, paring some of its huge discount to global oil benchmark Brent, as Hurricane Irma's initial damage on the domestic oil industry look more contained than thought.

Brent crude oil futures settled up 6 cents, or 0.1 percent, to $53.84 a barrel while U.S. West Texas Intermediate crude rose by 59 cents, or 1.2 percent, to $48.07.

The report also said OPEC's output in August declined by 79,000 bpd from July to 32.76 million bpd, citing figures from secondary sources such as consultants and oil-industry media. The producers are seeking to strengthen compliance with the cuts accord they reached past year.

On Monday, Falih and his United Arab Emirates counterpart also agreed to consider an extension beyond March 2018.

Non-Opec Kazakhstan is aiming for a stand-alone deal with Opec on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said last week.

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