Industrial action will begin at midnight local time (2200 GMT) at three fields – Gudrun, Oseberg South and Oseberg East – and will then expand at three other fields – Kristin, Heidrun and Aasta Hansteen – from midnight on Wednesday.
A seventh field, Tyrihans, will have to shut because its output is processed from Kristin.
There is a bit of evidence of some loosening in the crude market here but it’s one week of data. Gasoline remains extremely tight with inventories 10% below the long-term average.
Sees 2022 US output increasing 730k bpd vs 720k bpd a month ago
Sees 2023 output increasing 1050k bpd vs 940k a month ago
We’ve had oil prices surging and these numbers just highlight how difficult it is to bring on production. 10,000 barrels per day in nothing and even adding 1 million barrels next year won’t move the needle as the 1 mbpd release of the SPR runs off.
WTI crude is trading at $119.22 today, up 85-cents.
Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Yep. I described the hike in output last week as a ‘drop in the bucket’.
