Global Crude Oil Supply Outages Hit the April 2012 Low
Global crude oil supply outages
The EIA (U.S. Energy Information Administration) estimates that global crude oil supply outages fell 282.0 Mbpd (thousand barrels per day), or 14.5%, to 1.7 MMbpd (million barrels per day) in July 2017 compared to the previous month. Supply outages fell 1.1 MMbpd, or 39.0%, from the same period in 2016.
The fall in global crude oil supply outages could have a negative impact on crude oil (OIH) (OIL) (DBO) (SCO) prices. Lower crude oil prices could have a negative impact on the earnings of oil producers such as Chevron (CVX), Hess (HES), Stone Energy (SGY), and Sanchez Energy (SN).
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Global crude oil supply outages: Highs and lows
Global crude oil supply outages hit 3.6 MMbpd in May 2016. It was the highest level since 2011. Brent crude oil prices recovered from the 13-year low in June 2016 due to supply outages in May 2016.
Global crude oil supply outages are at 1.7 MMbpd in July 2017, as stated above. It’s the lowest level since April 2012.
OPEC and non-OPEC crude oil supply outages
Non-OPEC (Organization of the Petroleum Exporting Countries) oil producers’ supply outages fell 60.0 Mbpd to 0.54 MMbpd in July 2017 compared to the previous month. It’s the lowest level since March 2017. Canada and Yemen had major supply outages among non-OPEC producers during July 2017.
OPEC members’ crude oil supply outages fell 222.0 Mbpd to 1.1 MMbpd in July 2017 compared to the previous month. It’s the lowest level since September 2012.
OPEC producers Libya, Nigeria, Kuwait, and Saudi Arabia had production outages in July 2017. Libya and Nigeria had the highest supply outages among OPEC producers.
Impact of falling global crude oil supply outages
Read Hedge Funds Reduce Bullish Bets on US Crude Oil for 2nd Straight Week for more information on crude oil price forecasts.
Read Will US Natural Gas Futures Fall in 3Q17? for more on natural gas.