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).

Global Crude Oil Supply Outages Hit the April 2012 Low

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

The fall in supply outages could lead to a rise in crude oil supplies. Ample global supplies would pressure crude oil (UWT) (DWT) prices.

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 Crude Oil Production Overshadow Inventory Draws? and US Refinery Demand Outage and Supplies Impact Crude Oil Futures to learn more.

Read Will US Natural Gas Futures Fall in 3Q17? for more on natural gas.

Latest articles

Berkshire Hathaway CEO Warren Buffett has spoken openly about his stock repurchasing strategy, calling it "simple arithmetic." How does he do it?

In a research note released yesterday, Apple (AAPL) analyst Ming Chi Kuo noted that more people from the US could choose the iPhone Pro than the iPhone 11.

Two Saudi Aramco crude oil facilities were attacked by Iran-backed Houthi rebels using drones. At 10:23 AM, Brent crude oil was trading up 11.2% at $67.

While tech stocks fell sharply in late 2018, they surged again in 2019. How could the market react if tech stocks post lower-than-expected earnings?

Today at 2:10 PM ET, the S&P 500 Index fell 0.3% as investors watched rising oil prices. The cannabis sector also fell today, as its ETFs traded in the red.

NVIDIA (NVDA) stock had fallen over 1% in today's trading session as of 10:50 AM ET. The stock was also down in premarket trading.