- Oil surges to an 11-week high on a weak dollar and supply disruptions
- August ’23 WTI lost 7c this morning to trade around $76.81/Bbl
- The U.S. dollar plunged to a 15-month low yesterday before rising 0.1% to 99.91 early Friday
- Production disruptions in Libya and Nigeria cut over 0.5 MMBbl/d, 0.5% of the global supply
- With no restart timeline, crude jumped nearly 70¢ following the Libyan news on Thursday
- Additionally, Russia's total oil exports dropped 0.6 MMBbl/d to 7.3 MMBbl/d in June
- Moderating inflation has prompted markets to expect less aggressive Fed rate hikes for 2023
- IEA reiterated oil demand will increase in H2, led by China, which accounts for 70% of forecast record demand growth despite economic headwinds
- Production disruptions in Libya rattle oil markets (BBG)
- Libya's massive Sharara oil field shut down on Thursday due to protests, removing up to 0.26 MMBbl/d from the global supply
- A smaller El Feel field (0.07 MMBbl/d) also halted output
- A prolonged Libyan disruption could shift more West African crude to Europe, tightening supply further just as Saudi and Russian output cuts start tightening the market
- Shell shuts key Nigeria export terminal after leak detected (BBG)
- Shell halted Nigeria's Forcados oil terminal, which exports ~0.23 MMBbl/d, to check for a possible leak
- Investigation ongoing after sheen spotted near terminal's mooring area, tightening Nigerian and global crude supply
- Chevron shuts part of Richmond refinery after an emissions leak (BBG)
- Chevron shut part of its 0.25 MMBbl/d Richmond, CA refinery due to a process disruption which led to the emissions leak
- The incident resulted in sulfur dioxide release, temporarily halting operations