OPEC Challenges Shale Afresh as Iraq Crude Floods U.S. Market
OPECs latest challenge to U.S. shale oil producers would be about two miles long, lined end to end, and weigh almost 3 million metric tons. Its due to reach American ports this month.
Iraq, the fastest-growing producer within the 12-nation group, loaded as many as 10 tankers in the past several weeks to deliver crude to U.S. ports in November, ship-tracking and charters compiled by Bloomberg show. Assuming they arrive as scheduled, the 19 million barrels being hauled would mark the biggest monthly influx from Iraq since June 2012, according to Energy Information Administration figures.
The cargoes show how competition for sales among members of the Organization of Petroleum Exporting Countries is spilling out into global markets, intensifying competition with U.S. producers whose own output has retreated since summer. For tanker owners, it means rates for their ships are headed for the best quarter in seven years, fueled partly by the surge in one of the industrys longest trade routes.
In the longer term, we expect the U.S. to have to increase imports next year by some 500,000 barrels to 800,000 barrels a day year on year, Steve Sawyer, the head of refining at FGE, a consultant in London. Given our projections for Iraqi output, it could well come from here.
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http://www.bloomberg.com/news/articles/2015-11-11/opec-challenges-shale-afresh-as-iraq-crude-floods-gulf-of-mexico
Fred Sanders
(23,946 posts)Wellstone ruled
(34,661 posts)smells like a currency move. Apparently China is full up,and with this amount moving it is very apparent the world is in a mega glut of crude. Is this some type of payback for blowing up Saddam?