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Tuesday, October 16, 2018


Deepwater Gulf shines as star in US oil show – Petroleum Intelligence Weekly

According to Petroleum Intelligence Weekly, a new report by the US Minerals Management Service predicts that the Gulf of Mexico’s deep waters should be producing at least 0.9 mbd by 2005, and possibly more than 1.3 mbd — compared with 0.74 mbd last year. The report follows BP’s decision earlier this year to proceed with $6.6 bill of investment, involving development of the Crazy Horse and Holstein fields, and construction of the 1 mbd Mardi Gras pipeline system. New discoveries also continue to be made, including BP’s big Crazy Horse North and Aspen finds, and Murphy’s Front Runner field. Oil production from the whole Gulf of Mexico rose from 0.945 mbd in 1995 to 1.4 mbd last year. The MMS’ latest five-year projection sees this rising to a 1.5 -2 mbd range by 2005, with the deep waters accounting for 60%-67% of the total. By 2005, 72 deepwater fields are expected to be in production.

US oil stocks rising - US Energy Information Administration

Crude oil stocks rose 1.6 million barrels last week to end at 324.4 million barrels. This stock level is 8.3 percent higher than this time last year and 0.1 percent higher than the five-year average. Crude oil inputs grew to 16.0 mbd while crude oil imports increased to 9.8 million barrels. Total distillate stocks increased to 108.1 million barrels on 1 June 2001, 2.6 percent above the level one year ago. Total motor gasoline stocks at the primary storage level were 210.3 million barrels, 1.4 million barrels above the level for the same week last year.

Spot tanker freight rates reduced

Tanker spot freight rates for most sectors have dropped over the last few weeks, in particular the Aframax North Sea rates, which have come down to about USD 16,000 per day for a modern vessel, the lowest since the end of January 2000. It is worth noting  that product tanker freight rates, which improved later than the crude tanker rates, are still quite strong. A graph showing this development is found at our tanker market pages: Click here for tables and graphs for daily development in WS rates since 1998