Latest news with #supplydisruption
Yahoo
14-07-2025
- Business
- Yahoo
Goldman Sachs raises Brent oil forecast for second half of 2025 to $66
(Reuters) -Goldman Sachs raised its oil price forecasts for the second half of 2025 on Monday, citing the risk of supply disruption, lower oil inventories in Organisation for Economic Co-operation and Development countries and Russia's production constraints. The bank expects Brent crude to average $66 a barrel in the second half of 2025, up $5 from its previous forecast, and WTI at $63, up $6. Its 2026 forecasts remain unchanged at $56 for Brent and $52 for WTI. "Our unchanged 2026 price forecast reflects an offset between a boost from higher long-dated prices and a hit from a wider 1.7 million barrels per day 2026 surplus," the bank said. Previously, it expected a surplus of 1.5 mbpd. Goldman Sachs now expects OPEC+, the Organization of the Petroleum Exporting Countries and allies, to unwind 2.2 mbpd of cuts by September, including a final 0.55 mbpd increase. Goldman flagged a range of possible outcomes. A drop in Iranian supply could push Brent up to $90, while increased stockpiling by countries such as China could keep prices closer to $60 in 2026. A full unwinding of the 1.65 mbpd of OPEC+ cuts from April 2023, which would be additive to the ongoing 2.2 mbpd OPEC+ cut unwind, could drag prices below the bank's baseline, potentially falling to $40 in a recession scenario by 2026. "Reduced spare capacity increases our confidence that prices will rebound after 2026," Goldman said. It based its bullish long-term view on factors including falling investment, a lack of new non-OPEC projects beyond 2026, and growing demand over the next decade. Goldman reiterated its cautious stance for 2026 and continues to recommend hedging against downside risk. "We still recommend buying oil puts (or put spreads) and selling calls," it said, suggesting investors sell a June 2026 $75 Brent call to fund buying a $55/45 put spread. Sign in to access your portfolio
Yahoo
12-07-2025
- Business
- Yahoo
Chevron says offshore well start-up caused Mars crude quality issues
By Arathy Somasekhar HOUSTON (Reuters) -The start-up of an offshore well caused zinc contamination in Mars crude, Chevron said on Friday, leading to the tightening crude oil supply in the key Gulf Coast refining hub and the government releasing barrels from its emergency stockpile. Inventories of crude oil along the U.S. Gulf Coast had fallen to their lowest seasonally in seven years at the end of last week, thanks to recent wildfires in Canada that cut supplies and cancellations of licenses that allowed for U.S. import of Venezuelan crude. The U.S. Department of Energy on Friday said it would provide up to 1 million barrels of crude oil from the Strategic Petroleum Reserve to Exxon Mobil's Baton Rouge refinery in Louisiana, citing an offshore supply disruption. Exxon told its trading counterparts that it will not buy the Mars crude oil grade until the zinc contamination issue is fixed, Reuters reported on Thursday. The oil major requested the barrels from the SPR after the zinc contamination was identifiecrud in Mars crude, two sources familiar with the matter said. Mars, a medium sour crude produced off the coast of Louisiana, is preferred by refineries along the Gulf Coast because of its properties and proximity. Refiners are typically configured to run certain grades of oil for ideal yields of different types of fuels. Switching to other crude grades can be operationally challenging and limit production, shrinking margins. The exchange of oil was authorized to help maintain stable regional supply of transportation fuels across Louisiana and the broader Gulf Coast, the DOE said, adding that the exchange will not impact or delay the department's ongoing efforts to refill the reserve. Exxon will resupply the crude, along with additional barrels to the SPR, the department added. Exxon declined to provide additional details. Zinc does not typically occur naturally in crude oil and industry sources said they worried that running crude with zinc could cause damage to refining units and to catalysts used in processing oil. TIGHT SUPPLY, STRONG DEMAND The Mars crude stream is a mix of oil from various platforms off the Gulf Coast. About 575,000 barrels per day of oil move on the Mars system to the coast, according to research firm Energy Aspects. Prices for Mars traded on Friday at a 15-cent a barrel premium to U.S. crude at the Cushing, Oklahoma, hub. It had eased to as little as a 10-cent discount earlier in the week, compared with a $1 premium at the end of June. Chevron said it was working to resolve issues and it does not expect an impact to current production guidance. Supplies of medium and heavy crude oil along the U.S. Gulf have tightened in recent months as Washington in late May terminated a group of licenses that had authorized partners of oil company PDVSA to take Venezuelan crude bound for U.S. and European refineries. Declining oil production in Mexico has also reduced exports to the U.S., while the recent wildfires in Canada also cut supplies that are usually imported. The opening of the expanded Trans Mountain pipeline last year has also redirected some Canadian oil flows to China and the U.S. West Coast, rather than the U.S. Gulf Coast. Meanwhile, demand for refined products, including gasoline and distillates, rose to 20.9 million bpd last week, the highest seasonally in five years thanks to strong driving demand.
BBC News
05-07-2025
- Climate
- BBC News
Kent residents feel 'defeated' by ongoing water supply issue
About 500 properties in an area of Kent are still facing water supply issues for a fourth day in a Wednesday, South East Water said up to 3,000 customers in Whitstable, Seasalter and surrounding areas had no water or low pressure due to the recent company said it hoped to resolve the issue by Saturday and it was continuing to working as quickly as it could to restore Brockhurst, 33, who lives in Kimberley Grove, said he and other residents felt "totally defeated" by the ongoing situation and it was "affecting people's physical and mental health now". "There's has been a lack of communication from South East Water except telling us they are sorry for the disruption," he Brockhurst said the bottled station is nearly four miles (6.4km) away from his home"It's not easy for people to access water and we don't drive," he added."We were given 12 two-litre bottles outside our house, which isn't enough to drink, cook with, clean dishes, clean clothes and clean ourselves with." A spokesperson for South East Water said: "We are sorry to those still without water or experiencing low pressure. "We have removed some trapped air from the system, however this is a challenging and complicated process and unfortunately around 500 properties in the area are still having supply issues. "Some customers may also be experiencing aerated water whilst our works are ongoing, and once our works are completed your water supplies will return to normal." The company said a bottled station was open on Saturday at Sainsbury's - Reeves Way, Chestfield, Whitstable, CT5 added it would provide further updates on Saturday afternoon.
Bloomberg
24-06-2025
- Business
- Bloomberg
Oil, Gas Slide After Trump Announces Israel-Iran Truce
Energy commodities extended their slide after Trump announced a truce between Israel and Iran, with traders dialing down concerns of supply disruptions. BloombergNEF's Global Head of Commodities, Energy and Environmental Markets Ashish Sethia weighs in on 'Bloomberg: The Asia Trade.' (Source: Bloomberg)
Wall Street Journal
24-06-2025
- Business
- Wall Street Journal
Oil Slips Amid Abating Fears of Supply Disruptions
0009 GMT — Oil slips in early Asian trade amid abating fears of supply disruptions spurred by President Trump's comment that Israel and Iran agreed to a cease-fire that he said could result in the end of the war between the countries. In a post on Truth Social around 6 p.m. Eastern time, Trump said there will be a 'complete and total' cease-fire in about six hours when Israel and Iran have completed their final mission. Front-month WTI crude oil futures fall 3.8% to $65.93/bbl; front-month Brent crude oil futures drop 3.6% to $68.89/bbl. (
