GhanaReview International - The Leading Ghanaian News Agency
London New York Accra
International
Thursday 17 August 2017

2017-04-20

[I] Drug given to pregnant women causes 'serious malformations'

2017-01-23

[I] $11m Missing From The Gambia's State Coffers After Jammeh Exile

2016-11-16

[I] Brexit vote not legally binding

2016-11-15

[I] ‘Trump dump’ bill hits $1.2trn
[I] Anti-Trump protests rage on after attackers are charged
[I] Strategy chief is branded a racist, fascist misogynist

2016-11-14

[I] ‘Prediction professor’ who called Trump’s big win also said Trump will be impeac

2016-11-12

[I] I won’t be surprised if Trump is impeached – Kweku Baako

2016-11-11

[I] Statisticians put value of household chores through the wash

2016-11-10

[I] Hillary Clinton lost the election but is winning the popular vote
[I] Thousands take to the streets to protest Trump win
[I] Hillary Clinton delivers painful concession speech
[I] The world comes to terms with President-elect Donald Trump

2016-11-08

[I] The world’s attention on USA elections

2016-10-31

[I] Woman buys house by getting 20 boyfriends to get her an iPhone

2016-09-28

[I] Counterfeit drugs: 'People are dying every day'

2016-09-26

[I] Syria conflict: US and UK speeches 'unacceptable' - Russia

2016-09-01

[I] Gabon Parliament Set On Fire After Disputed Elections

2016-08-05

[I] I have stolen only four cars this year – Muslim Cleric

2016-03-31

[I] SA court rules Zuma breached constitution

2016-03-15

[I] Nigerian oil revenues of $16bn 'missing'

2016-01-05

[I] Tanzanian President forces officials to sign public integrity pledge

2015-12-30

[I] Former Banker sworn in as Burkina Faso President

2015-12-28

[I] Man sentenced to death by hanging in Malaysia for drug trafficking

2015-12-18

[I] Saudi Arabia to behead 15- year- old boy for attending protest

2015-12-10

[I] World running out of oil storage space

2015-12-08

[I] Oil price could hit $20 as Opec ditches quotas
[I] ‘Tube attacker had mental health issues’

2015-11-23

[I] Tragic baby 'cooked alive'

2015-07-26

[I] Lord resigns and faces police probe

2015-05-25

[I] Hackers leave Uber users billed for fake cab rides
[I] Greece cannot pay IMF, says minister

2015-05-24

[I] US Governor paves way for rise in interest rates
[I] Catholic Church left reeling by Ireland’s stunning vote for gay marriage
[I] Beautiful Mind maths virtuoso John Nash killed in taxi crash

2015-04-29

[I] Nigeria's army 'rescues 200 girls from Boko Haram stronghold'

2015-04-28

[I] Apple to give its investors a $70 billion golden payday
[I] Nepal quake toll could reach 7,000

2015-04-24

[I] Deutsche Bank pays record $2.5bn fine for Libor manipulation

2015-04-04

[I] Kenya university attack: 'They were lined up and executed'
... go Back
 
International

[ 2015-12-10 ]

Brent crude has fallen to below $40 a barrel

World running out of oil storage space
The world could run out of oil storage space next
year as a yawning global supply glut triggers
warnings of a shortage of spare capacity.

After more than a year of overproduction by Saudi
Arabia, Russia and the United States, figures to
be published tomorrow by the International Energy
Agency are expected to show that the glut of
commercial oil stocks in developed Organisation
for Economic Co-operation and Development
countries stands at more than three billion
barrels — a record and enough to supply all the
world’s needs for more than a month.

Amrik Sembi, the head of liquids and bulk
commodities at OpenLink, a trading group,
estimated that about 250 million barrels of spare
commercial oil storage capacity remained globally
out of a total of 3.5 billion barrels.

If stocks continue to build at present levels,
then that spare capacity could be filled as early
as February, he said. “We are talking about
somewhere in the order of 30 to 60 days left,” he
said, although he added that significant new
storage capacity was under construction in the
United States and China, which could extend the
time frame before a crunch occurs.

Mr Sembi said that as storage filled up, oil
traders and brokers might try to place more crude
in floating tanker vessels rather than at onshore
storage terminals, such as the vast complex at
Cushing, Oklahoma, the world’s biggest crude
storage facility.

The warning came as the price of a barrel of Brent
crude slipped below $40 this week for the first
time since 2009, after Opec, the oil producers’
cartel, abandoned its production ceiling.

Torbjørn Kjus, an oil analyst with DNB in Oslo,
estimated that there was a 20 per cent chance that
the world would run out of oil storage capacity by
the middle of next year.

“There is a sizeable risk that we could run
totally full,” he said. “If that happens, the oil
would have to stay in the ground. There would be
large-scale shutdowns in the US and Canada.”

Mr Kjus said that the first production to be
switched off would be about 400,000 ageing
“stripper wells” in America, which collectively
pump about a million barrels a day of crude, about
11 per cent of the country’s output. Some of these
wells — so-called because they “strip” the
remaining oil from the ground — produce as little
as two to three barrels of oil a day from sites
that were drilled in the 19th century.

In states ranging from New York to Texas, many are
losing money, but a dip far below the $40 a barrel
level would render them uneconomic, forcing
operators to switch them off permanently.

Mr Sembi said that it was difficult to know
exactly how much tanker space remained available
around the world, because of a lack of transparent
information and the existence of government
stockpiles of oil, details of which often were
kept under wraps. There was evidence, he said,
that many governments, including China, had been
using low prices to build up their strategic oil
reserves.

John Hall, an Alfa Energy analyst, said that the
world was “awash with oil” as global output had
continued to outstrip demand this year by between
1.6 million and 2.3 million barrels a day.

Total oil inventories in the wealthy group of OECD
nations increased by 13.8 million barrels to about
three billion in September, a month when typically
they fall, according to the IEA. The rate of gains
slowed to 1.6 million barrels a day in the third
quarter, from 2.3 million a day in the second
three months, although growth remained
“significantly above the historical average”, the
IEA said.

There are signs that some fuel storage facilities
in the eastern hemisphere are filled to capacity.
Mike Wittner, a Société Générale analyst in New
York, said that most of the world’s available
storage capacity was located in the United States,
with less in Europe and Asia, where he said that
conditions were “pretty tight”.

If the glut continues, oil cargos could start to
flow increasingly from Asia and Europe to the US,
where some storage capacity is likely to remain
available.

Source - The Times(UK)



... go Back

 
Add YOUR View here

Ghana Review International (GRi) is published by Micromedia Consultants Ltd. T/A MCL - a wholly Ghanaian owned news agency. GRi is an independent publication and is non-aligned to any political party or interest group, within or outside of Ghana. It is a reliable source of information for Ghanaians and non-Ghanaians alike. This magazine will be of interest to any person with an interest in Ghana, Ghanaians and Africans, wherever in the world they live. This website is the on-line arm of the publication. It contains news and reviews on Ghana and the international communities.

All pages are © Copyright Ghana Review International (GRi) 1994 - 2016