Oil Price Projections on the Rise
Articles about jumping oil prices and a court filing by a refiner appear to have resonated last week among Rigzone’s downstream readers. Below are summaries of some last week’s top downstream-related articles in terms of page views.
In its short-term energy outlook (STEO) for July, the U.S. Energy Information Administration (EIA) has raised its projected Brent spot average price for 2021. The most recent price projection reflects a 5.5% increase from the June Brent STEO figure. Moreover, the U.S. Department of Energy’s statistical arm revised its projected Brent spot price for 2022 upward by more than 10%. To be sure, EIA cautioned that its latest STEO outlook remains subject to greater uncertainty about the ongoing economic recovery.
Citing unresolved tensions within the OPEC+ oil producers’ alliance at the time, an analyst with consultancy Rystad Energy noted the oil market faced a significant undersupply risk for August. The analyst did, however, point out the oil producers’ alliance still had time to reach a consensus. She also observed that oil output from the U.S. is set to increase in the coming months but not to the extent necessary to satisfy the expected rise in demand. Nevertheless, she also said the oil market appeared to be ignoring mounting concerns about new COVID-19 infections.
The owner of a U.S. Virgin Islands refinery last Monday field for Chapter 11 bankruptcy protection in U.S. federal court in Houston. As this Bloomberg article notes, Limetree Bay Refining LLC cited “‘severe regulatory and financial constraints’” as the reason for seeking bankruptcy. The U.S. Environmental Protection Agency had closed Limetree Bay’s refinery in May, and the refiner the following month put on hold plans to restart the refinery – once owned by Hess Corp. (NYSE: HES) and Petroleos de Venezuela SA.
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