Author Topic: Chevron suspends operations as oil rises above $50/barrel  (Read 71 times)

0 Members and 1 Guest are viewing this topic.

Offline internet police

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 1399
    • View Profile
Chevron suspends operations as oil rises above $50/barrel
« on: May 27, 2016, 12:27:28 AM »

Militants, Thursday, blew up Chevron Nigeria Limitedís onshore oil facilities in the Niger Delta, forcing the company to shut down its operations. This was even as the price of crude oil rose above $50 a barrel, for the first time in nearly seven months as a global supply glut that plagued the market for nearly two years showed signs of easing.

The disruption in Chevronís operation was caused by the Niger Delta Avengers, who claimed the bombing of the facilityís mains electricity feed. The group said they blew up the Escravos tank farm main electricity feed pipeline. The group declared that its decision to bomb the facility was because Chevron ignored its warning not to fix a pipeline they had bombed earlier in the month. Industry sources said that Escravos onshore production accounts for roughly a third of Chevronís total output, on average 3.8 million barrels per month (bpm) in 2014. The companyís projected exports for the first half of 2016 averaged 167,000 barrels per day (bpd) or about five million barrels per month.

Reports claimed that Escravos production was already down by more than 40,000 barrels per day after a May 5 militant attack on a Chevron offshore facility, adding that increased violence over the past few weeks had also made international buyers more reluctant to buy Nigerian crude due to fears of loading delays and cancellations.

Meanwhile, as a result of the unrest in the Niger Delta,l as well as crisis in Libya and wildfires in Canada, which had reduced global crude oil out by about four million barrels per day, the price of crude has risen above the $50 mark. Specifically, benchmark crude oil grade, Brent, was up 36 cents at $50.10 a barrel, the highest in nearly seven months, after a larger-than-expected draw in United Statesí crude oil inventories last week indicated buyers are starting to mop up spare supply. U.S. crude futures were up 29 cents at $49.85 a barrel, after touching $49.97, the highest since mid-October.

Reports stated that at abbove $50 a barrel, oil was seen by many market players as breaching a psychological barrier that could lead producers, particularly among U.S. shale companies, to revive operations scrapped in recent years.


US White House Suspends Cluster Bomb Transfers to Saudi Arabia

Started by admin

Replies: 0
Views: 123
Last post May 30, 2016, 12:55:18 AM
by admin
Russia suspends Egypt flights, US tightened security after crash

Started by internet police

Replies: 0
Views: 216
Last post November 09, 2015, 01:27:14 AM
by internet police
Port Harcourt, Warri refineries commence preliminary operations ? Nigeria NNPC

Started by mastercode

Replies: 0
Views: 379
Last post July 30, 2015, 03:04:31 AM
by mastercode
Nigerian NNPC to begin transparency operations to regain lost credibility

Started by yungcrux

Replies: 0
Views: 359
Last post September 26, 2015, 03:14:47 AM
by yungcrux
Aviation fuel scarcity cripples airlinesí operations in Nigeria

Started by admin

Replies: 0
Views: 460
Last post August 29, 2016, 08:07:56 AM
by admin