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Terminal News

Unplanned supply disruptions at lowest level for five years

Unplanned supply disruptions at lowest level for five years
Unplanned global supply disruptions fell to the lowest level since January 2012 in September.

According to the EIA, over the past six months, unplanned oil supply disruptions have fallen by more than 1.0 million barrels per day, as outages in Libya, Nigeria and Iraq decline.

Additionally, Canada's disrupted supplies, which reached their peak in April 2017 at 425,000 barrels per day, returned to production in August 2017.

In Libya, rival armed factions have blockaded pipelines and export terminals intermittently since the fall of Gadhafi and his regime in 2011. In fact, the country has had some success in reducing unplanned outages. Crude oil production has restarted at a number of oil fields in the country since the beginning of the year.

However, despite this success, Libya's outages have fluctuated since the summer as a result of repeated flare-ups of disputes between rival groups, pipeline blockades, power failure and other technical issues.

In Nigeria, disruptions fell from an average of 370,000 barrels per day in April to 200,000 barrels per day in September, in part as a result of the Trans Forcados crude oil export pipeline resuming production.

In Iraq, despite disruptions falling to 50,000 barrels per day in September, the outlook for its oil supply from the Kirkuk oil fields remains uncertain due to an offensive by Iraqi security forces in response to the autonomous Kurdistan Regional Government's independent referendum in September.

Outages in non-OPEC member countries have mainly been linked to weather events. A fire at Syncrude's Mildred Lake facility in Canada forced a complete shut down in production, along with outages elsewhere.

Us production also experienced shut-ins as a result of Hurricane Harvey in August.