Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
The US DOE is turning away some light crude, such as produced in Texas’s Eagle Ford basin for injection into the strategic petroleum reserves because it doesn’t blend well with the existing denser stocks according to Bloomberg.
- The US is under pressure to restore the depleted SPR but the preference for dense oil effectively bars multiple US crudes.
- Higher crude prices and operational limitations have so far limited restocking efforts, which have even seen the US cancelling some purchase programs.
- The Energy Department in September cancelled a $108m contract with Macquarie because the offer of more than 1mbbls included an Eagle Ford grade. The cancellation was by mutual agreement.
- There is no official ban on specific crudes, but the DOE purchase provisions now specify that no oil above a certain density would be considered.
- The SPR is currently up to 358.0mbbls from a low of 346.76mbls in July but is still well below the capacity of 714mbbls.
- The US DOE last week announced their latest tender for 3mbbl of sour crude for the SPR for July delivery.
Source: OilX
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok