*Power Outage After Hurricane Laura Prevents Return to Normal Operations*
An ongoing power outage due to the aftermath of the Hurricane that tore through the Gulf coast has led to disruptions in repairs to a few US oil platforms, with the Westbury site being one. The US Energy Department said that the site sustained considerable damage, but the integrity of the geologically seal caverns remained intact.
*Oil Skids after Saudi Price Cuts, China Slows Imports*
Oil prices hit their lowest level since July as Saudi made the deepest monthly price cuts for supply to Asia in 5 months with demand recovery optimism cooled reports Reuters. OPEC+ cuts have done little to control the glut in supply of the oil and products, as continued overproduction has meant the price of crude continues to bounce around the $40 per barrel mark.
*IEA Sees Oil Market Stuck*
The global economy is not likely for a protracted global slowdown due to COVID-19, but excessive supply and uncertainty over China’s oil demand could affect the way in which the recovery pans out says the IEA. Crude plunged to historic lows in the middle of the pandemic, but now hovers at around the $40 per barrel mark as the market sentiment continues to be uncertain surrounding demand.
*China’s August Crude Oil Imports Jumped 13% on Year as Delayed Cargoes Clear Customs*
China’s crude imports jumped 13% year on year thanks to hefty orders places during he oil price collapse during the pandemic. The Chinese made the most of the falling prices and there are currently 20 vessels off the port of Qingdao, waiting to discharge as the cargo’s clear customs. Analysts predict that shipments are due to ease as demand has peaked, which is fueling the uncertainly within the global economy.