2024.08.15

Pipeline fire cuts crude flows to Libya’s Es Sider terminal, affecting tanker loadings

A pipeline fire in Libya has reduced crude oil flows to the Es Sider export terminal by about 125,000 barrels per day. Although firefighting teams extinguished the blaze, the impact on tanker loadings depends on how long the reduced flows persist. The fire, caused by a dredging machine, occurred 30 km from the port, and repairs are set to begin. Es Sider is a crucial export hub in eastern Libya, typically exporting 290,000 bpd. Libya’s oil production, around 1.2 million bpd, frequently faces disruptions due to political instability and ageing infrastructure, with recent stoppages at other key terminals due to political unrest.

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Exxon’s seventh Guyana oil project to submit development plan by early 2025, boosting future output

Guyana's seventh offshore oil project, named Hammerhead, is set to submit its development plan by Q1 2025, potentially increasing the nation's oil production to over 1.4 million barrels per day by 2029. Exxon Mobil leads the consortium currently producing 650,000 barrels per day from three platforms. Recent discoveries have increased Guyana's recoverable oil and gas estimates to 11.6 billion barrels. Additionally, Guyana's government is reviewing bids from a 2023 offshore round, while licenses for other firms, including CGX Energy and Repsol, have expired without renewal decisions.

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Russia's seaborne crude exports slowly recover amid declining prices and shifting routes

Russia's seaborne crude oil exports are gradually recovering from an eleven-month low in late July, with a recent four-week average showing a modest increase of 80,000 barrels per day, bringing total exports to 3.19 million barrels per day. Despite this recovery, declining oil prices are limiting the financial benefits for Russian exporters. Russian production also exceeded its OPEC+ output target in July. Shipments from Baltic and Black Sea ports have decreased, while the Pacific port of Kozmino has seen record tanker loadings, highlighting its growing importance. Additionally, Russia is reactivating some sanctioned tankers for crude shipments.

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India, Russia resume talks to expand rupee-ruble trade amid growing bilateral commerce

The central banks of India and Russia have resumed discussions to establish a mechanism for expanding local currency trade, aiming to address payment issues following a surge in bilateral trade due to the Russia-Ukraine war. The talks focus on setting a direct exchange rate between the Indian rupee and Russian ruble, bypassing the U.S. dollar. However, challenges remain, as both currencies need to be traded on the same exchange platform extensively to establish such a rate. The discussions also involve resolving the issue of rupee accumulation by Russian companies due to the trade imbalance. India's imports from Russia, primarily crude oil, have significantly increased, making Russia its second-largest exporter.