It is looking more and more like break-out time for the oil service sector. Columbia has shut in as much as 500,000 bbl/day over the last couple of weeks. Should start to show up in the API #'s any day now.
Monday August 14, 7:57 pm Eastern Time
Force majeure remains at Colombia Cano Limon field
BOGOTA, Aug 14 (Reuters) - Occidental Petroleum Corp. (NYSE:OXY - news) said production remained shut in at Colombia's second largest oil field Monday and that its week-old declaration of force majeure on output remained in effect.
A company spokesman, however, was unable to give details of its schedule for crude export shipments from the Caribbean lifting terminal at Covenas.
At least three cargoes due to load Cano Limon crude are understood to have been cancelled since the Cano Limon-Covenas pipeline, which serves the Occidental-operated Cano Limon field in northeast Arauca province, was crippled by back-to-back rebel bombs on July 23...
biz.yahoo.com
And here's a few more snippets from the last week...
NEW YORK (CBS.MW) - Oil shares rallied and crude futures prices closed just short of $32 a barrel Monday in anticipation of slow recovery in U.S. inventory levels, which continue to ride near 24-year lows....
cbs.marketwatch.com
Buyers grab oil service cos.
--1:53 pm - By Michael Baron
The Philadelphia Oil Service index ($OSX: news, msgs) is adding 3.2 percent to 130.16, breaking into the 130s for
the first time since mid-May. All 14 of the index's components are in positive territory....
www2.marketwatch.com
...Kuwait has mobilized part of its army in response to a threatening speech made by Iraqi President Saddam Hussein, Bridge News reported, sparking market fears that the tension could affect oil exports from the two countries.
However, "the critical issue is the inventories," said
Tim Evans, a senior energy analyst at New York-based IFR Pegasus....
cbs.marketwatch.com
...On a macro level, LaMotte says outlook for the industry is "the best we've ever seen." He notes that crude inventories are at 24 year lows, with demand expected to accelerate in 2001....
www2.marketwatch.com
DOE on oil prices...
The U.S. Department of Energy said it sees "gradually declining" oil prices this year and next. For 2001, the DOE
sees oil prices falling by $4 or $5 a barrel. Meanwhile, the DOE warned of supply problems in natural gas and electricity...
www2.marketwatch.com
Another low API report and we'll start reading about the "energy-crisis" in USA Today,Time and Newsweek. As the guy on the FLC conference call said "we no longer need a cold winter to keep oil prices up".
I'm buying on margin with tight (5%) stops.
Larry |
