Tuesday 31 December 2019

Oil’s Turbulent 2019: #Saudi Supply Panic to Freight Rate Frenzy - Bloomberg

Oil’s Turbulent 2019: Saudi Supply Panic to Freight Rate Frenzy - Bloomberg:

It’s been a tumultuous 2019 for the oil market. The year has seen surging crude prices due to attacks on key Saudi Arabian energy facilities and skyrocketing freight rates after American sanctions on Chinese shipping companies. On another front, oil processing margins in Asia have slumped to the lowest in more than a decade, while IMO 2020 is rattling the market.

Here are four charts that showcase the key events in 2019:

Strike Surge

Brent oil jumped by almost 15% on Sept. 16 -- the most ever in a single day -- following an attack on Saudi Arabia’s oil facilities in Abqaiq and Khurais, which halved the kingdom’s output. While production has returned to normal, prices remain elevated and are set for the biggest yearly gain since 2016 after a breakthrough in U.S.-China trade talks and a pledge by OPEC+ to deepen cuts.


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