Global energy news

• The Chinese independent refineries, known as “teapot” refiners, who are responsible for the surge in the country’s oil imports, processed crude oil at 64.36 percent of capacity in the week through June 9, the highest rate since March 24, according to data by an industry researcher released on June 9. Teapots processed crude at 62.67 percent capacity the previous week, according to data from Shandong-based industry researcher Sci99. The operating rate at the independent refineries was at highest rate of 68.13 percent on Dec. 9, Sci99 data show.
• China’s crude stockpiles at major ports in Shandong province in east China went up by 5.65 percent in the week ending June 2 from a week earlier to 14.38 million barrels, according to Sci99. Out of the total 14.38 million, 5.12 million barrels were stored at Qingdao port, showing a rise of 2.94 percent from a week earlier.
North America
• US oil drillers added more oil rigs for a 21st straight week, marking the biggest streak in at least three decades, according to weekly data from Baker Hughes released on June 9. Oil rigs went up by eight last week, bringing the total number to 741, the data showed. Oil production surged in the US this year as the rig number more than doubled from a low of 316 in May 2016.
• The US government expects the country’s crude production to reach a record next year. Crude production will average more than 10 million barrels per day (bpd) for the first time in 2018, breaking a record almost five decades old, according to the Energy Information Administration’s (EIA) monthly “Short-Term Energy Outlook.” Output will average 10.01 million bpd next year, topping the previous high of 9.6 million in 1970, the EIA said on June 6. For 2017, production is forecast to rise to 9.33 million bpd, compared with a May estimate of 9.31 million. The high production will keep prices from rising as WTI will average $53.61 next year, down from last month’s estimate of $55.10, the report showed. The agency raised its 2017 estimate to $50.78 a barrel from $50.68.
• Good news for American car drivers: The US average gasoline price-at-the-pump on May 9 fell to its lowest in 12 years at $2.35 per gallon, which is 2 cents below the previous year, according to AAA report. The fall in prices is caused by a decrease in crude prices among other factors, according to the report.

Source: Arab News