Energy ETFs & Stocks Surge On Norway Strike & Delta Hurricane

Oil price is on track for the biggest weekly gain since May driven by a Norway strike and Hurricane Delta that has threatened output. Both U.S. crude and Brent are up around 10% this week, marking the first rise in three weeks.

Norway Strike

A strike by oil workers in Norway could cut output from western Europe’s biggest oil and gas producer by almost a quarter by Oct 14.

The dispute began on Sep 30 when wage talks between the Lederne union and the organization representing oil companies collapsed. However, the first production outages began on Oct 5. According to the Norwegian Oil and Gas Association, six offshore oil and gas fields were shut on Oct 5. This has reduced output capacity by 8% or around 330,000 barrels of oil equivalent per day (boepd). U.S. oil major ConocoPhillips (COP) planned shutdown of its Ekofisk 2/4 B platform, with output of 7,000 billion boepd, on Oct 10 if the strike continues. Six more oil and gas fields could fully or partly close by Oct 14, including the Ekofisk platform.

The biggest outage would be at Equinor’s Johan Sverdrup oilfield, the North Sea’s largest oilfield with an output capacity of up to 470,000 barrels of oil per day. Overall, 941,000 boepd are expected to go offline so far. The Norwegian Oil and Gas Association expects the extended strike to cut 25% of production.

Hurricane Delta

The hurricane Delta has forced to shut down nearly 1.5 million barrels per day (bpd) of oil output in the Gulf of Mexico. It has halted nearly 90% of the Gulf of Mexico’s crude output.

Saudi Arabia View

Per The Wall Street Journal, Saudi Arabia is considering the cancellation of plans for the Organization of the Petroleum Exporting Countries (OPEC) to raise oil production early next year. It cited that the rise in COVID-19 cases in many parts of the world and the expected return of Libyan crude oil to the world market threatens to swell global supplies.

The oil price surge led to smooth trading in the energy space. We have highlighted the five best ETFs & stocks that gained the most over the past week and will continue to head higher with the rise in oil price.

1 2 3 4
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.