Which News inpact in Mcx Crude Oil Prices

How Global Crude Oil Supply Outages Impact Crude Oil Prices

Worldwide Crude oil supply outages 

The EIA evaluates that worldwide crude oil supply outages droped by 408,000 bpd (barrels every day) to 2,332,000 bpd in Oct 2016 contrasted with the earlier month. Worldwide crude oil supply outages droped 15.6 Percent month-over-month and 27 Percent year-over-year. Worldwide crude oil supply outages were at 3.6 MMbpd (million barrels for each day) in May 2016 the most highest since 2011.

• OPEC oil producers' supply outages droped by 306,000 bpd to 2 MMbpd in Oct 2016 contrasted with the earlier month. Libya and Nigeria had the biggest production outages among OPEC members in Oct. 2016.
• Non-OPEC crude oil producers’ supply outages droped by 102,000 bpd to 0.3 MMbpd in Oct. 2016 contrasted with Sept. 2016.
• The EIA said that Canada did not have any Mcx crude oil supply outages between Aug 2016 and Oct. 16. Canada's crude oil supply outages remained at 50,000 bpd, 400,000 bpd, and 750,000 bpd in July, June, and May, separately, because of out of control fire related shutdowns.  
• The EIA evaluated that Nigeria's Crude Oil petroleum production droped by 10,000 bpd to 2.1 MMbpd in Oct. 2016 contrasted with the earlier month. Production droped because of electricity disruptions, oil gear deficiencies, and the financial emergency in the nation.
• The EIA estimated that Nigeria’s crude oil production increased by 8,000 bpd to 1.6 MMbpd in Oct. 2016 compared to the last month. Rebel attacks on oil pipelines and infrastructure impacted Nigeria’s crude oil production. Nigeria’s crude oil production droped to 1.4 MMbpd in May 2016 the lowest Ranges in the past 22 years.

Effect of falling worldwide crude supply outages

The growth in worldwide crude oil supplies because of the decrease in outages could negatively affect crude oil costs. Down crude oil costs could negatively affect oil and gas producers' income, for example, Contango Oil and Gas (MCF), Chevron (CVX), Denbury Resources (DNR), and Cobalt International Energy (CIE).

Instability in oil and gas costs likewise impacts ETFs, for example, the Energy Select Sector SPDR ETF (XLE), the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), the SPDR S&P Oil and Gas Equipment and Services ETF (XES), the Direxion Daily Energy Bear 3x (ERY), and the Guggenheim S&P 500 Equal Weight Energy ETF (RYE).

Next, we will analyze OPEC's month to month Mcx crude oil production and its effect on the crude oil market.