During the oil price rout, islands in the Caribbeanwere exhibit A for the longest-lasting glut in three decades,with millions of barrels stored there. Now, that oil is flowing again, a signthe market is rebalancing.
Since mid-February, between 10 million and 20 million barrels have left the Caribbean, according to estimates from traders who asked not to be named because their data is proprietary. The draw, hardly noticed by most in the market,reflects the impact of the output cuts orchestrated by OPEC and Russia.
Low taxes and the Caribbeans proximity to U.S. and Latin America oil centers have made it into one of the worlds largest oil storage centers, holding as much as 140 million barrels. While a lack of official data can make the area invisible to some, the information is key in framing a full picture of global supply and demand at a time of market uncertainty.
"Caribbean and other storage has drawn down rapidly over the past weeks," said Amrita Sen, chief oil analyst at Energy Aspects Ltd., in a note to clients. "The first indications that the rebalancing has begun are here."
On Sunday,Mohammad Barkindo, OPECs Secretary-General, said he remained "cautiously optimistic the gap between supply and demand was starting to tighten. The Organization of Petroleum Exporting Countries and the 11 countries that agreed to trim production in the first half of the year are now weighing whether to extend the cutbacks to the end of 2017.
West Texas Intermediate oil fell 0.7 percent to $50.24 a barrel in New York on Monday. Oil prices have fallen about 10 percent this year as crude stockpiles in the U.S. have since December grown by almost 55 million barrels to 534 million barrels, the highest since 1929.
Grand Bahama, Aruba, Bonaire, Curaao, St. Eustatius and St. Lucia, mostly known for the beaches that draw sun-chasing visitors from around the world, all have significant depots to store crude and refined products.
Chinese oil companies, which lease millions of barrels of storage in the southern Caribbean sea, are leading the stock-draw from those islands, the traders said. PetroChina Co. used the super-tanker Nectar last month to remove stored crude from Aruba and Curaao, according to ship-tracking data compiled by Bloomberg. It also loaded the Maxim, another very-large crude carrier (VLCC), with crude from storage in the Caribbean Sea.
Indian oil refiners are also taking crude out. In a rare shipment, Reliance Industries Ltd. receivedEcuadorian crude stored in the island of Grand Bahama in theDHT Condor super-tanker. More recently, another giant tanker, the Amphitrite, took Venezuelan crude from a terminal in St. Eustatius, also for Reliance.
"Globally, crude stocks are coming down," said Mike Loya, the Houston-based top executive at Vitol Group BV, the worlds largest independent oil trader.
The Caribbean outflows also reflect a change in the relationship between spot and forward oil prices. For much of 2015 and 2016, the shape of the oil curve showed spot prices below forward prices. In a contango market, traders can buy barrels, place them on storage and lock in a profit by selling them forward in the futures market.
The price difference between Brent crude oil for immediate delivery and the one-year forward, a key contango yardstick, reached more than $11 a barrel in January 2015. But after OPEC and Russia announced their output cuts in late last year, the contango has all but dissipated, with the one-year Brent price spread at just about 80 cents a barrel on Monday.
"Less visible inventories have been drawing," Martijn Rats, oil analyst at Morgan Stanley in London, said in a note to clients.
Visit link:
Oil Traders Drain Hidden Caribbean Hoards as OPEC Cuts Bite - Bloomberg
- Cheap Caribbean - December 9th, 2016 [December 9th, 2016]
- Caribbean - Lonely Planet - December 12th, 2016 [December 12th, 2016]
- Caribbean Sea | sea, Atlantic Ocean | Britannica.com - December 13th, 2016 [December 13th, 2016]
- Caribbean travel guide - Wikitravel - December 22nd, 2016 [December 22nd, 2016]
- Caribbean Information Office - January 9th, 2017 [January 9th, 2017]
- Holidays to the Caribbean 2016 / 2017 | loveholidays.com - January 9th, 2017 [January 9th, 2017]
- Caribbean Cruises | Caribbean Vacation Packages | Norwegian ... - January 9th, 2017 [January 9th, 2017]
- Caribbean - New World Encyclopedia - January 9th, 2017 [January 9th, 2017]
- 'Pirates of the Caribbean' Actor Brenton Thwaites to Star in Thriller 'Ghosts of War' - Variety - February 7th, 2017 [February 7th, 2017]
- New Kokomo bar has Caribbean theme - Kokomo Tribune - February 7th, 2017 [February 7th, 2017]
- Michael Perry: Caribbean work day | Recent columns by Michael ... - Madison.com - February 7th, 2017 [February 7th, 2017]
- Orlando Bloom Returns as Will Turner in Pirates of the Caribbean 5 First Look - MovieWeb - February 7th, 2017 [February 7th, 2017]
- Link-Caribbean Awards US$125000 To Five Caribbean Firms - Caribbean360.com (subscription) - February 7th, 2017 [February 7th, 2017]
- Johnny Depp Finally Appears In Dynamite 'Pirates Of The Caribbean' Super Bowl Spot - Forbes - February 7th, 2017 [February 7th, 2017]
- RORC Caribbean 600 attracts Classics - Scuttlebutt Sailing News - February 7th, 2017 [February 7th, 2017]
- Caribbean dancer N'Jelle Gage-Thorne visits Allen Hall - Daily Illini - February 7th, 2017 [February 7th, 2017]
- Norwegian, Royal Caribbean expand Cuba sailings through end of the year - Orlando Sentinel - February 7th, 2017 [February 7th, 2017]
- Why Disney's 'Pirates Of The Caribbean' Had The Best Super Bowl Movie Ad - Forbes - February 7th, 2017 [February 7th, 2017]
- The 'baseball island' is taking on water at the Caribbean Series - ESPN (blog) - February 7th, 2017 [February 7th, 2017]
- World's Smallest Biennale Drops Anchor on Caribbean Islet - Hyperallergic - February 7th, 2017 [February 7th, 2017]
- Obama kiteboards in Caribbean with billionaire Richard Branson - Reuters - February 7th, 2017 [February 7th, 2017]
- Crime Costing Caribbean Billions | Caribbean360 - Caribbean360.com (subscription) - February 8th, 2017 [February 8th, 2017]
- Classics Gather in Caribbean - Sailing World - February 8th, 2017 [February 8th, 2017]
- CCGA enters partnership with Caribbean college - The News (subscription) - February 9th, 2017 [February 9th, 2017]
- Caribbean Charm Enjoying New Location - Hartford Courant - February 9th, 2017 [February 9th, 2017]
- World Bank Appoints New Country Director for the Caribbean - St. Lucia Times Online News (press release) - February 9th, 2017 [February 9th, 2017]
- Caribbean reports record of 29M visits - The San Luis Obispo Tribune - February 9th, 2017 [February 9th, 2017]
- Puerto Rico edges Mexico for Caribbean Series title - MLB.com - February 9th, 2017 [February 9th, 2017]
- LGBTQI coalition gears up in eastern Caribbean - Erasing 76 Crimes - February 10th, 2017 [February 10th, 2017]
- Caribbean Series artifacts to be displayed in Hall - MLB.com - February 10th, 2017 [February 10th, 2017]
- Pros and Cons of Royal Caribbean's unlimited drink packages - Royal Caribbean Blog (blog) - February 10th, 2017 [February 10th, 2017]
- AP PHOTOS: Editor Selections From Latin America, Caribbean ... - ABC News - February 10th, 2017 [February 10th, 2017]
- Caribbean reports record of 29M visits - Beloit Daily News - February 10th, 2017 [February 10th, 2017]
- Humanitarian Bulletin Latin America and Caribbean Volume 30 | November December 2016 - ReliefWeb - February 10th, 2017 [February 10th, 2017]
- All inclusive Caribbean trips with nonstop flights hit the vacation spot - The Tennessean - February 10th, 2017 [February 10th, 2017]
- US, EU Food Standards Major Hurdle for Caribbean Exporters - Caribbean360.com (subscription) - February 11th, 2017 [February 11th, 2017]
- Cruises that cater to the Chinese on Royal Caribbean's Ovation of the Seas - Miami Herald - February 11th, 2017 [February 11th, 2017]
- St. Croix Restaurants Named Among Top Ten In Caribbean By USA Today - VI Consortium (press release) - February 11th, 2017 [February 11th, 2017]
- Caribbean Brothers Bar & Grill opens along Route 30 in Lancaster Family Resort - LancasterOnline - February 11th, 2017 [February 11th, 2017]
- FATCA hurting Caribbean: Revoke it, Mr Trump - Jamaica Observer - February 12th, 2017 [February 12th, 2017]
- Book review: 'Island People' brings Caribbean's humanity, color to life - Fredericksburg.com - February 12th, 2017 [February 12th, 2017]
- Caribbean/American leaders want strong stance against Trump's immigration policy - Jamaica Observer - February 13th, 2017 [February 13th, 2017]
- 10 Ways MSC Cruises is Elevating the Caribbean Cruise Experience - Cruise Fever - February 13th, 2017 [February 13th, 2017]
- Caribbean hoteliers concerned over poaching - Jamaica Observer - February 13th, 2017 [February 13th, 2017]
- Caribbean all-inclusive resorts: Top spots for families, foodies, more - USA TODAY - February 13th, 2017 [February 13th, 2017]
- This Unknown Caribbean Island Should Be Your #1 Vacation Destination In 2017 - Huffington Post - February 15th, 2017 [February 15th, 2017]
- Belize among the Caribbean countries recording strongest tourism growth - Amandala - February 15th, 2017 [February 15th, 2017]
- You can take a family vacation the Caribbean - AZCentral.com - February 15th, 2017 [February 15th, 2017]
- Caribbean-style lagoon coming to Houston-area development - Chron.com - February 15th, 2017 [February 15th, 2017]
- Royal Caribbean CIO Sets Sail For Digital Innovation - Forbes - February 15th, 2017 [February 15th, 2017]
- 2000 Royal Caribbean passengers stranded after ship fails life jacket inspection - Fox News - February 15th, 2017 [February 15th, 2017]
- Caribbean's Carnivals Tip Their Hats to Trinidad - New York Times - February 15th, 2017 [February 15th, 2017]
- New shark of the Caribbean - Deutsche Welle - February 15th, 2017 [February 15th, 2017]
- Caribbean labour ministers to meet in Jamaica - Jamaica Observer - February 16th, 2017 [February 16th, 2017]
- Record Fleet for RORC Caribbean 600 >> Scuttlebutt Sailing News - Scuttlebutt Sailing News - February 16th, 2017 [February 16th, 2017]
- Caribbean hoteliers predict positive tourism performance for 2017 - Amsterdam News - February 16th, 2017 [February 16th, 2017]
- Venezuela promotes trade with Caribbean - St. Lucia Times Online News (press release) - February 16th, 2017 [February 16th, 2017]
- Disney World announces expansion at Coronado Springs, Caribbean Beach resorts - Orlando Sentinel - February 16th, 2017 [February 16th, 2017]
- AP PHOTOS: Editor selections from Latin America, Caribbean - SFGate - February 17th, 2017 [February 17th, 2017]
- UK weather to get hotter than Barcelona as Caribbean blast 'heatwave' keeps temperatures soaring into next week ... - The Sun - February 17th, 2017 [February 17th, 2017]
- Black Caribbean Immigrants In The US Today 10 Things You Should Know This Black History Month - News Americas Now Caribbean And Latin America Daily... - February 17th, 2017 [February 17th, 2017]
- The 8 Most Memorable Island Cocktails To Try On Your Next Caribbean Adventure - Huffington Post - February 17th, 2017 [February 17th, 2017]
- Caribbean air will send February temperatures soaring in Cornwall - Cornwall Live - February 18th, 2017 [February 18th, 2017]
- New LEGO Pirates of the Caribbean sets revealed at New York Toy Fair 2017, coming in May [News] - The Brothers Brick - February 18th, 2017 [February 18th, 2017]
- Caribbean/American legislator dispels rumours about immigration sweep - Jamaica Observer - February 18th, 2017 [February 18th, 2017]
- Lego's New Pirates of the Caribbean Ship Can Open Itself Up Like a Skeleton's Ribcage - Gizmodo - February 18th, 2017 [February 18th, 2017]
- Royal Caribbean cancels all cruise stops in Turkey in 2017 - Royal Caribbean Blog (blog) - February 20th, 2017 [February 20th, 2017]
- Caribbean trained attorneys are taking over the judiciary in the region - Stabroek News - February 20th, 2017 [February 20th, 2017]
- Caribbean Nations Concerned President Trump's Immigration Policy Will Slow Tourism - South Florida Caribbean News - February 20th, 2017 [February 20th, 2017]
- Woman suffering diabetic shock airlifted by Coast Guard from Royal Caribbean cruise ship - ABC News - February 20th, 2017 [February 20th, 2017]
- Johnny Depp is in 'Pirates of the Caribbean: Dead Men Tell No Tales', Apparently - Bloody Disgusting - February 20th, 2017 [February 20th, 2017]
- Dozens Starve to Death in Caribbean Prison - Newser - February 20th, 2017 [February 20th, 2017]
- Horses on the Caribbean Track - Scuttlebutt Sailing News - February 21st, 2017 [February 21st, 2017]
- SXM Festival on the Caribbean island of Saint Martin announces 2017 edition - Mirror.co.uk - February 23rd, 2017 [February 23rd, 2017]
- Navigator of the Seas Live Blog - Day 5 - Curacao - Royal Caribbean Blog (blog) - February 23rd, 2017 [February 23rd, 2017]
- Jamaica Commended For Its Economic Initiatives At IDB - South Florida Caribbean News - February 23rd, 2017 [February 23rd, 2017]
- RORC Caribbean 600: It's Never Like This >> Scuttlebutt Sailing News - Scuttlebutt Sailing News - February 23rd, 2017 [February 23rd, 2017]
- More Caribbean illegals in line for deportation - Trinidad & Tobago Express - February 23rd, 2017 [February 23rd, 2017]
- CHIEF and Taste Of The Caribbean To Be Held In Miami In June ... - Caribbean360.com (subscription) - February 23rd, 2017 [February 23rd, 2017]
- Caribbean islands offer Carnival travel choices: St. Lucia, Barbados and more - Newsday - February 23rd, 2017 [February 23rd, 2017]