The North Sea is playing a significant role in the rising of oil prices due to storms that have caused supply disruptions.
“Prices are stronger due to possible (platform) damage in the North sea,” said GNI-Man Financial trader Robert Laughlin.
“We had the worst winds on record last night (Tuesday) in the North sea, so we are waiting to see if there is more substantial damage.”
According to an article from Bloomberg.com,
“Statoil ASA, Norway’s biggest oil company, will be allowed to reopen parts of two North Sea fields that have been shut since Nov. 28 following a gas leak, the country’s Petroleum Safety Authority said. Vigdis and Snorre A, which pump a total 205,000 barrels of oil a day, were shut because of the gas leak from a well at Snorre.
Strong winds and high waves since mid-December have hampered efforts to reopen the fields. The partial resumption that was approved today would allow production of about 100,000 barrels of oil a day, Statoil said yesterday.
The Sullom Voe oil terminal in the North Sea, which handles production from more than 20 fields, halted shipping operations for a second day because of high winds, its operators said today. Tanker berthing was halted at 3 p.m. yesterday.”
There is also a possibility that OPEC make further production cuts.
“There’s been some noise that OPEC wants to cut production again. This is causing a lot of nervousness at the moment,” said Eswaran Ramasamy, a director for Platts based in Singapore.
Murdok | Breaking eBusiness News
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