- Oil rises 1.5% amid U.S. production cuts in the Gulf of Mexico
- Hurricane Ian is gaining strength as it moves towards the coast of Florida
- Oil and gas operators have evacuated 12 platforms in the Gulf of Mexico, meaning that nearly 11% of the area's crude oil production is now shut-in
- The U.S. Dollar continues to show strength against weaker macro market
- The yield on 10-year U.S. government bonds briefly reached 4.00% on Wednesday, up from 1.50% a year ago, the fastest increase since 1984
- The rapid increase reflects expectations that inflation will remain persistent and interest rates will remain higher for longer
- Hurricane Ian is gaining strength as it moves towards the coast of Florida
- The EU is considering adding shipping restrictions to its oil sanctions as the bloc continues to explore the imposition of a price cap on Russian oil (BBG)
- The shipping ban would prevent ships from the EU from delivering the Urals that had been sold above a specific price level
- The current oil sanctions imposed by the EU, which were decided upon in June, include an embargo on Russian seaborne oil, a ban on services such as insurance, and financing needed to transport oil around the world, as well as exemptions for pipeline deliveries
- The sanctions are scheduled to begin in December for seaborne crude and early 2023 for refined petroleum products
- The European Commission decided to postpone the Russian oil price cap earlier this week as member states continue to negotiate a consensus on sanctions
- Last weekend, the 27 member states and the European Commission gathered to explore a compromise on the terms of the current oil restrictions, as well as other restrictive sanctions
- The member states are expected to push for the drafting of a preliminary deal ahead of the informal meeting of EU leaders scheduled for October 6
- Kazakhstan's largest offshore oilfield, Kashagan, will take at least three weeks to fully recover oil production (BBG, Reuters)
- Oil output was reduced to just 25% of normal levels after a gas leak was discovered in early August
- The project, which currently produces about 0.100 MMBbl/d, is anticipated to double output this week following repairs on one of the two gas-injection compressors, according to people familiar with the matter
- The restoration of the total output of 0.400 MMBbl/d depends on the success of repairs to machinery known as a slug catcher, which could take almost a month
- Kazakhstan's oil production and exports have been lower in recent weeks due to the partial outage at Kashagan and urgent repairs needed at two of the Caspian Pipeline Consortium's (CPC) terminals on the Black Sea
- Crude oil production in Kazakhstan, which is part of the OPEC+ output deal, plunged by 13% in August from July
- Excluding condensate, oil production in Kazakhstan dropped to 1.196 MMBbl/d last month, down from 1.378 MMBbl/d, reported Reuters