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Oil glut may worsen as OPEC+ floods market

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Indeed, the Brent Crude dropped to $28.89 yesterday, as COVID-19 pandemic hits harder. SOilGlut OPEC

With only a week to go before OPEC+ countries start flooding the world’s total oil production with an estimated extra 2.5 million barrels per day amid the Covid-19 crisis, building one of the biggest oil supply gluts the world has ever seen, UK operator INEOS has decided to postpone its scheduled maintenance for the North Sea Forties pipeline system in a move that Rystad Energy calculates will add several hundred thousands of extra barrels to the market every day.

E&P companies are trying to keep oil flowing during the coronavirus outbreak while cutting back on all other activities – including maintenance. Turnarounds increase human-to-human contact adding maintenance crews typically results in more people working at the platform and more rotation.

 

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