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Aiteo Reports ‘High Order’ Spill from Oil Well

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Nigeria's aiteo

Nigeria’s Aiteo, a Lagos-based international oil and gas company has reported an oil spill that is classified as “extremely high order” from one of its wells in the Niger Delta region of Nigeria.

The well, which is jointly owned by Aiteo and NNPC was found out to be leaking last Friday without a determined cause. Aiteo however did not rule out vandalism and oil theft as a possible cause of the massive leak. The company mentioned that the incident had been reported to regulators, and had mobilized specialists to close the leak. Aiteo has had to suspend immediate efforts to control the leak due to the pressure coming out of the well head.

Environmental Rights Action, a local environment group said the latest spill in Yenagoa, Bayelsa state was another incident that would have a highly negative impact on the marine ecosystem on which most fishing activities depend. The Niger Delta is a large maze of creek and mangrove swamps with cris-crosses of pipelines. However, the region is highly troubled by pollution, violence, corruption and poverty. The history of vandalism and oil theft in the Niger Delta is enough reason for Aiteo to consider that as a possible cause of the spill, even though the spill could have been caused by other factors.

Oil spills in Nigeria have had extremely catastrophic effects on areas whose people rely on creeks as the only water supply, and who focus on fishing and farming as their means of livelihood. The oil spills would make such water harmful to both crops and fish, causing them to die. It would also take away the people’s access to healthy water.

Aiteo spokesman Ndiana Matthew said that the well is part of assets that Aiteo purchased from Royal Dutch Shell back in 2015.

Alagoa Morris, Environmental Rights Action’s field officer in the Niger Delta castigated Aiteo, saying that regardless of the cause of the spill the company should have taken proper steps to ensure that the spill is cleaned up properly. This statement however does not take into consideration the problems which Nigerian oil companies have run into while trying to clean up oil spills in recent years. Sometimes, obstruction by local gangs looking to get massive pay-outs from the companies can hinder the cleaning process.

However, this is no excuse for Aiteo, as it is their responsibility to clean up after mishaps that bear the company name.

 

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Brent Crude Approaches $86 Following Moscow Attacks

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Brent crude oil - Investors King

Amid escalating geopolitical tensions following the devastating terrorist attacks in Moscow, global oil markets rose with Brent crude oil hitting a $86 price level.

The tragic events in the Russian capital, which claimed the lives of over 130 innocent civilians, sent shockwaves through international communities and rattled energy markets already grappling with supply uncertainties.

Speculation surrounding the attacks, claimed by the Islamic State but with hints of potential Ukrainian involvement from Russian President Vladimir Putin, intensified concerns about potential disruptions to oil supplies.

Also, ongoing drone strikes by Ukraine targeting Russian infrastructure further exacerbated worries about the stability of crude oil production and refining capabilities in the region.

The mounting geopolitical unrest in key oil-producing regions has injected a sense of urgency into the market, with investors closely monitoring developments for potential impacts on global supply and demand dynamics.

Despite recent fluctuations, crude oil is poised for a third consecutive monthly gain, buoyed by efforts from the OPEC+ alliance to maintain production cuts and bolstered by tightening US sanctions on Russian energy exports.

The bullish sentiment is further supported by positive commentary on the broader commodities outlook, with central banks signaling potential interest rate reductions to stimulate economic growth, thus underpinning industrial and consumer demand for raw materials.

Analysts remain cautiously optimistic about the trajectory of oil prices, citing a delicate balance between supply risks and supportive macroeconomic factors amidst the backdrop of geopolitical turmoil.

As Brent crude inches closer to the $86 threshold, market participants brace for continued volatility amid unfolding geopolitical developments.

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Indian Refiners Shun Russian Crude Carried by Sovcomflot Tankers Amidst US Sanctions

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Crude Oil - Investors King

Indian refiners have taken a bold stance by refusing to accept Russian crude oil carried on PJSC Sovcomflot tankers, citing stringent US sanctions.

This decision marks a significant shift in India’s energy strategy and underscores the profound impact of global politics on the oil trade.

The move comes in the wake of heightened scrutiny on Sovcomflot tankers following sanctions imposed by the US Treasury’s Office of Foreign Assets Control.

Designating Sovcomflot and identifying specific crude oil tankers, the US has intensified its efforts to clamp down on entities linked to Russia, particularly in the aftermath of the Ukraine invasion.

Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp., Mangalore Refinery & Petrochemicals Ltd., and Nayara Energy Ltd. have all halted the acceptance of cargoes carried on Sovcomflot vessels.

This unified action underscores the severity of the situation, with refiners diligently scrutinizing tanker ownership to ensure compliance with sanctions.

The repercussions of this decision are reverberating throughout the oil market, leading to disruptions in the supply chain and altering trade dynamics.

With fewer tankers available to transport Russian crude, the pricing landscape has undergone a significant shift, with discounts narrowing to compensate for higher freight costs.

Despite the challenges posed by sanctions and supply chain disruptions, India remains a key player in the global oil market.

However, the decision to shun Russian crude on Sovcomflot tankers reflects a strategic recalibration in response to evolving geopolitical realities, underscoring the complex interplay between politics and energy security on the world stage.

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