Norway's Johan Sverdrup oilfield shut by power outage, lifting Brent crude
NiseriN/iStock via Getty Images
Equinor (NYSE:EQNR) said Monday it has stopped production from its Johan Sverdrup oilfield, western Europe's largest with production of ~750K boe/day, helping to boost futures prices.
Brent front-month January crude oil (CO1:COM) trades +2.7% to $72.97/bbl at least partially because of the news, as the outage may tighten the North Sea crude market, as physical supply of North Sea crude underpins the Brent futures complex.
The outage was caused by an onshore power outage caused by smoke developing in an onshore electricity converter station which sends power to the field, a company spokesperson told Reuters.
The company said work is underway to re-establish production, but it is not yet known when output will resume.
Separately, DNB Markets downgraded Equinor (EQNR) to Sell from Hold, saying the company has "limited will of capacity for attractive shareholder distributions" beyond 2025, while seeing "significant weakening" of its cash conversion as renewable capital spending rises.
ETF: (BNO)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10