Oil rises 1% on settlement amid fears of supply shortages

[tigergorzow]

LGD,  Welcome Back good to see you posting again my friend.

 

GO RV / RI

[tigergorzow]

LGD,  Welcome Back good to see you posting again my friend.

 

GO RV / RI

[Pitcher]

The Firm Floor Under Oil Prices

By Tom Kool - Apr 19, 2019, 2:00 PM CDT

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The continued slowdown of US shale production and the looming deadline for Iran sanctions waivers have put a floor under oil prices this week

 

 

 

 

Friday, April 19, 2019

Oil held steady at the close of the week, with a slowdown in U.S. shale and the looming deadline for a decision on Iran sanctions waivers putting a floor under oil prices.

Schlumberger sees shale slowdown. Schlumberger said its earnings were hit in the first quarter by the drilling slowdown in the Permian, while market conditions globally continue to improve. Schlumberger sees “higher investments in the international markets simply to keep production flat, while North America land activity is set for lower investments with a likely downward adjustment to the current production growth outlook,” according to CEO Paal Kibsgaard. “the higher cost of capital, lower borrowing capacity and investors looking for increased returns suggest that future E&P investments will likely be at levels dictated by free cash flow.”

Rig count falls. The U.S. oil industry slashed its rig count by 8 rigs this week, bringing the total down to 825. The sharp decline put an end to two consecutive weeks of increases.

 

Trump spoke about oil with Abu Dhabi crown prince. President Trump spoke with the crown prince of Abu Dhabi and they talked about “contributions to the global energy markets as a reliable supplier of oil,” according to a readout of the call from the White House. Trump is expected to make a decision on Iran sanctions in the next week or two, and a hardline may require higher oil production from OPEC.

Venezuela sends oil through Russia. Venezuela is skirting U.S. sanctions by moving oil through Russia’s Rosneft. According to Reuters, PDVSA has passed invoices from its sales to Rosneft. Rosneft buys the oil at a discount and resells cargoes to international buyers at the full price. PDVSA receives the money upfront rather than at a later date.

Cooler temperatures push down electricity. Cooler than average temperatures are expected for this summer, and the U.S. could see lower electricity bills, according to the EIA. Relatedly, natural gas prices are near multi-year lows on expectations of record-breaking gas production this year.

Tellurian receives federal approval on $28 billion LNG project.Tellurian Inc. (NASDAQ: TELL) won federal approval for its $28 billion Driftwood LNG export terminal on the Gulf Coast, and Sempra Energy (NYSE: SRE) also got the go-ahead from regulators for its Port Arthur LNG project. The project approvals come even as the market for LNG has become oversupplied, amid a wave of new export capacity in the U.S., Australia and Qatar.

Saudi Aramco considers 20 percent stake in Indian refiner.Saudi Aramco is mulling a 20 percent stake in India’s Reliance Industries. Aramco has been stepping up investments in overseas refiners and petrochemical companies as a way of securing long-term buyers for its crude oil. India, in particular, is expected to be a strong source of demand growth going forward.

Petrobras reverses course, hikes diesel prices. Less than a week after Brazilian President Jair Bolsonaro decided against a price increase for diesel, Petrobras (NYSE: PBR) raised prices by 10 cents per liter and promised that it would remain free of political interference. When news broke that Bolsonaro opposed raising diesel prices last week, Petrobras’ share price plunged. The hike in prices was meant to send a signal to investors that the company would keep a keen eye on company finances, pursuing divestment and debt reduction.

Colorado Governor signs major oil and gas overhaul.Colorado’s Governor Jared Polis signed into law a major overhaul of the state’s oil and gas sector, granting more authority to localities over drilling operations and also reforming the mission of the state regulator to prioritize public health and environmental protection instead of promoting oil and gas development. The law is seen as a blow to the industry, but the silver-lining could be more certainty. “Today, with the signing of this bill, it is our hope that the oil and gas wars that have enveloped our state are over, and the winner is all of us,” Gov. Polis said.

ExxonMobil won three offshore blocks in Argentina. ExxonMobil (NYSE: XOM) won three offshore oil blocks in Argentina, in the Malvinas basin at the southern tip of the country. The closely-watched auction reportedly attracted offers from 13 companies for a combined $995 million.

Repsol suspends gasoline swap with Venezuela. Spain’s Repsol has suspended fuel swaps with PDVSA, fearing retaliation from American sanctions. Respol had been sending gasoline in exchange for crude oil, helping ease a fuel crisis in the country.

Kinder Morgan considers third Permian gas pipeline. Kinder Morgan (NYSE: KMI) is considering building a third natural gas pipeline for the Permian. “Demand to get gas out of the Permian continues to grow and the desire to unlock value that’s in oil and (natural gas liquids) continues to put pressure on need for additional takeaway capacity,” CEO Steven Kean said. “There is interest in pipe three.”

Europe imposes caps on CO2 for trucks. The European Parliament passed a 30 percent CO2 reduction target for 2030 and establish the first CO2 limits for heavy trucks.

Permian sees discounts for too much light supply. With the Permian overflowing with ultralight oil, refiners are beginning to demand discounts because of a mismatch with medium and heavy refining capacity. Reuters reports that ultralight oil has begun trading at a $1 to $2-per-barrel discount to WTI.

 

https://oilprice.com/Energy/Energy-General/The-Firm-Floor-Under-Oil-Prices.html

[Pitcher]

Guaido Takes Strides To Topple Maduro

- Apr 19, 2019, 8:00 PM CDT

The US-recognized interim president of Venezuela called on the country’s people to hold the “largest march in the history of Venezuela” to urge Nicolas Maduro to leave office as the country languishes in chaos.

“We call on all the people to join in the largest march in the history of Venezuela to demand the end to the usurpation so this tragedy can end,” Guaido said on Friday, according to Reuters.

The Venezuelan crisis has seen its oil industry reduced to a shadow of what it once was as the country’s oil production fell to new lows in March of 732,000 bpd—down from an average of 1.354 million bpd in 2018 and 1.911 million bpd in 2017, according to secondary sources provided by the latest edition of OPEC’s Monthly Oil Market Report.

 

Despite its reduced production levels, the country is experiencing a traffic jam offshore as US sanctions on the country stymie oil payments to the Latin American nation from would-be buyers, stranding already loaded cargo off the coast.

In addition to its oil industry woes, the country has suffered numerous blackouts in recent months—all while being managed by two opposing leaders in Maduro and Guaido. There are even two PDVSA boards—one for each party.

The US has steadily increased pressure on the troubled Latin nation, the latest round of which targeted Venezuela’s shipments to Cuba—an entrenched arrangement predating Maduro’s reign that provided Venezuela with much-needed skilled labor such as doctors and oil workers.

Guaido continues to try to wrest control of the country and its state-run oil company, and his National Assembly is expecting to vote on Monday on a $71 million interest payment on one of PDVSA’s bonds next week, Guaido’s appointed PDVSA board of directors announced today, according to Reuters. The payment would stave off potential creditors looking to get their due from PDVSA’s US-based refining arm, Citgo. The details of where that money would come from remains unknown.

 

https://oilprice.com/Latest-Energy-News/World-News/Guaido-Takes-Strides-To-Topple-Maduro.html

[Pitcher]

n and with nearly two dozen Democratic candidates, it’s not clear that Sen. Warren will emerge at the front of the pack. But she has rolled out a litany of progressive policies that have forced other candidates to take similar stances, and her public lands proposal has laid down a marker that could become something of a baseline in the primary race.

Related: The World’s Most Unorthodox Oil Nation

As a result, the gulf between Trump and his rivals is arguably wider than at any point in the past. There were significant differences between the Obama and Bush administrations, to be sure, but the gap between the parties is growing wider. On the one hand, Trump offers unhindered support for the oil and gas industry. On the other, many – though not all – of the Democratic candidates favor increasing restrictions on drilling. Sen. Warren’s proposal goes the furthest to date – a plan to shut off new drilling on federal lands.

While the oil and gas industry, in many ways, has never had it so good, at least in the United States, the regulatory reprieve under Trump could be just that – an interlude, or a hiatus. The Obama administration implemented significant – though incremental and incomplete – regulations on oil and gas drilling. The next president could take that a step further. Over the long-run, the worsening climate crisis will likely ensure the federal regulatory ratchet moves in a tighter direction.

There are signs that the oil and gas industry already understands this. Remarkably, many of the largest oil companies are coming around in support of tighter limits on methane. Shareholder pressure is also on the rise. Renewable energy and electric vehicles pose a growing threat to oil and gas interests. Even at the IHS CERAWeek Conference in March, many oil executives displayed anxiety about the threat of climate change and renewable energy.

The trend towards clean energy is inevitable and likely unstoppable. But Sen. Warren’s proposal would greatly accelerate that transition. 

 

https://oilprice.com/Energy/Energy-General/The-2020-Elections-Could-Be-A-Turning-Point-For-Oil-Gas.html

[ChuckFinley]

5 hours ago, ladyGrace'sDaddy said:

I found this site to be interesting for all those who wish to follow the daily oil prices.

Especially interesting is that if you scroll down you will see the prices of oil by location,

here is Basra Iraq,

 

Basra Light

73.92

+0.57

+0.78%

https://oilprice.com/oil-price-charts

 

WTI CRUDE •	64.07	+0.20	+0.31%
BRENT CRUDE •	71.97	+0.35	+0.49%
MARS US •	68.10	+0.24	+0.35%
OPEC BASKET •	70.81	+0.70	+1.00%
URALS •2 days	69.94	+0.00	+0.00%

Welcome back my friend.  

[MyLadiesDaddy]

6 hours ago, tigergorzow said:

LGD,  Welcome Back good to see you posting again my friend.

 

GO RV / RI

 

Thanks guys, it's good to be back. 

 

1 hour ago, ChuckFinley said:

Welcome back my friend.  

 

[Pitcher]

LGD, good to see you back and posting again. I hope all is well with you and your family!!

[MyLadiesDaddy]

15 minutes ago, Pitcher said:

LGD, good to see you back and posting again. I hope all is well with you and your family!!

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

[ChuckFinley]

2 minutes ago, ladyGrace'sDaddy said:

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

I post that you would be the only sane one here by taking the time off. 

[pokerplayer]

3 hours ago, ladyGrace'sDaddy said:

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

 

You were missed my friend, glad your back 

 

   pp

[NoviceInvestor]

4 hours ago, ladyGrace'sDaddy said:

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

Welcome back LGD and Easter Blessings to you and yours 😊🙏

[NEPatriotsFan1]

4 hours ago, ladyGrace'sDaddy said:

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

Awesome, hopefully while you were at it, you calibrated the RV for this weekend or next at the latest  

 

Welcome back bud

[nannab]

11 hours ago, ladyGrace'sDaddy said:

Thanks, all is well I just took the time of Lent to refocus and calibrate. 

 

Glad to see you back LGD

You were missed.   

Edited April 21, 2019 by nannab

[MyLadiesDaddy]

17 hours ago, pokerplayer said:

 

You were missed my friend, glad your back 

 

   pp

 

And I've missed everyone here also 

 

16 hours ago, NoviceInvestor said:

Welcome back LGD and Easter Blessings to you and yours 😊🙏

Much Love to ya Sister. Look for my email later tonight 

 

15 hours ago, NEPatriotsFan1 said:

Awesome, hopefully while you were at it, you calibrated the RV for this weekend or next at the latest  

 

Welcome back bud

 

😂I wish it was that easy 

 

9 hours ago, nannab said:

 

Glad to see you back LGD

You were missed.   

[yota691]

Economist / Center for Research and Communication Knowledge publishes a report entitled "The future of OPEC"

Sunday, 1440/816 H corresponding to 2019/04/21 SPA

• 

 

RIYADH, April 21, SPA ( 
WAM) - The Center for Research and Knowledge Communication (CCRIC) today issued a report entitled "The Future of OPEC", which dealt with the situation of the global energy market, which is one of the main players in OPEC. , And the state of supply and demand for oil and energy, during a hypothetical period between (2015-2040).
The report, which was prepared by Dr. Abdullah bin Abdul Mohsen Al-Faraj, a senior researcher at the Center for Research and Knowledge Communication, included about 20 pages of the big pieces. It included an introduction, a list of reservations about what some local energy markets are going through, the results, The report presents 7 tables and 8 graphs illustrating several factors influencing global energy markets: global population growth, economic growth of more than 3%, and global political events, which collectively or individually affect demand and supply in the global energy market .
Dr. Al-Faraj suggested in the report the establishment of another organization that includes all energy producers from within and outside the OPEC, especially the major energy producers in the world, led by the United States, Canada, Russia and Saudi Arabia, pointing out that this organization is on the ground but need to activate more, The International Energy Forum (IEF), based in Riyadh, Saudi Arabia, is located at www.ief.org, 
where the International Energy Security Council, which includes the two major energy producers, and a general assembly of all producers Energy in the world without exception.
The report concludes with the development of principles for the proposed International Energy Security Council (IEF), which are based on the assumption that energy prices should encourage the growth of the global economy, which will contribute to increasing demand for energy resources and the development of energy industries. That these prices are fair, that the return from the sale of these resources in the global market is supposed to be sufficient not only to finance the development of the countries producing 
this energy, but also to reproduce this energy extensively to meet the expanded demand for the world economy of energy, energy. 
// // ended 
14:45 ITM 
0102

 

[yota691]

Ministry of Oil: Any measure to increase oil production will not be monolithic

 

energy Economy News _ Baghdad Iraq is committed to global supply cuts by OPEC and its allies and any decision to increase or reduce production should be taken collectively by OPEC, Oil Ministry spokesman Assem Jihad said on Monday. "Iraq does not make an individual decision to compensate for the shortfall in the oil market for any reason," Jihad told Reuters when asked if Iraq was ready to increase its production to compensate for any potential shortage of Iranian oil supplies. An informed source told Reuters the United States was expected to announce on Monday that Iranian oil buyers should stop imports quickly or face sanctions, triggering a 3 percent jump in crude prices to reach their highest levels this year. Views 37   Date Added 22/04/2019

[yota691]

US willingness to stop exceptions to Iranian oil raises oil prices to more than 2%

 

Monday 22 April

 

 

BAGHDAD ( Reuters) - Oil prices rose more than 2 percent on Monday as the US prepared to stop its sanctions on Iranian oil as well as efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other countries under the so-called OPEC to block about 1.2 million barrels Daily of oil.  Global Brent crude oil futures at $ 12.85, or $ 1.84, were $ 1.84, or 2.56%, at their highest level this year.   It rose US Brent crude contracts for West Texas Intermediate $ 1.46 or the equivalent of 2.28% to record at the settlement of $ 65.53 a barrel.  Oil prices gained support after the United States announced its readiness to announce the need for all Iranian oil importers to end their imports soon after, otherwise they would face US sanctions.  Prices are supported by efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and other countries under the alliance known as OPEC to block about 1.2 million barrels per day of oil, in a strategy aimed at reducing supply to markets.

[yota691]

Oil jumps to $ 74

Release date: 2019/4/22 11:12 • 457 times read

{International: Al Furat News} Oil prices jumped on Monday after the United States appeared to announce that all Iranian oil buyers were obliged to end their imports or be subject to sanctions.

Brent crude futures rose 3.3 percent to $ 74.31 a barrel, its highest level since November 1, before falling to $ 73.63 a barrel by 0604 GMT, up 2.3 percent from the last close. 
US West Texas Intermediate crude futures rose 2.9 percent to $ 65.87 a barrel, their highest since October 31. By 0544 GMT, the price was $ 65.50 a barrel, up 2.3 percent from the previous settlement. 
The Washington Post reported on Sunday that the United States was preparing to announce on Monday that current buyers of Iranian oil would not receive further exemptions from sanctions.
Secretary of State Mike Pompeo will announce that "as of May 2, the State Department will not grant further exemptions from sanctions to any country that imports crude or condensates from Iran," a newspaper columnist said, quoting two unnamed US State Department officials. 
A source familiar with Reuters confirmed the report, but a spokesman for the State Department declined to comment. 
The suspension of the exemptions will reduce oil supplies in a market already experiencing shortages due to US sanctions on Iran and Venezuela, another OPEC member. 
OPEC and other international oil producers have also been cutting supplies since the beginning of the year to reduce supply to world oil markets and boost prices. 
As a result, Brent prices rose more than a third this year, while WTI surged more than 40 percent in the same period

[MyLadiesDaddy]

3 hours ago, yota691 said:

Oil jumps to $ 74

Release date: 2019/4/22 11:12 • 457 times read

{International: Al Furat News} Oil prices jumped on Monday after the United States appeared to announce that all Iranian oil buyers were obliged to end their imports or be subject to sanctions.

Brent crude futures rose 3.3 percent to $ 74.31 a barrel, its highest level since November 1, before falling to $ 73.63 a barrel by 0604 GMT, up 2.3 percent from the last close. 
US West Texas Intermediate crude futures rose 2.9 percent to $ 65.87 a barrel, their highest since October 31. By 0544 GMT, the price was $ 65.50 a barrel, up 2.3 percent from the previous settlement. 
The Washington Post reported on Sunday that the United States was preparing to announce on Monday that current buyers of Iranian oil would not receive further exemptions from sanctions.
Secretary of State Mike Pompeo will announce that "as of May 2, the State Department will not grant further exemptions from sanctions to any country that imports crude or condensates from Iran," a newspaper columnist said, quoting two unnamed US State Department officials. 
A source familiar with Reuters confirmed the report, but a spokesman for the State Department declined to comment. 
The suspension of the exemptions will reduce oil supplies in a market already experiencing shortages due to US sanctions on Iran and Venezuela, another OPEC member. 
OPEC and other international oil producers have also been cutting supplies since the beginning of the year to reduce supply to world oil markets and boost prices. 
As a result, Brent prices rose more than a third this year, while WTI surged more than 40 percent in the same period

Thanks Master Yota,

Pluses all around. Basra oil is pushing $74 a barrel too. What with the new deal with Saudi Arabia and 

oil pushing ever higher we may yet see SUDDENLY upon us

[eburt]

WOW!!! Ok It's time for Iraq to pool the trigger with RV since oil is over $70 plus dollars...What is they waiting for......You can do it Iraq!!!!

 

[yota691]

Oil hits its highest level in 2019 after the termination of US sanctions exemptions to Iran

 

Arab and international Economy News _ Baghdad Oil prices hit their highest levels in 2019 after Washington announced it would end all exemptions granted in Iranian sanctions by the end of May to press importers to stop buying from Tehran. Despite the Washington move, analysts said global oil markets would be able to cope with Iran's hurdles given the availability of sufficient spare capacity from other suppliers. Brent crude futures were $ 74.58 a barrel, up 0.7 percent from their latest closing, their highest level since November 2018. US crude oil futures were the strongest since October 2018 at $ 65.10 a barrel, up 0.8 percent from a previous settlement. The United States on Monday demanded that Iranian oil buyers halt imports by May 1 or face sanctions, ending six-month exemptions that allowed the top eight buyers from Iran, mostly in Asia, to continue to import limited quantities. Before sanctions were reinstated last year, Iran was the fourth largest producer of the Organization of the Petroleum Exporting Countries (OPEC) at around 3 million bpd, but April's exports shrank to less than 1 million barrels a day, according to Reventiv data. Views 26   Date Added 04/23/2019

[yota691]

Oil: OPEC meeting in Saudi Arabia next month and our decisions are not individual

 

Tuesday, April 23,

 

 

Alsumaria News / Baghdad  confirmed that the oil ministry on Tuesday that the Organization of Petroleum Exporting Countries will hold a meeting in Saudi Arabia next month of May, while suggesting that the decisions of Iraq "is not an individual." "There is a meeting of the ministerial committee of OPEC countries will be held next month in Saudi Arabia to review its report and make recommendations on everything related to prices and the market,"  spokesman Assem Jihad said in an interview with Alsumaria News.  "Iraq is committed to the decision to cut production in full and no ambiguity," Jihad said, adding that "the decision to increase and reduce production is through the ministerial meeting of the Organization of Petroleum Exporting Countries" OPEC "and the producing countries from outside.     Jihad pointed out that "Iraq does not take any individual decision to compensate for the shortage in the oil market for any reason because it respects the agreement and the collective decision within the Organization," pointing out that "the commitment of members contributed to reduce the deterioration of oil prices and absorb excess supply and surplus oil."  Prices have received support from efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and other countries under the alliance known as OPEC to reduce 1.2 million barrels per day of oil, in a strategy aimed at reducing supply to markets.

[Pitcher]

Oil surges amid OPEC caution to offset Iran sanctions

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Oil prices hit their highest in about six months on Tuesday as sources said Gulf OPEC members were ready to raise output only if there was demand before offsetting any shortfall following a US decision to end waivers for buyers of Iranian crude, Reuters reported.

Output in Saudi Arabia, the world’s top oil exporter and de facto leader of the Organization of the Petroleum Exporting Countries, will rise in May, but that it is not related to Iran sanctions, the sources said.

The sources said Saudi production in May will also still within its production target under a OPEC+ supply-cutting deal, which has led global supply cuts since the start of the year aimed at propping up crude prices. The group is set to meet in June to discuss output policy.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers, most of them in Asia, to continue importing limited volumes.

US President Donald Trump said he was confident that Saudi Arabia and the United Arab Emirates will fulfill their pledges to make up the difference in oil markets, a US official told reporters Monday.

“The Saudis aren’t rushing to fill what could be a substantial supply gap in the market,” said John Kilduff, a partner at Again Capital Management LLC. “The market has gotten tight globally over the course of the last several months, primarily because of the efforts of Saudi Arabia.”

US crude futures rose 89 cents a barrel, or 1.3 percent, to $66.44 by 11:52 a.m. EDT (1552 GMT). The level was the highest since Oct. 31. Brent crude rose 48 cents a barrel to $74.53. Brent earlier touched $74.70, a level not seen since Nov. 1.

Before the reimposition of sanctions last year,Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to tanker data and industry sources.

China, Iran’s largest customer with imports of about 585,400 bpd of crude oil last year, formally complained to Washington over the move, which a Chinese foreign ministry spokesman said “will contribute to volatility in the Middle East and in the international energy market”.

Barclays bank said in a note that the US decision took many market participants by surprise and would “lead to a significant tightening of oil markets”.

The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela’s oil exports and as combat threatens to disrupt Libya’s exports.

 

 

https://www.thebaghdadpost.com/en/Story/38753/Oil-surges-amid-OPEC-caution-to-offset-Iran-sanctions

[Sage449]

Yup, I can tell it's up. I'm paying almost $3/gal for mid-grade.