Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Oil rises 1% on settlement amid fears of supply shortages


Recommended Posts

Oil agreement to monitor the market until next July

Political | 03:22 - 21/05/2019

 
image
 
 

BAGHDAD - The 
Deputy Prime Minister for Energy and Oil Minister stressed on Tuesday the keenness of producers within the Organization of Petroleum Exporting Countries (OPEC) and its allies from outside to achieve the required balance in the world oil markets. 
The ministry said in a statement received by Mawazine News, a copy of it, that "the Minister of Oil announced after the conclusion of the work of the ministerial committee to monitor the 14 production in Jeddah, he was listening to reports and statements and schedules of technical committees charged with monitoring and analysis of global markets and the circumstances and effects and challenges faced, The commitment of member states to the agreement to reduce production. "
"There are many challenges facing the world oil markets, including geopolitics due to the political situation and tensions in the region, as well as the instability of oil production in Venezuela, Libya and Nigeria. There are also technical challenges of growing US oil production, The world's oil consuming countries, because of the surplus supply at the expense of demand, all of which represents confusion and instability of the oil markets. " 
"The meeting summarized the importance of members commitment to the decision to reduce oil production in order to absorb the surplus oil in world markets, and the task of technical and analytical teams in the Ministerial Committee to monitor the global market until the next ministerial meeting in Vienna in early July, A new agreement aimed at stabilizing global markets and supporting oil prices. "

  • Thanks 1
  • Upvote 1
Link to comment
Share on other sites

The Silence Before The Storm In Oil Markets

By Nick Cunningham - May 22, 2019, 6:00 PM CDT

With oil production plunging in Venezuela and Iran, tension in the Middle East at its highest point in years, and the threat of further outages in Libya, why are oil prices not trading higher?

Even price volatility has been rather low, a surprising feature of a tight market rife with geopolitical risk.  Brent crude has been stuck between a relatively narrow range of $70 to $75 per barrel for more than a month, despite all the turmoil.

Furthermore, even the back end of the futures curve has barely budged, trading between $60 and $65 per barrel. At the same time, the front end of the curve has moved into steep backwardation – when near-term contracts trade at a premium to longer-dated futures. Backwardation is typically associated with a tight oil market – essentially, traders are willing to pay a premium for oil today relative to deliveries six or twelve months out.

What does all of this mean? “The recent movements in the oil price complex indicate some deep dislocations between the physical and futures markets and in market expectations about current and future oil market fundamentals,” the Oxford Institute for Energy Studies (OIES) wrote in a new report.

Last year, the oil market saw the opposite situation occur. The back end of the curve rose in anticipation of a tighter market while the near-term futures suggested the market was well-supplied, OIES noted. That discrepancy was sorted out when a wave of supply came online from OPEC+, the U.S., and the Trump administration gave surprise waivers to Iran. The end result was a crash in prices.

How will the gap in expectations be resolved this time around? “If 2018 is a good guide, the price level will eventually increase to reflect the current tightness in the physical market,” OIES said. The significant outages in Venezuela and Iran, the oil contamination problems in Russia, the potential for disruptions in Libya and the slowdown in the U.S. shale industry all point to increasing tightness. Related: Bearish EIA Data Sends Oil Lower

The big question is how and when Saudi Arabia will respond. Riyadh is very reluctant to see a repeat of 2018 when prices crashed following production increases. This time around Saudi Arabia will err on the side of letting the overly tighten, although the OPEC+ group has adopted a “wait-and-see” approach, putting off a decision until the June meeting (which may even get pushed into July). That way, OPEC+ officials will have more data on how U.S. sanctions are affecting production in Iran and Venezuela, and events surrounding the U.S.-China trade war will also become clearer.

However, the wait-and-see strategy carries risks. “The challenge though is that rather than being resolved, most of the uncertainties (both on the supply and demand side) will only intensify in coming months,” OIES warned.

Supply outages are already at multi-year highs of about 3 mb/d and could rise further. While OPEC+ can compensate for such a large volume of disrupted output, outages cloud the supply/demand picture and make it difficult to plan. In any event, if OPEC+ burns through spare capacity, that in of itself can drive up prices and volatility, even if every barrel knocked offline is accounted for. Related: Saudi Arabia Scrambles To Calm Oil Markets

However, the biggest source of uncertainty is on the demand side. The U.S.-China trade war threatens global growth at a time when economic indicators are not looking great. Ultimately, a downturn would drag down prices.

OIES lays out a few scenarios. If OPEC+ sticks with the cuts, Brent prices could rise by $5 per barrel in the second half of 2019 relative to the first half, topping $77 per barrel later this year. If they add supply back onto the market by eliminating “over-compliance,” Brent may stay at around $70. If they exit the agreement entirely prices could fall as low as $60.

Adding to the confusion, OIES included some pricing forecasts that incorporated an economic downturn. A gloomier economic outlook combined with an ill-timed exit from the OPEC+ agreement could send prices down to $50. 

Ultimately, OIES argues, there is a rather large gap in expectations between the bulls and bears. The bullish case rests on supply outages and OPEC+ sticking with its cuts, while a more bearish scenario sees turmoil within the OPEC+ coalition, forcing a premature exit from the deal. Adding to the downside risk is the possibility of an economic slowdown. The difference between these two outlooks is significant.

As such, the current state of low volatility, which hinges on assumptions about the steady hand of Riyadh, may not last.

“The extent of dislocations in expectations and the challenge of navigating in the current foggy conditions indicate that the oil market is set for a very bumpy ride,” OIES concluded.

  • Upvote 3
Link to comment
Share on other sites

Saudi Arabia Scrambles To Calm Oil Markets

By Tim Daiss - May 22, 2019, 4:00 PM CDT

Saudi Arabia, the world’s largest oil exporter, and de facto OPEC leader, is trying to calm global oil market jitters, and at least for now, it’s working. Saudi Arabia's council of ministers said on Wednesday that the kingdom "will do everything in its power to prevent any war and its hand is always extended to peace," adding the government was committed "to achieving balance in the (oil) market and working towards its stability on a sustainable basis."

The statement also came less than a day after the American Petroleum Institute (API) said that U.S. crude stockpiles rose by 2.4 million barrels (bpd) last week, to 480.2 million barrels, compared with analysts’ expectations for a decrease of 599,000 barrels. Both developments put downward pressure on global oil prices in early Wednesday trading. 

These developments also come as the OPEC+ group of producers, which includes production heavyweights Saudi Arabia and Russia, stick to their plan of removing 1.2 million bpd of oil from global markets. Due to the OPEC+ supply cut as well as geopolitical factors in Iran, Venezuela, and Libya, both global oil benchmarks are up around a third since the start of last year.

Hollow pledge?

Saudi Arabia’s pledge to do everything in its power to prevent war has to be examined more closely. The kingdom would be expected to make such a statement, even as tensions between it and regional foe Iran heighten due to attacks on two oil tankers last week carrying Saudi oil as well as attacks on key oil pumping infrastructure in Saudi Arabia that Riyadh blames on Iranian influence. Related: Permian Pipeline Protesters May Face Decade Behind Bars

Tehran has denied it was behind the attacks which also come as Washington and the Islamic republic spar over sanctions and the U.S. military presence in the region, raising concerns about a potential U.S.-Iran conflict. Tensions between the U.S. and Iran have also reached perhaps their worst level since the 1979 Iranian Revolution that saw the overthrow of the Shah of Iran, a key U.S. ally, the seizure of the U.S. embassy in Tehran and the capture and detainment of 52 U.S. citizens and diplomats for 444 days from Nov. 4, 1979 to Jan. 20, 1981.

Moreover, Saudi Arabia's assertion to avert war is not lining up with its actions, nor even its earlier rhetoric. At the end of last week, Riyadh also said it wanted to avert war in the region but stood ready to respond with "all strength and determination" after the attacks on Saudi oil assets, a senior official said, adding that the ball was now in Iran's court.

Two case scenarios

At the end of the day, it remains to be seen how current tensions play out. Knowing that it can’t match the one-two knockout punch of U.S.-Saudi military alliance, it’s likely that Iran will continue to pick at the edges, using its proxies in the region, including Iraq and Yemen, to attack Saudi and U.S. interests.  It’s a calculated risk on Tehran’s part which appears to not have an end game in mind. If Tehran continues to provoke both Washington and Riyadh, it is doing so against its own best interests which is to have crippling U.S. sanctions against its oil and other sectors removed. In other words, the best way to influence the hawkish Trump Administration is not by escalating tensions in the region.

The best-case scenario is that Iran will tone down both its rhetoric and its militarism in the region. Doing so would both calm global oil markets and help avoid a possible military confrontation. The worst-case scenario would see Iran continue its provocation of U.S. and Saudi interests, even initiating attacks on oil shipping in the strategic Strait of Hormuz. This would prompt a major military repose from Washington. Under the worst-case scenario, the strait of Hormuz, which sees around one third of all seaborne global oil supply pass, would be shut down, even if temporarily, sending cataclysmic shock waves through global oil markets. The impact on the price of oil would be anybody’s guess, but a prolonged hike in oil prices would send prices high enough to create demand destruction, the point at which consumers turn to alternative energy sources to avoid the high price of oil, as well as unsettling oil markets in ways not seen in decades.

  • Upvote 4
Link to comment
Share on other sites

Iraq To Boost West Qurna 1 Oil Output After Exxon Evacuates Staff

By Tsvetana Paraskova - May 22, 2019, 4:00 PM CDT

Iraq will raise the oil production from its giant West Qurna 1 field by as much as 50,000 bpd in the next few days, a senior industry official told Reuters on Wednesday, days after the oil field developer ExxonMobil evacuated all its foreign staff from the field amid security concerns.

Currently, the West Qurna 1 oil field pumps around 440,000 bpd, while Iraq’s intention is to increase that production to 490,000 bpd within days, Basra Oil Company chief Ihsan Abdul Jabbar told Reuters.

Last week, ExxonMobil began evacuating its engineers working at West Qurna 1 as security concerns mounted with the heightened tension in the Middle East amid the U.S.-Iran and Saudi-Iran standoffs. Other international oil majors, including BP and Chevron, are said to be monitoring the situation in Iraq very closely.

The exodus from Iraq comes after the United States ordered last week the evacuation of all non-essential government employees from Iraq citing security concerns, adding that the US embassy in Iraq would suspend visa services and would have a “limited ability to provide emergency services to US citizens in Iraq.”

The security issues came to light mid-week last week after the United States ordered all non-essential personnel evacuated from the country citing possible threats from Iran, presumably via the Iraqi Shi’ite militia.

Related: New Middle East Proxy War Could Jolt Oil Prices

Iraq was not happy with Exxon’s hasty evacuation of all foreign personnel from West Qurna 1, with its oil minister Thamer Ghadhban saying the exit was “unacceptable and unjustified.” According to the Iraqi minister, Exxon’s staff evacuation has nothing to do with security threats, instead arguing that it was politically motivated.

Earlier this month, Iraq was close to signing a mega US$53-billion deal with Exxon and PetroChina to develop oil fields in the south. The deal was “very close” but has been slowed by Exxon’s departure from Iraq, Ghadhban said this weekend.  

Any security-risk-related disruption of oil production in Iraq—OPEC’s second-largest producer after Saudi Arabia—would not go unnoticed on the oil market, which has already started to consider a perceived higher risk of supply outages in the Middle East.

  • Upvote 4
Link to comment
Share on other sites

Chinese Oil Buyers Shun U.S. Crude

By Irina Slav - May 22, 2019, 2:00 PM CDT

Chinese oil traders and refiners no longer want to sign long-term supply agreements with U.S. producers, said the chief executive of Enterprise Products Partners as quoted by Reuters, amid the deepening trade rout between Washington and Beijing.

The latest escalation in the rout followed president Trump’s complaint that the trade talks with China were going too slowly and his threat—that he went through with—to increase tariffs from 10 percent to 25 percent on US$200 billion worth of Chinese goods. The retaliatory move came promptly, with China raising tariffs on U.S. liquefied natural gas.

U.S. oil has so far been spared tariffs, but this does not seem to matter to Chinese buyers. Last year, they stopped buying U.S. crude despite a three-month truce in the middle of the year.

“Chinese companies have little incentive to buy U.S. crude due to the wide availability of crude supplies today from Iran and Russia,” Seng Yick Tee from consultancy SIA Energy told Reuters at the time. Yet trade tensions were not helping, either. With the constant threat of more tariffs, refiners were reluctant to change their buying habits.

This reluctance will persist, it seems, as just a few weeks after the trade deal seemed all but sealed, the situation deteriorated rapidly and will likely deteriorate further after Trump targeted telecoms giant Huawei’s international expansion—a move that is highly unlikely to sit well with Beijing.

Last year, between January and June, China was the biggest buyer of U.S. oil at a daily rate of 377,000 barrels. This has dropped to 41,600 bpd for the six months to February this year, although China’s total imports continued rising steadily.

In April, these averaged 10.64 million bpd, which came as a surprise to analysts as the 11-percent year-on-year increase came amid refinery maintenance activities and low local fuel demand. Imports for the first four months of the year averaged 10.03 million bpd, an 8.9-percent increase on the year.

  • Upvote 4
Link to comment
Share on other sites

Wednesday، 22 May 2019 04:01 PM

Iraq to raise West Qurna 1 oilfield output to 490,000 bpd in next few days

 

image.png.67e8e4c63e1fbdc921c4e7c78686c494.png

https://www.thebaghdadpost.com/en/Story/40835/Iraq-to-raise-West-Qurna-1-oilfield-output-to-490-000-bpd-in-next-few-days

Iraq will increase production at its giant West Qurna 1 oilfield to 490,000 barrels per day (bpd) in the “next few days”, a senior Iraqi oil official said on Wednesday.

 

West Qurna 1 oilfield, developed by Exxon Mobil, currently produces about 440,000 bpd, Basra Oil Company chief Ihsan Abdul Jabbar said.


Exxon Mobil evacuated all of its foreign staff, around 60 people, from West Qurna 1 on Saturday, just days after the United States withdrew non-essential staff from its embassy in Baghdad, citing a threat from neighbouring Iran, which has close ties to Iraqi Shi'ite militia. 

Edited by 6ly410
  • Upvote 2
Link to comment
Share on other sites

  • yota691 changed the title to Oil price recovery
Release date: 2019/5/24 10:50  221 times read
Oil price recovery
International oil prices rose more than 1 percent on Friday, but are heading for the biggest weekly loss since the start of the year as rising inventories and worries about an economic slowdown caused heavy crude declines earlier in the week.
By 0534 GMT, Brent crude for the world benchmark was $ 68.65 a barrel, up 89 cents, or 1.3 percent, from the previous close. Prices were supported by OPEC production cuts and tensions in the Middle East. 
US crude futures rose 74 cents, or 1.3 percent, to $ 58.65 a barrel. 
"There are still many risks on the supply side, as continued tension between Iran and the United States could create turbulence," ANZ Bank said on Friday. 
The Organization of the Petroleum Exporting Countries (OPEC) has been leading production cuts since the beginning of the year to reduce market supplies and raise prices. 
US sanctions on the oil sector in Iran and Venezuela would probably boost the decline in Opec crude exports, which the two countries share.
But Friday's rally may not offset the larger declines earlier in the week, which put crude futures on track for the biggest weekly loss since the start of the year. Brent is down more than 5 percent. 
Since the middle of the week, the surge in oil inventories in the United States has begun to put pressure on prices
  • Upvote 3
Link to comment
Share on other sites

Despite tension, oil has the biggest weekly fall in 2019

Economy | 01:53 - 25/05/2019

 
image
 
 

Follow - up - News balance 
stepped up oil prices more than 1% before the long weekend in Alolayat_altdh and Britain, but recorded its biggest weekly decline this year , pressured by rising crude inventories in the United States and concerns about the global economy. 
Brent ended the session up 93 cents, or 1.37 percent, to settle at $ 68.69 a barrel, but the global benchmark ended the week down about 5 percent. 
US benchmark WTI crude rose 72 cents, or 1.24 percent, to settle at $ 58.63 a barrel, but ended the week with a loss of more than 6 percent, the largest since December. 
US oil inventories are at their highest since July 2017, and crude prices are also under pressure from the escalating US-China trade conflict.
Markets in Britain and the United States will be closed on Monday for a public holiday in both countries. 
Rising US oil production puts pressure on crude prices. A spate of rocky oil has helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia. 
Oil production in the United States is expected to reach 13 million bpd in the fourth quarter of 2019, according to the US Energy Information Administration. 
Oil prices continue to be supported by supply cuts, some of which are voluntary and others result from US sanctions. Some analysts expect the market to recover.

  • Like 2
  • Upvote 1
Link to comment
Share on other sites

World markets point to higher oil prices

Saturday 25 May

alsabaah-13080.jpg

 

Capitals / agencies
 
 
Oil prices rose more than 1 percent ahead of a long weekend in the United States and Britain, but posted their biggest weekly drop this year as they came under pressure from rising US crude stocks and concerns about the global economy.
Brent ended the session up 93 cents, or 1.37 percent, to settle at $ 68.69 a barrel, but global benchmark crude ended the week down about 5 percent.
 
West Texas
US benchmark WTI crude rose 72 cents, or 1.24 percent, to settle at $ 58.63 a barrel, but ended the week with a loss of more than 6 percent, the biggest since December.
US oil inventories are at their highest level since July 2017, and crude prices are also under pressure from the escalating US-China trade conflict.
Markets in Britain and the United States will be closed on Monday for a public holiday in both countries.
 
The largest producer
High oil production puts pressure on crude prices, and a spate of rocky oil helped make the United States the biggest oil producer of the year, pushing ahead Saudi Arabia and Russia.
Oil production in the United States is expected to reach 13 million bpd in the fourth quarter of 2019, according to the US Energy Information Administration.
Oil prices continue to be supported by supply cuts, some of which are voluntary and others result from US sanctions. Some analysts expect the market to recover.
 
European Stocks
European shares rose yesterday after US President Donald Trump predicted a swift end to the trade war with China, which has hurt the world's two largest economies.
The market appeared unaffected by the resignation of British Prime Minister Teresa Mae of the ruling Conservative Party after failing in a last-ditch attempt to win parliamentary support for her agreement to the UK's divorce from the European Union.
The Stoxx 600 European session ended the session up 0.56 percent but ended the week on a loss and remains on track to record the first monthly decline since a sharp sales wave at the end of last year.
The benchmark index was boosted by gains in various sectors, notably the utilities sector, which rose 1.3 percent to its best performance in more than two months.
Followed by mining and insurance, while semiconductor companies, which focus on China, pushed the European technology sector up 0.36 percent.
Italy's main index was the top gainer in Europe, climbing 1.2 percent to recover from some of its losses in Thursday's session of 2 percent. The German DAX index, which is sensitive to trade, closed 0.5 percent higher.
On the London Stock Exchange, the FTSE closed 0.6 percent higher after retaining its gains after May's resignation, a widely anticipated decision. 
Wide.

link

  • Thanks 1
  • Upvote 4
Link to comment
Share on other sites

  • yota691 changed the title to World markets point to higher oil prices

Oil Markets Are Stuck Once Again

By Tom Kool - May 28, 2019, 2:00 PM CDT

Oil markets have found themselves torn once again between supply fears and an economic slowdown, with oil prices now having stabilized at a lower level.

Investor Alert: A new breakthrough – known by only a handful of scientists, researchers and insiders – is about to turn the energy world upside down. And one small company is at the center of it all. Get the full report here.

1559063854-o_1dbvn4r471q9e1d6i105klgq1fh

1559063658-o_1dbvmuu8limb4lhls11v9bmg8.j

1559063671-o_1dbvmvbff1adv1bettd61qfi4dq

(Click to enlarge)

Chart of the Week

1559063686-o_1dbvmvplu13111b15dh2db41pjo

  • U.S. motorists saw average regular gasoline prices at $2.85 per gallon over the Memorial Day weekend, slightly lower than last year’s $2.92/gallon.
  • “EIA expects U.S. regular retail gasoline prices will increase in the coming months and average $2.92/gal during the 2019 summer season,” the agency said, which would be 7 cents higher than last summer.
  • Lower inventories and an uptick in consumption should keep prices elevated. Although, as always, the price of gasoline is at the mercy of global crude oil prices.

Market Movers

  • S&P downgraded Schlumberger (NYSE: SLB) by one notch to A+. It also gave Halliburton (NYSE: HAL) a Negative outlook, down from Stable. Both oilfield service companies are being negatively impacted by the slowdown in drilling activity in North America.
  • Algeria will block Total SA (NYSE: TOT) from buying Anadarko Petroleum’s (NYSE: APC) assets in the country until its concerns are answered. Total has agreed to acquire Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa for $8.8 billion.
  • Seadrill (NYSE: SDRL) plunged by nearly 15 percent in pre-market after Carnegie Investment Bank recommended selling shares. The offshore rig market recovery is “not happening fast enough” for Seadrill, Carnegie said.

Tuesday May 28, 2019

Oil started the day mixed, with WTI up but Brent flat. The market seems to be once again stuck between supply outages on the one hand, and fears of a softening economy on the other. That was the same dynamic for much of May, although prices have now stabilized at a lower level, with WTI right around $60 and Brent under $70. “Oil prices lack direction because the oil market currently finds itself caught between supply risks and concerns about demand,” Commerzbank said.

Fragmented European elections; Greens surprise. Record turnout for European Parliamentary elections produced mixed results, but also lots of drama. The far-right parties in Italy and France did well, but the Greens also did well in a number of countries. The traditional parties closer to the center were hit hard in some places. Eurosceptic parties increased their total, but there was no continent-wide sweep. The addition of Greens and Liberals could move up climate change as a major issue at the European level.  

North Dakota flaring continues. The shale boom in North Dakota has led to a spike in flaring, despite the state setting out flaring rules intended to cut down on the practice. In 2014, the state adopted targets, aiming for no more than 15 percent of production flared by 2016, a level that would lower to 10 percent by 2020. In March of this year, the industry flared 20 percent. “We need to find an excess flared gas solution immediately,” said Republican Rep. Vicky Steiner. “It's a shame. I'd like to see us find a use for this.” Related: Norwegian Oil Patch Ramps Up Spending To Counter Decline

Trump signals softer line on Iran. President Trump said that he is not seeking regime change in Iran, and only wants to contain their nuclear weapons, a comment that seems to contradict the rising drumbeat for war. “We are not looking for regime change. I just want to make that clear,” Trump said during a visit to Japan. “I’m not looking to hurt Iran at all. I’m looking to have Iran say no nuclear weapons,” Trump said. “No nuclear weapons for Iran and I think we will make a deal.”

Morgan Stanley: Shale is deflationary force. The increasingly important role of U.S. shale in the global energy mix is a deflationary force in the medium-term, Morgan Stanley argues. Unlike conventional production, shale resources are abundant and the real cost determinant is the industrial process following extraction, which means that costs can be driven down over time.

Iran oil exports drying up. Traders say that buyers of Iranian oil have disappeared following U.S. sanctions. In March, the countries that had exemptions on U.S. sanctions purchased 1.6 million barrels per day from Iran, and evidence suggests that they are all mostly abiding by U.S. demands to cease purchasing. “China has enough problems with the U.S. They don’t want to give them a pretext,” an Iranian oil executive told the WSJ.

Kuwait: Oil balance later this year. Kuwait’s oil minister argued that the oil market will reach balance later this year with steady demand and declining inventories. But uncertainties, including the trade war, mean that OPEC+ has more work to do.

Refiners face shifting markets. A shortage of heavy oil due to the outages in Venezuela and Iran are cutting into the profits of refiners who rely on such oils. Gulf Coast fuel oil, a byproduct of heavy crude, saw prices surge to a six-month high. As refiners ramp up production of gasoline, their margins are narrowing. Meanwhile, for refiners who have made expensive upgrades to produce cleaner fuels, the forthcoming IMO rules on sulfur concentration could provide a windfall, the Wall Street Journal reports.

Renewables spending surpasses oil and gas in Asia. As soon as 2020, total investment in renewable energy in Asia and the Pacific (excluding China) will overtake spending in oil and gas, according to Rystad Energy. “These countries each have strong pipelines for renewable energy developments of all types, including offshore wind,” says Gero Farruggio, Head of Renewables at Rystad Energy. “And, importantly, most have large targets outlining the inclusion of renewable power sources within their respective energy mixes, with corresponding support policies.”

IEA: World hits another grim milestone. The IEA saidthat energy consumption in 2018 grew at its fastest pace in a decade. And 70 percent of the additional supply came from fossil fuels. Many of the technologies needed to slash carbon emissions are not on track, the IEA said. CO2 concentration in the global atmosphere continues to rise, and recently hit 415 parts per million.

Hedge funds sell more oil. Hedge funds and other money managers continue to liquidate their net-long positions on crude futures. However, in the most recent week, the selloff was a bit lighter, which suggests the correction may have gone far enough. Related: The Single Biggest Challenge For The Oil & Gas Industry

Fiat-Renault merger. Fiat Chrysler has proposed a merger with Renault, and the tie-up could accelerate both companies shift towards electric vehicles. The combination could save $5.6 billion annually, Fiat says. The merger would create the world’s third largest automaker, but because Renault is already tied to Nissan and Mitsubishi, the deal is complex and complicated.

Bank of Canada: Climate change a financial risk. The Bank of Canada listed climate change as one of six major risks to financial stability. Climate change carries physical risks – extreme weather – but also disruption during transition, including sudden policy moves. At the same time, the lack of transparency around carbon exposure at the company level could lead to mispricing of assets.

Fed: Small shale companies face pressure. The Federal Reserve Bank of Dallas said that smaller U.S. shale companies are under pressure to either expand or be acquired. Smaller drillers are losing access to capital and are under scrutiny from shareholders, the head of the Dallas Fed told the FT. “People have said to me in this industry, you’re either a buyer or a seller today,” Robert Kaplan said. “But if you stand pat, where you are, you’re going to be in a dangerous place…Even shale is not immune from disruption and capital discipline, and they’re feeling it right now. And this is why you’re seeing more merger activity.”

Harvard economist: China slowdown is nightmare scenario. The largest threat to the global economy is that China’s economy slows down at a much faster rate than expected, Harvard economist Carmen Reinhart told Bloomberg.

From The Editor's Desk: An urgent piece of researchhas just come across our desk highlighting what might just be the most significant development in the energy industry since fracking. A group of scientists has discovered a “super-crystal” that is poised to completely transform everything we know about electricity. It’s up to 273% more efficient than silicon solar cells, and it can’t be painting onto almost any surface. I’m sure you can imagine the implications of such a breakthrough! Learn more about the “super-crystal” and the small-cap stock that has surrounded it in patents here.  

  • Upvote 4
Link to comment
Share on other sites

Oil rises at settlement with concerns of supply decline

Oil rises at settlement with concerns of supply decline

 28 May 2019 09:49 PM
Mubasher : Oil prices rose on Tuesday, as fears of falling supplies overtook concern over falling demand for crude.

US crude received oil support amid fears of a supply slump due to OPEC and its allies' deal on crude production cuts and US sanctions against Iran and Venezuela.

The price of black gold fell during trading due to concern about rising trade tensions between the United States and China and its possible negative impact on economic growth and demand for crude.

US President Donald Trump said yesterday that Washington is not ready to implement a tradeagreement with China, saying: "They are willing to implement an agreement but we are not ready."

Investors are waiting for Opec and its oil-producing countries to meet at the end of June to see whether the cut-off agreement could be extended.

On the settlement, US crude futures for July delivery rose 0.9 percent to $ 59.14 a barrel, after dropping $ 58.13 a barrel during the session.

By 6:35 pm GMT, the benchmark Brent crude for July delivery settled at $ 70.12 a barrel after hitting $ 69.58 a barrel earlier in the session.

 
  • Upvote 4
Link to comment
Share on other sites

Peace And Oil: Trump’s Endgame In Saudi Arabia

By Tim Daiss - May 28, 2019, 6:00 PM CDT

By now, after two-and-a-half years in office, it’s obvious that President Trump’s relations with Riyadh are dictating his foreign policy, even at the expense of further enraging a Democratic-controlled Congress intent on removing him from office.

Trump’s last pro-Saudi move came on Friday week the fire-brand president declared a national emergency because of tensions with Iran and swept aside objections from lawmakers to complete the sale of over $8 billion worth of weapons to Saudi Arabia, the United Arab Emirates (UAE) and Jordan. The Trump administration informed congressional committees that it would push ahead with 22 military sales to the three Middle Eastern countries, drawing rebuke from both sides of the aisle for circumventing a long-standing precedent for congressional review of major military weapons sales.

Not only has the move infuriated Congress over what they see as presidential abuse of power, but it comes as Congress grows increasingly agitated over human rights abuses in Saudi Arabia. Riyadh has been implicated in the controversial killing of Saudi dissident journalist and U.S. resident Jamal Khashoggi in the Saudi consulate in Istanbul last October. The paper trail for the crime was traced all the way back to Saudi Crown Prince Mohammed bin Salman. Even then, Trump stood by his Saudi allies and the Royal family though it created a considerable backlash from both Democrats and Republicans and even internationally.

The Trump administration is also being called on the carpet for continued U.S. support for Saudi Arabia’s military actions in neighboring Yemen which has resulted in a large number of civilian casualties. The Royal family has also strengthened its grip domestically with a top-down authoritative rule over any hint of dissent. Last month, Saudi Arabia put to death 37 so-called terrorists, most of them Saudi citizens, for what they said were terror-related crimes. CNN reported that one was even crucified - a troubling prospect from Western and U.S. lawmakers that tie any kind of political and military support to a country’s human rights record.

Congressional angst

All of these developments have led to Congressional angst over Saudi Arabia and the president’s incessant support for the kingdom. However, Trump’s playbook sees Saudi Arabia not only as a key ally in the Middle East but as internal in helping keep global oil prices in check. Perhaps more importantly, Riyadh is key in Trump’s policy to drive Iran to its knees economically and force it to the bargaining table over its nuclear, ballistic missile and Middle Eastern hegemony purists. Yet, looking at the past 40-year record from Iran, it’s a gambit that could backfire and lead to a U.S.-Saudi military confrontation with Iran - a prospect that would roil global oil markets and hit economic growth at the same time it’s slowing due to ongoing U.S.-China trade tensions. Related: This Troubled Nation Just Made A Critical Gas Discovery

Moreover, Trump’s move on Friday effectively snubbed Congress which has recently blocked military arms sales to Saudi Arabia and the UAE. Connecticut Senator Chris Murphy, a Democrat, said “President Trump is only using this loophole because he knows Congress would disapprove ... There is no new ‘emergency’ reason to sell bombs to the Saudis to drop in Yemen and doing so only perpetuates the humanitarian crisis there.”

So great is the angst in Congress over Trumps’ Saudi weapons sales move that ardent Trump supporter Republican South Carolina Senator Lindsey Graham even criticized it. "I’ve got a real problem with going back to doing business as usual with Saudi Arabia,"Graham said on "Fox News Sunday."

"Jordan is a great ally. The [United Arab Emirates] has been problematic in Yemen but are a good ally. Saudi Arabia is a strategic ally, but [Saudi Crown Prince Mohammed bin Salman] was, in my opinion, involved in the murder of Mr. Khashoggi, and he’s done a lot of other disruptive things, so I don’t support the arms sales now," he continued.

Trump’s end game (peace and oil)

Yet, amid criticism from both sides of the aisle, Trump’s end game may at the end of the day justify its means. The president sees Iran as a major threat to not only Middle Eastern security but its nuclear development is a systemic global threat. Trump sees a strong Saudi Arabia, even with its obvious and multiple imperfections and problems, as a counterweight in the region. Without a strong Saudi Arabia, or even worse if there was regime change in the kingdom, the prospect for peace in the Middle East and the impact on global oil markets would be unprecedented in its damage. Trump may be unorthodox in how he governs, and no doubt creates considerable and seemingly never-ending blunders, but his end game should be kept in mind by both U.S. lawmakers and a watching global audience.

  • Thanks 1
  • Upvote 2
Link to comment
Share on other sites

Oil prices are on the decline as trade war fears over supply turmoil

Economy | 11:21 - 29/05/2019

 
image
 
 

Follow - up to the balance of News 
Oil prices fell by about one percent on Wednesday on fears that the trade war between China and the United States lead to a global economic slowdown , but the relative lack of supply of oil under production cuts implemented by OPEC and political tensions in the Middle East grants some support for prices. 
As of 0641 GMT, London Brent crude futures for the month of June close to 69.53 dollars a barrel, down 58 cents or 0.8 percent compared to the previous closing price. 
US WTI crude futures were $ 58.46 a barrel, down 70 cents, or 1.2 percent, from the previous settlement price.
Despite economic concerns, demand for global oil remains strong and is likely to record more than 100 million barrels per day on average this year for the first time, according to data from the US Energy Information Administration. 
The Organization of the Petroleum Exporting Countries (OPEC) and some of its allies, including Russia, are meeting in late June or early July to discuss future production policy. 
Russia's First Deputy Prime Minister Anton Slyanov said on Wednesday his country would consider extending its agreement with OPEC to cut oil production.

  • Upvote 1
Link to comment
Share on other sites

Smart Money Turns Increasingly Bearish On Oil

By Tsvetana Paraskova - May 29, 2019, 6:00 PM CDT

Over the past month, hedge funds and other portfolio managers have been liquidating some of their bets that oil prices will rise, as concerns about the future of global economy grew amid an intensifying U.S.-China trade war.

Money managers have reduced their net long position—the difference between bullish and bearish bets—over the four weeks to May 21, according to the latest exchanges reports compiled by Reuters market analyst John Kemp.  

The change in the net long position in the week to May 21 was almost exclusively due to liquidation of bets that prices will rise, not the opening of fresh short positions that prices will drop.

Portfolio managers have been selling lately Brent Crudeand WTI Crude, as well as U.S. gasoline futures, but they have been buying U.S. heating oil and European gasoil, possibly expecting increased demand for heating oil and gasoil in the run-up to the new shipping fuel regulations by the IMO starting January 2020, according to Kemp.

Although demand for heating oil and gasoil—and middle distillates as a whole—is a core gauge of economic activity because they are used in farming, transportation, manufacturing, and mining, and are the first to suffer from an economic downturn, fund managers are likely betting on increased demand for heating oil and gasoil because of the shipping regulations and regardless of a gloomy global economic outlook, Kemp argues.  

Hedge funds are therefore on the defensive and shifting bullish bets on those futures in the petroleum complex, for which they expect demand to increase regardless of an economic downturn, Kemp says.  

In crude oil, money managers have reduced their combined net long position in Brent and WTI by 79 million barrels over the four weeks to May 21, after having boosted the net long position by 480 million barrels over previous 15 weeks, according to exchange data compiled by Kemp. Related: Oil Prices Plunge On U.S.-China Trade War Escalation

In one month, hedge funds pulled back from the overly bullish position as of April 23, when long positions in Brent and WTI outnumbered shorts in a ratio of 11:1—the most lopsided bullish positioning since October 2018, when oil prices started crashing to lose 40 percent until the end of 2018.

The most recent available data was published on May 21, two days before oil prices crashed 5% in one day for their worst daily performance in six months.

The dip in net long positions in the week to May 21 was almost exclusively driven by longs liquidating, rather than shorts opening, Warren Patterson, Head of Commodities Strategy at ING, said on Tuesday.

“The US market is clearly well supplied whilst time spreads suggest that Brent is tight and therefore we are seeing the WTI/Brent discount widen in order to pull out further crude oil from the US,” Patterson said.

According to Helima Croft, global head of commodity strategy at RBC Capital Markets, the global physical market is increasingly tighter.

Going forward, oil prices and the positioning of the money managers will be driven by a downward pressure from concerns about slowing economy and demand, and an upward pressure coming from tighter physical supply from OPEC cuts, lower exports from Iran and Venezuela, and geopolitical tension in the Middle East.  

Iran’s exports are expected to slump to just 500,000 bpd in the coming months, down by 2 million bpd compared to the year-ago export level of 2.5 million bpd, RBC’s Croft told BNN Bloomberg on Tuesday.

Venezuela’s production could halve from the current 700,000 bpd by year-end if the U.S. further tightens the screws on sanctions, Croft noted. Related: The Single Biggest Challenge For The Oil & Gas Industry

While these supply outages would be supportive for oil prices, the trade war, and the market sentiment of a “macro sum of all fears situation” could continue to depress prices, RBC’s expert told Bloomberg.

In a bearish market sentiment, oil may “get hammered” along with equities because of the fear of demand destruction, even though said demand destruction may not even materialize, Croft said.   

A “sum of all fears” scenario has already begun to weigh on the bullish sentiment of money managers who appear to have started to bet defensively on parts of the petroleum complex where they expect firm demand.

To be sure, hedge funds are liquidating shorts as well as longs, so they are not betting massively on an oil price drop. Longs on crude oil still outnumber shorts by a ratio of 7:1, according to Kemp’s data. Yet, if the “sum of all fears” scenario were to materialize with the global economy materially slowing down, the bulls could step back letting the bears roar.  

  • Upvote 1
Link to comment
Share on other sites

Oil Tanks On Worst Day In Six Months

By Tsvetana Paraskova - May 23, 2019, 11:00 AM CDT

Oil prices plummeted on Thursday, joining global sell-offs in equities, as the escalating U.S.-China trade war came into the spotlight again, dampening the outlook for economic and oil demand growth a day after the EIA reported further increases in US stockpiles of crude.

WTI Crude plunged below the $60 a barrel handle for the first time since the end of March, and Brent Crudeprices dipped below $70 per barrel for the first time since early April.

As of 11:25 a.m. EDT on Thursday, WTI Crude was plunging more than 5 percent—by 5.26% at $58.19, while Brent Crude was tumbling 4.45% at $67.83.

Both WTI and Brent are today on track for their worst daily and weekly drops in six months.

The oil and stock markets were hard hit on Thursday by the increased tension in the U.S.-China trade war, which has investors increasingly worried about the state of the global economy and, by extension, the outlook for global oil demand growth for the rest of the year.

After weeks of fruitless negotiations and more tariffs and retaliatory tariffs that the world’s two biggest economies slapped on each other, China said today that the talks about resolving the trade dispute can’t resume until the U.S. addresses its ‘wrong actions.’

“If the U.S. would like to keep on negotiating it should, with sincerity, adjust its wrong actions. Only then can talks continue,” CNBC quoted Gao Feng, spokesperson at the Chinese Ministry of Commerce, as saying on Thursday.

The U.S. manufacturing growth figure for May, which showed the weakest pace of growth in almost a decade, further dampened sentiment in the markets, and the Dow tumbled by nearly 400 points.

Oil prices were battered by the clouded outlook on the global economy and oil demand, on top of yesterday’s bearish EIA inventory report, which showed a crude oil inventory build of 4.7 million barrels in the week to May 17.

  • Thanks 1
  • Upvote 2
Link to comment
Share on other sites

  • yota691 changed the title to Oil prices continue to decline in Asia

Oil prices continue to decline in Asia

Economy | 11:45 - 31/05/2019

 
image
 
 

Mawazine News 
Oil prices continue to decline in Asia on Friday due to the disappointment caused by the official report on US reserves. 
As of 2:30 GMT, the price of light sweet crude for July delivery was down 51 cents to $ 56.08 in electronic exchanges in Asia. 
Brent North Sea oil, the European reference for July delivery also fell 64 cents to $ 66.23. 
Oil prices fell sharply on Thursday, weighed down by lower-than-expected US crude inventories, while investors are still cautiously watching the US-China trade war. 
In London, the price of Brent crude Thursday $ 2.58 compared to Wednesday. In New York, light sweet crude lost $ 2.22.
The US Energy Information Agency report said that US commercial reserves of crude fell by about 300 thousand barrels while analysts were expecting a further decline. Production reached 12.3 million barrels per day, returning to a historic peak at the end of April. 
"Oil reserves have fallen much more than expected," ANZ said in a note. He added that the report of the US Agency increases concern about the volume of US production in the atmosphere of weak demand. 
The bank pointed out that "production rose for the second week in a row"

  • Upvote 1
Link to comment
Share on other sites

  • yota691 changed the title to Oil hits biggest monthly drop since November with 16%

UPDATE 1-Oil hits biggest monthly drop since November with 16%

UPDATE 1-Oil hits biggest monthly drop since November with 16%

 31 May 2019 10:00 pm
Mubasher : Oil prices continued their sharp losses to fall by more than 5 percent at Friday's trading session, recording the biggest monthly decline in six months due to trade tensions and fears of oversupply.

Oil has been negatively affected by the continuing trade tensions between the United States and China, as well as the US president's announcement of tariffs on his country's imports from Mexico.

In another context, Baker Hughes data revealed the first rise of US oil exploration platforms in 4 weeks, rising by 3 platforms to 800 platforms.

The US Energy Information Administration announced yesterday the rise in oil production to a record level last week, as stocks rose less than expected.

Separately, the United States announced yesterday that any country buying oil from Iran would be penalized after removing exceptions that were allowed earlier this month.

On the settlement, US Nymex crude futures for July delivery fell 5.5 percent to $ 53.50 a barrel, its lowest level since the February 12 meeting.

With fears of falling demand as a result of a slowdown in global economic growth caused by the recent trade war, US crude suffered a sharp monthly loss of 16.2 percent, its first monthly decline in 2019 and the biggest since November.

Crude also posted strong weekly losses of 8.7 percent.

By 6:43 pm GMT, the benchmark Brent crude for July delivery fell 3.6 percent to $ 64.47 a barrel.

 
  • Upvote 1
Link to comment
Share on other sites

Parliamentary Economy: Iraq has a golden opportunity to increase its oil production

17:31 - 01/06/2019
%D9%85%D9%8A%D8%AB%D8%A7%D9%82-%D8%A7%D9

 

Information / Special ...

BAGHDAD (Reuters) - The Iraqi government has a golden opportunity to increase oil production within the Organization of the Petroleum Exporting Countries (OPEC), the parliamentary committee on economy and investment said on Saturday, pointing out that Saudi Arabia is unable to meet the needs of markets after cutting production.

"Saudi Arabia's decline in oil production gave Iraq a golden opportunity to increase its oil production within the Organization of Petroleum Exporting Countries," said a member of the committee, the charter of Ibrahim. "Saudi Arabia blocked the shortage of Iraq when the US sanctions were imposed in the 1990s and refused to reclaim its share. After the end of sanctions despite the continuing claims. "

"The government is obliged to negotiate with OPEC to increase Iraq's production and use the current time to achieve a stable economy for the country," adding that "tension between Tehran and Washington will push oil prices to rise in the coming days."

"The government will use the surplus of oil money to support the productive and agricultural sectors to eliminate unemployment."

Saudi Arabia raised production in May, but not enough to offset the drop in Iranian exports after the United States tightened sanctions on Tehran, a Reuters survey found on Saturday. End 25 T

Edited by 6ly410
  • Like 2
  • Thanks 1
  • Upvote 4
Link to comment
Share on other sites

 
 
2019/06/01 20:52

Parliamentary Economy: Iraq has a golden opportunity to increase its oil production

http://almasalah.com/ar/news/172178/الاقتصاد-النيابية-العراق-أمام-فرصة-ذهبية-لزيادة-إنتاجه-النفطي

 

BAGHDAD / The obelisk: The Committee on Economy and Investment parliamentary, Saturday, 1 June 2019, that the Iraqi government to a golden opportunity to increase oil production within the Organization of the World's OPEC, while it showed that Saudi Arabia is unable to fill the need of markets after the reduction of Iranian production.

"Saudi Arabia's decline in oil production has given Iraq a golden opportunity to increase its oil production within the Organization of Petroleum Exporting Countries," said a charter member of the committee. "Saudi Arabia blocked the shortage of Iraq when US sanctions were imposed in the 1990s and refused to re-share it. After the end of sanctions despite the continuing claims. "

"The government is obliged to negotiate with OPEC to increase Iraq's production and use the current time to achieve a stable economy for the country," adding that "tension between Tehran and Washington will push oil prices to rise in the coming days."

"The government will use the surplus of oil money to support the productive and agricultural sectors to eliminate unemployment."

  • Upvote 1
Link to comment
Share on other sites

Release date: 2019/6/3 11:32  327 times read
Know oil prices moment by moment
(Baghdad: Al-Furat News) Our agency provides a new service to readers and observers in the knowledge of oil prices on the world markets moment by moment of the importance of the matter, especially that Iraq - the second largest oil producer in OPEC - depends 90% in the increase of its annual budget on imports of crude and its effects on the market the local.
To view Brent crude oil prices click here
  • Thanks 1
  • Upvote 2
Link to comment
Share on other sites

Editorial date: 2019/6/4 0:00 • 184 times read
Oil prices fall
The price of oil fell on Monday as concerns about a drop in global demand for crude rose due to US trade disputes with Mexico and China, while stocks also fell on crude futures.
Brent crude futures were $ 61.28 a barrel, down 71 cents, or 1.2 percent. 
West Texas Intermediate crude was down 25 cents, or 0.5 percent, at $ 53.25 a barrel. 
Mexico said it would reject any American idea of receiving asylum seekers from Central America if raised during talks this week with the administration of US President Donald Trump, which threatens to impose fees because of immigration concerns. 
The possibility of Mexico being charged at a time when oil prices have been affected by the long-term trade war between the United States and China. 
Analysts said the fall in Wall Street, which tracks crude prices sometimes, has exacerbated oil futures losses.
Monday's comments from Saudi Arabia, OPEC's biggest producer, indicate that the Organization of the Petroleum Exporting Countries and its allies will continue to work toward stabilizing the oil market in the second half of the year. 
"We will do what is necessary to maintain market stability after June," Saudi Energy Minister Khalid al-Falih was quoted by Arab News as saying. For me this means cutting stocks from their current high levels. " 
Brent futures fell nearly 20 percent from their peak in 2018, as world supplies shrank following OPEC and Russian output cuts, as well as a drop in Iran and Venezuela's exports due to US sanctions.
A Saudi oil source said the kingdom pumped 9.65 million barrels of oil per day in May, which would entail a larger reduction than the target in the global agreement to reduce supplies. The target for Saudi Arabia's production under the OPEC-led agreement is 10.3 million bpd
  • Upvote 2
Link to comment
Share on other sites

  • yota691 changed the title to Iran OPEC is opposed to postponing the next meeting of the Organization to June

Iran OPEC is opposed to postponing the next meeting of the Organization to June

Economy | 01:00 - 04/06/2019

 
image
 
 

Mawazine News - 
Iran has told OPEC its opposition to delaying the next meeting of the Organization, paving the way for another dispute with the rest of the members at a time when US sanctions put Tehran under unprecedented economic pressure with the decline of oil exports to small amounts. 
Iran's oil minister, Begin Zangane, said in a letter seen by Reuters that he opposed OPEC's proposal to amend the meeting date to early July. The meeting is now scheduled for June 25-26. 
In a separate speech, the Organization of the Petroleum Exporting Countries (OPEC) said Algeria and Kazakhstan also opposed the amendment of the date

  • Upvote 2
Link to comment
Share on other sites

Oil Is On The Brink Of A Bear Market

By Tom Kool - Jun 04, 2019, 2:00 PM CDT

Oil markets are heading into bear territory as fears of a global economic slowdown grow on the back of Washington's escalating trade wars with both China and Mexico.

Investor Alert: A new breakthrough – known by only a handful of scientists, researchers and insiders – is about to turn the energy world upside down. And one small company is at the center of it all. Get the full report here.

News

(Click to enlarge)

Rig

(Click to enlarge)

Rig Count

(Click to enlarge)

Saudi Arabia

(Click to enlarge)

- Saudi Arabia used 0.4 mb/d of oil for power generation in 2018, the lowest total since 2009, according to the EIA.

- The Kingdom has deployed more gas-fired generation, freeing up oil for export.

- It also has increased its refining capacity, making it a larger exporter of refined products and not simply crude oil.

Market Movers

- Four people were injured when an explosion hit an oil and chemical storage terminal owned by Kinder Morgan (NYSE: KMI) in Carson, CA.

Apache (NYSE: APA) agreed to sell 140K MMBtu per day of natural gas to Cheniere Energy’s (NYSE: LNG)Corpus Christi liquefaction Stage 3 terminal. Meanwhile, Cheniere issued a final investment decision for Train 6 at its Sabine Pass facility.

- BP (NYSE: BP) agreed to sell its Gulf of Suez oil concessions to Dragon Oil. BP is focusing on its offshore Egypt assets.

Tuesday June 4, 2019

Prices for coal, natural gas, LNG and crude oil have all dropped significantly in recent weeks. “Fear of global economic growth slowing,” Peter Kiernan, lead energy analyst at the Economist Intelligence Unit (EIU), told Reuters, is “afflicting the entire energy complex with worries that demand growth will be bearish this year.”

OPEC+ likely to extend production cuts. The collapse of oil prices makes OPEC+’s decision an easy one when they meet in Vienna. There are very few analysts who believe OPEC+ will remove or significantly reduce the current production cut agreement.

Colorado municipalities issue drilling regulations.Fresh off a major state overhaul of oil and gas regulations, municipalities have moved quickly to begin regulating the industry at the local level. At least seven drilling municipal drilling moratoria have been passed, according to S&P Global Platts.

Trump’s Mexico tariffs could hit refiners. The looming tariffs that Trump is about to implement on Mexico would impact crude oil imports, which would raise costs for U.S. refiners. The tariffs are expected to begin at 5 percent on June 10, and then rise by 5 percent each month going forward, topping out at 25 percent. A 5 percent tariff could add about $3 per barrel to the cost of Maya crude. With profit margins for refiners on those barrels trading at roughly $6.86 per barrel, margins would be cut in half, according to E&E News. The tariffs would also trickle down to consumers at the pump. “The implication of that would be less gasoline produced, and prices would increase at the pump,” Sandy Fielden, director of oil research for Morningstar Inc, told the Wall Street Journal. On the other hand, to the extent that Trump’s tariffs drag down the global economy – and thus, crude oil prices – the impact on retail prices could be offset.

Exxon could be affected by Papua New Guinea shakeup. ExxonMobil’s (NYSE: XOM) massive natural gas production and LNG export facilities in Papua New Guinea could be affected by a government shakeup. Newly installed Prime Minister James Marape has called for greater local control over its resources. “We will look into maximizing gain from what God has given this country — from our natural resources,” he said on Thursday. “I have every right to tweak and turn resources laws for my country.” WoodMac said the leadership change could delay the expansion of the LNG project by two years. Related: Oil Set For Worst Monthly Drop Since November

Mexico files charges against former Pemex chief.Mexican investigators filed corruption charges last week against Pemex’s former chief executive.

Russia’s oil production drops on contamination.Russia’s oil production fell to an 11-month low in May due to outages related to the contamination crisis. Production dropped to 11.11 mb/d, down from 11.23 mb/d in April.

Investment banks losing patience with oil trading.Trading units at investment banks are making a lot more money buying and selling gas, metals and carbon permits than they are trading crude oil. Oil, in fact, is falling out of favor with big banks as major economies continue to shift towards cleaner energy. The world’s 12 largest investment banks earned $2.5 billion last year from power, natural gas and metals, while they only earned $450 million from oil. “As we move toward a decarbonized economy these businesses realize they need to be involved in electricity,” Jonathan Funnell at recruiters Proco Commodities told Reuters. “Oil (revenues) being so bad has brought this to the forefront.”

Line 3 hits another snag. Enbridge’s (NYSE: ENB)Line 3 replacement project hit another legal setback on Monday, when a Minnesota court ruled that the state’s environmental impact statement was inadequate. The project involves replacing an aging long distance pipeline, which would double its current capacity to 760,000 bpd. It represents the only meaningful addition to midstream capacity for Canada’s oil sands. The decision, which said that Minnesota regulators did not study the impact of a potential oil spill, could lead to more delays.

Oil exports rising amid growing supply. A record six supertankers are expected to dock and load up on crude at the Louisiana Offshore Oil Port (LOOP) over the next few weeks, according to Reuters, double the previous record set in December. Rising oil flows to the Gulf Coats and weaker prices are leading to more oil heading overseas. The LOOP port is the only U.S. terminal at the moment that can handle very large crude carriers.

ENI announces another offshore discovery. Eni (NYSE: E) announced its fifth oil discovery in the past year in offshore Angola. The discovery at the Agidigbo prospect is close to its existing West Hub development, and it could hold as much as 300 to 400 million barrels. Related: Iraq’s Ambitious Oil Plan Faces One Major Problem

Lawsuit against Permian leasing. Environmental groups are suing the Bureau of Land Management for a major leasing plan in the Permian basin. The lawsuit said the federal government did not adequately assess the full environmental impacts of oil and gas leasing in the New Mexico offering.

Biden releases climate plan. Pressured by activists and other candidates in the Democratic primary, former Vice President Joe Biden released a climate plan that calls for a ban on new oil and gas leasing on public lands, and calls for a $1.7 trillion federal investment in clean energy and infrastructure. The plan comes just a few weeks after a Reuters report suggested that he would pursue a “middle ground” plan that leaned heavily on natural gas. Biden faced blowback from his left flank after that report.

EV push on SUVs. A flurry of new electric SUV models are in the offing. In the first quarter, 19 of the top 25 most popular vehicles in the U.S. were either a pickup truck, SUV or jeep. The Ford (NYSE: F) F-150 has been the most popular vehicle for four decades. But falling battery costs are making electric SUVs and trucks more viable.

Investor Alert: A new breakthrough – known by only a handful of scientists, researchers and insiders – is about to turn the energy world upside down. And one small company is at the center of it all. Get the full report here.

  • Thanks 2
  • Upvote 4
Link to comment
Share on other sites

  • yota691 changed the title to Oil rises 1% on settlement amid fears of supply shortages
  • TexasGranny locked this topic
Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.