Iran's Tanker Fleet Gives Oil-Export Lifeline as Sanctions Loom - Bloomberg:
Iran’s own fleet of tankers may provide a lifeline for its crude and condensate exports that’ll be slashed as U.S. sanctions against the Persian Gulf nation take hold.
As Iran’s customers give in to mounting U.S. pressure, shipments from the OPEC member may drop to under 1 million barrels a day by mid-2019, down from a daily 2.5 million this year, according to industry consultant FGE. Still, the Middle East nation’s cargoes to China in the past few weeks show how changing vessel ownership and contract terms may help it sustain flows to buyers.
Friday, 24 August 2018
Oil Rises on Supply Risks After Longest Losing Run Since 2015 - Bloomberg
Oil Rises on Supply Risks After Longest Losing Run Since 2015 - Bloomberg:
Oil rose in New York and headed for its first weekly gain in two months amid signs of tighter supply from the North Sea to the Middle East.
Futures in New York gained about 4 percent this week, ending their longest run of weekly losses since 2015. U.S. crude stockpiles dropped by more than twice what analysts expected last week, while strikes at Total SA’s fields in the North Sea could curb supply. Iran’s exports are set to decline sharply as renewed U.S. sanctions take effect, analysts at FGE and Cowen & Co. said.
Oil rose in New York and headed for its first weekly gain in two months amid signs of tighter supply from the North Sea to the Middle East.
Futures in New York gained about 4 percent this week, ending their longest run of weekly losses since 2015. U.S. crude stockpiles dropped by more than twice what analysts expected last week, while strikes at Total SA’s fields in the North Sea could curb supply. Iran’s exports are set to decline sharply as renewed U.S. sanctions take effect, analysts at FGE and Cowen & Co. said.
Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters
Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters:
Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.
The initial public offering (IPO) of 5 percent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.
The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.
Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.
The initial public offering (IPO) of 5 percent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.
The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.
Saudi reforms to boost growth despite any Aramco IPO delay: IMF | Reuters
Saudi reforms to boost growth despite any Aramco IPO delay: IMF | Reuters:
Saudi Arabia is moving ahead with economic reforms and growth in its non-oil economy will pick up this year despite any delay to the planned sale of shares in national oil giant Saudi Aramco, a senior International Monetary Fund official said on Friday.
“Aramco was one part of the reform program. Other parts are moving ahead pretty well,” Tim Callen, the IMF’s mission chief for Saudi Arabia, told reporters after annual consultations with the Saudi government.
He said the IMF’s projections for Saudi economic growth to accelerate in coming years were based on expectations for a broad range of reforms to continue, and did not include the impact of a planned initial public offer of Aramco shares.
Saudi Arabia is moving ahead with economic reforms and growth in its non-oil economy will pick up this year despite any delay to the planned sale of shares in national oil giant Saudi Aramco, a senior International Monetary Fund official said on Friday.
“Aramco was one part of the reform program. Other parts are moving ahead pretty well,” Tim Callen, the IMF’s mission chief for Saudi Arabia, told reporters after annual consultations with the Saudi government.
He said the IMF’s projections for Saudi economic growth to accelerate in coming years were based on expectations for a broad range of reforms to continue, and did not include the impact of a planned initial public offer of Aramco shares.
Norway oil fund should stay in oil and gas — government report | Financial Times
Norway oil fund should stay in oil and gas — government report | Financial Times:
Norway should stay invested in oil and gas shares, according to a government-commissioned report that looked into whether the world’s largest sovereign wealth fund should divest.
The centre-right government in Oslo is not obliged to follow the report but is set to give its own answer in the coming months after the $1tn fund itself recommended selling out to avoid being over-exposed to oil.
“Divestment of the energy stocks in the [oil fund] is not an effective insurance against a permanent decline in oil prices. The energy stocks only contribute marginally to Norway’s oil price risk,” said Oystein Thogersen, the commission’s chairman.
Norway should stay invested in oil and gas shares, according to a government-commissioned report that looked into whether the world’s largest sovereign wealth fund should divest.
The centre-right government in Oslo is not obliged to follow the report but is set to give its own answer in the coming months after the $1tn fund itself recommended selling out to avoid being over-exposed to oil.
“Divestment of the energy stocks in the [oil fund] is not an effective insurance against a permanent decline in oil prices. The energy stocks only contribute marginally to Norway’s oil price risk,” said Oystein Thogersen, the commission’s chairman.
Oil Bounces After Longest Losing Run Since 2015 on Supply Risks - Bloomberg
Oil Bounces After Longest Losing Run Since 2015 on Supply Risks - Bloomberg:
The prospect of tighter supplies from the U.S. to the North Sea and Iran is helping oil recover this week from the longest losing streak since 2015.
Futures in New York are headed for a 3.7 percent gain this week, the first advance in two months. In the U.S., latest data showed stockpiles dropped by more than twice what analysts had expected, while supplies in the North Sea are under threat from labor strikes at Total SA’s fields. Uncertainty also persists over how Iran’s exports will be affected by impending American sanctions against OPEC’s third-biggest producer.
The prospect of tighter supplies from the U.S. to the North Sea and Iran is helping oil recover this week from the longest losing streak since 2015.
Futures in New York are headed for a 3.7 percent gain this week, the first advance in two months. In the U.S., latest data showed stockpiles dropped by more than twice what analysts had expected, while supplies in the North Sea are under threat from labor strikes at Total SA’s fields. Uncertainty also persists over how Iran’s exports will be affected by impending American sanctions against OPEC’s third-biggest producer.
Aramco’s Stalled IPO Tarnishes Saudi Prince’s Grand Vision - Bloomberg
Aramco’s Stalled IPO Tarnishes Saudi Prince’s Grand Vision - Bloomberg:
The sale of shares in Saudi Arabia’s oil giant was supposed to underpin Crown Prince Mohammed bin Salman’s grand plan to transform an insular, oil-dependent kingdom into a 21st century economy. Floating Aramco abroad would expose the most important Saudi company to the scrutiny of global markets, a hard jolt toward the modern world.
So much for that.
Saudi Arabia’s acknowledgement this week that the initial public offering is on hold represents the most significant reversal in Prince Mohammed’s plans. While he will find other ways to fund his vision, it’s likely to give pause to investors considering other deals that depend on government commitments.
The sale of shares in Saudi Arabia’s oil giant was supposed to underpin Crown Prince Mohammed bin Salman’s grand plan to transform an insular, oil-dependent kingdom into a 21st century economy. Floating Aramco abroad would expose the most important Saudi company to the scrutiny of global markets, a hard jolt toward the modern world.
So much for that.
Saudi Arabia’s acknowledgement this week that the initial public offering is on hold represents the most significant reversal in Prince Mohammed’s plans. While he will find other ways to fund his vision, it’s likely to give pause to investors considering other deals that depend on government commitments.
Oil prices rise as U.S. sanctions on Iran cloud supply outlook | Reuters
Oil prices rise as U.S. sanctions on Iran cloud supply outlook | Reuters:
Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market.
Brent crude oil futures LCOc1 were at $75.19 per barrel at 0640 GMT, up 46 cents, or 0.6 percent, from their last close. Brent is on track for a 4.7 percent weekly rise.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.32 per barrel, up 49 cents, or 0.7 percent. WTI is heading for a 3.7 percent weekly increase.
Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market.
Brent crude oil futures LCOc1 were at $75.19 per barrel at 0640 GMT, up 46 cents, or 0.6 percent, from their last close. Brent is on track for a 4.7 percent weekly rise.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.32 per barrel, up 49 cents, or 0.7 percent. WTI is heading for a 3.7 percent weekly increase.
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