Brent Crude Surges in Best Week Since '16 as U.S. Economy Shines - Bloomberg:
Brent crude surged to its best weekly gain in more than two years, as encouraging economic news out of the U.S. helped oil markets turn the page on 2018’s price collapse.
The global benchmark closed higher on Friday, ending the week up 9.3 percent for its best showing since December 2016. Oil rallied alongside the U.S. stock market following a strong jobs report and dovish comments on interest rates from the Federal Reserve. Production declines from Saudi Arabia to Libya also buoyed a market that plummeted last year on fears of a supply glut.
“The economy in many ways looks strong and that should be good for demand," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “You’re getting some people buying back in, as they look out and decide the market has gotten oversold."
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Friday 4 January 2019
#Fujairah’s oil storage status is getting a major upgrade
Fujairah’s oil storage status is getting a major upgrade:
Fujairah is set to become a global oil storage and trading hub due to its unique location as well as access to pipelines for crude, a top executive of Brooge Petroleum and Gas Investment Company (BPGIC) said.
“Fujairah is number two globally in bunkering (supply of fuel to ships) after Singapore and ahead of Rotterdam,” said Nicolaas Paardenkooper, CEO. “It is in a unique location right in the middle of the shipping lines between east and west and is in deep water with good connectivity for all the companies as well as access to refining capacity.”
BPGIC founded in 2013 is one of the largest holders of storage assets in Fujairah. It completed the first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates (refined oil product) and fuel oil and went operational in January last. Work is on for the second phase, which will add 600,000 cubic meters of capacity for crude oil across eight tanks and expected to be completed in Q1-2020.
Fujairah is set to become a global oil storage and trading hub due to its unique location as well as access to pipelines for crude, a top executive of Brooge Petroleum and Gas Investment Company (BPGIC) said.
“Fujairah is number two globally in bunkering (supply of fuel to ships) after Singapore and ahead of Rotterdam,” said Nicolaas Paardenkooper, CEO. “It is in a unique location right in the middle of the shipping lines between east and west and is in deep water with good connectivity for all the companies as well as access to refining capacity.”
BPGIC founded in 2013 is one of the largest holders of storage assets in Fujairah. It completed the first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates (refined oil product) and fuel oil and went operational in January last. Work is on for the second phase, which will add 600,000 cubic meters of capacity for crude oil across eight tanks and expected to be completed in Q1-2020.
#Qatar’s quarterly GDP rises by 20.4% to hit QR180.9bn - The Peninsula Qatar
Qatar’s quarterly GDP rises by 20.4% to hit QR180.9bn - The Peninsula Qatar:
Qatar’s Gross Domestic Product at current prices (nominal GDP) has increased by 20.4 percent in the third quarter of 2018 over the third quarter of 2017. The quarterly GDP at current prices in Q3 of 2018 is estimated at QR180.90bn.
This represents an increase of 20.4 percent compared to the estimate of Q3 of 2017 placed at QR150.19bn.
Compared to previous quarter's (Q2 of 2018) revised estimate of QR170.58bn, it is a rise of six percent, according to the preliminary estimates of Gross Domestic Product at current and constant prices for the third quarter of 2018, released by The Planning and Statistics Authority.
Qatar’s Gross Domestic Product at current prices (nominal GDP) has increased by 20.4 percent in the third quarter of 2018 over the third quarter of 2017. The quarterly GDP at current prices in Q3 of 2018 is estimated at QR180.90bn.
This represents an increase of 20.4 percent compared to the estimate of Q3 of 2017 placed at QR150.19bn.
Compared to previous quarter's (Q2 of 2018) revised estimate of QR170.58bn, it is a rise of six percent, according to the preliminary estimates of Gross Domestic Product at current and constant prices for the third quarter of 2018, released by The Planning and Statistics Authority.
#Saudis Faces Cheap Oil, Social Liberalization, Climate Change - Bloomberg
Saudis Faces Cheap Oil, Social Liberalization, Climate Change - Bloomberg:
On the surface, Saudi Arabia and its ruling family — an absolute monarchy flush with oil wealth — look secure in their power. Despite oil price fluctuations, income per person has been more or less constant for many years now:
In purchasing power parity terms, Saudi Arabia is a rich country — only slightly behind the U.S. in living standards. Meanwhile, the country’s leadership is feeling confident and powerful enough to prosecute a war in Yemen and kill dissident journalists.
But beneath the placid surface, there could be trouble brewing. First of all, the country’s demographics are headed in a direction that is sometimes associated with social unrest. As recently as 2000, Saudi Arabian families were very large, with an average of more than six children per woman. But fertility has dropped precipitously, and is now below the replacement level of 2.1 children per woman:
On the surface, Saudi Arabia and its ruling family — an absolute monarchy flush with oil wealth — look secure in their power. Despite oil price fluctuations, income per person has been more or less constant for many years now:
In purchasing power parity terms, Saudi Arabia is a rich country — only slightly behind the U.S. in living standards. Meanwhile, the country’s leadership is feeling confident and powerful enough to prosecute a war in Yemen and kill dissident journalists.
But beneath the placid surface, there could be trouble brewing. First of all, the country’s demographics are headed in a direction that is sometimes associated with social unrest. As recently as 2000, Saudi Arabian families were very large, with an average of more than six children per woman. But fertility has dropped precipitously, and is now below the replacement level of 2.1 children per woman:
GLOBAL LNG-Prices slide in well-supplied and quiet market | Reuters
GLOBAL LNG-Prices slide in well-supplied and quiet market | Reuters:
Asian spot prices for liquefied natural gas (LNG) fell this week although few cargoes were heard to swap hands in a well-supplied market with some traders still on their New Year’s break.
Spot prices for February delivery to Asia LNG-AS were assessed at $8.75 per million British thermal units (mmBtu) compared to $9.10 last week, industry sources said, citing low liquidity as the reason for the fall.
Trading activity started to rise towards the end of the week and was mainly focused on late January and February cargoes, with nothing yet heard for March volumes, traders said. Tumbling shipping charter rates, however, were expected to boost liquidity next week, they said.
Asian spot prices for liquefied natural gas (LNG) fell this week although few cargoes were heard to swap hands in a well-supplied market with some traders still on their New Year’s break.
Spot prices for February delivery to Asia LNG-AS were assessed at $8.75 per million British thermal units (mmBtu) compared to $9.10 last week, industry sources said, citing low liquidity as the reason for the fall.
Trading activity started to rise towards the end of the week and was mainly focused on late January and February cargoes, with nothing yet heard for March volumes, traders said. Tumbling shipping charter rates, however, were expected to boost liquidity next week, they said.
Former Barclays bosses face London trial over Qatari cash call | Reuters
Former Barclays bosses face London trial over Qatari cash call | Reuters:
The most senior bankers to face criminal charges in Britain over conduct during the financial crisis will appear before a London jury next week in a trial that will test the mettle of the Serious Fraud Office.
CEO John Varley and three one-time colleagues stand charged over deals with Qatari investors to secure cash injections that allowed the bank, that can trace its origins back to around 1690, to survive the crisis a decade ago.
The trial, scheduled to start on Monday and slated to last for up to four months, is expected to begin with lengthy legal, procedural arguments before prosecutors open their case.
The most senior bankers to face criminal charges in Britain over conduct during the financial crisis will appear before a London jury next week in a trial that will test the mettle of the Serious Fraud Office.
CEO John Varley and three one-time colleagues stand charged over deals with Qatari investors to secure cash injections that allowed the bank, that can trace its origins back to around 1690, to survive the crisis a decade ago.
The trial, scheduled to start on Monday and slated to last for up to four months, is expected to begin with lengthy legal, procedural arguments before prosecutors open their case.
Record LNG capacity to get green light in 2019 amid strong demand | Reuters
Record LNG capacity to get green light in 2019 amid strong demand | Reuters:
A record amount of liquefied natural gas (LNG) production is expected to get the green light in 2019 amid strong global demand, especially from China, analysts said.
A final investment decision (FID) could be taken on more than 60 million tonnes per annum of LNG capacity this year, well above the previous record of about 45 million tonnes in 2005 and triple last year’s 21 million tonnes, Wood Mackenzie’s research director for global gas and LNG, Giles Farrer, said.
The new capacity would bulk out the pipeline of gas set to come on stream in coming years, adding to the more than 320 million tonnes of LNG shipped globally in 2018, according to shipping data in Refinitiv’s Eikon.
A record amount of liquefied natural gas (LNG) production is expected to get the green light in 2019 amid strong global demand, especially from China, analysts said.
A final investment decision (FID) could be taken on more than 60 million tonnes per annum of LNG capacity this year, well above the previous record of about 45 million tonnes in 2005 and triple last year’s 21 million tonnes, Wood Mackenzie’s research director for global gas and LNG, Giles Farrer, said.
The new capacity would bulk out the pipeline of gas set to come on stream in coming years, adding to the more than 320 million tonnes of LNG shipped globally in 2018, according to shipping data in Refinitiv’s Eikon.
U.S. oil drillers cut rigs for first week in three: Baker Hughes | Reuters
U.S. oil drillers cut rigs for first week in three: Baker Hughes | Reuters:
U.S. energy firms cut oil rigs for the first time in three weeks as producers started to reduce their 2019 drilling plans with the collapse in crude prices at the end of last year.
Drillers cut eight oil rigs in the week to Jan. 4, bringing the total count down to 877, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
The U.S. rig count, an early indicator of future output, is still much higher than a year ago when 742 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year.
U.S. energy firms cut oil rigs for the first time in three weeks as producers started to reduce their 2019 drilling plans with the collapse in crude prices at the end of last year.
Drillers cut eight oil rigs in the week to Jan. 4, bringing the total count down to 877, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
The U.S. rig count, an early indicator of future output, is still much higher than a year ago when 742 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year.
#Brent crude heads for best week in 2 years | Financial Times
Brent crude heads for best week in 2 years | Financial Times:
Oil prices continued their ascent on Friday amid signs of supply cuts, putting Brent futures on track to book their best week in more than two years.
Brent, the international benchmark, surged 4.1 per cent in recent trading to hit $58.23 a barrel. That equates to an 11.6 per cent rally this week, the highest since December 2016.
West Texas Intermediate crude also looked to end the week with strong gains, rising 4.3 per cent to $49.13 a barrel. For the week, US oil futures are up 8.3 per cent for the best weekly mark since April 2018.
Oil prices continued their ascent on Friday amid signs of supply cuts, putting Brent futures on track to book their best week in more than two years.
Brent, the international benchmark, surged 4.1 per cent in recent trading to hit $58.23 a barrel. That equates to an 11.6 per cent rally this week, the highest since December 2016.
West Texas Intermediate crude also looked to end the week with strong gains, rising 4.3 per cent to $49.13 a barrel. For the week, US oil futures are up 8.3 per cent for the best weekly mark since April 2018.
Dollar cycle may be about to turn, supporting oil prices: Kemp | Reuters
Dollar cycle may be about to turn, supporting oil prices: Kemp | Reuters:
The U.S. dollar has recently appreciated to its highest level in real terms since the start of 2017 and before that September 2003.
Dollar appreciation weighed on oil prices in 2018 as prices in some non-dollar currencies hit record levels earlier in the year and dampened consumption growth.
Yet there are signs that the dollar’s rise may be coming to an end as trade tensions with China weigh and pressure to raise rates dissipates, lifting prospects for oil prices to recover.
The U.S. dollar has recently appreciated to its highest level in real terms since the start of 2017 and before that September 2003.
Dollar appreciation weighed on oil prices in 2018 as prices in some non-dollar currencies hit record levels earlier in the year and dampened consumption growth.
Yet there are signs that the dollar’s rise may be coming to an end as trade tensions with China weigh and pressure to raise rates dissipates, lifting prospects for oil prices to recover.