Is There Really a Global Shortage of Crude?: Oil Strategy - Bloomberg:
From Russia to Saudi Arabia, Iran to Venezuela, the list of crude oil supplies being curtailed or disrupted around the world is growing longer by the month.
This story examines whether the market’s biggest supply shifts are actually netting out into a global shortage of oil or not. The answer is a complex one, hinging on the type of crude in question and the time-frames selected.
The simplest supply measure is all the oil pulled out of the ground globally. On this view it does indeed look like global production has fallen sharply over the past six months, as the OPEC+ group of countries slashed supply, while the U.S. has toughened sanctions on the oil industries of Iran and Venezuela.
Saturday, 1 June 2019
Islamic Countries Condemn Attack on #Saudi Oil Ships at Summit - Bloomberg
Islamic Countries Condemn Attack on Saudi Oil Ships at Summit - Bloomberg:
Leaders of Islamic nations condemned last month’s attacks on Saudi Arabian oil facilities and ships off the coast of the U.A.E that have been blamed on Iran and its Yemeni Houthi allies, saying the international community should preserve the region’s stability.
The Organization of Islamic Cooperation held a summit in Mecca a day after back-to-back emergency meetings of Gulf and Arab leaders, who accused Tehran of threatening global oil supplies and maritime traffic.
Saudi Arabia called the emergency summits following attacks on oil installations in the kingdom, and on tankers heading toward the Strait of Hormuz, a key choke-point for international shipping. The U.S. has blamed Iran for the attacks on the vessels and dispatched additional forces to the region.
Leaders of Islamic nations condemned last month’s attacks on Saudi Arabian oil facilities and ships off the coast of the U.A.E that have been blamed on Iran and its Yemeni Houthi allies, saying the international community should preserve the region’s stability.
The Organization of Islamic Cooperation held a summit in Mecca a day after back-to-back emergency meetings of Gulf and Arab leaders, who accused Tehran of threatening global oil supplies and maritime traffic.
Saudi Arabia called the emergency summits following attacks on oil installations in the kingdom, and on tankers heading toward the Strait of Hormuz, a key choke-point for international shipping. The U.S. has blamed Iran for the attacks on the vessels and dispatched additional forces to the region.
Permian Explorers Expand Activity as Drilling Costs Decline - Bloomberg
Permian Explorers Expand Activity as Drilling Costs Decline - Bloomberg:
Oil explorers deployed more rigs for the first time in four weeks as shrinking drilling costs outweighed concern about sliding crude prices.
Working American oil rigs rose by three this week to 800, according to data released Friday by oilfield-services provider Baker Hughes. The Permian Basin and Eagle Ford shale -- two of the nation’s busiest shale fields -- both saw an increase in drilling.
Some U.S. shale drillers need as little as $23 a barrel for their crude to turn a profit and the nationwide average is $50, down 4% in the past year, according to a Federal Reserve Bank of Dallas survey of oil executives. That means explorers have been somewhat insulated from May’s 14% tumble in crude prices.
Oil explorers deployed more rigs for the first time in four weeks as shrinking drilling costs outweighed concern about sliding crude prices.
Working American oil rigs rose by three this week to 800, according to data released Friday by oilfield-services provider Baker Hughes. The Permian Basin and Eagle Ford shale -- two of the nation’s busiest shale fields -- both saw an increase in drilling.
Some U.S. shale drillers need as little as $23 a barrel for their crude to turn a profit and the nationwide average is $50, down 4% in the past year, according to a Federal Reserve Bank of Dallas survey of oil executives. That means explorers have been somewhat insulated from May’s 14% tumble in crude prices.
#Saudi Tadawul cuts par value of 29 government debt instruments | ZAWYA MENA Edition
Saudi Tadawul cuts par value of 29 government debt instruments | ZAWYA MENA Edition:
The Saudi Stock Exchange (Tadawul) has announced the reduction of the par value of 29 domestic government debt instruments issued by the Saudi government to SAR 1,000 from SAR 1 million.
The decision was requested by the Ministry of Finance (MoF), according to a bourse statement.
The change in prices will be effective on 9 June.
The Saudi Stock Exchange (Tadawul) has announced the reduction of the par value of 29 domestic government debt instruments issued by the Saudi government to SAR 1,000 from SAR 1 million.
The decision was requested by the Ministry of Finance (MoF), according to a bourse statement.
The change in prices will be effective on 9 June.
#UAE’s GDP will grow 3% in 2020 | ZAWYA MENA Edition
UAE’s GDP will grow 3% in 2020 | ZAWYA MENA Edition:
The strong financial position of Abu Dhabi’s government along with its developed infrastructure, high per capita income, and vast hydrocarbon reserves support the UAE’s credit profile Aa2 rating, with a stable outlook, according to Moody's Investors Service’s annual report.
That stable outlook is an indicator of the GCC country’s sovereign ratings' balance, Moody's Analyst and report's co-author Thaddeus Best said.
"Its credit profile is supported by the stable outlook on the Abu Dhabi sovereign rating and upside potential from diversification efforts, but is constrained by lingering government-related entity contingent liabilities and geopolitical tensions,” Best added.
The strong financial position of Abu Dhabi’s government along with its developed infrastructure, high per capita income, and vast hydrocarbon reserves support the UAE’s credit profile Aa2 rating, with a stable outlook, according to Moody's Investors Service’s annual report.
That stable outlook is an indicator of the GCC country’s sovereign ratings' balance, Moody's Analyst and report's co-author Thaddeus Best said.
"Its credit profile is supported by the stable outlook on the Abu Dhabi sovereign rating and upside potential from diversification efforts, but is constrained by lingering government-related entity contingent liabilities and geopolitical tensions,” Best added.
Tumbling spot price of oil does not tell full story, say traders | Financial Times
Tumbling spot price of oil does not tell full story, say traders | Financial Times:
Brent crude lost more than 10 per cent in May to fall back below $65 a barrel, as fears over the worsening US-China trade war rattled investors and put oil on course for its worst month this year.
But traders are warning that the spot price is not telling the full story. Instead, some are pointing at the way oil prices are moving for contracts on different delivery dates to tell a more nuanced tale. Brent contracts for the next few months are trading at large premiums versus those for delivery later this year — a classic sign of tightness in the market.
This could trigger a rebound in oil, should tensions between the US and China begin to ease.
Brent crude lost more than 10 per cent in May to fall back below $65 a barrel, as fears over the worsening US-China trade war rattled investors and put oil on course for its worst month this year.
But traders are warning that the spot price is not telling the full story. Instead, some are pointing at the way oil prices are moving for contracts on different delivery dates to tell a more nuanced tale. Brent contracts for the next few months are trading at large premiums versus those for delivery later this year — a classic sign of tightness in the market.
This could trigger a rebound in oil, should tensions between the US and China begin to ease.
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