Cracks Show in Permian's Promise as Shale Producers Retrench - Bloomberg:
The promise of the Permian is shrinking.
Producers in the nation’s oil-rich shale basins are dialing back growth plans in the face of a growing panoply of problems that’s killing returns and keeping skeptical investors at bay.
The constraints are manifold: pipeline limits, reduced flow from wells drilled too close together, low natural gas prices and high land costs. But the most consequential is that shale-well production falls off at such a high rate -- as much as 70% in the first year -- that you need to keep spending cash on new wells just to maintain output.
Friday, 12 July 2019
Oil Caps Weekly Gain as Strengthening Storm Buoys Fragile Market - Bloomberg
Oil Caps Weekly Gain as Strengthening Storm Buoys Fragile Market - Bloomberg:
Oil capped its best week since mid-June as Tropical Storm Barry gained strength, approaching refineries in Louisiana and leaving deserted offshore platforms on its path.
Futures in New York gained 4.7% for the week after prices held above $60 a barrel for a third day on Friday. Forecast to make landfall as a hurricane early Saturday, Barry has already curbed about half of U.S. Gulf of Mexico production.
Coupled with rising tensions between the U.K. and Iran, as well as a steep drop in American crude stockpiles, the storm helped offset concerns over weakening demand.
West Texas Intermediate crude for August delivery closed Friday 1 cent higher at $60.21 a barrel on the New York Mercantile Exchange. Brent for September settlement rose 20 cents, or 0.3%, to $66.72 a barrel on the ICE Futures Europe Exchange.
Oil capped its best week since mid-June as Tropical Storm Barry gained strength, approaching refineries in Louisiana and leaving deserted offshore platforms on its path.
Futures in New York gained 4.7% for the week after prices held above $60 a barrel for a third day on Friday. Forecast to make landfall as a hurricane early Saturday, Barry has already curbed about half of U.S. Gulf of Mexico production.
Coupled with rising tensions between the U.K. and Iran, as well as a steep drop in American crude stockpiles, the storm helped offset concerns over weakening demand.
West Texas Intermediate crude for August delivery closed Friday 1 cent higher at $60.21 a barrel on the New York Mercantile Exchange. Brent for September settlement rose 20 cents, or 0.3%, to $66.72 a barrel on the ICE Futures Europe Exchange.
Russia Has Your Back, OPEC. What Could Go Wrong? - Bloomberg
Russia Has Your Back, OPEC. What Could Go Wrong? - Bloomberg:
The only country that could really make OPEC+ work is the U.S. That’s not an option, so it’s stuck with Russia. OPEC’s own forecasts show just how much sway Moscow has over the group.
Next year looks ugly for oil producers. OPEC expects demand to grow by 1.14 million barrels a day, flat with expectations for this year (which have been coming down). But it also expects supply from non-OPEC countries to surge by 2.4 million barrels a day. Hence, the world will need fewer OPEC barrels: 1.34 million a day, equivalent to almost the entire production of Angola.
And OPEC’s market share has been dropping already. The International Energy Agency piled on Friday morning with its own monthly report, surmising implied demand for crude oil from OPEC could drop to 28 million barrels a day in early 2020, an amount the group last produced in summer 2003.
The only country that could really make OPEC+ work is the U.S. That’s not an option, so it’s stuck with Russia. OPEC’s own forecasts show just how much sway Moscow has over the group.
Next year looks ugly for oil producers. OPEC expects demand to grow by 1.14 million barrels a day, flat with expectations for this year (which have been coming down). But it also expects supply from non-OPEC countries to surge by 2.4 million barrels a day. Hence, the world will need fewer OPEC barrels: 1.34 million a day, equivalent to almost the entire production of Angola.
And OPEC’s market share has been dropping already. The International Energy Agency piled on Friday morning with its own monthly report, surmising implied demand for crude oil from OPEC could drop to 28 million barrels a day in early 2020, an amount the group last produced in summer 2003.
Oil Heads for Weekly Gain as Supply Risks Buoy Fragile Market - Bloomberg
Oil Heads for Weekly Gain as Supply Risks Buoy Fragile Market - Bloomberg:
Oil headed for a weekly increase as a storm in the Gulf of Mexico and simmering Middle East tensions supported the market, though the outlook remained clouded by concerns of a renewed supply surplus.
Futures were trading above $60 a barrel in New York on Friday, leaving this week’s increase at 4.8%. Tropical Storm Barry, which could hit the Louisiana coast on Saturday, has already curbed about half of the energy output in the Gulf. Meanwhile Iran’s attempt to block the passage of a British tanker in the Strait of Hormuz ratcheted up tension in the oil-rich Persian Gulf, and U.S. data showed a drop in American crude stockpiles to the lowest level in almost three months.
West Texas Intermediate crude for August delivery gained 10 cents to $60.30 a barrel on the New York Mercantile Exchange as of 1:43 p.m. London time.
Brent for September settlement rose 32 cents, or 0.5%, to $66.84 a barrel on the ICE Futures Europe Exchange. Prices are up 4% this week. The global benchmark crude traded at a $6.48 premium to WTI for the same month.
Oil headed for a weekly increase as a storm in the Gulf of Mexico and simmering Middle East tensions supported the market, though the outlook remained clouded by concerns of a renewed supply surplus.
Futures were trading above $60 a barrel in New York on Friday, leaving this week’s increase at 4.8%. Tropical Storm Barry, which could hit the Louisiana coast on Saturday, has already curbed about half of the energy output in the Gulf. Meanwhile Iran’s attempt to block the passage of a British tanker in the Strait of Hormuz ratcheted up tension in the oil-rich Persian Gulf, and U.S. data showed a drop in American crude stockpiles to the lowest level in almost three months.
West Texas Intermediate crude for August delivery gained 10 cents to $60.30 a barrel on the New York Mercantile Exchange as of 1:43 p.m. London time.
Brent for September settlement rose 32 cents, or 0.5%, to $66.84 a barrel on the ICE Futures Europe Exchange. Prices are up 4% this week. The global benchmark crude traded at a $6.48 premium to WTI for the same month.
#Qatar Juggles Alliances With #Iran, Turkey and the U.S. - Bloomberg
Qatar Juggles Alliances With Iran, Turkey and the U.S. - Bloomberg:
This week’s visit to Washington by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, including an appointment with President Donald Trump at the White House, is the latest performance of the most delicate high-wire act in international politics.
Isolated by its neighbors, Qatar is improbably balancing friendships with the three contesting powers in the Middle East: the U.S., Turkey and Iran. In a Venn diagram of Middle Eastern strategic relationships, Qatar would account for most of the heavily shaded areas.
It's being boycotted by Egypt and three of its Gulf Arab neighbors — Saudi Arabia, the United Arab Emirates and Bahrain — which accuse the tiny emirate of sponsoring extremist groups, including the Muslim Brotherhood.
This week’s visit to Washington by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, including an appointment with President Donald Trump at the White House, is the latest performance of the most delicate high-wire act in international politics.
Isolated by its neighbors, Qatar is improbably balancing friendships with the three contesting powers in the Middle East: the U.S., Turkey and Iran. In a Venn diagram of Middle Eastern strategic relationships, Qatar would account for most of the heavily shaded areas.
It's being boycotted by Egypt and three of its Gulf Arab neighbors — Saudi Arabia, the United Arab Emirates and Bahrain — which accuse the tiny emirate of sponsoring extremist groups, including the Muslim Brotherhood.
Oil lingers near six-week highs amid Gulf of Mexico storm, Middle East tensions - Reuters
Oil lingers near six-week highs amid Gulf of Mexico storm, Middle East tensions - Reuters:
Oil prices hovered near six-week highs on Friday and was on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East.
Brent crude LCOc1 futures were up 57 cents, or 0.9%, at $67.09 per barrel by 0642 GMT. The international benchmark settled down 0.7% on Thursday after hitting its highest since May 30 at $67.65.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 46 cents, or 0.8%, at $60.66 a barrel. In the previous session, the U.S. benchmark rose to as much as $60.94, its highest since May 23.
Brent prices have climbed 4.4% this week, while WTI prices rose 5.4%. Both the benchmark crudes posted declines last week.
Oil prices hovered near six-week highs on Friday and was on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East.
Brent crude LCOc1 futures were up 57 cents, or 0.9%, at $67.09 per barrel by 0642 GMT. The international benchmark settled down 0.7% on Thursday after hitting its highest since May 30 at $67.65.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 46 cents, or 0.8%, at $60.66 a barrel. In the previous session, the U.S. benchmark rose to as much as $60.94, its highest since May 23.
Brent prices have climbed 4.4% this week, while WTI prices rose 5.4%. Both the benchmark crudes posted declines last week.
#Saudi sovereign wealth fund nears $10bn loan | Financial Times
Saudi sovereign wealth fund nears $10bn loan | Financial Times:
Saudi Arabia’s sovereign wealth fund has agreed initial terms for a $10bn loan from a group of the world’s largest banks, as Crown Prince Mohammed bin Salman’s favoured investment vehicle taps lenders for the second time in less than a year.
Bank of America Merrill Lynch, BNP Paribas, Crédit Agricole and Citigroup are among the 10 banks that have committed to provide the short-term loan to the kingdom’s Public Investment Fund, said people briefed on the transaction.
The loan is expected to be paid back towards the end of the year when Saudi Aramco makes the first payment to the fund of the $69bn it is paying the PIF for its majority stake in local petrochemicals group Sabic.
Saudi Arabia’s sovereign wealth fund has agreed initial terms for a $10bn loan from a group of the world’s largest banks, as Crown Prince Mohammed bin Salman’s favoured investment vehicle taps lenders for the second time in less than a year.
Bank of America Merrill Lynch, BNP Paribas, Crédit Agricole and Citigroup are among the 10 banks that have committed to provide the short-term loan to the kingdom’s Public Investment Fund, said people briefed on the transaction.
The loan is expected to be paid back towards the end of the year when Saudi Aramco makes the first payment to the fund of the $69bn it is paying the PIF for its majority stake in local petrochemicals group Sabic.
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