U.S. oil production remains near record high: Kemp - Reuters:
U.S. crude production remained close to a record level in June but growth has slowed significantly since the end of last year in response to lower oil prices and the slowdown is set to extend into 2020.
Crude output averaged 12.1 million barrels per day (bpd) in June, essentially unchanged from record levels in May and April, according to data from the U.S. Energy Information Administration (EIA) published on Thursday.
Nevertheless, the shale boom is moderating in response to the decline in oil prices since the start of the fourth quarter of 2018, and the deceleration is expected to continue through the remainder of 2019 and 2020.
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Friday, 13 September 2019
Oil dips as demand concerns counter U.S.-China trade hopes - Reuters
Oil dips as demand concerns counter U.S.-China trade hopes - Reuters:
Oil prices edged lower on Friday and posted weekly losses, as concerns about slower global economic growth outweighed hints of progress in the U.S.-China trade dispute.
Brent crude LCOc1 futures fell 16 cents to settle at $60.22 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures delivery fell 24 cents to end at $54.85 a barrel.
Brent fell 2.1% for the week, its first decrease in five weeks. WTI lost about 3% loss for the week, its first decrease in three weeks.
Oil prices edged lower on Friday and posted weekly losses, as concerns about slower global economic growth outweighed hints of progress in the U.S.-China trade dispute.
Brent crude LCOc1 futures fell 16 cents to settle at $60.22 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures delivery fell 24 cents to end at $54.85 a barrel.
Brent fell 2.1% for the week, its first decrease in five weeks. WTI lost about 3% loss for the week, its first decrease in three weeks.
Oil Set for Weekly Drop as IEA Warns OPEC Faces Looming Surplus - Bloomberg
Oil Set for Weekly Drop as IEA Warns OPEC Faces Looming Surplus - Bloomberg:
Oil was set for a weekly decline as the International Energy Agency warned of a looming supply glut.
Futures erased earlier losses in New York on Friday, but were still down 1.9% for the week. Sentiment has been dominated by the challenge facing the Organization of Petroleum Exporting Countries and its allies in managing the market in 2020 as production surges from their competitors. While OPEC+ didn’t discuss deepening its output curbs in Abu Dhabi on Thursday, it put pressure on members to implement their promised cuts in an effort to avoid a surplus.
Glut concerns were also fueled this week by speculation that Donald Trump had discussed moderating sanctions on Iran, with RBC Capital Markets estimating such a move could bring back around 700,000 barrels a day. Meanwhile, the U.S. and China showed signs of rapprochement in their trade war and Saudi Arabia’s new energy minister downplayed oil-demand concerns, leaving any talk of deeper output cuts to OPEC’s next ministerial meeting in December.
Oil was set for a weekly decline as the International Energy Agency warned of a looming supply glut.
Futures erased earlier losses in New York on Friday, but were still down 1.9% for the week. Sentiment has been dominated by the challenge facing the Organization of Petroleum Exporting Countries and its allies in managing the market in 2020 as production surges from their competitors. While OPEC+ didn’t discuss deepening its output curbs in Abu Dhabi on Thursday, it put pressure on members to implement their promised cuts in an effort to avoid a surplus.
Glut concerns were also fueled this week by speculation that Donald Trump had discussed moderating sanctions on Iran, with RBC Capital Markets estimating such a move could bring back around 700,000 barrels a day. Meanwhile, the U.S. and China showed signs of rapprochement in their trade war and Saudi Arabia’s new energy minister downplayed oil-demand concerns, leaving any talk of deeper output cuts to OPEC’s next ministerial meeting in December.
Oil edges further above $60 as U.S.-China trade hopes support - Reuters
Oil edges further above $60 as U.S.-China trade hopes support - Reuters:
Oil edged further above $60 a barrel on Friday as hints of progress in the U.S.-China trade dispute outweighed concerns about a slowdown in global economies and demand for crude.
The world’s two largest economies are preparing for new talks and have been making conciliatory gestures ahead of the discussions, cheering investors.
“Both sides have made further displays of goodwill,” said Stephen Brennock of broker PVM. “The upshot is that no further deterioration in the economic environment is expected, hence the downside for oil prices should be limited in the near term.”
Benchmark Brent crude LCOc1 was up 10 cents at $60.48 a barrel by 1308 GMT, recovering from an earlier decline to $59.60. U.S. West Texas Intermediate CLc1 rose 40 cents to $55.49.
Oil edged further above $60 a barrel on Friday as hints of progress in the U.S.-China trade dispute outweighed concerns about a slowdown in global economies and demand for crude.
The world’s two largest economies are preparing for new talks and have been making conciliatory gestures ahead of the discussions, cheering investors.
“Both sides have made further displays of goodwill,” said Stephen Brennock of broker PVM. “The upshot is that no further deterioration in the economic environment is expected, hence the downside for oil prices should be limited in the near term.”
Benchmark Brent crude LCOc1 was up 10 cents at $60.48 a barrel by 1308 GMT, recovering from an earlier decline to $59.60. U.S. West Texas Intermediate CLc1 rose 40 cents to $55.49.
India Said to Mull Selling Stake in Refiner to Overseas Oil Firm - Bloomberg
India Said to Mull Selling Stake in Refiner to Overseas Oil Firm - Bloomberg:
India is considering a plan to sell the nation’s second-largest state refiner and fuel retailer to a global oil company as it explores options to give up its controlling stake in Bharat Petroleum Corp., people with knowledge of the matter said.
The government is keen to lure multinational companies in the domestic fuel retailing to boost competition and shake up a sector that’s long been dominated by state-run firms, the people said, asking not to be identified as the plan is not public. The Business Standard newspaper reported on Sept. 2 government’s plan to sell a majority stake in the company. It holds 53.3% in BPCL.
Prime Minister Narendra Modi’s government has set a record target of raising 1.05 trillion rupees ($14.8 billion) in the current fiscal year from sale of state firms. The government’s budget gap goal of 3.3% of GDP is at risk due to sluggish revenue collections on the back a growth slowdown, limiting the government’s ability to spend on infrastructure and welfare programs.
India is considering a plan to sell the nation’s second-largest state refiner and fuel retailer to a global oil company as it explores options to give up its controlling stake in Bharat Petroleum Corp., people with knowledge of the matter said.
The government is keen to lure multinational companies in the domestic fuel retailing to boost competition and shake up a sector that’s long been dominated by state-run firms, the people said, asking not to be identified as the plan is not public. The Business Standard newspaper reported on Sept. 2 government’s plan to sell a majority stake in the company. It holds 53.3% in BPCL.
Prime Minister Narendra Modi’s government has set a record target of raising 1.05 trillion rupees ($14.8 billion) in the current fiscal year from sale of state firms. The government’s budget gap goal of 3.3% of GDP is at risk due to sluggish revenue collections on the back a growth slowdown, limiting the government’s ability to spend on infrastructure and welfare programs.
#Saudi Prince’s Oil Diplomacy Makes Mark at OPEC+ Meeting Debut - Bloomberg
Saudi Prince’s Oil Diplomacy Makes Mark at OPEC+ Meeting Debut - Bloomberg:
Since the launch of its strategy to revive global oil markets three years ago, one of the biggest challenges faced by OPEC and its allies is that not all the producers have pulled their weight.
In the subtle diplomacy of Saudi Arabia’s new energy minister, they may at last have found a solution.
Oil prices have slid about 16% from a high in April this year even as the 24-nation coalition has cut production to check the glut threatened by faltering demand and surging U.S. shale oil. A big part of their struggle has been that some producers in the accord, most notably Iraq and Nigeria, have ramped up output rather than reduced it as promised.
Since the launch of its strategy to revive global oil markets three years ago, one of the biggest challenges faced by OPEC and its allies is that not all the producers have pulled their weight.
In the subtle diplomacy of Saudi Arabia’s new energy minister, they may at last have found a solution.
Oil prices have slid about 16% from a high in April this year even as the 24-nation coalition has cut production to check the glut threatened by faltering demand and surging U.S. shale oil. A big part of their struggle has been that some producers in the accord, most notably Iraq and Nigeria, have ramped up output rather than reduced it as promised.
Top Bankers Descend on #Dubai Ritz as Aramco IPO Work Starts - Bloomberg
Top Bankers Descend on Dubai Ritz as Aramco IPO Work Starts - Bloomberg:
Dozens of bankers from Citigroup Inc. to JPMorgan Chase & Co. descended on the heart of Dubai’s financial district on Thursday to start work on the mammoth initial public offering of Saudi Aramco.
Executives from Morgan Stanley and local investment bank Samba Financial Group also turned up for the kickoff meeting at the opulent Ritz Carlton hotel, just one day after news of their appointment came out. Every now and then, some would exit the closely guarded meeting room -- marked by an electronic sign bearing Moelis & Co.’s name -- passing guests on their way to the pool overlooking the office towers of Dubai International Financial Centre.
Representatives from Saudi Arabia’s sovereign wealth fund and finance ministry could also be spotted at the five-star property, which is fronted by a limestone facade and rows of palm trees. Around 5:30 p.m., several of the dark-suited dealmakers began trickling out to relax in the art-deco environs of Cafe Belge, known for its pots of mussels and a selection of Trappist beers costing up to 100 dirhams ($27) a pop.
Dozens of bankers from Citigroup Inc. to JPMorgan Chase & Co. descended on the heart of Dubai’s financial district on Thursday to start work on the mammoth initial public offering of Saudi Aramco.
Executives from Morgan Stanley and local investment bank Samba Financial Group also turned up for the kickoff meeting at the opulent Ritz Carlton hotel, just one day after news of their appointment came out. Every now and then, some would exit the closely guarded meeting room -- marked by an electronic sign bearing Moelis & Co.’s name -- passing guests on their way to the pool overlooking the office towers of Dubai International Financial Centre.
Representatives from Saudi Arabia’s sovereign wealth fund and finance ministry could also be spotted at the five-star property, which is fronted by a limestone facade and rows of palm trees. Around 5:30 p.m., several of the dark-suited dealmakers began trickling out to relax in the art-deco environs of Cafe Belge, known for its pots of mussels and a selection of Trappist beers costing up to 100 dirhams ($27) a pop.
Oil slips toward $60 on demand worries, despite trade hopes - Reuters
Oil slips toward $60 on demand worries, despite trade hopes - Reuters:
Oil slipped to around $60 a barrel on Friday as concern about a slowdown in the global economy and oil demand outweighed hints of progress in the U.S.-China trade dispute.
OPEC and the International Energy Agency (IEA) both issued reports this week pointing to an oil surplus next year, despite a pact by OPEC and its allies, a producer alliance known as OPEC+, to limit supplies. The deal runs until March.
“In order to avoid a price slide and a massive inventory build, OPEC+ would need to implement further voluntary production cuts,” said Eugen Weinberg, analyst at Commerzbank.
“The challenge facing OPEC+ is thus likely to become even bigger next year, maintaining the pressure on the oil price.”
Benchmark Brent crude LCOc1 was down 20 cents at $60.18 a barrel by 0955 GMT, while U.S. West Texas Intermediate CLc1 fell 27 cents to $54.82.
Oil slipped to around $60 a barrel on Friday as concern about a slowdown in the global economy and oil demand outweighed hints of progress in the U.S.-China trade dispute.
OPEC and the International Energy Agency (IEA) both issued reports this week pointing to an oil surplus next year, despite a pact by OPEC and its allies, a producer alliance known as OPEC+, to limit supplies. The deal runs until March.
“In order to avoid a price slide and a massive inventory build, OPEC+ would need to implement further voluntary production cuts,” said Eugen Weinberg, analyst at Commerzbank.
“The challenge facing OPEC+ is thus likely to become even bigger next year, maintaining the pressure on the oil price.”
Benchmark Brent crude LCOc1 was down 20 cents at $60.18 a barrel by 0955 GMT, while U.S. West Texas Intermediate CLc1 fell 27 cents to $54.82.