OPEC-Shale Peace Prospects Crumble Hours After Historic Call - Bloomberg:
Just hours after one of the most powerful officials in the biggest U.S. oil state was invited to OPEC’s inner sanctum in June, prospects for a rapprochement between two historically antagonistic crude powers began to unravel.
Texas Railroad Commissioner Ryan Sitton said Friday he was invited by OPEC Secretary General Mohammad Barkindo to attend the group’s summer meeting in Vienna. But even as the surprise announcement reverberated across U.S. and international petroleum circles, Sitton’s plan to curb Texas crude output for the first time since the 1970s was criticized by fellow regulators and some of the industry’s biggest drillers.
“While I am open to any and all ideas to protect the Texas Miracle, as a free-market conservative I have a number of reservations about this approach,” Wayne Christian, chairman of the Texas commission that oversees the oil industry, said in a statement. If Texas cuts supply, “there is no guarantee other nations, or even states will follow suit.”
Sitton, an entrepreneur and Republican Party activist virtually unknown outside the Lone Star state, proposed Texas would curb oil output by 10% in exchange for an equivalent gesture by the cartel that controls more than one-third of global production.
Friday 20 March 2020
Oil falls for fourth week; U.S. crude posts steepest weekly loss since 1991 - Reuters
Oil falls for fourth week; U.S. crude posts steepest weekly loss since 1991 - Reuters:
U.S. crude tumbled 10.7% on Friday and posted its biggest weekly decline since the 1991 Gulf War as the coronavirus epidemic dried up global demand and as officials in Washington said an envoy would head to Saudi Arabia to deal with fallout of a Saudi-Russia oil price war.
The week featured four days of massive selling as the growing pandemic kept people from driving and booking flights. Major forecasters like trading giant Vitol and energy researcher IHS Markit said oil demand could drop by as much as 10%. Oil prices rose sharply on Thursday after days of selling, but the rally did not last.
U.S. crude prices notched a weekly loss of 29%, the steepest since the outset of the U.S./Iraq Gulf War in 1991. Brent crude dropped by 20%. Both benchmarks have dropped for four straight weeks.
On Friday, Brent crude futures LCOc1 fell $1.49, or 5.2%, to settle at $26.98 a barrel. U.S. crude futures for April CLc1 fell $2.69, or 10.7%, to settle at $22.53 a barrel. The front-month contract expires on Friday. The more active U.S. crude contract for May CLc2 settled down $3.28, or 12.7%, at $22.63.
U.S. crude tumbled 10.7% on Friday and posted its biggest weekly decline since the 1991 Gulf War as the coronavirus epidemic dried up global demand and as officials in Washington said an envoy would head to Saudi Arabia to deal with fallout of a Saudi-Russia oil price war.
The week featured four days of massive selling as the growing pandemic kept people from driving and booking flights. Major forecasters like trading giant Vitol and energy researcher IHS Markit said oil demand could drop by as much as 10%. Oil prices rose sharply on Thursday after days of selling, but the rally did not last.
U.S. crude prices notched a weekly loss of 29%, the steepest since the outset of the U.S./Iraq Gulf War in 1991. Brent crude dropped by 20%. Both benchmarks have dropped for four straight weeks.
On Friday, Brent crude futures LCOc1 fell $1.49, or 5.2%, to settle at $26.98 a barrel. U.S. crude futures for April CLc1 fell $2.69, or 10.7%, to settle at $22.53 a barrel. The front-month contract expires on Friday. The more active U.S. crude contract for May CLc2 settled down $3.28, or 12.7%, at $22.63.
'Demand destruction' - analysts race to lower outlooks for oil - Reuters
'Demand destruction' - analysts race to lower outlooks for oil - Reuters:
Traders and analysts are struggling to revise down their forecasts for oil demand fast enough, as government lockdowns to contain the coronavirus outbreak have rapidly cut fuel consumption.
At the start of the year, forecasters had expected demand to edge up or stay flat. But, in the space of a few months or even weeks, the most bearish outlooks seem hopelessly out of date.
“Demand destruction this year depends on how many countries follow an Italian-style lockdown,” said Giovanni Serio, head of research at Vitol, the world’s biggest oil trader.
“If you extrapolate to the rest of Europe and particularly the United States, then you can get as bearish as you like.”
Traders and analysts are struggling to revise down their forecasts for oil demand fast enough, as government lockdowns to contain the coronavirus outbreak have rapidly cut fuel consumption.
At the start of the year, forecasters had expected demand to edge up or stay flat. But, in the space of a few months or even weeks, the most bearish outlooks seem hopelessly out of date.
“Demand destruction this year depends on how many countries follow an Italian-style lockdown,” said Giovanni Serio, head of research at Vitol, the world’s biggest oil trader.
“If you extrapolate to the rest of Europe and particularly the United States, then you can get as bearish as you like.”
Oil falls back as Russia rejects Trump's intervention in price war - Reuters
Oil falls back as Russia rejects Trump's intervention in price war - Reuters:
Oil prices fell on Friday after rising 10% in the session as the coronavirus epidemic knocked the outlook for demand and Moscow rejected an intervention by U.S. President Donald Trump in Russia’s price war with Saudi Arabia.
Brent crude futures LCOc1 were down 32 cents, or 1.1%, at $28.15 a barrel by 1331 GMT.
Brent is on track for a weekly loss of more than 16% and its fourth consecutive weekly decline.
U.S. crude futures for April CLc1 fell 72 cents, or 2.8%, to $24.50. The front-month contract expires on Friday. The more active U.S. crude contract for May CLc2 was down 70 cents, or 2.7%, at $25.21.
Oil prices fell on Friday after rising 10% in the session as the coronavirus epidemic knocked the outlook for demand and Moscow rejected an intervention by U.S. President Donald Trump in Russia’s price war with Saudi Arabia.
Brent crude futures LCOc1 were down 32 cents, or 1.1%, at $28.15 a barrel by 1331 GMT.
Brent is on track for a weekly loss of more than 16% and its fourth consecutive weekly decline.
U.S. crude futures for April CLc1 fell 72 cents, or 2.8%, to $24.50. The front-month contract expires on Friday. The more active U.S. crude contract for May CLc2 was down 70 cents, or 2.7%, at $25.21.
Oman plans to cut spending by 5% as virus, oil price slump bites - Arabianbusiness
Oman plans to cut spending by 5% as virus, oil price slump bites - Arabianbusiness:
Oman plans to reduce spending by 5 percent in response to the coronavirus and the plunge in oil prices, Oman TV tweeted, a day after the sultanate announced a companion stimulus program.
The government will conduct a budget review every three months to monitor adherence to spending limits, it added. It’s also preparing a public debt law and is conducting a comprehensive review of public spending, Oman TV reported.
The sultanate has additionally approved funds to augment food reserves and to underwrite measures it’s taking to shore up the economy, Oman TV said.
It didn’t say where the money is coming from, but Oman is planning on drawing on reserves and selling assets this year.
Oman plans to reduce spending by 5 percent in response to the coronavirus and the plunge in oil prices, Oman TV tweeted, a day after the sultanate announced a companion stimulus program.
The government will conduct a budget review every three months to monitor adherence to spending limits, it added. It’s also preparing a public debt law and is conducting a comprehensive review of public spending, Oman TV reported.
The sultanate has additionally approved funds to augment food reserves and to underwrite measures it’s taking to shore up the economy, Oman TV said.
It didn’t say where the money is coming from, but Oman is planning on drawing on reserves and selling assets this year.
Oil Makes Record Rebound After Trump Hints at Role in Price War - Bloomberg
Oil Makes Record Rebound After Trump Hints at Role in Price War - Bloomberg:
West Texas Intermediate surged by 24%, the most ever, after President Donald Trump said he may intervene in the standoff between Saudi Arabia and Russia. The two nations are pumping more crude in the battle for market share. Bloomberg’s James Thornhill reports on “Bloomberg Markets.” (Source: Bloomberg)
West Texas Intermediate surged by 24%, the most ever, after President Donald Trump said he may intervene in the standoff between Saudi Arabia and Russia. The two nations are pumping more crude in the battle for market share. Bloomberg’s James Thornhill reports on “Bloomberg Markets.” (Source: Bloomberg)
Etihad Airways adds India, Maldives, Russia, Sir Lanka flights to suspended list - Arabianbusiness
Etihad Airways adds India, Maldives, Russia, Sir Lanka flights to suspended list - Arabianbusiness:
Etihad Airways on Friday added more routes to its list of suspended services as the coronavirus continued to hit the global aviation industry hard.
The Abu Dhabi-based airline said services from the UAE capital to several cities in India, Kazakhstan, Russia, the Maldives and Sir Lanka are the latest to be grounded in a bid to prevent the spread of Covid-19.
"Due to the spread of the Covid-19 novel coronavirus and its continuing impact on air travel services globally, Etihad Airways continues to follow UAE and international government and regulatory authority directives and has implemented a series of consolidated network changes," the carrier said in a statement.
"This is also being carried out for the safety and convenience of its customers and staff, and to minimise operational disruption during this period."
Etihad Airways on Friday added more routes to its list of suspended services as the coronavirus continued to hit the global aviation industry hard.
The Abu Dhabi-based airline said services from the UAE capital to several cities in India, Kazakhstan, Russia, the Maldives and Sir Lanka are the latest to be grounded in a bid to prevent the spread of Covid-19.
"Due to the spread of the Covid-19 novel coronavirus and its continuing impact on air travel services globally, Etihad Airways continues to follow UAE and international government and regulatory authority directives and has implemented a series of consolidated network changes," the carrier said in a statement.
"This is also being carried out for the safety and convenience of its customers and staff, and to minimise operational disruption during this period."
Putin Won’t Submit to What Is Seen as #Saudi Oil-Price Blackmail - Bloomberg
Putin Won’t Submit to What Is Seen as Saudi Oil-Price Blackmail - Bloomberg:
Russian President Vladimir Putin will refuse to submit to what the Kremlin sees as oil blackmail from Saudi Arabia, signaling the price war that’s roiling global energy markets will continue.
The unprecedented clash between the two giant exporters -- and former OPEC+ allies -- threatens to push the price of a barrel below $20, but the Kremlin won’t be the first to blink and seek a truce, said people familiar with the government’s position.
Putin’s government has spent years building reserves for this kind of crisis. While Russia didn’t expect the Saudis to trigger a price war, the people said, the Kremlin so far is confident that it can hold out longer than Riyadh.
“Putin is known for not submitting to pressure,” said Alexander Dynkin, president of the Institute of World Economy and International Relations in Moscow, a state-run think tank that advises government on foreign policy and economy. He has proved that he is ready for a hard competition “to protect national interests and to keep his political image as a strongman.”
Russian President Vladimir Putin will refuse to submit to what the Kremlin sees as oil blackmail from Saudi Arabia, signaling the price war that’s roiling global energy markets will continue.
The unprecedented clash between the two giant exporters -- and former OPEC+ allies -- threatens to push the price of a barrel below $20, but the Kremlin won’t be the first to blink and seek a truce, said people familiar with the government’s position.
Putin’s government has spent years building reserves for this kind of crisis. While Russia didn’t expect the Saudis to trigger a price war, the people said, the Kremlin so far is confident that it can hold out longer than Riyadh.
“Putin is known for not submitting to pressure,” said Alexander Dynkin, president of the Institute of World Economy and International Relations in Moscow, a state-run think tank that advises government on foreign policy and economy. He has proved that he is ready for a hard competition “to protect national interests and to keep his political image as a strongman.”
#SaudiArabia suspends domestic flights and trains for 14 days over coronavirus fears - Reuters
Saudi Arabia suspends domestic flights and trains for 14 days over coronavirus fears - Reuters:
Saudi Arabia suspended on Friday all domestic flights, buses, taxis and trains for 14 days starting Saturday, state news agency reported quoting a source in interior ministry.
The source said the move comes as a precautionary measure to limit the spread of coronavirus which has spread panic in global markets and put several countries on virtual lockdowns.
Saudi Arabia has so far confirmed 274 infections and no deaths, while globally the pandemic has killed nearly 10,000 and infected over 240,000.
Saudi Arabia suspended on Friday all domestic flights, buses, taxis and trains for 14 days starting Saturday, state news agency reported quoting a source in interior ministry.
The source said the move comes as a precautionary measure to limit the spread of coronavirus which has spread panic in global markets and put several countries on virtual lockdowns.
Saudi Arabia has so far confirmed 274 infections and no deaths, while globally the pandemic has killed nearly 10,000 and infected over 240,000.
#Qatar eases exit restrictions on migrant employees in the oil and gas industry - Reuters
Qatar eases exit restrictions on migrant employees in the oil and gas industry - Reuters:
Qatar has removed exit visa requirements for an additional segment of its foreign labour force, including some of those working in the oil and gas industry, according to official tweets posted on Friday.
Qatar in 2018 eliminated exit visas for many foreign migrant workers. But the reform did not apply to domestic workers, government and public institution staff, the oil and gas sector, and workers employed at sea and in agriculture.
The Gulf state, which hopes the 2022 World Cup will boost its economy and development, is eager to show it is creating a modern system that protects all expatriate workers.
The decision removing exit visa requirements, “is applicable to employees of the ministries, public bodies, institutions and other government agencies, oil and gas sector and its subsidiaries, marine vessels in the waters of the State of Qatar, agriculture and irrigation and private office,” according an interior ministry statement citing foreign ministry spokeswoman Lolwah Alkhater.
Qatar has removed exit visa requirements for an additional segment of its foreign labour force, including some of those working in the oil and gas industry, according to official tweets posted on Friday.
Qatar in 2018 eliminated exit visas for many foreign migrant workers. But the reform did not apply to domestic workers, government and public institution staff, the oil and gas sector, and workers employed at sea and in agriculture.
The Gulf state, which hopes the 2022 World Cup will boost its economy and development, is eager to show it is creating a modern system that protects all expatriate workers.
The decision removing exit visa requirements, “is applicable to employees of the ministries, public bodies, institutions and other government agencies, oil and gas sector and its subsidiaries, marine vessels in the waters of the State of Qatar, agriculture and irrigation and private office,” according an interior ministry statement citing foreign ministry spokeswoman Lolwah Alkhater.
Oil gains as governments pile on the economic stimulus - Reuters
Oil gains as governments pile on the economic stimulus - Reuters:
Oil prices rose on Friday as the world’s richest nations poured unprecedented aid into the global economy to stop a coronavirus-driven recession and U.S. President Donald Trump hinted he may intervene in the price war between Saudi Arabia and Russia.
Brent crude futures LCOc1 were up $2.12, or 7.4%, at $30.59 a barrel by 1012 GMT.
U.S. crude futures for April CLc1 rose $2.23 to $27.45. The front-month contract expires later on Friday. The more active U.S. crude contract for May CLc2 was up $2.29, or 8.8%, at $28.20.
Both U.S. contracts gained more than Brent because of U.S. plans to buy up to 30 million barrels of crude for its emergency stockpile by the end of June and reports that regulators in Texas might curtail output.
Oil prices rose on Friday as the world’s richest nations poured unprecedented aid into the global economy to stop a coronavirus-driven recession and U.S. President Donald Trump hinted he may intervene in the price war between Saudi Arabia and Russia.
Brent crude futures LCOc1 were up $2.12, or 7.4%, at $30.59 a barrel by 1012 GMT.
U.S. crude futures for April CLc1 rose $2.23 to $27.45. The front-month contract expires later on Friday. The more active U.S. crude contract for May CLc2 was up $2.29, or 8.8%, at $28.20.
Both U.S. contracts gained more than Brent because of U.S. plans to buy up to 30 million barrels of crude for its emergency stockpile by the end of June and reports that regulators in Texas might curtail output.
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