Many Shale Companies Are Already On The Brink Of Bankruptcy | OilPrice.com

Many Shale Companies Are Already On The Brink Of Bankruptcy | OilPrice.com:

OPEC may have reached a deal to cut 10 million bpd, but for many U.S. shale producers, it is too little, far too late.

Much ado has been made about Saudi Arabia and Russia’s push to end their cooperation in the production cut deal a month ago, flooding the markets with oil at a perilous time. While some have suggested that it was a deliberate attempt to break the U.S. Shale industry that has run roughshod over the oil industry in the last few years, upsetting the market balance of the oil cartel.

Both Saudi Arabia and Russia have outright denied the claim that is was a purposeful attack on the shale industry—a wise proclamation given shale’s fastidious ally, U.S. President Donald Trump, who has praised the shale industry that has served as the platform for America’s energy independence efforts.

Those efforts have been wildly successful by any measuring stick, and for that reason, shale will not be allowed to die no matter what Saudi Arabia and Russia dish out.

OPEC data source: OPEC MOMR, Russia Data Source: Y charts, U.S. production, EIA. Figures represent the change from October 2016, the baseline for the initial round of the production cuts that began in 2017.

Oil Falls to 18-Year Low After Record Collapse in U.S. Demand - Bloomberg

Oil Falls to 18-Year Low After Record Collapse in U.S. Demand - Bloomberg:

Oil plunged to the lowest in two decades amid a record collapse in U.S. fuel demand and the biggest ever weekly build in domestic crude supplies.

Futures in New York settled below $20 a barrel for first time since 2002. American gasoline consumption dropped to the lowest level on record while crude supplies ballooned by 19.2 million barrels, according the Energy Information Administration. The government report underscored an earlier forecast by the Paris-based International Energy Administration, which warned that even OPEC+’s historic production cut can’t counter the epic demand decline caused by the coronavirus pandemic.

While Saudi Arabia and other Middle East producers have pledged to cut supply starting next month, they continue to flood the market in April. Meanwhile, U.S. oil production has declined only marginally.

“Whatever production that we are cutting back is not going to offset the demand destruction,” said Stephen Schork, president of the energy consultancy Schork Group Inc.

PRICES:
West Texas Intermediate fell 24 cents to $19.87 a barrel at the close of trading in New York Brent declined $1.91 to $27.69 a barrel Gasoline futures rose 0.1% to 72.04 cents per gallon

NMC creditor files criminal complaint | Financial Times

NMC creditor files criminal complaint | Financial Times:

Abu Dhabi Commercial Bank said it has launched a criminal complaint in the capital of the United Arab Emirates in relation to NMC Health, the healthcare group that was put into administration in the UK last week and owes the bank nearly $1bn.

The individual suspects, who have been accused of fraud and forgery in the complaint to the attorney-general in Abu Dhabi, comprise a number of the group’s previous management as well as certain current and former shareholders, two people briefed on the complaint said. Most of them are no longer believed to be in the UAE.

The bank, the people added, has accused them of using forged or inaccurate documents to misstate NMC’s liabilities, as well as giving false valuations that fraudulently induced ADCB to provide lending facilities. The criminal complaint also includes a call to freeze assets of the accused, they added. 


“They’ve gone for the company itself via the administration, and [some of the] shareholders and former management via the criminal proceedings,” said one person briefed on the action.

#Saudi Aramco says has not extended oil payment offers to refiners - Reuters

Saudi Aramco says has not extended oil payment offers to refiners - Reuters:

Saudi Aramco said on Wednesday it has not made any offers of extended payment terms to crude oil sales to refiners, contrary to an earlier report by Reuters.

“Contrary to a recent media report, Aramco has not made any offers of extended payment terms to crude oil sales,” Saudi Arabia’s national oil company said in a statement. 


Reuters reported earlier that Aramco has offered oil refineries in Asia and Europe the option to defer payments for crude cargo deliveries by up to 90 days as plants struggle with shrinking demand, according to refining industry sources.

European, Middle Eastern & African Stocks - Bloomberg Today's closing #UAE #SaudiArabia #Qatar

European, Middle Eastern & African Stocks - Bloomberg:

Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.

#SaudiArabia gets over $35 billion in orders for triple-tranche bonds - sources - Reuters

Saudi Arabia gets over $35 billion in orders for triple-tranche bonds - sources - Reuters:

Saudi Arabia has received more than $35 billion in combined orders for a planned triple-tranche bond sale, two sources said on Wednesday.

The kingdom has given initial price guidance of around 315 basis points over U.S. Treasuries for the 5-1/2-year notes, around 325 bps over Treasuries for the 10-1/2-year bonds and 5.15% for the 40-year notes. The deal is expected to close on Wednesday.

#Iran’s Social Security Fund Sells 10% of Assets on Stock Market - Bloomberg

Iran’s Social Security Fund Sells 10% of Assets on Stock Market - Bloomberg:

Iran will sell around 10% of holdings in one of its largest state-managed investment companies on the Tehran Stock Exchange to raise money for the government’s efforts to contain the coronavirus, President Hassan Rouhani said at a cabinet meeting.

The Social Security Investment Co., also known as Shasta, is the investment arm of the organization that provides benefits, health cover and pensions to around 40 million Iranians.

The main index of leading shares on the TSE climbed 3% in mid-morning trading, according to data on the exchange’s website, extending gains it made this week after hitting a record high partly on anticipation of Wednesday’s sale.

Rouhani didn’t give details or a valuation for the units sold. Some 82 companies belonging to Shasta have already been sold off, representing around 80% of its entire portfolio of assets, the semi-official Iranian Labour News Agency reported, quoting the managing director of Shasta, Mohammad Rezvanifar.

#UAE, #Saudi economies to bounce back in 2021, says IMF - Arabianbusiness

UAE, Saudi economies to bounce back in 2021, says IMF - Arabianbusiness:

The UAE’s economy will rebound 3.3 percent in 2021 as the Gulf economies grow after contracting as a result of the global coronavirus, according to a new economic outlook from the International Monetary Fund.

According to the IMF’s World Economic Outlook, the UAE’s economy will contract 3.5 percent in 2020 amid the pandemic, but is expected to grow 3.3 percent in 2021.

Collectively, the economies of the Middle East and North Africa are also expected to contract 3.3 percent before rebounding to 4.2 percent growth in 2021.

Exclusive: Aramco offers struggling refiners sweeter terms for crude - Reuters

Exclusive: Aramco offers struggling refiners sweeter terms for crude - Reuters:

Saudi Aramco has offered oil refineries in Asia and Europe the option to defer payments for crude cargo deliveries by up to 90 days as plants struggle with shrinking demand, refining industry sources said.

The credit terms, which Saudi Arabia’s national oil company has offered through unnamed Saudi banks, are also seen as part of the country’s efforts to increase its market share, the sources told Reuters.

Aramco “are asking us to amend our existing agreement to include a bill of exchange which will give you basically an opportunity to pay through a bank in 90 days time,” one source at an Asian refiner said.

Under the terms, Aramco will receive the payment for the cargoes from the same bank within 21 days of shipment, he said.

ADCB files criminal complaint against individuals linked to NMC Health - Reuters

ADCB files criminal complaint against individuals linked to NMC Health - Reuters:

Abu Dhabi Commercial Bank (ADCB.AD) has filed a criminal complaint against individuals linked to hospital operator NMC Health (NMC.L), the lender said.

Administrators of troubled NMC Health said on Tuesday they had replaced the company’s board and asked ADCB, its main lender, to lead a steering group to discuss cutting its debt pile.

“ADCB confirms that it has initiated criminal legal proceedings with the Attorney General in Abu Dhabi against a number of individuals in relation to NMC Health Group.” it said in a statement on Wednesday.

The bank did not name the individuals, but said in a statement that the action was consistent with the objective of protecting its interests.

Oil falls 4% towards $28 on oversupply concerns - Reuters

Oil falls 4% towards $28 on oversupply concerns - Reuters:

Oil fell 4% towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.

The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and said no output cut could fully offset the near-term falls facing the market.

Brent crude LCOc1 fell $1.18, or 4%, to $28.42 a barrel at 1134 GMT, giving up earlier gains. U.S. West Texas Intermediate crude CLc1 slid 43 cents, or 2.1%, to $19.68.

“There is no feasible agreement that could cut supply by enough to offset such near-term demand losses,” the IEA said in its monthly report. “However, the past week’s achievements are a solid start.”

MIDEAST STOCKS-Most Gulf stocks fall on sharp economic downturn warning - Agricultural Commodities - Reuters

MIDEAST STOCKS-Most Gulf stocks fall on sharp economic downturn warning - Agricultural Commodities - Reuters:

Most Gulf indexes slipped on Wednesday due to a warning that the global economic downturn could be at its worst since the Great Depression of the 1930s, underlining the economic damage already done by COVID-19. 


The global economy is expected to shrink by 3.0% during 2020 in a stunning coronavirus-driven collapse of activity, the International Monetary Fund said on Tuesday.

Saudi Arabia’s benchmark index fell 0.2%, hurt by a 1.2% drop in oil giant Saudi Aramco.

The world’s largest oil producer is in early talks with banks for a loan of about $10 billion to help finance its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC), according to three banking sources. Shares of SABIC were up 0.1%.