Inside the Oil Market: The 20 Minutes That Broke the U.S. Sector - Bloomberg:
It was evident from the very beginning on April 20 that the oil market was headed for trouble.
Frantic sell orders had been pouring in overnight and any traders who connected to the Nymex platform that morning could see a bloodbath was coming. By 7 a.m. in New York, the price on a key futures contract -- West Texas Intermediate for May delivery -- was already down 28% to $13.07 a barrel.
Thousands of miles away, in the Chinese metropolis of Shenzhen, a 26-year-old named A’Xiang Chen watched events unfold on her phone in stunned disbelief. A few weeks earlier, she and and her boyfriend had sunk their entire nest egg of about $10,000 into a product that the state-run Bank of China dubbed Yuan You Bao, or Crude Oil Treasure.
As the night wore on, A’Xiang began preparing to lose it all. At 10 p.m. in Shenzhen -- 10 a.m. in New York -- she checked her phone one last time before heading to bed. The price was now $11. Half their savings had been wiped out.
Saturday 25 April 2020
U.S. weighs taking equity stakes in U.S. energy companies, Mnuchin says - Reuters
U.S. weighs taking equity stakes in U.S. energy companies, Mnuchin says - Reuters:
The U.S. government is considering taking equity stakes in U.S. energy companies as it seeks to help the nation’s oil and gas sector amid the coronavirus outbreak, Treasury Secretary Steven Mnuchin said on Friday.
President Donald Trump, speaking at a White House event with Mnuchin, said he wants to help industry and suggested the federal government could buy fuel for the country in advance as well as purchase airline tickets in advance.
“We’re looking at a whole bunch of alternatives,” Mnuchin said.
“You can assume that’s one of the alternatives, but there’s many of them,” Mnuchin said, referring to possible equity stakes.
The U.S. government is considering taking equity stakes in U.S. energy companies as it seeks to help the nation’s oil and gas sector amid the coronavirus outbreak, Treasury Secretary Steven Mnuchin said on Friday.
President Donald Trump, speaking at a White House event with Mnuchin, said he wants to help industry and suggested the federal government could buy fuel for the country in advance as well as purchase airline tickets in advance.
“We’re looking at a whole bunch of alternatives,” Mnuchin said.
“You can assume that’s one of the alternatives, but there’s many of them,” Mnuchin said, referring to possible equity stakes.
Latest Oil News: #Saudi Aramco Starts Cuts for OPEC+ Target - Bloomberg
Latest Oil News: Saudi Aramco Starts Cuts for OPEC+ Target - Bloomberg:
Saudi Aramco began reducing oil production earlier this week ahead of the May 1 start date for OPEC+ output cuts, according to a Saudi industry official familiar with the matter.
Aramco has begun to curtail production from about 12 million barrels a day to achieve the agreed level of 8.5 million barrels a day, the person said, asking not to be named discussing private information. The country joins fellow OPEC members Kuwait, Algeria and Nigeria in kicking off cuts early.
The Organization of Petroleum Exporting Countries and its allies -- 23 nations in all -- agreed this month to slash global supply by 10% in an effort to balance a market roiled by the coronavirus crisis. Although the cutbacks will amount to an unprecedented 9.7 million barrels a day, crude prices have continued to slide as worldwide lockdowns wipe out demand.
Saudi Aramco began reducing oil production earlier this week ahead of the May 1 start date for OPEC+ output cuts, according to a Saudi industry official familiar with the matter.
Aramco has begun to curtail production from about 12 million barrels a day to achieve the agreed level of 8.5 million barrels a day, the person said, asking not to be named discussing private information. The country joins fellow OPEC members Kuwait, Algeria and Nigeria in kicking off cuts early.
The Organization of Petroleum Exporting Countries and its allies -- 23 nations in all -- agreed this month to slash global supply by 10% in an effort to balance a market roiled by the coronavirus crisis. Although the cutbacks will amount to an unprecedented 9.7 million barrels a day, crude prices have continued to slide as worldwide lockdowns wipe out demand.
Middle East News, #Saudi Binladen: Houlihan Lokey for Debt Plan - Bloomberg
Middle East News, Saudi Binladen: Houlihan Lokey for Debt Plan - Bloomberg:
Saudi Binladin Group hired Houlihan Lokey Inc. as an adviser to help the kingdom’s biggest construction firm to restructure an estimated $15 billion of debt.
The investment bank will assist in “a comprehensive review and financial restructuring of SBG’s capital structure,” according to a statement from Binladin International Holding Group.
The restructuring is aimed at reorganizing privately-held Saudi Binladin’s assets into sector-led businesses, streamlining operations, and ramping activities across key projects and businesses, it said.
Binladin -- for decades Saudi Arabia’s go-to developer for mega-projects such as airports and holy sites in Mecca and Medina -- is restructuring debt after the government delayed payments to contractors.
Saudi Binladin Group hired Houlihan Lokey Inc. as an adviser to help the kingdom’s biggest construction firm to restructure an estimated $15 billion of debt.
The investment bank will assist in “a comprehensive review and financial restructuring of SBG’s capital structure,” according to a statement from Binladin International Holding Group.
The restructuring is aimed at reorganizing privately-held Saudi Binladin’s assets into sector-led businesses, streamlining operations, and ramping activities across key projects and businesses, it said.
Binladin -- for decades Saudi Arabia’s go-to developer for mega-projects such as airports and holy sites in Mecca and Medina -- is restructuring debt after the government delayed payments to contractors.
#AbuDhabi's Etihad extends suspension of scheduled flights to at least May 16 - Reuters
Abu Dhabi's Etihad extends suspension of scheduled flights to at least May 16 - Reuters:
Abu Dhabi’s Etihad Airways said on Saturday it would extend its suspension of scheduled passenger flights until at least May 16 due to the coronavirus outbreak.
The airline, which had aimed to partially resume passenger flights from May 1, said in a statement all scheduled services would remain grounded until May 16 at the earliest. Earlier in the day, it had said the suspension would last until May 15.
Etihad and other UAE airlines have been operating outbound-only flights for foreigners who want to leave the Gulf Arab state, which has banned the entry of people from abroad due to the outbreak of the novel coronavirus.
“While Etihad hoped to resume a reduced network of scheduled passenger services from 1 May, subject to UAE government-imposed travel restrictions being lifted, the airline will now delay this plan until at least 16 May, due to the ongoing situation,” a company spokeswoman said.
Abu Dhabi’s Etihad Airways said on Saturday it would extend its suspension of scheduled passenger flights until at least May 16 due to the coronavirus outbreak.
The airline, which had aimed to partially resume passenger flights from May 1, said in a statement all scheduled services would remain grounded until May 16 at the earliest. Earlier in the day, it had said the suspension would last until May 15.
Etihad and other UAE airlines have been operating outbound-only flights for foreigners who want to leave the Gulf Arab state, which has banned the entry of people from abroad due to the outbreak of the novel coronavirus.
“While Etihad hoped to resume a reduced network of scheduled passenger services from 1 May, subject to UAE government-imposed travel restrictions being lifted, the airline will now delay this plan until at least 16 May, due to the ongoing situation,” a company spokeswoman said.
Subscribe to:
Posts (Atom)