Russia sees global oil market balancing in June-July: RIA cites source - Reuters:
Russia’s energy ministry sees global oil demand and supply balancing in the next two months, the RIA news agency said on Monday, citing an unnamed source familiar with the minister’s speech at a state council on energy.
The comments come more than two weeks before the leading oil producers hold an online conference on how to further police their joint efforts to steady a global oil market hammered by overproduction and the blow to demand in the face of the coronavirus pandemic.
The energy ministry declined to comment.
The ministry expects global oil demand to improve this month and says supply has already dropped by 14 million to 15 million barrels per day (bpd), RIA said, adding that Moscow estimates the current global surplus at between 7 milllion and 12 million barrels per day (bpd).
Monday 25 May 2020
Oil steadies as demand uncertainty tempers supply cuts - Reuters
Oil steadies as demand uncertainty tempers supply cuts - Reuters:
Oil prices, which have been driven higher for the past four weeks, were steady on Monday, with holidays in Singapore, London and New York dampening trade, as rising concerns over demand recovery offset supply cuts.
Brent was flat at $35.13 a barrel by 1315 GMT, while U.S. oil gained 10 cents, or 0.3% to $33.35 a barrel. Both are down around 45% so far this year.
“Uncertainty around the current travel patterns in the U.S. is so great that the American Automobile Association did not release its Memorial Day travel forecast,” Bjornar Tonhaugen, head of oil markets at Rystad Energy, said.
Oil prices, which have been driven higher for the past four weeks, were steady on Monday, with holidays in Singapore, London and New York dampening trade, as rising concerns over demand recovery offset supply cuts.
Brent was flat at $35.13 a barrel by 1315 GMT, while U.S. oil gained 10 cents, or 0.3% to $33.35 a barrel. Both are down around 45% so far this year.
“Uncertainty around the current travel patterns in the U.S. is so great that the American Automobile Association did not release its Memorial Day travel forecast,” Bjornar Tonhaugen, head of oil markets at Rystad Energy, said.
US shale industry braces for wave of bankruptcies | Financial Times
US shale industry braces for wave of bankruptcies | Financial Times:
The biggest independent shale oil groups in the US reported a record combined loss of $26bn in the first quarter as the sector braces itself for a wave of bankruptcies over the next two years.
The collapse in crude demand brought about by the coronavirus pandemic forced more than $38bn in write-offs among top producers, according to analysis by Rystad Energy, sending net losses tumbling well below an average of $2.9bn in the past six years.
US energy groups have been caught in the eye of the storm as lockdowns aimed at stemming the spread of Covid-19 slashed energy demand and crashed the oil market.
The sweeping impairments reported by the 39 publicly listed US shale oil producers analysed by Rystad — which exclude majors and gas-focused companies — underline the pressure being faced by the industry as a result of the pandemic.
The biggest independent shale oil groups in the US reported a record combined loss of $26bn in the first quarter as the sector braces itself for a wave of bankruptcies over the next two years.
The collapse in crude demand brought about by the coronavirus pandemic forced more than $38bn in write-offs among top producers, according to analysis by Rystad Energy, sending net losses tumbling well below an average of $2.9bn in the past six years.
US energy groups have been caught in the eye of the storm as lockdowns aimed at stemming the spread of Covid-19 slashed energy demand and crashed the oil market.
The sweeping impairments reported by the 39 publicly listed US shale oil producers analysed by Rystad — which exclude majors and gas-focused companies — underline the pressure being faced by the industry as a result of the pandemic.
#Qatar pushing ahead with LNG expansion despite slumping demand | Financial Times
Qatar pushing ahead with LNG expansion despite slumping demand | Financial Times:
Qatar is forging ahead with the expansion of the world’s largest liquefied natural gas project and eyeing investment opportunities overseas despite a slump in global energy demand and the collapse of oil prices.
Saad al-Kaabi, the country’s energy minister and chief executive of Qatar Petroleum, said commercial bids for the project in the North Field, the planet’s biggest natural gasfield, would be delayed because of the Covid-19 pandemic but insisted that all contracts would be awarded by the end of the year.
“The North Field expansion project is moving full steam ahead, no delay there. The only issue is because of Covid and suppliers and so on,” Mr Kaabi said in a briefing with the US-Qatar Business Council. “In my view, you continue your plan and invest in the bad times because these projects are long term.”
The project will increase Qatar’s production capacity from 77m tonnes of LNG per annum to 110m by 2025, which could rise to 126m tonnes two years later. The move should help the small Gulf state regain the title of the world’s top LNG producer from Australia at a time when other projects have been thrown into doubt by the pandemic.
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| The North Field, which lies north-east off the Qatar peninsula, is the biggest natural gasfield in the world © Qatargas |
Qatar is forging ahead with the expansion of the world’s largest liquefied natural gas project and eyeing investment opportunities overseas despite a slump in global energy demand and the collapse of oil prices.
Saad al-Kaabi, the country’s energy minister and chief executive of Qatar Petroleum, said commercial bids for the project in the North Field, the planet’s biggest natural gasfield, would be delayed because of the Covid-19 pandemic but insisted that all contracts would be awarded by the end of the year.
“The North Field expansion project is moving full steam ahead, no delay there. The only issue is because of Covid and suppliers and so on,” Mr Kaabi said in a briefing with the US-Qatar Business Council. “In my view, you continue your plan and invest in the bad times because these projects are long term.”
The project will increase Qatar’s production capacity from 77m tonnes of LNG per annum to 110m by 2025, which could rise to 126m tonnes two years later. The move should help the small Gulf state regain the title of the world’s top LNG producer from Australia at a time when other projects have been thrown into doubt by the pandemic.
Global Oil Demand Hasn’t Yet Peaked, Energy Watchdog Predicts - Bloomberg
Global Oil Demand Hasn’t Yet Peaked, Energy Watchdog Predicts - Bloomberg:
Global oil consumption hasn’t peaked, the head of the International Energy Agency warned, throwing cold water on hopes the coronavirus will cap demand and reduce climate-changing emissions.
“In the absence of strong government policies, a sustained economic recovery and low oil prices are likely to take global oil demand back to where it was, and beyond,” Fatih Birol said in an interview.
The world consumed last year nearly 100 million barrels a day of oil, and some in the energy industry believe that could mark the peak for global demand. Their hypothesis is that the coronavirus outbreak will trigger changes, like widespread working-from-home and less overseas travel, reducing consumption permanently.
“Could it be peak oil? Possibly. Possibly. I would not write that off,” the head of British oil major BP Plc, Bernard Looney, told the Financial Times.
Global oil consumption hasn’t peaked, the head of the International Energy Agency warned, throwing cold water on hopes the coronavirus will cap demand and reduce climate-changing emissions.
“In the absence of strong government policies, a sustained economic recovery and low oil prices are likely to take global oil demand back to where it was, and beyond,” Fatih Birol said in an interview.
The world consumed last year nearly 100 million barrels a day of oil, and some in the energy industry believe that could mark the peak for global demand. Their hypothesis is that the coronavirus outbreak will trigger changes, like widespread working-from-home and less overseas travel, reducing consumption permanently.
“Could it be peak oil? Possibly. Possibly. I would not write that off,” the head of British oil major BP Plc, Bernard Looney, told the Financial Times.
‘Never waste a crisis’: inside #SaudiArabia’s shopping spree | Financial Times
‘Never waste a crisis’: inside Saudi Arabia’s shopping spree | Financial Times:
“You don’t want to waste a crisis . . . So for us, definitely we are looking into any opportunities.”
That was the message delivered by Yasir al-Rumayyan, governor of Saudi Arabia’s sovereign wealth fund, as more than 2,000 bankers and executives tuned in to a virtual conference in April. And they were not idle words.
The $325bn Public Investment Fund has not been shy about its ambitions since it fell under Crown Prince Mohammed bin Salman’s stewardship five years ago — it boasts of becoming the world’s “most impactful investor” and the largest sovereign wealth fund. As the coronavirus pandemic wreaks economic carnage across the globe, PIF has stepped up a gear to become the most publicly active sovereign investment vehicle, unabashedly seeking out bargains amid the panic.
Three days after the conference, US regulatory filings revealed the fund had made one of its biggest bets on a company battered by the global crisis. It has snapped up a 5.7 per cent stake worth around $500m in Live Nation, a US-based entertainment company. Three weeks earlier, it had pounced when the shipping industry was sinking to build what is now a 7.3 per cent holding in Carnival, making it the second-largest shareholder in the world’s biggest cruise line operator.
“You don’t want to waste a crisis . . . So for us, definitely we are looking into any opportunities.”
That was the message delivered by Yasir al-Rumayyan, governor of Saudi Arabia’s sovereign wealth fund, as more than 2,000 bankers and executives tuned in to a virtual conference in April. And they were not idle words.
The $325bn Public Investment Fund has not been shy about its ambitions since it fell under Crown Prince Mohammed bin Salman’s stewardship five years ago — it boasts of becoming the world’s “most impactful investor” and the largest sovereign wealth fund. As the coronavirus pandemic wreaks economic carnage across the globe, PIF has stepped up a gear to become the most publicly active sovereign investment vehicle, unabashedly seeking out bargains amid the panic.
Three days after the conference, US regulatory filings revealed the fund had made one of its biggest bets on a company battered by the global crisis. It has snapped up a 5.7 per cent stake worth around $500m in Live Nation, a US-based entertainment company. Three weeks earlier, it had pounced when the shipping industry was sinking to build what is now a 7.3 per cent holding in Carnival, making it the second-largest shareholder in the world’s biggest cruise line operator.
'We need to figure out how to stop losing money,' #Dubai F&B boss on Covid-19 impact - Arabianbusiness
'We need to figure out how to stop losing money,' Dubai F&B boss on Covid-19 impact - Arabianbusiness:
Stakeholders in Dubai’s F&B sector will need to come together to survive the impact of the ongoing Covid-19 pandemic, according to Gates Hospitality CEO Naim Maadad.
Gates Hospitality has a portfolio that currently includes restaurants such as Folly, Reform Social&Grill, Bistro des Arts, Asia de Cuba and Publique.
In an interview with Arabian Business, Maadad said that “nobody is going to make money” in Dubai’s F&B sector this year.
“This is about survival. Nothing else. You can’t make money if there’s no cash in the economy. There’s no liquidity. It’s simple,” he added. “We all need to figure out how to stop losing money. It’s going to be tough. It’s unknown territory. This is new on all fronts.”
Stakeholders in Dubai’s F&B sector will need to come together to survive the impact of the ongoing Covid-19 pandemic, according to Gates Hospitality CEO Naim Maadad.
Gates Hospitality has a portfolio that currently includes restaurants such as Folly, Reform Social&Grill, Bistro des Arts, Asia de Cuba and Publique.
In an interview with Arabian Business, Maadad said that “nobody is going to make money” in Dubai’s F&B sector this year.
“This is about survival. Nothing else. You can’t make money if there’s no cash in the economy. There’s no liquidity. It’s simple,” he added. “We all need to figure out how to stop losing money. It’s going to be tough. It’s unknown territory. This is new on all fronts.”
Benetton family, sovereign funds break up Cellnex shareholders pact - Reuters
Benetton family, sovereign funds break up Cellnex shareholders pact - Reuters:
Italy’s Benetton family and sovereign wealth funds from Singapore and Abu Dhabi have broken up a shareholders pact that controlled 29.9% of Spanish mobile phone towers operator Cellnex (CLNX.MC).
After the operation, expected to be finalised in June, the Benetton family, through its financial holding firm Sintonia SpA, will own 16.45% in Cellnex, while the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC will own 6.73% each, according to a filing to the Spanish stock market regulator on Friday.
The three partners jointly held their stake in Cellnex through holding firm ConnecT SpA which will be dissolved, the filing said.
Italy’s Benetton family and sovereign wealth funds from Singapore and Abu Dhabi have broken up a shareholders pact that controlled 29.9% of Spanish mobile phone towers operator Cellnex (CLNX.MC).
After the operation, expected to be finalised in June, the Benetton family, through its financial holding firm Sintonia SpA, will own 16.45% in Cellnex, while the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC will own 6.73% each, according to a filing to the Spanish stock market regulator on Friday.
The three partners jointly held their stake in Cellnex through holding firm ConnecT SpA which will be dissolved, the filing said.
Oil gains as coronavirus lockdowns ease, boosting hopes for demand pickup - Reuters
Oil gains as coronavirus lockdowns ease, boosting hopes for demand pickup - Reuters:
Oil prices rose on Monday, erasing earlier losses, as countries around the world continued to ease lockdown measures imposed to combat the coronavirus pandemic, boosting hopes for a recovery in fuel demand.
Amid quiet trading, with financial centres Singapore, London and New York all closed for holidays, Brent was up 6 cents, or 0.2%, at $35.19 a barrel by 0636 GMT. U.S. oil had gained 27 cents, or 0.82%, at $33.52 a barrel.
Both contracts have risen for the past four weeks, although prices are still down around 45% so far this year.
“Oil markets are focused on the potential for an easing of lockdown measures,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Oil prices rose on Monday, erasing earlier losses, as countries around the world continued to ease lockdown measures imposed to combat the coronavirus pandemic, boosting hopes for a recovery in fuel demand.
Amid quiet trading, with financial centres Singapore, London and New York all closed for holidays, Brent was up 6 cents, or 0.2%, at $35.19 a barrel by 0636 GMT. U.S. oil had gained 27 cents, or 0.82%, at $33.52 a barrel.
Both contracts have risen for the past four weeks, although prices are still down around 45% so far this year.
“Oil markets are focused on the potential for an easing of lockdown measures,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
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