Oil slides on fresh COVID-19 outbreaks, bump in crude stocks - Reuters:
Oil prices settled lower on Wednesday on fuel demand worries due to an uptick in coronavirus cases, with emerging hotspots in China and the United States, and as U.S. crude stocks grew again, taking commercial inventories to another all-time high.
Brent crude settled down 25 cents, or 0.6 %, at $40.71 a barrel. U.S. West Texas Intermediate (WTI) fell 42 cents, or 1.1%, to $37.96 a barrel.
U.S. crude inventories rose to a record high last week for a second straight week, reaching more than 539 million barrels. Conversely, distillate stockpiles fell following weeks of significant builds, government data showed.
The World Health Organization said it would update its guidelines after results showed the corticosteroid medication dexamethasone cut death rates among severely ill COVID-19 patients.
Wednesday, 17 June 2020
Column: Oil prices likely to average less than $60 over next cycle - Kemp - Reuters
Column: Oil prices likely to average less than $60 over next cycle - Kemp - Reuters:
Oil prices are likely to average less than $60 per barrel across the next cycle to ensure production, especially from the shale sector, remains in line with the slow increase in consumption.
On Monday, BP announced its long-term investment appraisal price had been cut to an average of just $55 per barrel for Brent in real terms between 2021 and 2050.
Explaining its decision, the company cited the lingering impact of the coronavirus epidemic on oil consumption and the potential for an accelerated transition to a lower-carbon economy and energy system.
“These lower long-term price assumptions are considered by BP to be broadly in line with a range of transition paths consistent with the Paris climate goals,” the company said in a press release.
Oil prices are likely to average less than $60 per barrel across the next cycle to ensure production, especially from the shale sector, remains in line with the slow increase in consumption.
On Monday, BP announced its long-term investment appraisal price had been cut to an average of just $55 per barrel for Brent in real terms between 2021 and 2050.
Explaining its decision, the company cited the lingering impact of the coronavirus epidemic on oil consumption and the potential for an accelerated transition to a lower-carbon economy and energy system.
“These lower long-term price assumptions are considered by BP to be broadly in line with a range of transition paths consistent with the Paris climate goals,” the company said in a press release.
#Qatar Airways won't take new aircraft in 2020 or 2021, CEO says - Reuters
Qatar Airways won't take new aircraft in 2020 or 2021, CEO says - Reuters:
Qatar Airways will not take any new planes ordered from Boeing (BA.N) or Airbus (AIR.PA) in 2020 or 2021, chief executive Akbar al-Baker said on Wednesday, adding there would be a knock-on effect to future deliveries due to the COVID-19 pandemic.
Qatar Airways has ordered tens of billions of dollars of aircraft from the world’s two biggest planemakers. But after a plunge in demand for air travel, it says it has no room for new aircraft and will instead shrink its fleet of around 200 jets.
“Quite a lot of (deliveries) will be deferred. We have already notified both Boeing and Airbus that we will not be taking any aeroplanes this year or next year,” al-Baker said in an interview on Britain’s Sky News.
“All the other aircraft that we have on order that were supposed to be delivered to us within the next two or three years, will now be pushed back to as long as nearly eight to 10 years.”
Qatar Airways will not take any new planes ordered from Boeing (BA.N) or Airbus (AIR.PA) in 2020 or 2021, chief executive Akbar al-Baker said on Wednesday, adding there would be a knock-on effect to future deliveries due to the COVID-19 pandemic.
Qatar Airways has ordered tens of billions of dollars of aircraft from the world’s two biggest planemakers. But after a plunge in demand for air travel, it says it has no room for new aircraft and will instead shrink its fleet of around 200 jets.
“Quite a lot of (deliveries) will be deferred. We have already notified both Boeing and Airbus that we will not be taking any aeroplanes this year or next year,” al-Baker said in an interview on Britain’s Sky News.
“All the other aircraft that we have on order that were supposed to be delivered to us within the next two or three years, will now be pushed back to as long as nearly eight to 10 years.”
#SaudiArabia Idles Drilling Rigs as Pandemic Saps Oil Demand - Bloomberg
Saudi Arabia Idles Drilling Rigs as Pandemic Saps Oil Demand - Bloomberg:
The world’s biggest oil exporter is hitting the brakes in developing some of its crude and natural gas deposits, idling two offshore drilling rigs as the coronavirus batters energy use.
State-run producer Saudi Aramco has suspended work at the two platforms for about a year, according to filings from the contractors. The producer is also delaying a related $18 billion oil and gas expansion project by at least six months, according to people with knowledge of the situation.
Aramco declined to comment on the status of the rigs or the project.
The pullback marks a rare pause in Aramco’s efforts to drill wells, discover fields and expand known deposits to replace the barrels it’s pumping from the planet’s largest conventional oil reserves. The halts also raise questions about the kingdom’s supply of natural gas, much of which is found in crude reservoirs. Saudi Arabia needs gas to generate electricity and make chemicals.
The world’s biggest oil exporter is hitting the brakes in developing some of its crude and natural gas deposits, idling two offshore drilling rigs as the coronavirus batters energy use.
State-run producer Saudi Aramco has suspended work at the two platforms for about a year, according to filings from the contractors. The producer is also delaying a related $18 billion oil and gas expansion project by at least six months, according to people with knowledge of the situation.
Aramco declined to comment on the status of the rigs or the project.
The pullback marks a rare pause in Aramco’s efforts to drill wells, discover fields and expand known deposits to replace the barrels it’s pumping from the planet’s largest conventional oil reserves. The halts also raise questions about the kingdom’s supply of natural gas, much of which is found in crude reservoirs. Saudi Arabia needs gas to generate electricity and make chemicals.
OPEC sees gradual oil demand recovery, makes 84% of cuts in May - Reuters
OPEC sees gradual oil demand recovery, makes 84% of cuts in May - Reuters:
OPEC forecast on Wednesday a gradual recovery in global demand for oil, which has been hammered by the coronavirus crisis, and said record supply cuts by producers were already helping to rebalance the market.
In a monthly report, the Organization of the Petroleum Exporting Countries said demand would decline by 6.4 million barrels per day (bpd) in the second half of 2020, less than the drop of 11.9 million bpd in the first six months of the year.
Oil prices collapsed as government lockdowns to limit the spread of the virus curtailed travel and economic activity. While some places in Europe and Asia have eased restrictions, concern over new virus outbreaks has kept a lid on prices.
To tackle the drop in demand, OPEC and its allies agreed to a record supply cut that started on May 1, while the United States and other nations said they would pump less. OPEC said these curbs were already helping.
OPEC forecast on Wednesday a gradual recovery in global demand for oil, which has been hammered by the coronavirus crisis, and said record supply cuts by producers were already helping to rebalance the market.
In a monthly report, the Organization of the Petroleum Exporting Countries said demand would decline by 6.4 million barrels per day (bpd) in the second half of 2020, less than the drop of 11.9 million bpd in the first six months of the year.
Oil prices collapsed as government lockdowns to limit the spread of the virus curtailed travel and economic activity. While some places in Europe and Asia have eased restrictions, concern over new virus outbreaks has kept a lid on prices.
To tackle the drop in demand, OPEC and its allies agreed to a record supply cut that started on May 1, while the United States and other nations said they would pump less. OPEC said these curbs were already helping.
#AbuDhabi’s Mubadala Weighs Selling Property Assets to Aldar - Bloomberg
Abu Dhabi’s Mubadala Weighs Selling Property Assets to Aldar - Bloomberg:
Mubadala Investment Co. is weighing the sale of a mall and other real estate assets to Abu Dhabi’s largest property developer Aldar Properties PJSC, according to people with knowledge of the matter.
The sovereign wealth fund is considering selling the Galleria Mall on Al Maryah Island, as well as the city’s financial district, Abu Dhabi Global Market, to Aldar, the people said, asking not to be identified because the discussions are private. Mubadala may also dispose of some residential buildings in the United Arab Emirates’ capital, they said.
Talks are at an early stage and may not result in a deal, the people said.
Mubadala Investment Co. is weighing the sale of a mall and other real estate assets to Abu Dhabi’s largest property developer Aldar Properties PJSC, according to people with knowledge of the matter.
The sovereign wealth fund is considering selling the Galleria Mall on Al Maryah Island, as well as the city’s financial district, Abu Dhabi Global Market, to Aldar, the people said, asking not to be identified because the discussions are private. Mubadala may also dispose of some residential buildings in the United Arab Emirates’ capital, they said.
Talks are at an early stage and may not result in a deal, the people said.
Oil falls as coronavirus cases pick up in China, U.S. - Reuters
Oil falls as coronavirus cases pick up in China, U.S. - Reuters:
Oil prices fell on Wednesday as investors worried about fuel demand due to fresh outbreaks of COVID-19, though prices drew some support after U.S. stocks of diesel fuel fell for the first time in weeks and U.S. oil production dropped sharply.
Brent crude LCOc1 was down 31 cents, or 0.8%, at $40.65 a barrel at 10:50 EST (1450 GMT). U.S. West Texas Intermediate (WTI) CLc1 fell 43 cents, or 1.1%, to $37.95 a barrel.
U.S. crude inventories rose by 1.2 million barrels, but distillate stockpiles USOILD=ECI, which include diesel and heating oil, fell by 1.4 million barrels following weeks of significant builds as refiners continued to blend jet fuel into their distillate pool, EIA data showed on Wednesday.
Oil prices fell on Wednesday as investors worried about fuel demand due to fresh outbreaks of COVID-19, though prices drew some support after U.S. stocks of diesel fuel fell for the first time in weeks and U.S. oil production dropped sharply.
Brent crude LCOc1 was down 31 cents, or 0.8%, at $40.65 a barrel at 10:50 EST (1450 GMT). U.S. West Texas Intermediate (WTI) CLc1 fell 43 cents, or 1.1%, to $37.95 a barrel.
U.S. crude inventories rose by 1.2 million barrels, but distillate stockpiles USOILD=ECI, which include diesel and heating oil, fell by 1.4 million barrels following weeks of significant builds as refiners continued to blend jet fuel into their distillate pool, EIA data showed on Wednesday.
Oil Pares Decline With Markets Shrugging Off New Virus Wave - Bloomberg
Oil Pares Decline With Markets Shrugging Off New Virus Wave - Bloomberg:
Oil pared an earlier decline as equities rose, shrugging off some concerns about a second wave of coronavirus cases in China.
Futures in New York were 0.7% lower, after falling as much as 3.1%. Stock markets in Europe gained as traders looked at stimulus measures to help boost the economy, including in the U.S. However, any recovery is fraught with risk as a new phase of virus infections emerges in Beijing, forcing the government to close all schools and cancel more than 1,200 flights.
“Market players seem to remain unconcerned about a second Covid-19 wave impacting oil demand and probably think that central bank and fiscal stimulus will support economic activity,” said Giovanni Staunovo, commodity analyst at UBS Group AG.
Oil pared an earlier decline as equities rose, shrugging off some concerns about a second wave of coronavirus cases in China.
Futures in New York were 0.7% lower, after falling as much as 3.1%. Stock markets in Europe gained as traders looked at stimulus measures to help boost the economy, including in the U.S. However, any recovery is fraught with risk as a new phase of virus infections emerges in Beijing, forcing the government to close all schools and cancel more than 1,200 flights.
“Market players seem to remain unconcerned about a second Covid-19 wave impacting oil demand and probably think that central bank and fiscal stimulus will support economic activity,” said Giovanni Staunovo, commodity analyst at UBS Group AG.
MIDEAST STOCKS-Major Gulf bourses mixed; #Saudi shares rise on gains by energy, financials - Reuters
MIDEAST STOCKS-Major Gulf bourses mixed; Saudi shares rise on gains by energy, financials - Reuters:
Major Gulf bourses moved sideways on Wednesday, while gains in shares of energy and financials sectors pushed up the region’s biggest stock market Saudi Arabia.
The Saudi benchmark index gained 0.6%, with National Commercial Bank, the country’s largest lender, rising 1.2%, while state-owned Saudi Aramco gaining 0.4%.
The oil giant completed the acquisition of a 70% stake in petrochemicals company Saudi Basic Industries (SABIC) for $69.1 billion from the PIF sovereign fund and has extended the payment period to 2028.
SABIC, which announced appointment of Khalid Al-Dabbagh as its chairman, was up 0.6%.
Major Gulf bourses moved sideways on Wednesday, while gains in shares of energy and financials sectors pushed up the region’s biggest stock market Saudi Arabia.
The Saudi benchmark index gained 0.6%, with National Commercial Bank, the country’s largest lender, rising 1.2%, while state-owned Saudi Aramco gaining 0.4%.
The oil giant completed the acquisition of a 70% stake in petrochemicals company Saudi Basic Industries (SABIC) for $69.1 billion from the PIF sovereign fund and has extended the payment period to 2028.
SABIC, which announced appointment of Khalid Al-Dabbagh as its chairman, was up 0.6%.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
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.
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.
#Saudi Aramco completes $69 billion SABIC stake deal, extends schedule - Reuters
Saudi Aramco completes $69 billion SABIC stake deal, extends schedule - Reuters:
Saudi Aramco (2222.SE) has completed its purchase of a 70% stake in petrochemicals company Saudi Basic Industries (SABIC) (2010.SE) for $69.1 billion and extended the payment period by three years to 2028, providing a cushion against weak oil prices.
The deal values SABIC at 123.39 riyals per share, 27% above the company’s share price of 89.90 riyals, as the coronavirus outbreak has hurt demand for petrochemicals products and lowered SABIC’s share price.
“It is a significant leap forward, which accelerates Aramco’s downstream strategy and transforms our company into one of the major global petrochemicals players,” Aramco CEO Amin Nasser said in a statement.
SABIC is the world’s fourth-biggest petrochemicals company.
Saudi Aramco (2222.SE) has completed its purchase of a 70% stake in petrochemicals company Saudi Basic Industries (SABIC) (2010.SE) for $69.1 billion and extended the payment period by three years to 2028, providing a cushion against weak oil prices.
The deal values SABIC at 123.39 riyals per share, 27% above the company’s share price of 89.90 riyals, as the coronavirus outbreak has hurt demand for petrochemicals products and lowered SABIC’s share price.
“It is a significant leap forward, which accelerates Aramco’s downstream strategy and transforms our company into one of the major global petrochemicals players,” Aramco CEO Amin Nasser said in a statement.
SABIC is the world’s fourth-biggest petrochemicals company.
Oil rise on positive news of COVID-19 drug study - Reuters
Oil rise on positive news of COVID-19 drug study - Reuters:
Oil rose on Wednesday on hopes for economic recovery and for a clinical trial showing a cheap steroid could help save some critically ill coronavirus patients but fears of a second wave of the virus curbed gains.
Brent crude LCOc1 was up 29 cents, or 0.7%, at $41.25 a barrel at 0825 GMT. U.S. West Texas Intermediate (WTI) CLc1 rose 17 cents, or 0.4%, to $38.55 a barrel.
The World Health Organization (WHO) said it was moving to update its guidelines after results showed the corticosteroid medication dexamethasone cut death rates by around a third among the most severely ill COVID-19 patients.
Yet concerns persist about the spread of the virus in some regions and the risk of second waves where the spread is slowing.
Oil rose on Wednesday on hopes for economic recovery and for a clinical trial showing a cheap steroid could help save some critically ill coronavirus patients but fears of a second wave of the virus curbed gains.
Brent crude LCOc1 was up 29 cents, or 0.7%, at $41.25 a barrel at 0825 GMT. U.S. West Texas Intermediate (WTI) CLc1 rose 17 cents, or 0.4%, to $38.55 a barrel.
The World Health Organization (WHO) said it was moving to update its guidelines after results showed the corticosteroid medication dexamethasone cut death rates by around a third among the most severely ill COVID-19 patients.
Yet concerns persist about the spread of the virus in some regions and the risk of second waves where the spread is slowing.