Oil industry reels from historic crash | Financial Times

Oil industry reels from historic crash | Financial Times:

The first half of 2020 has been brutal for the oil industry: global demand dropped almost a third at one stage, a market share war brought an onslaught of Saudi crude and US prices collapsed below zero for the first time.

Oil producers’ recent second-quarter earnings reflect this damage, with both global supermajors and US independents writing down assets and posting huge losses.

As the charts below show, deep spending cuts point to a sector desperate to shore up battered balance sheets, sacrificing output growth to do so.

From upstream exploration and production to downstream refining, the coronavirus pandemic, price war and unprecedented volatility has caused havoc. Despite its recent recovery, crude is still trading at about a third last year’s average price.

Oil slips below $45/bbl on demand concerns but posts weekly rise - Reuters

Oil slips below $45/bbl on demand concerns but posts weekly rise - Reuters:

Oil prices fell nearly 2% on Friday, limiting their weekly gain due to concerns the global recovery could falter from a resurgence of coronavirus cases.

The rise in infections remains the dominant issue for the fuel demand outlook. Cases in the United States are still rising in a number of states, while India recently reported a record daily jump in infections. More than 700,000 people have died in the worldwide pandemic.

Brent crude LCOc1 fell 69 cents, or 1.5%, to settle at $44.40 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 73 cents, or 1.7%, to end at $41.22 a barrel.

Brent rose 2.5% for the week, while WTI gained 2.4%.

#UAE to implement 'flexible' plans to revitalise economy | Business – Gulf News

UAE to implement 'flexible' plans to revitalise economy | Business – Gulf News:

In a continuation of the UAE's economic relief measures, the UAE Ministry of Economy is to implement a "flexible package and plan" to support various sectors.

The plan seeks to create a more flexible economic environment "conducive to provide new opportunities and encourage investments in future sectors in support to the UAE's strategic vision and direction," the Minister said in a statement.

The timeframe of the plan involves three stages that will lead to "growth in vital sectors and set the country’s path towards sustainable development".

During its last meeting, the UAE Cabinet had approved various aspects of the flexible package and general plan to support various economic sectors, along with the formation of a Committee headed by Abdulla Bin Touq Al Marri, UAE Minister of Economy. The Committee is following up the implementation of the plan and is submitting its recommendations to the Cabinet.

Asian Refiners to Ask for Less Crude After Saudi Cut Underwhelms - Bloomberg

Asian Refiners to Ask for Less Crude After Saudi Cut Underwhelms - Bloomberg:

Several Asian refiners struggling with weakening demand will ask Saudi Arabia for less crude next month after the kingdom cut official selling prices by a smaller amount than the processors had been hoping for.

At least three buyers are planning to request less oil from Saudi Aramco for September, according to company officials with knowledge of their crude procurement. Three others expressed disappointment at the size of the cut -- the first reduction in four months -- but will seek normal volumes, said the people who asked not to be identified as the information is private.

Asian demand has taken a hit of late as the coronavirus staged a comeback in countries including India, and as flooding in China led to top refiner Sinopec scaling back some crude processing. Chinese oil imports fell in July from a record in June as tankers clustered off ports waiting to unload cargoes of cheaper oil purchased earlier in the year.

Iraq Commits to Deep Oil Cuts as OPEC+ Ramps Up Pressure - Bloomberg

Iraq Commits to Deep Oil Cuts as OPEC+ Ramps Up Pressure - Bloomberg:

Iraq made its strongest commitment yet to implement deep cuts in crude production after the country’s oil minister and his Saudi counterpart held a phone call Thursday.

OPEC’s second-biggest producer -- and a long-time laggard in meeting oil-output quotas -- has faced mounting pressure to boost its compliance as the group’s patience wears thin. The country failed to meet its production-cut target in May and June, and removed just 11,000 barrels a day last month, according to tanker-tracking data compiled by Bloomberg.

The two countries issued a joint statement -- a rare move until recently -- in which Oil Minister Ihsan Abdul Jabbar pledged that Iraq will cut output by an extra 400,000 barrels a day in August and September. That’s on top of a previous commitment to slash 850,000 barrels a day in each month. He spoke to Saudi Energy Minister Prince Abdulaziz bin Salman late on Thursday.

Delivering these “compensation cuts” would assign Baghdad a target of 3.4 million barrels a day for this month and next, well below the 3.79 million that a Bloomberg survey estimates it pumped in July.

#Kuwait Finance House's Q2 profit down 77.5% hit by lockdown | ZAWYA MENA Edition

Kuwait Finance House's Q2 profit down 77.5% hit by lockdown | ZAWYA MENA Edition:

Kuwait Finance House on Thursday posted a 77.5% decline in second-quarter profit after it boosted impairment charges and precautionary provisioning for bad loans, as the economy was hit by a lockdown.

Net profit fell to 12.6 million dinars ($41.28 million) for the quarter to June 30, down from 56.1 million a year earlier.

Analysts at Arqaam Capital had expected a net profit of 29.1 million while EFG Hermes analysts had forecast a profit of 44 million.

The reduction in business activity due to lockdowns to curb the spread of the coronavirus will likely lead to an increase in defaults on bank loans and rising loan-loss provisioning in the Gulf region, rating agency Moody's said earlier this year.

Oil slips to $45 on demand concerns, set for weekly rise - Reuters

Oil slips to $45 on demand concerns, set for weekly rise - Reuters:

Oil dipped to around $45 a barrel on Friday on worries that a demand recovery would slow due to a resurgence of coronavirus cases, although a pledge from OPEC member Iraq to cut oil output further in August lent support.

The resurgence of infections remains a key issue for the market and demand outlook. Tallies show cases in the United States are rising in a number of states. India reported on Friday a record daily jump in infections.

Brent crude LCOc1 fell 13 cents, or 0.3%, to $44.96 by 0820 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 also slipped 13 cents to $41.82.

Traders were also watching talks in the United States over the next coronavirus stimulus package. Democratic leaders in the U.S. Congress and top aides to President Donald Trump failed to make substantial progress on Thursday.