Exclusive: OPEC+ needs to offset large May-July oversupply -document - Reuters:
Oil producing countries in the OPEC+ group that pumped above supply targets from May to July will need to slash output by over a million barrels per day for two months to compensate, according to OPEC sources and an internal OPEC+ report seen by Reuters.
The producer group includes members of the Organization of the Petroleum Exporting Countries and other oil powers including Russia, who together pledged to make record cuts of 9.7 million barrels per day (bpd) in May to end a huge glut in supply as coronavirus lockdowns destroyed fuel demand worldwide. As demand has started to recover, the group tapered the cuts to 7.7 million bpd in August.
Some countries such as Iraq and Nigeria failed to meet those targets and are coming under pressure from other OPEC+ members, including de-facto OPEC leader Saudi Arabia, to reduce production to ensure they compensate by the end of September for the oversupply since the cuts were agreed.
The volume they need to reduce is the equivalent to 1.15 million bpd over two months, one OPEC source said, or 2.
Solely aggregation of news articles, with no opinions expressed by this service since 2009 launch on this platform. Copyright to all articles remains with the original publisher and HEADLINES ARE CLICKABLE to access the whole article at source. (Subscription by email is recommended,with real-time updates on LinkedIn and Twitter.)
Friday 21 August 2020
Oil falls 1% on sluggish coronavirus recovery, supply concerns - Reuters
Oil falls 1% on sluggish coronavirus recovery, supply concerns - Reuters:
Oil prices lost about 1% on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns and on worries about rising crude supply.
The euro zone’s economic recovery from its deepest downturn on record stalled this month as pent-up demand unleashed by the easing of lockdowns in July dwindled, a survey showed. By contrast, U.S. housing and manufacturing survey data came in better than expected.
Brent crude LCOc1 futures settled at $44.35 a barrel, down 55 cents, 1.2%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $42.34 a barrel, falling 86 cents, or 1.1%.
Brent fell about 1% for the week, while WTI saw a weekly rise of nearly 1%.
India’s crude oil imports fell in July to their lowest level since March 2010, while U.S. motorists drove 13% fewer miles in June than a year earlier, according the U.S. Department of Transportation.
Oil prices lost about 1% on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns and on worries about rising crude supply.
The euro zone’s economic recovery from its deepest downturn on record stalled this month as pent-up demand unleashed by the easing of lockdowns in July dwindled, a survey showed. By contrast, U.S. housing and manufacturing survey data came in better than expected.
Brent crude LCOc1 futures settled at $44.35 a barrel, down 55 cents, 1.2%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $42.34 a barrel, falling 86 cents, or 1.1%.
Brent fell about 1% for the week, while WTI saw a weekly rise of nearly 1%.
India’s crude oil imports fell in July to their lowest level since March 2010, while U.S. motorists drove 13% fewer miles in June than a year earlier, according the U.S. Department of Transportation.
Global Oil News: #Saudi Aramco Suspends $10 Billion China Crude Refinery Venture - Bloomberg
Global Oil News: Saudi Aramco Suspends $10 Billion China Crude Refinery Venture - Bloomberg:
Saudi Arabia’s state oil company has suspended a deal to build a $10 billion refining and petrochemicals complex in China, according to people familiar with the matter, as the company slashes spending to cope with low oil prices.
Saudi Arabian Oil Co., or Aramco, decided to stop investing in the facility in China’s Northeastern province of Liaoning after negotiations with its Chinese partners, said the people, who asked not to be identified as the matter is private. The uncertain market outlook was behind the decision, they said.
Aramco didn’t immediately respond to a request for comment. China North Industries Group Corp., or Norinco, one of the partners, didn’t immediately respond to an email seeking comment. No one answered a call to Panjin Sincen, the third partner, outside office hours, or responded to an email.
The oil-price crash and the virus’s impact on energy demand have changed the calculations for energy companies’ projects around the world. Aramco plans deep cuts to its capital spending as it tries to maintain a $75 billion dividend amid low crude prices and rising debt. The kingdom -- Aramco’s main recipient of those dividends -- is suffering a major squeeze on its public finances.
Saudi Arabia’s state oil company has suspended a deal to build a $10 billion refining and petrochemicals complex in China, according to people familiar with the matter, as the company slashes spending to cope with low oil prices.
Saudi Arabian Oil Co., or Aramco, decided to stop investing in the facility in China’s Northeastern province of Liaoning after negotiations with its Chinese partners, said the people, who asked not to be identified as the matter is private. The uncertain market outlook was behind the decision, they said.
Aramco didn’t immediately respond to a request for comment. China North Industries Group Corp., or Norinco, one of the partners, didn’t immediately respond to an email seeking comment. No one answered a call to Panjin Sincen, the third partner, outside office hours, or responded to an email.
The oil-price crash and the virus’s impact on energy demand have changed the calculations for energy companies’ projects around the world. Aramco plans deep cuts to its capital spending as it tries to maintain a $75 billion dividend amid low crude prices and rising debt. The kingdom -- Aramco’s main recipient of those dividends -- is suffering a major squeeze on its public finances.
Oil prices dip on sluggish coronavirus recovery - Reuters
Oil prices dip on sluggish coronavirus recovery - Reuters:
Oil prices edged lower on Friday but held near a five-month high as an easing of coronavirus lockdowns aids a slow recovery in fuel demand while major crude producers seek to limit supply.
Brent crude LCOc1 futures were down 52 cents, or 1.1%, at $44.38 a barrel by 0850 GMT, heading for a 0.9% weekly decline.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 48 cents, or 1.1%, at $42.34 but on track for a weekly gain of about 0.9%.
The euro zone’s economic recovery from its deepest downturn on record has stuttered this month as the pent-up demand unleashed by the easing of lockdowns in July has dwindled, a survey showed on Friday.
Oil prices edged lower on Friday but held near a five-month high as an easing of coronavirus lockdowns aids a slow recovery in fuel demand while major crude producers seek to limit supply.
Brent crude LCOc1 futures were down 52 cents, or 1.1%, at $44.38 a barrel by 0850 GMT, heading for a 0.9% weekly decline.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 48 cents, or 1.1%, at $42.34 but on track for a weekly gain of about 0.9%.
The euro zone’s economic recovery from its deepest downturn on record has stuttered this month as the pent-up demand unleashed by the easing of lockdowns in July has dwindled, a survey showed on Friday.
Simon Kuper on the rise of PSG | Financial Times
Simon Kuper on the rise of PSG | Financial Times:
After Paris Saint-Germain qualified for the first Champions League final of their history earlier this week, I went to see a friend who has supported the club since his childhood in a concrete 1970s suburb of Paris. He and I take our kids to PSG’s home stadium, the Parc des Princes, whenever we can scrounge scarce tickets. On a good night in the stands, we have even done “the Poznan” together — the dance where you link arms and turn your backs to the field and jump up and down.
Now, with the peak of his life as a supporter looming — Sunday’s final against Bayern Munich in Lisbon — he was in a reflective mood. He admitted to feeling unease that his club’s rise had been funded by rich Qatari owners: “It’s like you cheated at Monopoly and suddenly you have all these hotels on the board.” Yet he was relieved by the success, partly because the alternative would be more years of mockery from rival fans, who say, “Even with all this money, you can’t get past the quarter-finals of the Champions League.” He felt that PSG had finally overcome what the French call, in franglais, “la lose” — “failure”. And like a true fan, who cannot entirely distinguish between himself and his club, he thought this might presage the end of “la lose” in his own entrepreneurial career.
The popular misconception of PSG is that it’s a “fake” club, without history or identity, created by Qatari money and supported only by glory-hunters and children. In fact, the club has millions of longtime supporters, mostly in the unlovely suburbs of Europe’s largest metropolitan area. PSG might have been founded only in 1970, nearly a century later than many English clubs, but Greater Paris is a newish creation too. As with every football club that matters to people, PSG’s story echoes that of the place it represents.
After Paris Saint-Germain qualified for the first Champions League final of their history earlier this week, I went to see a friend who has supported the club since his childhood in a concrete 1970s suburb of Paris. He and I take our kids to PSG’s home stadium, the Parc des Princes, whenever we can scrounge scarce tickets. On a good night in the stands, we have even done “the Poznan” together — the dance where you link arms and turn your backs to the field and jump up and down.
Now, with the peak of his life as a supporter looming — Sunday’s final against Bayern Munich in Lisbon — he was in a reflective mood. He admitted to feeling unease that his club’s rise had been funded by rich Qatari owners: “It’s like you cheated at Monopoly and suddenly you have all these hotels on the board.” Yet he was relieved by the success, partly because the alternative would be more years of mockery from rival fans, who say, “Even with all this money, you can’t get past the quarter-finals of the Champions League.” He felt that PSG had finally overcome what the French call, in franglais, “la lose” — “failure”. And like a true fan, who cannot entirely distinguish between himself and his club, he thought this might presage the end of “la lose” in his own entrepreneurial career.
The popular misconception of PSG is that it’s a “fake” club, without history or identity, created by Qatari money and supported only by glory-hunters and children. In fact, the club has millions of longtime supporters, mostly in the unlovely suburbs of Europe’s largest metropolitan area. PSG might have been founded only in 1970, nearly a century later than many English clubs, but Greater Paris is a newish creation too. As with every football club that matters to people, PSG’s story echoes that of the place it represents.
Political knots bind sovereign funds trying to beat the market | Financial Times
Political knots bind sovereign funds trying to beat the market | Financial Times:
Nicolai Tangen and Yasir al-Rumayyan have had tricky summers for different reasons.
Mr Tangen, a successful hedge fund manager in London, is on the verge of taking over as head of Norway's $1tn sovereign wealth fund. But a big political row has broken out over his alleged conflicts of interest.
Mr Rumayyan, who runs Saudi Arabia’s $300bn fund, walked away from a deal to buy Newcastle United football club from the British retail tycoon Mike Ashley after struggling to win approval from the Premier League. It turns out that years of brazen Saudi pirating of televised football was not the way to win hearts and minds everywhere.
Both men’s experiences have a common thread. While state-run funds are becoming more influential, managing them remains riddled with complexity.
Nicolai Tangen and Yasir al-Rumayyan have had tricky summers for different reasons.
Mr Tangen, a successful hedge fund manager in London, is on the verge of taking over as head of Norway's $1tn sovereign wealth fund. But a big political row has broken out over his alleged conflicts of interest.
Mr Rumayyan, who runs Saudi Arabia’s $300bn fund, walked away from a deal to buy Newcastle United football club from the British retail tycoon Mike Ashley after struggling to win approval from the Premier League. It turns out that years of brazen Saudi pirating of televised football was not the way to win hearts and minds everywhere.
Both men’s experiences have a common thread. While state-run funds are becoming more influential, managing them remains riddled with complexity.
'Tough' months ahead for #Dubai's property market: DAMAC CEO | ZAWYA MENA Edition
'Tough' months ahead for Dubai's property market: DAMAC CEO | ZAWYA MENA Edition:
The coronavirus pandemic has somewhat eased Dubai’s oversupply problems, but the months ahead will remain tough for the emirate’s real estate market, a top developer said.
Hussain Sajwani, the founder and chairman of DAMAC Properties, said the rest of the year will remain challenging, as the economies worldwide are still reeling from the financial fallout of the outbreak. What he is optimistic about, he added, is the upcoming World Expo in Dubai next year, which could bring in more tourists to the emirate and provide an uplift to the local economy.
“Definitely this year is going to be a tough year, as you know, because it was a lockdown in the world economy and all of that impact of COVID-19. I think next year, especially toward the second half of it, I am quite positive about it because with the Expo and the expectation of the number of tourism (sic) that’s going to come to Dubai,” Sajwani told CNN in an interview on Thursday.
The UAE’s property sector hit a huge slump in March, when businesses and corporate offices shut their doors as part of the precautionary measures to stem the spread of the virus. The closure of the UAE’s borders to international tourist traffic also meant that no potential foreign buyers could enter the country to explore some investment opportunities in real estate.
The coronavirus pandemic has somewhat eased Dubai’s oversupply problems, but the months ahead will remain tough for the emirate’s real estate market, a top developer said.
Hussain Sajwani, the founder and chairman of DAMAC Properties, said the rest of the year will remain challenging, as the economies worldwide are still reeling from the financial fallout of the outbreak. What he is optimistic about, he added, is the upcoming World Expo in Dubai next year, which could bring in more tourists to the emirate and provide an uplift to the local economy.
“Definitely this year is going to be a tough year, as you know, because it was a lockdown in the world economy and all of that impact of COVID-19. I think next year, especially toward the second half of it, I am quite positive about it because with the Expo and the expectation of the number of tourism (sic) that’s going to come to Dubai,” Sajwani told CNN in an interview on Thursday.
The UAE’s property sector hit a huge slump in March, when businesses and corporate offices shut their doors as part of the precautionary measures to stem the spread of the virus. The closure of the UAE’s borders to international tourist traffic also meant that no potential foreign buyers could enter the country to explore some investment opportunities in real estate.
Emirates Nears Deal on Boeing Jets With 777X Timing Unresolved - Bloomberg
Emirates Nears Deal on Boeing Jets With 777X Timing Unresolved - Bloomberg:
Emirates has decided on its preferred mix of new Boeing Co. wide-body planes, with the focus likely to be on smaller aircraft rather than jumbo jets following a slump in demand amid the Covid-19 pandemic.
The Dubai-based carrier has been pushing to swap more of Boeing’s behemoth 777X jets -- of which it has ordered 115 -- for 787 Dreamliners. The composition of the intake has been finalized, Chief Operating Officer Adel Al Redha said in an interview Thursday, declining to provide details.
Negotiations are ongoing about the timing of the plane deliveries, Al Redha said, with Emirates preferring to take the smaller Dreamliner sooner rather than later as it “offers better seat capacity” at a time when demand for international travel is flagging. Boeing wants to hand over the larger 777X first, the COO said, in line with an agreement made before the coronavirus tore up the plans of airlines around the world.
“I think Boeing would prefer to deliver the 777s before 787 because that is a new program for them,” Al Redha said. The Chicago-based planemaker declined to comment.
Emirates has decided on its preferred mix of new Boeing Co. wide-body planes, with the focus likely to be on smaller aircraft rather than jumbo jets following a slump in demand amid the Covid-19 pandemic.
The Dubai-based carrier has been pushing to swap more of Boeing’s behemoth 777X jets -- of which it has ordered 115 -- for 787 Dreamliners. The composition of the intake has been finalized, Chief Operating Officer Adel Al Redha said in an interview Thursday, declining to provide details.
Negotiations are ongoing about the timing of the plane deliveries, Al Redha said, with Emirates preferring to take the smaller Dreamliner sooner rather than later as it “offers better seat capacity” at a time when demand for international travel is flagging. Boeing wants to hand over the larger 777X first, the COO said, in line with an agreement made before the coronavirus tore up the plans of airlines around the world.
“I think Boeing would prefer to deliver the 777s before 787 because that is a new program for them,” Al Redha said. The Chicago-based planemaker declined to comment.
Energy News, KPC: #Kuwait Petroleum Merges Subsidiaries to Slash Capital Spending - Bloomberg
Energy News, KPC: Kuwait Petroleum Merges Subsidiaries to Slash Capital Spending - Bloomberg:
Kuwait Petroleum Corp. is hiring a consultant to help merge its subsidiaries as the state-run company slashes capital spending by more than 25% over the next five years.
KPC will combine its eight business units into four to streamline operations, according to a person familiar with the matter. To make the change as smooth as possible, it plans to sign with a consultant next month, the person said, asking not to be identified because they haven’t finalized the contract.
To chop five-year capital spending to 19.8 billion dinars ($65 billion), KPC canceled some projects and postponed others, including exploration. It also pushed back some expected acquisitions by a subsidiary, Kuwait Foreign Petroleum Exploration Co., the person said. Kuwait’s Supreme Petroleum Council, which oversees the OPEC member’s oil industry, has approved the merger plan.
The company’s media office couldn’t immediately be reached for comment.
Kuwait Petroleum Corp. is hiring a consultant to help merge its subsidiaries as the state-run company slashes capital spending by more than 25% over the next five years.
KPC will combine its eight business units into four to streamline operations, according to a person familiar with the matter. To make the change as smooth as possible, it plans to sign with a consultant next month, the person said, asking not to be identified because they haven’t finalized the contract.
To chop five-year capital spending to 19.8 billion dinars ($65 billion), KPC canceled some projects and postponed others, including exploration. It also pushed back some expected acquisitions by a subsidiary, Kuwait Foreign Petroleum Exploration Co., the person said. Kuwait’s Supreme Petroleum Council, which oversees the OPEC member’s oil industry, has approved the merger plan.
The company’s media office couldn’t immediately be reached for comment.
Oil prices steady as producers talk up efforts to rein in supply - Reuters
Oil prices steady as producers talk up efforts to rein in supply - Reuters:
Oil prices held steady on Friday and were on track for a third consecutive weekly gain, pulled higher by major oil producers’ efforts to hold back output amid concerns about the pace of economic recovery from the coronavirus pandemic.
Brent crude LCOc1 futures were up 5 cents, or 0.1%, at $44.95 per barrel by 0633 GMT, heading for a 0.4% rise for the week.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were unchanged at $42.82 per barrel, but on track for about a 2% rise for the week.
Both benchmark contracts fell around 1% on Thursday on economic concerns after weekly U.S. jobless claims came in higher than expected.
Oil prices held steady on Friday and were on track for a third consecutive weekly gain, pulled higher by major oil producers’ efforts to hold back output amid concerns about the pace of economic recovery from the coronavirus pandemic.
Brent crude LCOc1 futures were up 5 cents, or 0.1%, at $44.95 per barrel by 0633 GMT, heading for a 0.4% rise for the week.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were unchanged at $42.82 per barrel, but on track for about a 2% rise for the week.
Both benchmark contracts fell around 1% on Thursday on economic concerns after weekly U.S. jobless claims came in higher than expected.