Oil hits two-year high on OPEC+ discipline, demand hopes | Reuters
Oil extended gains on Friday, with Brent topping $72 a barrel for the first time since 2019, as OPEC+ supply discipline and recovering demand countered concerns about a patchy COVID-19 vaccination rollout around the globe.
The Organization of the Petroleum Exporting Countries and allies on Tuesday said they would stick to agreed supply restraints. A weekly supply report on Thursday showed U.S. crude inventories dropped more than expected last week. [EIA/S]
Oil extended gains after U.S. figures showed nonfarm payrolls increased by 559,000 jobs last month. The U.S. dollar weakened after the report, making oil cheaper for holders of other currencies and lending support to oil prices.
Brent crude rose 58 cents, or 0.8%, to settle at $71.89 a barrel, after touching $72.17, its highest since May 2019.
U.S. West Texas Intermediate crude rose 81 cents, or 1.2%, to settle at $69.62. The session high was $69.76, its highest since October 2018.
Oil prices drifted higher after U.S. energy firms this week cut the number of oil and natural gas rigs operating, for the first time in six weeks, data from energy services firm Baker Hughes showed.
Friday, 4 June 2021
#SaudiArabia's Oil Outlook Is Less Realistic Than the IEA's - Bloomberg
Saudi Arabia's Oil Outlook Is Less Realistic Than the IEA's - Bloomberg
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, is a realist. This week, he compared the International Energy Agency’s recent net-zero emissions analysis to “La La Land.” Because a world in which the half-brother of an autocratic prince attempts to manipulate the price of a vital commodity in league with a clutch of other autocracies and struggling petrostates, even as that commodity stokes a climate disaster ... yes, that sounds totally normal and good.
The IEA’s “roadmap” is la-la land in the sense that it requires a “total transformation” of global energy. That is difficult precisely because, with the externalities of emissions largely unpriced, we rely heavily on an incumbent system predicated on “cheap” fossil fuels. But what then? The status quo means doubling down on climate change. That doesn’t sound particularly realistic; like “La La Land” except set in a noirish Los Angeles clouded by wildfire smoke.
Oil is incredibly useful, which is why it is deeply embedded in the modern economy and why its geopolitical compromises are tolerated. But now we know it also harbors dangerous externalities. To simply focus on the benefits and ignore the risks — especially for the emerging markets demanding more barrels — is irresponsible and ultimately self-defeating.
The IEA’s biggest bombshell was the contention that reaching net-zero emissions by 2050 meant no more investment in new fossil-fuel supply. That was never going to persuade the prince to treat it like a documentary. Remember, though, the IEA isn’t issuing orders; just making its best guess at what is needed to meet a modeled outcome.
And if you don’t like that model, there are others. Rystad Energy, a consultancy, released some net-zeroish 1 projections recently. These share many similarities with the IEA’s but differ in important respects, not least oil demand.
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Saudi Arabian Energy Minister Prince Abdulaziz bin Salman, a realist. Photographer: Donat Sorokin/TASS/Getty Images |
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, is a realist. This week, he compared the International Energy Agency’s recent net-zero emissions analysis to “La La Land.” Because a world in which the half-brother of an autocratic prince attempts to manipulate the price of a vital commodity in league with a clutch of other autocracies and struggling petrostates, even as that commodity stokes a climate disaster ... yes, that sounds totally normal and good.
The IEA’s “roadmap” is la-la land in the sense that it requires a “total transformation” of global energy. That is difficult precisely because, with the externalities of emissions largely unpriced, we rely heavily on an incumbent system predicated on “cheap” fossil fuels. But what then? The status quo means doubling down on climate change. That doesn’t sound particularly realistic; like “La La Land” except set in a noirish Los Angeles clouded by wildfire smoke.
Oil is incredibly useful, which is why it is deeply embedded in the modern economy and why its geopolitical compromises are tolerated. But now we know it also harbors dangerous externalities. To simply focus on the benefits and ignore the risks — especially for the emerging markets demanding more barrels — is irresponsible and ultimately self-defeating.
The IEA’s biggest bombshell was the contention that reaching net-zero emissions by 2050 meant no more investment in new fossil-fuel supply. That was never going to persuade the prince to treat it like a documentary. Remember, though, the IEA isn’t issuing orders; just making its best guess at what is needed to meet a modeled outcome.
And if you don’t like that model, there are others. Rystad Energy, a consultancy, released some net-zeroish 1 projections recently. These share many similarities with the IEA’s but differ in important respects, not least oil demand.
Qatari deputy PM says future of digital currencies still 'unclear' | Reuters
Qatari deputy PM says future of digital currencies still 'unclear' | Reuters
Qatar's deputy prime minister and foreign minister said on Friday that the future of digital currencies is still "unclear" and that there is still "uncertainty" over them.
Sheikh Mohammed bin Abdulrahman al-Thani, who also heads the Qatar Investment Authority sovereign wealth fund, said "I don't think so" when asked in a interview if QIA would invest in cryptocurrencies anytime soon.
Qatar's deputy prime minister and foreign minister said on Friday that the future of digital currencies is still "unclear" and that there is still "uncertainty" over them.
Sheikh Mohammed bin Abdulrahman al-Thani, who also heads the Qatar Investment Authority sovereign wealth fund, said "I don't think so" when asked in a interview if QIA would invest in cryptocurrencies anytime soon.
Turkey New Natural Gas Discovery in Black Sea to Be Unveiled - Bloomberg
Turkey New Natural Gas Discovery in Black Sea to Be Unveiled - Bloomberg
Turkey has discovered further deposits of natural gas in the Black Sea, according to people familiar with the matter, and is likely to make an announcement soon.
Initial data from the offshore Amasra-1 well show a significant amount of newly discovered gas, the people said, asking not to be identified while discussing confidential information. Turkish explorers last year found 405 billion cubic meters of gas at the nearby Tuna-1 well, the biggest ever discovery in the Black Sea, and said at the time production could begin by 2023.
No independent audit of total and recoverable gas at either of the finds in the so-called Sakarya field has been made available by authorities. Officials have said state oil company Tpao is planning to develop the deposits on its own, and won’t need foreign financing.
The Energy Ministry declined to comment on the Amasra discovery. But President Recep Tayyip Erdogan hinted at it during a televised interview earlier this week, promising to deliver “good news” on Friday from the Black Sea coast. He has pitched recent energy finds as a solution to some of Turkey’s long-term economic vulnerabilities, including its energy-import bill that needs to be paid in foreign currency.
Previous announcements on Black Sea gas deposits boosted Turkish assets, from bonds to stocks. Erdogan and his government are battling a drop in popularity after unemployment rose during pandemic lockdowns.
Turkey has discovered further deposits of natural gas in the Black Sea, according to people familiar with the matter, and is likely to make an announcement soon.
Initial data from the offshore Amasra-1 well show a significant amount of newly discovered gas, the people said, asking not to be identified while discussing confidential information. Turkish explorers last year found 405 billion cubic meters of gas at the nearby Tuna-1 well, the biggest ever discovery in the Black Sea, and said at the time production could begin by 2023.
No independent audit of total and recoverable gas at either of the finds in the so-called Sakarya field has been made available by authorities. Officials have said state oil company Tpao is planning to develop the deposits on its own, and won’t need foreign financing.
The Energy Ministry declined to comment on the Amasra discovery. But President Recep Tayyip Erdogan hinted at it during a televised interview earlier this week, promising to deliver “good news” on Friday from the Black Sea coast. He has pitched recent energy finds as a solution to some of Turkey’s long-term economic vulnerabilities, including its energy-import bill that needs to be paid in foreign currency.
Previous announcements on Black Sea gas deposits boosted Turkish assets, from bonds to stocks. Erdogan and his government are battling a drop in popularity after unemployment rose during pandemic lockdowns.
QNB Group signs deal with Moscow asset management firm | Reuters
QNB Group signs deal with Moscow asset management firm | Reuters
QNB Group (QNBK.QA) said on Friday it has signed an agreement with Moscow-based asset manager VTB Capital Investments, to launch funds to attract foreign capital into Russia and Qatar, and build offerings for international investors.
The Doha, Qatar-based financial institution, the largest in the Middle East and Africa, said the memorandum of understanding will also help manage and carry out advisory activities in debt, equity and real estate markets.
VTB Capital said it expects a fund which focuses on investments in the Qatari economy to be "extremely popular".
QNB Group (QNBK.QA) said on Friday it has signed an agreement with Moscow-based asset manager VTB Capital Investments, to launch funds to attract foreign capital into Russia and Qatar, and build offerings for international investors.
The Doha, Qatar-based financial institution, the largest in the Middle East and Africa, said the memorandum of understanding will also help manage and carry out advisory activities in debt, equity and real estate markets.
VTB Capital said it expects a fund which focuses on investments in the Qatari economy to be "extremely popular".
After sharp weekly gains, oil prices steady as coronavirus concerns resurface | Reuters
After sharp weekly gains, oil prices steady as coronavirus concerns resurface | Reuters
Oil prices recouped early losses and steadied on Friday as concerns about the patchy roll-out of COVID-19 vaccinations around the globe tempered optimism over recovering fuel demand.
Brent crude was down 1 cent at $71.30 a barrel by 0627 GMT, after falling 4 cents on Thursday following a gain to the highest since May 2019. The contract is on track for a gain of over 2.4% this week.
U.S. oil was up by 1 cent at $68.82, having dropped 2 cents in the previous session, while heading for a gain of nearly 4% this week.
“The upward momentum appears to have been exhausted, making way for some profit-taking. But I expect the pullback to be modest, as the broader narrative of a strong U.S. economic and oil demand rebound is well-entrenched,” said Vandana Hari, energy analyst at Vanda Insights.
Both contracts climbed about $5 each in the past two weeks amid optimism that global demand for fuel was recovering from the depths of the pandemic.
Oil prices recouped early losses and steadied on Friday as concerns about the patchy roll-out of COVID-19 vaccinations around the globe tempered optimism over recovering fuel demand.
Brent crude was down 1 cent at $71.30 a barrel by 0627 GMT, after falling 4 cents on Thursday following a gain to the highest since May 2019. The contract is on track for a gain of over 2.4% this week.
U.S. oil was up by 1 cent at $68.82, having dropped 2 cents in the previous session, while heading for a gain of nearly 4% this week.
“The upward momentum appears to have been exhausted, making way for some profit-taking. But I expect the pullback to be modest, as the broader narrative of a strong U.S. economic and oil demand rebound is well-entrenched,” said Vandana Hari, energy analyst at Vanda Insights.
Both contracts climbed about $5 each in the past two weeks amid optimism that global demand for fuel was recovering from the depths of the pandemic.