OPEC+ Seen Sticking to Planned Output Hike as Oil Prices Rebound - Bloomberg
OPEC and its allies are expected to press on with their planned revival of oil production when they meet next week, as prices bounce back from their August stumble.
The coalition led by Saudi Arabia and Russia is gradually restoring the vast amount of crude production halted during the pandemic, and will probably ratify the next monthly installment when it gathers on Sept. 1, according to a Bloomberg survey of traders and analysts. Several OPEC+ delegates privately predict the same outcome.
Crude markets faltered earlier this month as the resurgent pandemic threatened demand in China and the U.S. But prices have since recovered after fuel use proved resilient to the latest coronavirus wave, giving the Organization of Petroleum Exporting Countries and its partners more breathing space.
“Uncertainties over the world economy and the growth recovery in China have largely peeled away,” said Ed Morse, head of commodities research at Citigroup Inc. “There’s good evidence that the bottom in oil prices was temporary and overdone, and if the recovery continues, OPEC+ would likely stick to the plan.”
Oil heads for biggest weekly gains in over a year ahead of Storm Ida | Reuters
Oil prices rose more than 2% on Friday and were on track for their biggest weekly gains in over a year as energy firms began shutting production in the U.S. Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.56, or 2.2%, to $72.63 a barrel by 11:51 a.m. EDT (1551 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.48, or 2.2%, to $68.90.
That puts Brent on track for its highest close since Aug. 2 and WTI on track for its highest close since Aug. 12.
For the week, both benchmarks were up about 11%, which would be their biggest weekly percentage gains since June 2020.
Oil rises as storm approaches Gulf of Mexico production hub | Reuters
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting production in the Gulf of Mexico ahead of a possible hurricane forecast to hit on the weekend.
Brent crude futures rose 72 cents, or 1%, to $71.79 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, or 1.2%, to $68.22 a barrel.
For the week, Brent is on track for a rise of about 10% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of more than 9%, which would be its strongest rise since October 2020.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Nigerian Oil Giant Considers IPO After First Profit in 44 Years - Bloomberg
Nigeria’s state oil company is considering an initial share sale after posting the first profit in its 44-year existence.
Legislation signed by President Muhammadu Buhari this month enables the Nigerian National Petroleum Corp. to offer shares to the public, Managing Director Mele Kyari said at a briefing Thursday in the capital, Abuja. A listing would draw on the experience of Saudi Aramco, the Saudi Arabian oil giant that listed in 2019, he said.
“There is no date on it, but there is a possibility of doing this,” Kyari said.
NNPC reported net income of 287 billion naira ($698 million) in 2020, compared with losses of 1.7 billion naira in 2019 and 803 billion naira the year before. The Abuja-based company, which released audited results for the first time two years ago, has for years operated under a cloak of secrecy often mired by allegations of corruption.
“Obviously because you have made profit today doesn’t mean you are ready for IPO,” Kyari said. “It is a very, very long, tedious process.”
Buhari became president of Africa’s biggest oil producer in 2015 with a pledge to improve transparency in government corporations, including the NNPC. Under the Petroleum Industry Act he approved on Aug. 16, the NNPC will be registered as a commercially focused entity.
The new legislation “specifies that the company pay its fair share of royalties, fees, rents, taxes and other payments due to the government, and that it should pay out the bulk of its profits as dividends after retaining 25% for reinvestment,” accounting firm KPMG stated in a report published last month.
The Nigerian Stock Exchange has a market capitalization of 20.6 trillion naira ($50 billion). The largest IPO on the bourse to date was Guaranty Trust Bank Plc’s $824 million listing in 2007, according to data compiled by Bloomberg.
Expecting oil trade boom, Fujairah Oil Terminal invests in VLCC project | Reuters
The Fujairah Oil Terminal is investing an estimated $45 million to upgrade the infrastructure at its storage facilities, betting on a surge in crude trading and storage demand at the United Arab Emirates oil hub, the company's chairman told Reuters.
FOT's expansion, financed by a new $280 million debt facility, will connect its terminal to the Port of Fujairah's very large crude carrier (VLCC) loading facility and the Abu Dhabi Crude Oil Pipeline (ADCOP) pipeline, said Steve Bickerton, senior managing director at Prostar Capital and chairman of FOT.
"That's a game changer because it gives us access to customers who want to be moving crude oil through VLCCs and it gives our customers direct access to the ADCOP, which brings Abu Dhabi's Murban Crude into Fujairah," said Bickerton.
The project is expected to be completed by the end of next year, Bickerton said.
Oil jumps as storm approaches Gulf of Mexico production hub | Reuters
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting in production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend.
"Energy traders are pushing crude prices higher in anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output given the recent Delta variant impact over crude demand," Edward Moya, senior market analyst at OANDA told Reuters.
Brent crude futures rose 98 cents, or 1.4%, to $72.05 a barrel at 0542 GMT, after falling 1.6% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures climbed 93 cents, or 1.4%, to $68.35 a barrel, clawing back a 1.4% loss on Thursday.
For the week, Brent is on track for a rise of nearly 11% this week, its biggest weekly jump since June 2020. WTI is headed for a weekly gain of nearly 10%, which would be its strongest rise since August 2020.
