Oil rises 5% in second weekly gain on output cuts, demand hopes
Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.The number of operating oil and natural gas rigs fell by 34 to an all-time low of 374 this week - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand.North…
Country-by-Country Look at Dropping Fuel Demand
It's hardly news that the COVID-19 pandemic has sent most every market into tumult, most notably the oil and gas market as political power plays flood the world with oil precisely when demand has plummeted. Here we provide some recent insights on just how steep falls in fuel demand has been as lockdowns to contain the spread of the novel coronavirus limit the movement of more than 4 billion people.UNITED STATESU.S. fuel demand has dropped 28% in the last four weeks, the Energy Information Administration said on April 29.Overall finished motor gasoline demand is still down 44% over the past four weeks from the year-ago period…
Oil in Floating Storage More Than Doubles in a Month
The volume of key oil products held in floating storage around the globe has more than doubled in the past month to about 68 million barrels, according to data from oil analytics firm Vortexa.The figure, which includes gasoline, diesel and jet fuel as of April 22, compares with around 30 million barrels in the previous month, Vortexa said.With available space on land storage tanks scarce, traders around the world have been rushing to book tankers of different sizes to store oil products as lockdowns around the world to tackle the coronavirus pandemic hammer oil demand.Floating storage has increased in northwest Europe, the Mediterranean,
U.S. Crude Hits 18-year Low as Lockdowns Spread
Oil prices fell for a third session on Wednesday, with U.S. crude futures tumbling to an 18-year low and Brent hitting a more than 16-year low as travel and social lockdowns to counter the coronavirus raised prospect of the steepest ever annual fall in oil demand.U.S.
Coronavirus Spurs Oil Majors to Cancel IP Week Events
The list of parties at London's International Petroleum Week, one of the world's biggest oil industry gatherings, continues to shrink as hosts such as ExxonMobil and Azerbaijan's SOCAR cancel events due to the coronavirus, trading sources said. IP Week is a key oil traders' gathering that takes place every year in February. This year, it is scheduled for Feb. 24-27. Oil majors, national oil companies and trading firms host receptions for networking throughout the week. Spooked by the epidemic, several oil companies based in Asia said last week they would skip IP Week this year.
Oil Steadies After Brief Slide
Oil steadied on Tuesday, as expections of output cuts from OPEC and allied producers brought prices back up after they slid briefly following comments from U.S. President Donald Trump that a trade deal with China may be delayed.Brent crude futures rose 5 cents to $60.97 a barrel by 11:18 a.m. EST (1618 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 9 cents to $56.05 a barrel. Trump said a U.S.-China trade agreement might have to wait until after next November's presidential election, denting hopes of a quick resolution to a dispute that has weighed on the world economy."I have no deadline…
U.S. Shipping Sanctions Give Boost to EU Refiners
U.S. sanctions imposed last month on subsidiaries of vast Chinese shipping fleet Cosco have given an unexpected boost to European refiners as less crude oil from the North Sea and West Africa heads east, traders and analysts said.Freight rates have soared as oil producers scramble for non-blacklisted vessels, discouraging longer-distance voyages.Complex refining margins for advanced facilities capable of extracting even more valuable products like diesel and gasoline, have been especially strong in Europe, industry sources said.The U.S.
OPEC+ Extends Output Cuts
OPEC and its allies led by Russia agreed to extend oil output cuts until March 2020 on Tuesday, seeking to prop up the price of crude as the global economy weakens and U.S. production soars.The alliance, known as OPEC+, has been reducing oil supply since 2017 to prevent prices from sliding amid increasing competition from the United States, which has overtaken Russia and Saudi Arabia to become the world's top producer.Asked by reporters whether agreement had been reached, Saudi Energy Minister Khalid al-Falih said…
Oil Prices Fall After Trump's Tariff Threat Against China
Oil prices fell on Monday after U.S. President Donald Trump said he would sharply raise tariffs on Chinese goods this week, risking the derailment of trade talks between the world's two biggest economies.U.S. West Texas Intermediate (WTI) crude futures were at $61.68 per barrel at 1338 GMT, down 26 cents. WTI hit $60.04 earlier in the session, its lowest since March 29.Brent crude futures were broadly steady at $70.88 per barrel, having earlier hit its lowest since April 2 at $68.79.Trump said on Twitter on Sunday that he would hike U.S.
Oil Prices Rise on Lower U.S. Stocks, OPEC+ Supply Cuts
Oil prices rose slightly on Thursday, boosted by a decline in U.S. inventories, ongoing supply cuts from OPEC and its allies, and U.S. sanctions on Venezuela and Iran.Brent crude futures were at $71.80 a barrel at 1313 GMT, up 18 cents from their last close and near Wednesday's five-month high of $72.27 a barrel.U.S. West Texas Intermediate (WTI) crude futures were at $63.83 per barrel, up 7 cents.Both contracts traded slightly lower earlier in the day.U.S. crude inventories fell by 1.4 million barrels in the week to April 12, U.S. Energy Information Administration (EIA) data showed on Wednesday."The latest weekly statistics on U.S.
Strikes Impact Shell's Pernis Oil Refinery
Striking workers at Royal Dutch Shell's Pernis plant in the Netherlands have taken offline a thermal gasoil installation, a Dutch union said on Monday, in the first sign of any impact from industrial action on Europe's largest oil refinery.Shell said earlier in the day that the unit had been shut. It later clarified that it had only repeated what the unions had said and would not comment on the status of the refinery.The refinery, near Rotterdam, has the capacity to process 404,000 barrels per day of oil.The CNV…
IMO 2020: Shell, HES to Resurrect Refinery
Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.A new cap set by the International Maritime Organization (IMO) that will cut the sulfur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.HES Wilhelmshaven Tank Terminal is in the process…
Oil Steady, Supported by OPEC Cuts
Record U.S. output, exports offset some of OPEC's cuts.Oil prices were broadly steady on Friday as surging U.S. supply and concerns of a global economic slowdown were offset by falling OPEC output.International Brent crude futures were at $66.39 per barrel at 1231 GMT, up 8 cents from Thursday's settlement.U.S. West Texas Intermediate (WTI) crude oil futures were at $57.38 per barrel, up 16 cents."Oil prices are finely balanced in today's trading session," senior Interfax Energy analyst Abhishek Kumar said.The 14-member Organization of the Petroleum Exporting Countries pumped 30.68 million barrels per day (bpd) in February…
Libyan Oil Ports Es Sider, Brega Closed, Production Unaffected -NOC
The eastern Libyan oil ports of Es Sider and Brega have been closed due to bad weather but crude production has not been affected, an official from state oil firm NOC said.Storage capacity is sufficient for a few days and the remaining ports were open, the official said.Tankers were waiting to dock at Es Sider and Brega, port sources said.A shipper's note and a port engineer said the other eastern Libyan ports were also closed.A similar closure this month led to a temporary reduction in production by Waha Oil Co as storage capacity at Es Sider was limited after some tanks were damaged during clashes last year.
Valero Reports Oil Product Leak in Britain's Milford Haven Waterway
Valero Energy Corp said on Thursday that an unknown amount of oil product had spilled into the Milford Haven waterway in Pembroke in Wales."Valero is working in coordination with response agencies to contain the effects from the release of oil," it said in an emailed statement.Valero operates the 220,000 barrel per day Pembroke oil refinery.(Reporting by Ahmad Ghaddar Editing by Edmund Blair)
Oil Refiners Face Rollercoaster Ride as Fuel Margins Seesaw
Oil product margins have been tossed around on a wild rollercoaster ride in October, as factors like impending Iran sanctions, the China-U.S. trade war and upcoming shipping regulations yank fuel profits up, down and back again.Some profit margins, known as crack spreads in the industry, including for Asian fuel oil and gasoil have boomed, while others, such as Asian and European gasoline cracks, have plunged.Crack spreads are the difference between the price of crude oil and the price of the products such as diesel and gasoline refined from it.
OPEC, Allies May Need to Change Course as Oil Inventories Rise
OPEC signaled on Thursday it may have to return to oil production cuts as global inventories rise, in a statement that may further sour relations with U.S. President Donald Trump.The president has repeatedly lashed out at the Organization of the Petroleum Exporting Countries, saying it is not supplying enough oil. OPEC, plus Russia and other allied non-OPEC producers agreed to pump more in June.An OPEC and non-OPEC ministerial panel concluded that supply is "very comfortable" compared to demand and warned producers may need a change of tack because of rising inventories and economic uncertainties."The committee…
Eni to Acquire Half of BP's Libya Oil and Gas Assets
Italy's ENI agreed to buy half of BP's 85 percent stake in a Libyan oil and gas licence with the aim of resuming exploration next year, the companies said on Monday.Eni will acquire the 42.5 percent stake from BP and become the operator of the exploration and production sharing agreement (EPSA) in Libya, in which the Libyan Investment Authority holds the remaining 15 percent, they said in a statement.The two companies, along with state-owned National Oil Corp, signed a letter of intent in London on Monday paving the way for the final deal.NOC chairman Mustafa Sanalla said the agreement showed renewed confidence in the war-torn country's
Rising Use of Plastics to Drive Oil Demand to 2050 - IEA
Plastics and other petrochemical products will drive global oil demand to 2050, offsetting slower consumption of motor fuel, the International Energy Agency (IEA) said on Friday.Despite government efforts to cut pollution and carbon emissions from oil and gas, the Paris-based agency said it expected the rapid growth of emerging economies, such as India and China, to propel demand for petrochemical products.Petrochemicals that are derived from oil and gas feedstocks form the building blocks for products that range…
Oil Falls as Refined Products' Stocks Rise
Oil prices fell on Friday as a rise in stocks of refined petroleum products offset a sharp decline in U.S. crude inventories to the lowest level since 2015.Brent crude futures were down 34 cents at $76.16 a barrel by 1346 GMT. U.S. West Texas Intermediate (WTI) crude futures slipped 64 cents to $67.13 per barrel.Both contracts were set for their first weekly loss in three.U.S. commercial crude oil inventories fell by 4.3 million barrels to 401.49 million barrels <C-STK-T-EIA> in the week to Aug. 31, the lowest since February 2015, U.S.