Tuesday, January 21, 2020

Bank Of America Merrill News

Investors Still Unclear on Saudi Aramco IPO Value

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Saudi Aramco's blockbuster listing remained shrouded in mystery on Monday, a day after the company finally announced its plans, with scant details disclosed and expert valuations varying wildly from around $1.2 to $2.3 trillion.The state oil giant, the world's most profitable company, fired the starting gun on a domestic initial public offering (IPO) on Sunday after a series of false starts that had kept the investment world guessing.However potential investors, already rattled by a crippling attack on Aramco's facilities in September…

Oil Falls Near 2% as U.S.-China Trade War Intensifies

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Oil prices slipped nearly 2 percent on Tuesday, on track to fall to their lowest levels in over a month as renewed doubts over U.S.-China trade talks stoked concerns over global growth and demand even though U.S. sanctions on Iran and Venezuela tightened supply and helped stem losses.Brent futures were down $1.36, or 1.9 percent, at $69.88 a barrel by 10:39 a.m. EDT (1439 GMT), while U.S. West Texas Intermediate crude was down $1.14, or 1.8 percent, at $61.11 per barrel.If the futures close at their current levels, it would be the lowest settle for Brent since April 4 and WTI since March 29.U.S.

Murphy Oil Sells Malaysian Assets

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Murphy Oil Corp said on Thursday it is exiting Malaysia with the $2.13 billion sale of its oil and gas assets to a Thai company and will use the deal proceeds to pay down debt, buy back shares and fund potential deals in the United States.The buyer, PTT Exploration and Production Public Co Ltd, will also pay Murphy up to $100 million in bonus if certain exploration projects show results before October 2020, the company said.The deal follows moves by other U.S. oil majors to focus their investment and effort in high-yielding shale fields at home after U.S.

Oil Prices Reach 2019 Highs

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Oil prices rose to new 2019 highs on Tuesday, supported by OPEC supply cuts and falling output from Iran and Venezuela because of U.S. sanctions.Brent crude oil futures were up 16 cents at $67.70 a barrel at 1415 GMT, having earlier risen to a 2019 peak of $68.20, their highest since November 2018.U.S. West Texas Intermediate (WTI) futures were at $59.17, up 8 cents from their last settlement. They also touched their highest since November at $59.57.The Organization of the Petroleum Exporting Countries on Monday scrapped its planned meeting in April…

US Energy Investors Eye Cheap Takeovers as Oil Prices Sink

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Sinking oil prices are turning distressed US energy companies into takeover targets for opportunistic private investors who are prepared to offer expensive debt in return for ownership stakes, as the sector struggles to access traditional forms of bank financing.A slowing global economy and fears of excess oil supply sent the benchmark crude oil index spiraling to as low as US$53 in October from a 14-year high of US$86 earlier that month. Brent Crude was US$58.18 on Tuesday.High operating costs have also reduced oil and gas companies’ margins and free cash flow…

Oil Dives on Fears of Glut, Global Economic Slowdown

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Oil prices tumbled on Tuesday after reports of swelling inventories and forecasts that record U.S. and Russian output will hit a market that may see weaker demand if global growth deteriorates as many expect.U.S. crude oil fell $2.78, or 5.5 percent to trade at $47.10 a barrel by 11:44 a.m. EST (1644 GMT). The session low was $46.97, its weakest since September 2017.Global benchmark Brent lost $2.54, or 4.2 percent to trade at $57.07 a barrel. During the session, Brent hit a 14-month low of $56.86.World stock markets inched higher as investors looked ahead to whether the U.S. Federal Reserve will be able to raise interest rates much further.

Oil Higher as U.S. Sanctions on Iran Raise Supply Concerns

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Oil prices rose on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies.U.S. Energy Secretary Rick Perry said in an interview with Reuters on Friday that he did not expect any price spikes and that the world's top three oil producers could between them raise global output in the next 18 months.Brent crude oil was up 70 cents a barrel at $78.79 by 1345 GMT. U.S.

Oil Hits Multi-Week Highs on U.S. Inventories, Falling Iran Exports

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Oil prices rose more than 1 percent on Wednesday, with Brent at its highest in seven weeks and U.S. crude touching a three-week peak, supported by a drawdown in U.S. crude and gasoline stocks and reduced Iranian crude shipments as U.S. sanctions deter buyers.Brent crude jumped $1.19, or 1.6 percent, to settle at $77.14, after touching $77.41, its highest since July 11.U.S. oil settled 98 cents, or 1.4 percent higher at $69.51 a barrel, after touching $69.75, its highest since Aug. 7.U.S. crude inventories fell 2.6 million barrels last week…

Oil Higher on Lower Iran Exports, Rising U.S. Supply

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Oil prices rose on Wednesday, supported by news of a fall in Iranian crude supplies as U.S. sanctions deter buyers, but gains were limited by evidence of a rise in U.S. inventories.Benchmark Brent crude oil was up 45 cents at $76.40 a barrel by 1225 GMT. U.S. light crude was 50 cents higher at $69.03 a barrel.Iran's crude oil and condensate exports in August are set to drop below 70 million barrels for the first time since April 2017, well ahead of the Nov. 4 start date for a second round of U.S. economic sanctions, preliminary trade flows data on Thomson Reuters Eikon show.Bowing to pressure from Washington…

Oil Rises as Outages Balance Trade Dispute, OPEC

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Oil prices rose on Tuesday, supported by production losses in Canada, Libya and from the Neutral Zone between Saudi Arabia and Kuwait, but under pressure from higher supply from elsewhere in OPEC and escalating trade conflicts.Brent crude was up 45 cents at $75.18 a barrel by 1335 GMT. U.S. light crude was 65 cents higher at $68.73.Kuwait's energy minister said on Tuesday crude production from jointly operated oilfields in the Neutral Zone shared with Saudi Arabia has halted due to technical issues. He told Kuwait's parliament…

Oil Steady as Outages Balance Trade Dispute, OPEC

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Libyan uncertainty supports Brent as * Canada outage lifts prompt U.S. crude prices. Oil prices steadied on Tuesday, supported by Canadian production losses and uncertainty over Libyan exports, but under pressure from climbing OPEC supply and escalating trade conflicts between the United States and other major economies. Brent crude was up 10 cents at $74.83 a barrel by 1045 GMT. U.S. light crude was down 10 cents at $67.98. Brent, the global benchmark, was driven up by uncertainty about oil exports by Libya, a member of the Organization of the Petroleum Exporting Countries.

U.S. Gasoline Prices Rise Ahead of Driving Season

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Filling the fuel tank for vacation driving this summer will be pricier than it has been in nearly four years for American motorists, as gasoline prices nationwide rise toward the expected average seasonal price of $3 a gallon. Lower-income consumers could be most likely to rethink their driving habits as pump prices rise, the American Automobile Association said. Prices ease as the peak summer season ends around September, AAA said, but they could remain at seasonal highs not seen since 2014. "For consumers who have constrained budgets…

Oil Teases $70 but U.S. Output Looms

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Oil propped up by OPEC/Russia-led production cuts, but rising North American output threatens to undermine cuts. Oil hovered below a three-year high near $70 a barrel on Monday on signs that production cuts by OPEC and Russia are tightening supplies, but analysts warned of "red flags" due to surging U.S. production. International benchmark Brent crude futures were trading 18 cents lower at $69.69 by 1004 GMT, having risen above $70 earlier in the session. U.S. West Texas Intermediate (WTI) crude futures were at $64.22, down 8 cents from their last settlement. Trading was relatively slow due to a national holiday in the United States.

Puma Energy Launches $750m 8NC3 Bond at 5%

Puma Energy launches US$750m 8NC3 at 5%. Books greater than US$2.1bn at the tight end of guidance. * Guidance at 5.125% (+/-0.125%) wpir. Size remains USD benchmark. Books over US$1.7bn (2.06pm) * IPTs 5.25% area for USD benchmark 8NC3. Puma Energy Holdings Pte. Ltd. (“Puma Energy”) rated Ba2/BB (Moody’s/Fitch) has mandated Bank of America Merrill Lynch as global coordinator, and Bank of America Merrill Lynch, ING, MUFG and Societe Generale as joint lead managers, to arrange a Global Investor Call at 10:00 UKT and 14:30 UKT on Monday, 8th January 2018.

BHP Hires Four Banks for U.S. Shale Exit

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BHP hires Barclays, Citi, BAML and GS. BHP , the world's largest miner, has asked four investment banks to help it prepare for either a sale or spin-off of its underperforming U.S. shale oil and gas unit, with a view to taking a decision in early 2018, sources said. BHP said in August it aimed to sell its unconventional onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins, which it acquired at the height of the oil boom and could be valued at more than $10 billion. It has hired Barclays and Bank of America-Merrill Lynch to assess options for the sale of assets…

Oil Stronger as Iraq, US-Iran Tension Raises Risks

Oil prices firmed on Tuesday, building on gains made as fighting between Iraqi and Kurdish forces threatened supplies from northern Iraq while tension rose between the United States and Iran. After months of rangebound trading, during which OPEC-led supply cuts supported crude but rising U.S. output capped markets, prices have made significant gains this month. Brent crude gained 15 cents to $57.97 a barrel by 1320 GMT, up by about a third from its mid-year levels. U.S. light crude was up 5 cents at $51.92. The Baghdad government recaptured territory across northern Iraq from Kurds on Tuesday…

Vitol Returns for $8 Bln Loan Refinancing

Geneva-headquartered energy and commodities trader Vitol has signed an US$8bn loan refinancing of credit facilities agreed in October 2016, the company announced on Wednesday. The revolving credit facility, which is used for working capital and general corporate purposes, comprises a three-year tranche and a 364-day tranche. The three-year tranche totals over US$7bn. ABN AMRO Bank, Commerzbank, Credit Agricole CIB, HSBC Bank and ING Bank were active bookrunners on the transaction. Bank of America Merrill Lynch, MUFG, BNP Paribas…

Oil Falls Below $56 on Signs of Higher Output

Oil fell more than $1 a barrel to below $56 on Monday as a rise in U.S. drilling and higher OPEC output put the brakes on a rally that helped prices to register their biggest third-quarter gain in 13 years. U.S. energy companies added oil rigs for the first week in seven and Iraq announced its exports rose slightly in September while OPEC overall boosted output, a Reuters survey showed. Brent crude, the global benchmark, was down $1.02 at $55.77 a barrel at 1310 GMT. It notched a third-quarter gain of about 20 percent, the biggest third-quarter increase since 2004 and traded as high as $59.49 last week.

Swiss Traders Grab $10 Billion Slice of LNG Market

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Traders mopping up LNG glut, finding new emerging market buyers. Swiss trading houses are muscling in on the global market for liquefied natural gas, until now the preserve of energy giants, and expect to grab a $10 billion share of the rapidly growing business this year. Trafigura, Gunvor, Vitol and Glencore are all shaking up a decades-old system dominated by Western oil majors and state energy producers which sell LNG directly to large consumers on long-term contracts. They plan 2017 shipments that will be more than triple the 2015 level, according to Reuters calculations based on figures for the four traders provided by trade sources.

Oil Falls as Banks Cut Price Forecasts

BNP Paribas, Barclays chop price forecasts and oversupply keeping medium-term outlook weak. Oil prices fell on Tuesday as global oversupply encouraged several banks to cut their forecasts for crude for this year and 2018. Brent crude was down 50 cents at $46.38 a barrel by 1120 GMT. U.S. crude was 50 cents lower at $43.90. "The fundamental mood has taken a turn for the worse," Harry Tchilinguirian, head of oil strategy at French bank BNP Paribas, told Reuters Global Oil Forum. BNP Paribas slashed its forecasts for Brent by $9 to $51 a barrel for 2017 and by $15 to $48 for 2018.