Tuesday, July 14, 2020

Crude Oil News

Wave of N. American Oil and Gas Bankruptcies to Continue at $40 Oil

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A wave of oil and gas bankruptcies in North America is likely to continue this year as oil prices remain depressed and a new surge of COVID-19 cases threaten to stall any recovery in fuel demand, law firm Haynes and Boone said in a report released this week.Bankruptcies surged in the second quarter, including from major shale independents Chesapeake Energy and Whiting Petroleum, as oil prices collapsed due to the pandemic and a brief…

Iran's Oil Storage Almost Full as Sanctions and Pandemic Weigh

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Iran has slashed crude oil production to its lowest level in four decades as storage tanks and vessels are almost completely full due to a fall in exports and refinery run cuts caused by the coronavirus pandemic, industry data showed.Total onshore crude stocks surged to 54 million barrels in April from 15 million barrels in January, and swelled further to 63 million barrels in June…

China's Sinopec Starts Hiring for New Risk Management Unit

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China Petrochemical Corp, or Sinopec Group, has started hiring for six top management positions for a new commodities risk management unit, according to a statement posted on the state energy company's official wechat account on Sunday.Formally known as Sinopec Chaoyang Risk Management Co and with a registered capital of 300 million yuan ($42.40 million), the new firm will provide financial services for the oil and chemical sector including hedging and inventory management…

China's Saudi Oil Imports Surge to All-time High

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China's crude oil imports from Saudi Arabia nearly doubled in May from a year earlier to all-time high as refineries snapped up cheap fuel, while the kingdom retained its position as the top supplier to the world's biggest oil buyer.Arrivals from Saudi last month reached 9.165 million tonnes, or 2.16 million barrels per day (bpd), up about 95% from 1.11 million bpd in May 2019 and up 71% from 1.26 million bpd in April…

Norway's May Oil Output Down, But Still Above Forecast

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Norway's oil production fell in May from the previous month but still exceeded official forecasts by 0.9%, the Norwegian Petroleum Directorate said on Friday.The country's crude oil output fell by 2.1% month-on-month from April to 1.74 million barrels per day. The output year-on-year was up by 38.1%, thanks among other things to a ramp-up of Equinor's giant Johan Sverdrup oilfield.Daily natural gas output fell by 12.4% month-on-month…

Philippines: Shell's Hydrogen Project Resumes as Covid-19 Restrictions Eased

(File photo; Shell)

Pilipinas Shell Petroleum Corp said on Wednesday it has resumed construction of an integrated hydrogen manufacturing facility at its Tabangao refinery in the Philippines, after being hampered by the coronavirus lockdown.Restrictions on movement have been eased in Philippine provinces and cities with low coronavirus cases to help restore business activity in the Southeast Asian economy.The…

Sinopec Starts Up $6B Zhanjiang Refinery Complex

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Top Chinese state refiner Sinopec Corp said on Tuesday it had started up a $6 billion new refinery and petrochemical plant in south China, making it the country's third integrated complex to start operations in the past 18 months or so.The Sinopec venture, situated in coastal city of Zhanjiang, comprises a 200,000 barrel per day (bpd) crude oil refinery and an 800,000 tonne-per-year ethylene facility, built at a cost of 44 billion yuan ($6.2 billion), Sinopec said in a statem

Oil Extends Slump as Prospect of Second Viral Wave in U.S. Ends Rally

Oil prices fell on Friday, extending heavy overnight losses as a surge in U.S. coronavirus cases this week raised the prospect of a second wave of the COVID-19 outbreak hitting demand in the world's biggest consumer of crude and fuel.West Texas Intermediate was down 65 cents, or nearly 2%, at $35.69 a barrel by 0358 GMT, after slumping more than 8% on Thursday. Brent crude was down 58 cents…

Saudi Oil Price Hike Throws Asian Lifeline to U.S. Shale

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Saudi Arabia's decision to jack up the price of its July exports to Asia may have opened the door for U.S. crude oil producers to boost sales to the region that consumes more oil than anywhere else in the world.State-controlled producer Saudi Aramco hoisted its official selling prices (OSPs) to all regions for July-loading cargoes, but the biggest hikes were for the key Asian region…

Sinopec Adds More Oil Storage at Baishawan

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China's Sinopec has started operating the second phase of its Baishawan commercial crude oil storage project in eastern province Zhejiang, the company said in a statement on Wednesday.The project had added four storage tanks with combined capacity of 450,000 cubic metres to its existing 950,000 cubic metres storage capacity, which was put in use in 2009.Baishawan commercial crude storage base is managed and operated by Sinopec Shanghai Petrochemical Co, a subsidiary of the st

Oil Gains, with Brent above $40

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Oil rose on Wednesday, with Brent above $40 for the first time since March, as optimism mounted that major producers will extend output cuts and a recovery from the coronavirus pandemic will spur fuel demand.Brent crude futures for August were up 78 cents, or 2%, at $40.35 a barrel, by 0636 GMT. The contract climbed to as high as $40.53, the highest since March 6, after gaining 3.3% on Tuesday.U.S.

Oil Prices Rise Ahead of OPEC+ Meeting on Further Output Cuts

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Oil prices rose on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a virtual meeting expected later this week.Brent crude futures rose 0.91%, or 35 cents, to $38.67 a barrel as of 0427 GMT.West Texas Intermediate (WTI) crude futures rose 0.56%, or 20 cents, to $35.64 a barrel.Brent has doubled over the past six weeks…

Flurry of US Crude Export Fixtures Offers Slimmer of Hope

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A flurry of tentative bookings to export U.S. crude oil from the Gulf Coast suggests demand is edging up after the coronavirus slammed energy consumption worldwide.BP, Trafigura and Equinor have all tentatively fixed vessels this past week to carry U.S. crude to global destinations over the coming month, according to Refinitiv Eikon data and shipping sources.Commodities merchant Trafigura…

Oil Drops but Still Set for Biggest Monthly Gain in Years

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Oil prices were dragged sharply lower on Friday by weak U.S. fuel demand, fears of a second wave of coronavirus cases in South Korea, and a worsening in U.S.- China relations, but were still on track for a hefty monthly gain.July Brent crude fell 72 cents, or 2%, to $34.57 a barrel by 1203 GMT and the more active August contract also lost 72 cents, or 2%, to $35.31. U.S. West Texas Intermediate (WTI) crude was down 83 cents…

China, India Soak Up Oil from Floating Storage as Demand Picks Up

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The volume of crude stored on ships in Asia has come off the peaks seen earlier this month on a recovery in demand in China and India, trade sources and analysts said. A total of 3.4 million tonnes (24.8 million barrels) of crude oil was discharged from floating storage into Asian markets in the past seven days, with China the top destination at 1.8 million tonnes and India second at 842,679 tonnes, according to oil analytics firm Vortexa.

'This could be the one that gets me,' Says Oilfield Service Veteran

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Tim Harris was preparing to relocate for an assignment with energy services firm Halliburton Co for the fifth time in 15 years when his career came to a halt.A third-generation employee, Harris rose through the ranks at the top shale-oil services provider to oversee oilfield crews. He sailed through several busts, with the exception of a 9-month break in 2016.But April's historic price crash, which has left U.S.

India's April Crude Processing in Biggest Drop Since 2003

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India's crude oil processing in April slumped by 28.8% from a year earlier, its biggest drop since at least 2003, as a nationwide lockdown weighed on fuel demand and forced refiners to cut production.Refiners processed about 14.75 million tonnes or 3.60 million barrels per day (bpd) of oil last month, government data showed.The lockdown and travel curbs aimed at stemming spread of COVID-19 since March 25 forced people to stay home…

Lightning Sparks Fire at Hengyuan's Malaysian Refinery

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Hengyuan Refining Company Bhd said on Friday that a tank storing crude oil had caught fire at its refinery on the Malaysian west coast.Preliminary investigations show the fire at the Port Dickson refinery was due to a lightning strike, the company said in a statement."The damages sustained from the fire incident are restricted to one crude tank area," the company said.The fire affected a 10…

Petronas Braces for Severe 2020 Hit. 1Q Profit Down 68%

(File Photo: Petronas)

Malaysian state oil firm Petronas posted a 68% slump in first-quarter profit on Friday and said it would cut capital expenditure and operating expenses as it braces for a big hit to its full-year performance due to the coronavirus pandemic.Petronas pointed to "unprecedented" market conditions resulting from a combination of severe demand destruction from the pandemic and a global oil market glut."The Board expects the overall financial year performance will be significantly a

China to Boost Energy Reserve Capacity, Support Unconventional Gas Exploration

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China said on Friday it will bolster the capacity of the country's energy reserves and offer lower gas and electricity charges to key industries, as it looks to ensure energy supply and offset the impact of the coronavirus pandemic.In energy announcements on the first day of the parliament, known as the National People's Congress (NPC), authorities also pledged to boost the country's…