Malaysia's natural gas and crude oil production will decline by 2025
KUALA LUMPUR - Malaysia's government announced on Friday that it expects a lower crude oil and natural gas output in 2025 as a result of planned maintenance shutdowns and a softer demand for some export markets. In a report that was released along with its budget for 2025, the government stated that natural gas production would decline in 2025 as a result of the planned closures in the state of Sarawak due to maintenance. The government did not identify the two facilities.
Palm oil continues to decline against weaker competitors; export data cap losses
The price of Malaysian palm oils futures dropped for the second session in a row on Tuesday. This was due to the weakness of rival edible oil and crude oil, but robust export data helped limit this fall. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange closed down by 1.04% to 4,268 Ringgit ($993.26) per metric ton. It has fallen 1.89% over two sessions. David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn.
Prices of gas in Europe are lower due to profit-taking and lower demand
The Dutch and British wholesale prices of gas were lower on Tuesday morning due to profit-taking and after media reports that Israel was willing not strike Iranian oil targets. This eased concerns about a disruption in supply. LSEG data shows that the benchmark front-month contract for the Dutch TTF hub dropped by 1.00 euros to 39.40 Euro per megawatt hour, or $12.91/mmbtu by 0849 GMT. The front-month contract on the British market was reduced by 3.00 pence, to 98.00 per therm. The British day-ahead contracts was 2.6 cents lower at 95.00 pence per therm.
VEGOILS - Palm erases early gains, speculative purchasing and short covering cap losses
Malaysian palm futures reversed gains and closed lower on Monday as crude oil prices fell. However, speculative purchases and short-covering helped limit the losses. The benchmark palm-oil contract for December delivery at Bursa Malaysia's Derivatives exchange fell 36 ringgit or 0.83% to 4,314 Ringgit ($1,005.36) per metric ton. The contract gained 0.51% earlier during the lunch break. Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari.
Palm reverses losses due to higher crude oil prices
Malaysian palm futures recovered from early losses and ended higher for the second session in a row on Monday, due to higher crude oil price. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange ended the session with a gain of 1.05%, ending the day at 4,345 Ringgit ($1,015.66) per metric ton. Earlier in the morning it had fallen as low as 4,247 Ringgit. The contract gained 3.87% in the last two sessions. A Kuala Lumpur…
Energy prices are falling, putting pressure on big oil's huge payouts
Analysts said that major energy companies will borrow billions of dollars to maintain payouts to shareholders or reduce the rate of share purchases in response to a decline in oil prices following more than two years' bumper profits. Since decades, the majors have attracted investors with their promises of steady payouts. However, the shift to low-carbon energy has cast doubt on the long-term prospects of the industry. Since the beginning of 2022, BP…
OPEC+ unlikely change policy on output at Oct. 2 panel
Five sources within the group said that despite recent drops in oil prices an OPEC+ panel will not recommend any changes this week to its current agreement to reduce production or to begin unwinding cuts made since December. On Wednesday, 1200 GMT, top ministers of the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, led by Russia, will meet online to form a Joint Ministerial Monitoring Committee (JMMC). Brent crude oil prices fell in 2024. Last month, Brent crude dropped below $70 a barrel for the first since 2021.
TotalEnergies signs LNG supply agreement with South Korea's Hyundai Chemical
TotalEnergies, a French oil giant, announced on Tuesday that it had signed an agreement with HD Hyundai Chemical, a South Korean company, to supply liquefied gas from 2027-2033. Total has now signed six LNG contracts this year. Total will deliver 4.65 million tonnes of LNG to China, Turkey and Singapore by the middle of 2030s. Gas that will supply an industrial site of Hyundai Chemical in South Korea will be partially indexed to Brent crude oil prices and partially to Henry Hub, US natural gas benchmark.
Palm oil gains for the third consecutive session and logs a weekly gain
The price of palm oil in Malaysia rose for the third consecutive session on Friday, and also logged a gain over the week, thanks to the strength of rival Dalian contracts. However, lower crude oil prices and concerns about demand capped this rise. The benchmark palm-oil contract for December delivery at the Bursa Derivatives Exchange in Malaysia closed 72 ringgit or 1.86% higher, closing at 3,948 Ringgit ($940.00) per metric ton. After two weeks of falling prices, the contract rose 3.5% in this week's trading.
Analyst Mistry predicts that Malaysian palm oil will trade between 3,700-4 500 rgt/T by mid-2025.
Dorab Mistry, an industry analyst, said that Malaysian palm oils are likely to trade in the range of 3,700-4,500 ringgit per metric ton between now and June. This is because demand will be high during the Chinese Lunar New Year as well as the holy Ramadan month. As of Friday morning, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange gained 42 ringgit or 1.08% to $3,918 ringgit (US$937.74) per metric ton. Prices will start a new bull-market in January-March 25, according to a report.
Palm oil prices rise for the second day in a row on stronger soyoil and Malaysian production concerns
Malaysian palm futures gained for a second session in a row on Thursday. This was largely due to higher soyoil and production concerns from the second largest producer of palm oil. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange closed 34 ringgit or 0.88% higher, closing at 3,879 Ringgit ($921.82) per metric ton. Earlier in the session, the contract reached a high of 3,967 Ringgit per metric ton before reversing the gains. A Mumbai-based dealer stated that the rebound in soyoil is supporting Malaysian Palm Oil Futures.
Palm oil prices rise on stronger soyoil but production worries in Malaysia
Malaysian palm futures increased on Thursday due to higher soyoil and production concerns. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for December delivery had gained 92 Ringgit or 2.39% to $3,937 Ringgit ($925.92). The contract increased 3% during the previous session. This is its largest single-session increase since July 24, 2023. A Mumbai-based dealer stated that the rebound in soyoil is supporting Malaysian palm futures. Production concerns in Malaysia are also contributing to this support.
Woodside raises $ 2 billion in bonds amid growing investor concerns over capital expenditure plans
Woodside Energy, an Australian oil and gas company, raised $2 billion on the U.S. Bond Market, the company announced on Friday. This news caused its shares to fall on concerns about the company's capital spending plans. The bond issue consisted of two tranches: $1.25 billion in 10-year bonds at a coupon rate of 5.1%, and $750 millions through 30-year bonds at a 5.7% coupon. Woodside, Australia's largest gas producer, stated that the funds would be used for general corporate purposes without disclosing details.
OPEC+ Has Oil Price and Demand Problems. It Should Solve Demand
OPEC+ has two problems and two solutions.The first problem is that crude oil prices are too low for the comfort of most of the members of the group, which pulls together the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia.The second issue is that crude demand has so far disappointed the somewhat optimistic forecasts made by OPEC for 2024 growth.The first solution is for OPEC+ to surprise the market and change…
Palm oil exports flatten as crude prices rise, despite weaker competitor oils.
Malaysian palm futures were trading within a narrow band on Wednesday, after reaching their lowest level in over seven months. Investors weighed tighter stocks and higher crude oil prices with weaker export data and competing Dalian contracts. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for October delivery was unchanged at 3,693 Ringgit ($834.95) per metric ton. The currency fell to its lowest intraday level of 3,638 Ringgit earlier in the session, its lowest since January 9.
Palm oil exports slip on the back of weak Malaysian data
Malaysian palm futures fell on Tuesday, trading in ranges as weak exports for the month to date overshadowed a drop in stockpiles. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for July delivery was down 5 Ringgit or 0.13% at 3,703 Ringgit ($833.07 a metric tonne). The contract was heading for a second session of decline. Malaysian Palm Oil Board said Monday that the country's palm oils stocks dropped in July, for the first month in four months. This was due to the fact that exports grew faster than production.
Palm oil prices close higher, but the third weekly decline is recorded.
Malaysian palm futures rose Friday, boosted by the stronger Dalian and Chicago contracts, and higher crude oil prices. However, they suffered a third successive weekly loss. By the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 42 ringgit or 1.13% at $3,746 ringgit ($848.47). The contract fell 4.37% in the last week, after having fallen 1% the two previous weeks. Anilkumar bagani, head of commodity research at Mumbai's Sunvin Group…
Palm oil is boosted by gains in competing oils but will still drop for a third consecutive week
Malaysian palm futures rose on Friday, boosted by the stronger Dalian and Chicago contracts, and higher crude oil prices. However, they remain on course for a loss of a third week in a row. By midday, the benchmark palm oil contract on Bursa Derivatives exchange for October delivery was up 59 Ringgit or 1.59% at $3763 Ringgit ($844.29) per metric ton. This week, the contract has fallen by 3.9%. Anilkumar bagani, head of commodity research at Mumbai's Sunvin Group…
Rystad Says Oil Demand is Peaking. Predicts $60 a Barrel by 2027
Global crude oil prices could drop to about $60 per barrel by 2027 as demand growth slows, say oil analysts at Rystad Energy, chopping a third off next year's peak price as demand tumbles.Their outlook is a reassuring message amid recent Wall Street analysts predicting up to $150 per barrel in the next two years. Rystad's long-term forecast calls for prices to peak next year at $91 per barrel before dropping to as much as $50. "Demand is peaking," Claudio Galimberti, Rystad's head of North America Research, said on Thursday at an event in Houston.
India Asks Refiners to Cut Reliance on Middle East Oil after OPEC+ Decision
India has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC+ decided last week to largely continue production cuts in April, two sources said.India, the world's third biggest oil importer and consumer, imports about 84% of its overall crude needs with over 60% of that coming from Middle Eastern countries, which are typically cheaper than those from the West.Most of the OPEC+ producers…
