Friday, October 18, 2019

Khalid Alfalih News

Saudi Minister Commits to Output Cuts

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Oil prices rose more than 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country's policy of limiting crude output to support prices.Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), replaced Khalid al-Falih on Sunday."The move is bullish for oil prices," Phil Flynn, an analyst at Price Futures Group in Chicago, said in a note. "Prince Abdulaziz bin Salman is known as an oil production cutter.

Russia: Saudi Oil C-Suite Changes Won't Impact Cooperation

Saudi Arabian oil industry: under new management.

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Changes in the management of its oil ministry by Saudi Arabia will not impact cooperation between Russia and the Middle East kingdom, Russian Energy Minister Alexander Novak stated today, adding that he plans to meet his Saudi counterpart Khalid al-Falih in the near future and ahead of a planned visit by Russian President Vladimir Putin to the country.Saudi Arabia has named Yasir al-Rumayyan, head of the its sovereign wealth fund, the PIF, chairman of Saudi Aramco, replacing Falih. Saudi Aramco is currently preparing for an initial public offering (IPO).The change came after Saudi Arabia created a new ministry for industry and mineral resources…

Banks Re-pitching for Aramco IPO Roles

(Photo: Saudi Aramco)

Investment banks are scrambling to re-pitch to advise Saudi Aramco on a possible initial public offering, sources familiar with the matter said, with Saudi Arabia's energy minister confirming plans for the listing to proceed in 2020 or 2021."Bankers previously involved in the IPO are pushing for meetings with Aramco," one of the sources said."There is some shifting in terms of what roles the banks might have if IPO talks go ahead."JPMorgan, Morgan Stanley and HSBC were picked to play a leading role in the world's biggest ever IPO when…

OPEC+ Extends Output Cuts

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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: "Yes."Benchmark Brent crude has climbed more than 25% so far this year after Washington tightened sanctions on OPEC members Venezuela and Iran…

Oil Hits Five-month High

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Oil prices rose to a five-month high on Monday, driven by expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.International benchmark Brent futures rose 74 cents, or 1.1 percent, to $71.08 a barrel by 12:56 p.m. EDT (1656 GMT). U.S. West Texas Intermediate (WTI) crude futures were up $1.19 to $64.27 a barrel, a 1.9 percent gain.Brent's session high of $71.16 a barrel and WTI's of $64.39 were the highest since November.Traders said prices extended gains after data from market intelligence firm Genscape showed crude stockpiles at Cushing…

Rising US Oil Clout on Show in Houston

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A glance at the attendee list at one of the world's largest energy industry events in Houston this week left little question about the growing influence of the United States over global oil politics.Present: top U.S. diplomat Mike Pompeo. Absent: leading Saudi and Russian officials, and most OPEC nations.As the United States weans itself off foreign oil imports - thanks to booming domestic production - the complex web of politics and business interests that have shaped decades of Washington's energy diplomacy in the Middle East and beyond is changing.That shift was unmistakable in Houston this week.In his keynote address…

Oil Gains as OPEC Sticks to Supply Cuts

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OPEC cuts expected to remain despite Trump pressure. Separately, oil supported by unexpected drop in U.S. inventories.Oil rallied for a second day on Wednesday, buoyed by an unexpected decline in U.S. crude inventories and after Saudi Arabia appeared undaunted by pressure from U.S. President Donald Trump on OPEC to prevent steeper price rises.Saudi Energy Minister Khalid al-Falih said OPEC and its partners were "taking it easy" in response to a tweet from Trump on Monday that called on the group to slacken its restrictions on crude production."We are taking it easy. The 25 countries are taking a very slow and measured approach.

Saudi Aramco adds Goldman Sachs as Bond Bookrunner

Saudi Aramco has added Goldman Sachs as a bookrunner for a planned bond which will help finance its purchase of a stake in Saudi Arabian Basic Industries Corp (SABIC), two sources familiar with the matter told Reuters.The U.S. investment bank flew out a team of senior executives including partner Dina Powell, a veteran of the administration of U.S. President Donald Trump, to pitch for the deal, the sources said.Saudi Aramco did not respond to queries for immediate comment. Goldman Sachs declined to comment.The state oil giant had already picked a group of banks including JPMorgan…

Oil Rises on Market Rebalance, Trade Deal Hopes

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Trump open to extending March 1 deadline for China trade talks.Crude prices rose nearly 2 percent on Wednesday, with Brent hitting its highest this year, on hopes that oil markets will balance later this year, helped by output cuts from top producers as well as U.S. sanctions on OPEC members Iran and Venezuela.Prices were also supported by strong equity markets after signs of progress in trade talks between the United States and China.U.S. President Donald Trump said negotiations with China were going well and suggested he was open to extending the deadline to complete them beyond March 1…

Oil Dips After Record U.S. Shale Forecast

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U.S. sanctions on Iran, Venezuela tighten markets, but soaring U.S. shale output offsets some of the disruption.Oil fell on Wednesday after the U.S. government said shale output would rise to a record next month, denting a rally that sent prices to their highest this year.Brent futures eased by 53 cents to trade at $65.92 a barrel by 1312 GMT, still within sight of Monday's high for the year of $66.83. U.S. futures were at $55.77 a barrel, down 31 cents, having touched a 2019 peak of $56.39 earlier."Brent is trading in a narrow corridor at around $66.5 per barrel…

Woodside Raises Dividend

(Photo: Woodside Petroleum)

Australia's Woodside Petroleum Ltd surprised investors with a fat dividend on Thursday after reporting a 36-percent percent rise in annual profit, underpinned by stronger oil prices.The higher-than-expected payout came after shareholders stumped up $2.5 billion to buy new shares a year ago at a time when Australia's biggest independent oil and gas producer expected oil prices to average $65 a barrel.By the end of the year it was flush with cash as oil prices had averaged $71 and the Wheatstone liquefied natural gas (LNG) project, run by Chevron Corp and partly owned by Woodside…

Oil Rises After Saudi Pledge, Declining U.S. Inventories

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Oil prices rose on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, and after an industry group reported a surprise decline in U.S. oil inventories.Brent crude, the global benchmark, was up $1.07, or 1.7 percent, at $63.49 a barrel at 9:55 a.m. EST (14:55 GMT), while U.S. West Texas Intermediate futures were up 91 cents, or 1.7 percent, at $54.01."The feel-good factor is back in play but oil bulls are by no means out of the woods yet," PVM Oil Associates Stephen…

Oil Up On Saudi and OPEC Cuts

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Oil prices gained nearly 3 percent on Tuesday, supported by OPEC-led production cuts, which Saudi Arabia said it would surpass by more than half a million barrels per day (bpd), and by U.S. sanctions against Iran and Venezuela.Brent crude futures were up $1.65, or 2.7 percent, at $63.16 a barrel by 1445 GMT. U.S. West Texas Intermediate (WTI) crude oil futures also gained 2.7 percent, rising by $1.40 to $53.81.Markets are tightening because of voluntary production cuts from Jan. 1, led by the Organization of the Petroleum Exporting Countries and allies including Russia…

Aramco reportedly seeks advisers for SABIC Debt Financing

Saudi Aramco is seeking advisers to arrange debt financing needed for the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), banking sources familiar with the matter said on Thursday.The Saudi oil giant could borrow as much as $50 billion from international investors to fund the acquisition, sources previously told Reuters.A request for proposals was sent on Wednesday and banks are expected to make submissions by Monday, one of the sources said.Aramco declined to comment.Aramco, the world’s top oil producer, plans to issue its first international bonds in the second quarter of 2019…

Oil Slumps to One-year Low

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Oil's slide accelerated on Tuesday, with U.S. futures suffering their steepest one-day loss in more than three years due to ongoing worries about weakening global demand and oversupply.U.S. futures closed down 7.1 percent, for a record 12th straight decline and the lowest since November 2017. More than 980,000 contracts changed hands, as funds shed positions."It's like a run on the bank," said Phil Flynn, analyst at Price Futures Group in Chicago. "It's getting to the point where it doesn't seem to be about fundamentals anymore, but a total collapse in price."Traders said the selling was an extension of Monday's, which was triggered after U.S.

Saudi Arabia to Trim Oil Exports Further in February

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Top oil exporter Saudi Arabia plans to lower its shipments further in February as it follows through on a global deal to cut output to prevent a build-up in supplies.Saudi Energy Minister Khalid al-Falih told a news conference in Riyadh on Wednesday that the kingdom would export 7.1 million barrels per day (bpd) in February, down from 7.2 million bpd in January.He also said Saudi Arabia was producing 10.20 million bpd, delivering on an earlier pledge to cut output further than required by a supply-limiting deal between the Organization…

Saudi Energy Minister Sees Strong Global Oil Demand

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Saudi Arabia's Energy Minister Khalid al-Falih said that oil demand remains strong and that he sees no impact from U.S.-China trade tensions."The global economy is strong enough, I'm not too concerned. If a slowdown happens, it will be mild, shallow and short," he told reporters in Abu Dhabi on Monday."The fundamentals of oil demand are sufficiently strong and the oil market will not be impacted. On the supply side, we are vigilant to take appropriate response if there is an impact on demand."(Reporting by Stanely Carvalho; writing by Rania El Gamal; editing by Louise Heavens)

OPEC Agrees Oil Output Cut, No Final Figure Yet

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OPEC agreed on Thursday a tentative deal to cut oil output but has not yet come up with a final figure, an OPEC delegate said.Saudi Energy Minister Khalid al-Falih said earlier that the Organization of the Petroleum Exporting Countries needed non-OPEC Russia to come on board with cuts. He said a final decision by OPEC and its allies was likely by Friday evening.(Reporting by OPEC Newsroom; Editing by Dale Hudson)

Oil Prices Sink to Lowest in a Year as Stock Markets Fall

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Oil prices fell about 3 percent on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets.Brent crude futures fell $1.53 to $55.71 a barrel, a 2.7 percent loss, by 10:55 a.m. EST (1555 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.55 to $46.62 a barrel, a 3.2 percent loss.Brent earlier hit a session low of $54.64 a barrel, the weakest since mid-September 2017, while WTI sank to $45.82, near its lowest since late August 2017.Equities dropped worldwide after the Federal Reserve raised U.S.

Oil Falls After OPEC Delays Output Decision

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Oil fell in choppy trading on Thursday after OPEC ended a key meeting having made no decision on crude output, as it prepared to debate the matter with other exporters the next day.The Organisation of the Petroleum Exporting Countries (OPEC) met in Vienna to decide its production policy in coordination with non-OPEC producers including Russia, Oman and Kazakhstan.An OPEC delegate said the organisation had agreed a tentative deal to cut oil output but had not yet come up with a final figure.Saudi Energy Minister Khalid al-Falih said earlier that OPEC needed Russia to come on board with any cuts.