Tuesday, December 11, 2018

Oil Output News

Oil Rise as Global Equities Climb, Libya Output Drops

© mtaira / Adobe Stock

Oil futures rose on Tuesday with the help of an increase in global stock markets, an outage reducing Libyan crude production and a gradual decrease in Russian output.Brent futures rose 45 cents, or 0.7 percent, at $60.44 a barrel by 11:58 p.m. EST (1658 GMT), while U.S. West Texas Intermediate (WTI) crude was up 79 cents, or 1.5 percent, at $51.79. Earlier, both contracts rose over $1 a barrel."The complex is getting a lift from a pop in global risk appetite this morning as underscored by a strong advance in U.S. equities," Jim Ritterbusch, president of Ritterbusch and Associates in Chicago, said in a report.U.S.

AET Grows in Brazil

Eagle Paraiba. Photo: AET_Tankers

With the ongoing development of deepwater pre-salt plays and a decreased demand on local content in tankers and other vessels, Brazilian national operator Petrobras and other super-majors have been looking abroad for better rates and reliable operators of shuttle tankers. Claudio Paschoa, Maritime Reporter’s correspondent in Brazil spoke to Peter Liew, Global Director – Mid Size Tankers, Crude Shipping, about AET Tankers’ history and its operations in Brazil.AET (formerly American Eagle Tankers) was founded in Houston in 1994 primarily to conduct lightering operations in the Gulf of Mexico.

Malaysia Agrees to Extend Oil Output Cut

© markhall70 / Adobe Stock

Malaysia will extend its oil production cuts by another six months after the agreement between OPEC and other oil producers to reduce global supply ends this year.OPEC and non-OPEC producers agreed at a meeting in Vienna on Friday to a new level of production cuts from January to June 2019, setting it at 1.2 million barrels per day from the current rate of 1.8 million barrels per day."Malaysia has agreed to continue its voluntary commitment by reducing its total oil output by 15,000 barrels per day," Azmin Ali, minister of economic affairs, said in a statement on Saturday.Malaysia is not an OPEC member.

Oil Surges 5 pct as OPEC Agrees Output Cut

© sakhorn38 / Adobe Stock

Oil prices jumped more than 5 percent on Friday as big Middle East producers in OPEC agreed to reduce output to drain global fuel inventories and support the market.Benchmark Brent crude oil rose $3.26 a barrel to a high of $63.32 by 1355 GMT. In early trade, Brent had fallen below $60 when it looked as if oil exporters might not agree.U.S. light crude rose $2.62 to a high of $54.11 a barrel before slipping to around $53.90.Prices fell almost 3 percent on Thursday after the Organization of the Petroleum Exporting Countries ended a meeting in Vienna with only a tentative deal to tackle weak prices.

Oil Falls After OPEC Delays Output Decision

© Jeffrey / Adobe Stock

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.

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)

Cenovus Expects to Spend $1.1 Bln in 2019

(Photo: Cenovus Energy)

The chief executive of Cenovus Energy Inc said on Monday that he expects the company to invest some C$1.5 billion ($1.1 billion) in 2019, in line with 2018 capital spending, after the Alberta government's mandated oil output cuts boosted Canadian crude prices."My company will have a capital program that looks pretty similar to the program we had last year," Alex Pourbaix said in an interview. "We'll spend the better part of C$1.5 billion, give or take, and that would not have been the case if the government hadn't take action."Pourbaix also said he now expects the Canadian heavy crude discount to be closer to $20 below the U.S.

Qatar to Leave OPEC

© Maksym Kapliuk / Adobe Stock

Qatar said on Monday it was quitting OPEC from January to focus on its gas ambitions, taking a swipe at the group's de facto leader Saudi Arabia and marring efforts to show unity before this week's meeting of exporters to tackle an oil price slide.Doha, one of OPEC's smallest oil producers but the world's biggest liquefied natural gas (LNG) exporter, is embroiled in a protracted diplomatic row with Saudi Arabia and some other Arab states.Qatar said its surprise decision was not driven by politics but in an apparent swipe at Riyadh…

Oil Surges 5 Percent

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Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.U.S. light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 percent, before easing to around $53.00 by 1240 GMT. Brent crude rose 5.3 percent or $3.14 to a high of $62.60 and was last trading around $61.75."From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rucker, head of commodity research at Swiss bank Julius Baer.

Russian and Saudi Energy Ministers to Meet at G20

Russia's energy minister Alexander Novak will meet his Saudi counterpart at the G20 summit in Argentina and discuss an oil output reduction in 2019, RIA news agency cited Novak as saying on Friday.He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members.Producer group OPEC and its allies are meeting in Vienna next week to discuss oil production.(Reporting by Maria Tsvetkova Editing by David Goodman)

Saudi Energy Minister Goes to OPEC with a Weak Hand: Kemp

Saudi Arabia’s energy minister, Khalid al-Falih, must play a bad hand of cards as well as he can at next week’s meeting of OPEC and non-OPEC oil producers in Vienna.Falih’s challenge is to get other countries on board with output cuts to avert another crash in oil prices next year while disguising the kingdom’s diminishing leverage in the oil market.Front-month Brent futures have fallen by a third since the start of October while the six-month calendar spread is in contango, indicating most traders expect the market to be oversupplied in 2019.The market outlook is strikingly similar to 2014, with production from U.S.

Pemex Crude Oil Output, Exports Fall

Mexican national oil company Pemex's crude output dipped to 1.76 million barrels per day (bpd) in October, down more than 7 percent compared with the same month last year, according to company data released on Monday.October crude output marked one of the lowest monthly production levels since 1990, when publicly accessible records begin.Crude exports also fell in October to reach 1.03 million bpd, down by about a quarter compared with the same month in 2017.Since September, the ailing Mexican oil giant has only exported its Maya heavy grade to international customers…

BP Producing 588,000 BPD in Azerbaijan

(Photo: BP)

Oil output at the BP-led Azeri-Chirag-Guneshli oilfields in Azerbaijan totalled 588,000 barrels per day in the January to September period, BP-Azerbaijan said on Wednesday.(Reporting by Nailia Bagirova; Writing by Margarita Antidze; Editing by Jan Harvey)

Upset by Trump's Iran Waivers, Saudis Push for Deep Oil Output Cut

File Image: Adobestock / © Mikesjc

When U.S. President Donald Trump asked Saudi Arabia this summer to raise oil production to compensate for lower crude exports from Iran, Riyadh swiftly told Washington it would do so.But Saudi Arabia did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh's arch-rival down to zero, OPEC and industry sources say.Angered by the U.S. move that has raised worries about over supply, Saudi Arabia is now considering cutting output with OPEC and its allies by about 1.4 million barrels per day (bpd) or 1.5 percent of global supply…

Ca Tam Field to Start Production January 15

(Photo: Vietsovpetro)

Vietsovpetro, a Vietnam-Russia oil joint venture, will start crude oil production at the Ca Tam field offshore southern Vietnam from Jan. 15, three sources with knowledge of the matter said on Tuesday.Ca Tam is the first new field to be brought into production in Vietnam in years after a 2014 plunge in oil prices slashed exploration. The start-up is significant as declining production from the country's key fields has left it struggling to maintain oil and gas output.Production from Ca Tam, jointly developed by Vietsovpetro…

Oil Down After Trump Urges OPEC Not to Cut Supply

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Oil prices fell more than 2 percent on Tuesday after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market.Brent dropped $1.97 a barrel, or 2.8 percent, to a low of $68.15 before recovering to around $68.52, down $1.60, by 1420 GMT. U.S. light crude was $1.35 lower at $58.48.Both crude benchmarks have fallen more than 20 percent since peaking at four-year highs in early October."The market now increasingly looks concerned about the prospect of too much supply," said Norbert Ruecker, head of…

Trump Hopes OPEC Won't Cut Production

(Official White House Photo by Joyce N. Boghosian)

U.S. President Donald Trump on Monday said he hoped there would be no oil output reductions, after Saudi Arabia said OPEC was considering cutting oil supply next year, citing softening demand."Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" Trump wrote on Twitter, referring to the Organization of the Petroleum Exporting Countries.(Reporting by Lisa Lambert, Editing by Rosalba O'Brien)

Venezuela Hoping to Raise Oil Output

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Venezuela is hoping to steeply raise oil output next year but will respect any new deal if OPEC agrees to reduce output from December, Oil Minister Manuel Quevedo said on Sunday.The south American OPEC nation's current oil output is 1.5 million barrels per day and it aims to increase that by 1 million bpd "soon", he told reporters in Abu Dhabi.Quevedo was speaking in Abu Dhabi where an oil market monitoring committee was held on Sunday, attended by top exporters Saudi Arabia and Russia.A majority of OPEC and allied oil exporters support a cut in the global supply of crude…

Norwegian Oil, Gas Plants Restart after Ship Collision

Sture Terminal (Photo: Equinor)

An oil tanker and a Norwegian navy frigate collided off Norway's west coast on Thursday, injuring eight people and triggering the temporary shutdown of a North Sea crude export terminal, Norway's top gas processing plant and several offshore fields.The frigate, which recently took part in a major NATO military exercise, was aground and tilting on one side, live television pictures showed. The Norwegian military was attempting to save the ship."We are working on stabilizing the vessel," Norwegian Navy Counter-Admiral Nils Andreas Stensoenes told a news conference, adding that the eight injured were all Navy crew.

Rosneft Snubs Government Oil Meeting

Rosneft Chief Executive Igor Sechin, a critic of OPEC and long-standing ally of President Vladimir Putin (File photo: Rosneft)

Russia's largest oil firm, Rosneft, snubbed a meeting chaired by Energy Minister Alexander Novak on Thursday aimed at consulting domestic energy companies as leading global producers signal a possible cut in crude output.A return to oil production curbs by OPEC and its allies next year cannot be ruled out, two sources in the Organization of the Petroleum Exporting Countries said on Wednesday, in an effort to avert a supply glut that could weigh on prices.Some Russian companies, including Rosneft, opposed voluntary production cuts in the past…