Monday, July 22, 2019

Oil Output News

Venezuela Sells Oil to Tiny Turkish Firm

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With U.S. sanctions blocking Venezuela from selling oil to the United States, state-owned energy firm PDVSA has turned to several little-known buyers that include a tiny Turkish company with no refineries but ties to President Nicolas Maduro's government, according to internal documents and a PDVSA source.Until recently, some of the world's largest petroleum and refining firms, including U.S. companies Chevron and Valero Energy, lined up to take Venezuelan oil cargoes and PDVSA had a rigorous vetting process to ensure potential buyers had the capacity to pay.But U.S.

Oil Rises Toward $65

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Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and Middle East tensions outweighed the U.S.-China trade dispute that has been dragging down the global economy and oil demand.OPEC and its allies led by Russia agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran's nuclear program.Benchmark Brent crude rose 33 cents to $64.44 a barrel by 1211 GMT. U.S. West Texas Intermediate crude was up 26 cents to $57.92."OPEC and its allies are doing their best to support the market…

Rosneft Cuts Oil Output

(Photo: Rosneft)

Russia's largest oil producer Rosneft said on Tuesday its oil production had declined due to a decision by oil pipeline monopoly Transneft to reduce intake of oil due to a contaminated oil issue.It said Transneft had imposed a "significant" cap on oil intake from Rosneft's Yuganskneftegaz subsidiary.(Reporting by Vladimir Soldatkin and Olesya Astakhova; editing by David Evans)

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…

US Drillers Add Rigs

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U.S. energy firms this week increased the number of oil rigs operating for a second week in a row with oil futures up about 12% over the past couple of weeks despite plans by most producers to cut spending on new drilling this year.The rig count, however, was still down 92, or 10%, since the start of the year.Companies added four oil rigs in the week to June 28, bringing the total count to 793, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.That compares with 858 rigs operating during the same week a year ago.For the month, drillers cut seven rigs, their seventh consecutive cut.

US Rig Count Climbs

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U.S. energy firms increased the number of oil rigs operating for the first time in the past three weeks as U.S. crude futures soared around 10% this week.Big energy price declines over the prior couple of months, however, prompted one analyst to cut rig count forecasts for 2019 and 2020.Companies added one oil rig in the week to June 21, bringing the total count to 789, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.That compares with 862 rigs operating during the same week a year ago.The rig count…

Brent Oil Climbed 5% This Week

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Brent oil rallied above $65 per barrel on Friday and was on track for a 5% gain this week on fears of a U.S. military attack on Iran that would disrupt flows from the Middle East, which provides more than a fifth of the world's oil output.Brent crude was up $0.69, or 1.07%, at $65.14 a barrel at 1210 GMT. The global benchmark jumped 4.3% on Thursday and is on course for its first weekly gain in five weeks.U.S. West Texas Intermediate crude was up 24 cents, or 0.42%, at $57.31 a barrel. The U.S. benchmark surged 5.4% on Thursday…

US Oil Output Heads for More Records in 2019

Graph: Rystad Energy

U.S. total oil production, which is already off to an amazing start in 2019,  is on track to set another record for this year.New records are expected both when the final numbers for May emerge and at the end of the year, said Rystad Energy.The energy research and business intelligence company is raising its forecast for US crude output to 13.4 million barrels per day (bpd) by December 2019. For May 2019, our research and calculations point to crude oil production averaging 12.5 million bpd. Both are new all-time highs.“Our US supply projections have been revised up yet again.

Sentinel Secures Commitments for Offshore Crude Terminal

Adobestock / © Jose Gill

Sentinel Midstream LLC has secured shipper commitments needed to move forward on a proposed $1 billion crude export terminal off the Texas coast, the company's chief executive said on Wednesday.The firm's Texas GulfLink project is one of eight proposed U.S. deepwater export projects seeking to load supertankers that carry up to 2 million barrels of crude. Sentinel last week became the fifth to apply for federal permits.Sentinel's offshore facility could begin operations in early 2020 and load up to 2 million bpd from single-point mooring buoys in deepwaters 30 miles off Freeport…

Norway's April Oil Output Lags Forecast

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Norway's oil production fell 8.8 percent year-on-year in April to 1.38 million barrels per day, lagging the official forecast for the month by 0.6 percent, Norway's Petroleum Directorate (NPD) said on Wednesday.Including condensate and natural gas liquids (NGL), the overall liquids production stood at 1.729 million barrels of oil equivalents per day, lagging the NPD prediction by 1.3 percent.Technical problems at some fields were among the main reasons why production came in below forecast, NPD said.Natural gas output in April rose 1.7 percent year-on-year to 338.9 million cubic metres per day, beating NPD's forecasts by 1.7 percent, it added.

US Rig Count Dips

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U.S. energy firms this week reduced the number of oil rigs operating for the first time in three weeks as production growth forecasts from shale, the country's largest oil fields, continue to shrink.Drillers cut eight oil rigs in the week to April 18, bringing the total count down to 825, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Thursday.Baker Hughes released the report a day early this week due to the Good Friday holiday.The U.S. rig count, an early indicator of future output…

Oil Prices Rise on Lower U.S. Stocks, OPEC+ Supply Cuts

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Oil prices rose slightly on Thursday, boosted by a decline in U.S. inventories, ongoing supply cuts from OPEC and its allies, and U.S. sanctions on Venezuela and Iran.Brent crude futures were at $71.80 a barrel at 1313 GMT, up 18 cents from their last close and near Wednesday's five-month high of $72.27 a barrel.U.S. West Texas Intermediate (WTI) crude futures were at $63.83 per barrel, up 7 cents.Both contracts traded slightly lower earlier in the day.U.S. crude inventories fell by 1.4 million barrels in the week to April 12, U.S. Energy Information Administration (EIA) data showed on Wednesday."The latest weekly statistics on U.S.

Oil Edges Above $71

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Oil held above $71 a barrel on Tuesday, supported by falling Venezuelan and Iranian exports and fighting in Libya that raised concerns of more supply threats, outweighing expectations of higher U.S. inventories.In Libya, fighting between Khalifa Haftar's Libyan National Army and the internationally-recognised government has raised the prospect of lower supplies from another OPEC member. U.S. sanctions on two others, Iran and Venezuela, are cutting shipments."Collapsing Venezuelan oil output and sanctioned Iranian exports have a put big question mark over supply…

Oil Slips from Five-Month High

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Oil slipped from a five-month high above $71 a barrel on Tuesday as Russian comments signalling the possible easing of a supply-cutting deal with OPEC countered concern that violence in Libya could further tighten global markets.Supply curbs led by the Organization of the Petroleum Exporting Countries have underpinned a more than 30 percent rally this year for Brent crude, despite downward pressure from fears of an economic slowdown and weaker demand.Brent, the global benchmark, rose to $71.34 a barrel, the highest since November, but by 1349 GMT was down 59 cents at $70.51. U.S.

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…

Russia Signals OPEC Should Raise Output

(Photo: Lukoil)

One of the key Russian officials to foster a supply pact with OPEC, Kirill Dmitriev, signaled on Monday Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.Dmitriev, head of the Russian state's direct investment fund, was the first Russian official to predict a deal with OPEC in 2016 and since then became a key defender of the pact despite pressure from domestic oil firms to drop the agreement.Dmitriev, an envoy for Moscow in the Middle East in general and Saudi Arabia in particular, had in recent months said it was still too early to terminate output cuts, echoing the position

Fire Breaks Out at Kazakhstan Oilfield

A fire has broken out at the onshore Kalamkas oilfield in Kazakhstan's western Mangistau province, the country's emergencies committee said on Monday.MangistauMunaiGas (MMG), the company which operates the field and is owned by Kazakh state energy firm KazMunayGaz and China's CNPC, could not be reached for comment.KazMunayGaz said it would comment on the incident and its impact on oil output on Tuesday.Videos posted by area locals online showed raging fire - which broke out at one of Kalamkas wells before dawn - rising about…

US Rig Cuts Continue

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U.S. energy firms this week reduced the number of oil rigs operating for a fifth week in a row to its lowest in nearly a year as independent producers follow through on plans to cut spending on new drilling with the government cutting its growth forecasts for shale output.Drillers cut nine oil rigs in the week to March 22, bringing the total count down to 824, the lowest since April 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.That is the first time the rig count has declined for five weeks in a row since May 2016 when it fell for eight consecutive weeks.More than half the total 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…

Oil Edges Above $67

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Oil edged further above $67 a barrel on Monday, supported by the prospect of prolonged OPEC-led oil supply curbs though concern that an economic downturn may dent fuel consumption curbed gains.OPEC and non-OPEC ministers who met in Azerbaijan to monitor their oil supply-cut accord said they planned to exceed their commitments. Saudi Arabia signaled OPEC may need to extend the curbs until the end of the year.Brent crude, the global benchmark, rose 20 cents to $67.36 a barrel at 1207 GMT. It reached a 2019 high of $68.14 last week. U.S.