Wednesday, April 21, 2021

United Arab Emirates News

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

U.S. Shale ops -Credit:FerrizFrames/AdobeStock

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, which takes the bulk of the kingdom's exports.Benchmark Arab Light crude was boosted to a premium of 20 U.S.

OPEC, Russia Extend Record Oil Cuts

OPEC, Russia, and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.OPEC+ had initially agreed in April…

Brent Hits One-month High, U.S. Oil Tops $32 as Lockdowns Ease

Oil Price - Illustration - m.mphoto - AdobeStock

Oil prices jumped on Monday, with benchmark Brent hitting a one-month high and U.S. crude topping $30, supported by optimism about the reopening of economies and output cuts by major producers. Brent crude was up $2.32, or 7.1%, at $34.82 a barrel by 1344 GMT, its highest level since mid-April. U.S. West Texas Intermediate (WTI) crude was up $3.35 or almost 11.4% at $32.78 per barrel, its highest since mid-March. "Optimism on the demand side of the oil equation has helped prices climb further…

OMV Sees Hope for Oil Price Recovery in Second Half 2020

For illustration only; An OMV offshore platform in Malaysia -  © OMV Aktiengesellschaft

Austrian energy group OMV sees hope for a recovery in oil prices in the second half of 2020 helped by increased fuel demand and output cuts by producers such as Saudi Arabia, its chief executive said.The spread of the coronavirus has knocked global demand and weighed on crude prices and oil companies' profits.But the willingness of producers such as Saudi Arabia and Norway to drastically cut output shows oil prices have a chance to return to a reasonable level…

Oil in Floating Storage More Than Doubles in a Month

© Vladimir / Adobe Stock

The volume of key oil products held in floating storage around the globe has more than doubled in the past month to about 68 million barrels, according to data from oil analytics firm Vortexa.The figure, which includes gasoline, diesel and jet fuel as of April 22, compares with around 30 million barrels in the previous month, Vortexa said.With available space on land storage tanks scarce, traders around the world have been rushing to book tankers of different sizes to store oil products as lockdowns around the world to tackle the coronavirus pandemic hammer o

Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market

The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged…

Oil Rises After OPEC+ Agrees Record Output Cut

Oil Price - Image by namning/AdobeStock

Oil prices rose on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.After four days of wrangling, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) in May and June to support oil prices…

OPEC, Russia Approve Biggest-Ever Oil Cut to Support Prices

OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States, that could curb global oil supply by 20%. Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs.

Oil Storage at Sea Approaching Record Levels

© aerial-drone / Adobe Stock

Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry sources say.Traders rushed for storage after global oil demand collapsed by a third due to the coronavirus outbreak, and as top producers Saudi Arabia and Russia have refused to curb output so far, creating what is believed to be the biggest oil glut in history.The last time floating storage reached similar levels was in 2009…

Saudi Aramco Launches Largest Shale Gas Development Outside US

Amin H. Nasser (Photo: Saudi Aramco)

Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday.The world's top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per…

NOC Condemns Calls for Oil Export Terminals to be Shut

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Libya's state oil firm NOC on Friday condemned calls to shut oil export terminals in eastern Libya controlled by military commander Khalifa Haftar ahead of a summit in Germany where he will face pressure to halt his campaign to take the capital.Tribal leaders in eastern and southern Libya called on Thursday to shut the terminals in protest at what they called the internationally-recognized government in Tripoli's use of oil revenues to pay for foreign…

FTR Continues Year-on-year Growth

FTR offers procurement, fabrication, FPSO and construction services to the energy industry. (Photo: FTR)

Fulkrum Technical Resources (FTR), global provider of technical personnel specializing in QA/QC, inspection and vendor surveillance services to the energy industry, announced recent contract wins resulting in year-on-year growth of more than 55%.Operating out of eight bases around the world, FTR reported it has seen growth in each region with revenues exceeding forecasted figures, as well as expanding its network of energy professionals to nearly two million.Since forming in 2017…

Oil Is Our Gold and We Aim to Use All of It -ADNOC

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Abu Dhabi National Oil Co aims to exhaust its vast oil and gas reserves even as many consumers switch to cleaner sources of energy, a senior executive in the Gulf oil company said.The world's transition away from fossil fuel in an effort to slash greenhouse gas emissions is expected to accelerate in coming decades, leaving many oil companies and producing nations pondering their long-term future.But for state-run ADNOC, the main oil-producing company in the United Arab Emirates…

Sandvik to Supply OCTG for ADNOC

(Photo: Sandvik)

Sandvik, a developer and producer of advanced stainless steels, special alloys, titanium and other high-performance materials, said it has entered into a long-term agreement with Tenaris to supply Oil Country Tubular Goods (OCTG) following its award from the Abu Dhabi National Oil Company (ADNOC) in August 2019.ADNOC has awarded Tenaris a long-term contract for the provision of tubulars and Rig Direct services over the next five years, with the possibility of a two-year extension.

Aramco Signs 34 EPC Contracts Worth $18bn

Saudi Aramco has signed 34 engineering, procurement and construction (EPC) related contracts (worth over US$18bn) for projects such as the Marjan and Berri field incremental development program in Saudi Arabia, during Q3 2019, according to GlobalData.The most important is ADNOC’s US$3.6bn contract for the supply of one million metric tons of casing and tubing to support exploration and production activity in United Arab Emirates (UAE).The global oil and gas industry has witnessed a substantial boost from those contracts activity in the Middle East…

US Eyes India for Quantum Leap in LPG Exports

Trump administration trade tariffs on China will need to cease and India will have to rely more on U.S. LPG supplies for the world to clear the quantum leap expected for U.S. LPG exports, says a study.The study of global seaborne LPG trade flows using Kpler LPG cargo tracking data questions the global LPG market’s ability to grow fast enough to handle the tsunami wave of new LPG production expected from the United States in 2020 and 2021."The U.S. has become the largest LPG exporter in the world and now exports more LPG than the U.A.E.…

India's Oil Imports at 3-year Low

© Björn Wylezich / Adobe Stock

India's oil imports fell to their lowest in more than three years in September to 3.82 million barrels per day (bpd), data obtained from industry and shipping sources showed, as some refiners cut purchases due to shutdowns for maintenance and fuel upgrades.Last month, Saudi Arabia replaced Iraq as top oil supplier to India after a gap of about 13 months, the data showed.September oil imports, which dropped below 4 million bpd for the first time since June 2016…

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.

Gulf Marine CEO Quits in wake of Profit Warning

A Gulf Marine Services Jack Up unit (CREDIT: GMS)

Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12% down.The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million…

ADNOC, Pertamina Ink Development Pact

(Photo: ADNOC)

The Abu Dhabi National Oil Company (ADNOC) signed an agreement on Wednesday with Indonesia's state-owned energy company PT Pertamina for oil and gas collaboration in both countries and globally, ADNOC said in a statement.The comprehensive strategic framework (CSF) agreement was signed on the sidelines of an official visit to Indonesia by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.It covers projects in the United Arab Emirates' upstream oil and gas sector as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Ind