Markets rallied this week ?
Friday, March 27th, 2020
Markets rallied this week as the U.S. Congress appears poised to pass a $2 trillion stimulus plan. Jobless claims in the U.S. topped 3 million, with economists seeing unemployment nearing Great Depression levels in the coming months. Meanwhile, despite the rally for equities, oil prices did not hold up, with WTI back down close to $20 per barrel as the historic glut continues to worsen.
SPR plan scrapped. The U.S. Department of Energy withdrew its plan to buy 77 million barrels of oil for the strategic petroleum reserve (SPR) after funding for the plan was removed from the $2 trillion stimulus plan.
Investors pressure majors to cut dividends. The top five oil majors added $25 billion in debt last year, while hiking dividends. Now, on the ropes with oil in the mid-$20s, debt will accumulate much faster. More investors are calling for a cut to dividends. “Long term, it is appropriate to cut the dividend. We are not in favor of raising debt to support the dividend,” Jeffrey Germain, a director at Brandes Investment Partners, told Reuters.
Half Latin American oil uneconomic. “Latin America’s flowing production is over 7 million barrels per day. At current prices, we estimate that half is non-economic, taking into account all costs, including transportation and taxes,” Ruaraidh Montgomery from oil research firm Welligence, told Reuters.
European gas inventories at record high. As of March 1, storage for gas in Europe was 60 percent full, the highest ever recorded at the start of March.
Occidental cuts worker pay. Occidental Petroleum (NYSE: OXY) cut salaries for its U.S. workers by 30 percent.
Dakota Access loses court case. The Standing Rock Sioux Tribe won a major victory in federal court this week, with a judge ordering a full environmental impact statement for the Dakota Access pipeline. The project owned by Energy Transfer Partners (NYSE: ET) has already been operational for three years. The decision could potentially lead to the shutdown of the pipeline.
Pompeo pressures MbS on oil price war. Secretary of State Mike Pompeo spoke with Saudi Crown Prince Mohammed bin Salman by phone this week, asking for the Saudis to pull back from the price war. Pompeo urged Riyadh to “rise to the occasion and reassure” energy markets at a time of economic uncertainty.
Senators accuse Saudi Arabia of economic warfare. A group of Republican senators sent Sec. of State Mike Pompeo a letter, accusing Saudi Arabia of economic warfare because of Riyadh’s decision to increase oil production. The letter said the U.S. could explore antitrust authority as well as revisit support for the war in Yemen, a clear threat to Saudi Arabia.
Saudi Arabia struggling to find buyers. Saudi Arabia is struggling to find buyers for extra oil as demand collapses. Royal Dutch Shell (NYSE: RDS.A), China’s Unipec, Finland’s Neste, some Indian refiners and other U.S. refiners are taking less crude from Saudi Arabia, according to Reuters. Taken together, the inability to find buyers reduces the odds of Saudi Arabia ramping up production aggressively to over 12 mb/d.
Largest shut in of production in 35 years. In certain areas oil prices is trading in single digits. Bloomberg notes that Wyoming Sweet oil was trading at $1.75 per barrel this week, forcing some small producers to shut in. That could happen in many places around the world. “We need to cut crude supply by 10 million barrels a day pretty quickly,” Russel Hardy, the head of top independent oil trader Vitol Group, told Bloomberg. “Oil prices will need to go lower, to bring the prices to a level that triggers a response.”
20 mb/d surplus. New estimates from a series of oil market analysts put the drop in demand from the pandemic at about 20 mb/d, a figure that is dramatically larger than estimates from as recently as a week ago. Goldman put it at 18.7 mb/d. It is the largest decline in history by far, and one so large that a return of OPEC+ cuts would not address.
China struggles to restart amid global recession. The worst of China’s pandemic is over, but the restart of factories in China is running into trouble as the rest of the world goes into lockdown and cancels purchases of a variety of Chinese goods. “The unprecedented shutdown of normal economic activity across Europe, the U.S. and a growing number of emerging markets is certain to cause a dramatic contraction in Chinese exports, probably in the range of a 20-45% year-on-year drop in the second quarter,” said Thomas Gatley, senior analyst at research firm Gavekal Dragonomics.
Plastics industry seeks roll back of bag bans. Producers of plastic are lobbying to reverse plastic bag bans across the United States, using the pandemic as a reason to allow more disposable plastic.
Oil storage filling up. The world is estimated to have between 0.9 and 1.8 billion barrels of oil storage capacity, with the industry using 71 percent currently. But crude qualities cannot be stored together, and there are other logistical bottlenecks preventing full use of all storage facilities. Traders told Reuters that storage in the U.S. could reach capacity by May or June. Canadian output could begin to fall in April as storage maxes out.
Canadian oil sands shut ins begin. Western Canada Select is trading at around $9 per barrel, forcing some shut-ins. Suncor Energy (NYSE: SU) said it would shut in one of its trains at its Fort Hills project.
Gasoline prices plunge. $1 gasoline is popping up in a growing number of regions in the U.S. Nationally, retail gasoline prices are set to average $1.49 per gallon by mid-April. “You almost can’t even give it away,” Paul Bingham, head transportation economist at IHS Markit Ltd., told Bloomberg. “The price elasticity has totally changed. It’s full-on demand destruction.”
Petrobras to cut spending by 30 percent. Petrobras (NYSE: PBR) said it would cut 2020 spending by 30 percent to $8.5 billion and lower its production by 100,000 bpd. That includes shutting in shallow water production of 23,000 bpd.
Iraq asks IOCs to cut spending by 30 percent. Iraq asked four international oil companies to lower their spending by 30 percent, a list that includes Eni (NYSE: E), ExxonMobil (NYSE: XOM), Lukoil and BP (NYSE: BP). The request would ease a burden on Iraqi budgets.
Thanks for reading and we’ll see you next week.
Best Regards,
Tom Kool
Editor, Oilprice.com
Markets rallied this week as the U.S. Congress appears poised to pass a $2 trillion stimulus plan. Jobless claims in the U.S. topped 3 million, with economists seeing unemployment nearing Great Depression levels in the coming months. Meanwhile, despite the rally for equities, oil prices did not hold up, with WTI back down close to $20 per barrel as the historic glut continues to worsen.
SPR plan scrapped. The U.S. Department of Energy withdrew its plan to buy 77 million barrels of oil for the strategic petroleum reserve (SPR) after funding for the plan was removed from the $2 trillion stimulus plan.
Investors pressure majors to cut dividends. The top five oil majors added $25 billion in debt last year, while hiking dividends. Now, on the ropes with oil in the mid-$20s, debt will accumulate much faster. More investors are calling for a cut to dividends. “Long term, it is appropriate to cut the dividend. We are not in favor of raising debt to support the dividend,” Jeffrey Germain, a director at Brandes Investment Partners, told Reuters.
Half Latin American oil uneconomic. “Latin America’s flowing production is over 7 million barrels per day. At current prices, we estimate that half is non-economic, taking into account all costs, including transportation and taxes,” Ruaraidh Montgomery from oil research firm Welligence, told Reuters.
European gas inventories at record high. As of March 1, storage for gas in Europe was 60 percent full, the highest ever recorded at the start of March.
Occidental cuts worker pay. Occidental Petroleum (NYSE: OXY) cut salaries for its U.S. workers by 30 percent.
Dakota Access loses court case. The Standing Rock Sioux Tribe won a major victory in federal court this week, with a judge ordering a full environmental impact statement for the Dakota Access pipeline. The project owned by Energy Transfer Partners (NYSE: ET) has already been operational for three years. The decision could potentially lead to the shutdown of the pipeline.
Pompeo pressures MbS on oil price war. Secretary of State Mike Pompeo spoke with Saudi Crown Prince Mohammed bin Salman by phone this week, asking for the Saudis to pull back from the price war. Pompeo urged Riyadh to “rise to the occasion and reassure” energy markets at a time of economic uncertainty.
Senators accuse Saudi Arabia of economic warfare. A group of Republican senators sent Sec. of State Mike Pompeo a letter, accusing Saudi Arabia of economic warfare because of Riyadh’s decision to increase oil production. The letter said the U.S. could explore antitrust authority as well as revisit support for the war in Yemen, a clear threat to Saudi Arabia.
Saudi Arabia struggling to find buyers. Saudi Arabia is struggling to find buyers for extra oil as demand collapses. Royal Dutch Shell (NYSE: RDS.A), China’s Unipec, Finland’s Neste, some Indian refiners and other U.S. refiners are taking less crude from Saudi Arabia, according to Reuters. Taken together, the inability to find buyers reduces the odds of Saudi Arabia ramping up production aggressively to over 12 mb/d.
Largest shut in of production in 35 years. In certain areas oil prices is trading in single digits. Bloomberg notes that Wyoming Sweet oil was trading at $1.75 per barrel this week, forcing some small producers to shut in. That could happen in many places around the world. “We need to cut crude supply by 10 million barrels a day pretty quickly,” Russel Hardy, the head of top independent oil trader Vitol Group, told Bloomberg. “Oil prices will need to go lower, to bring the prices to a level that triggers a response.”
20 mb/d surplus. New estimates from a series of oil market analysts put the drop in demand from the pandemic at about 20 mb/d, a figure that is dramatically larger than estimates from as recently as a week ago. Goldman put it at 18.7 mb/d. It is the largest decline in history by far, and one so large that a return of OPEC+ cuts would not address.
China struggles to restart amid global recession. The worst of China’s pandemic is over, but the restart of factories in China is running into trouble as the rest of the world goes into lockdown and cancels purchases of a variety of Chinese goods. “The unprecedented shutdown of normal economic activity across Europe, the U.S. and a growing number of emerging markets is certain to cause a dramatic contraction in Chinese exports, probably in the range of a 20-45% year-on-year drop in the second quarter,” said Thomas Gatley, senior analyst at research firm Gavekal Dragonomics.
Plastics industry seeks roll back of bag bans. Producers of plastic are lobbying to reverse plastic bag bans across the United States, using the pandemic as a reason to allow more disposable plastic.
Oil storage filling up. The world is estimated to have between 0.9 and 1.8 billion barrels of oil storage capacity, with the industry using 71 percent currently. But crude qualities cannot be stored together, and there are other logistical bottlenecks preventing full use of all storage facilities. Traders told Reuters that storage in the U.S. could reach capacity by May or June. Canadian output could begin to fall in April as storage maxes out.
Canadian oil sands shut ins begin. Western Canada Select is trading at around $9 per barrel, forcing some shut-ins. Suncor Energy (NYSE: SU) said it would shut in one of its trains at its Fort Hills project.
Gasoline prices plunge. $1 gasoline is popping up in a growing number of regions in the U.S. Nationally, retail gasoline prices are set to average $1.49 per gallon by mid-April. “You almost can’t even give it away,” Paul Bingham, head transportation economist at IHS Markit Ltd., told Bloomberg. “The price elasticity has totally changed. It’s full-on demand destruction.”
Petrobras to cut spending by 30 percent. Petrobras (NYSE: PBR) said it would cut 2020 spending by 30 percent to $8.5 billion and lower its production by 100,000 bpd. That includes shutting in shallow water production of 23,000 bpd.
Iraq asks IOCs to cut spending by 30 percent. Iraq asked four international oil companies to lower their spending by 30 percent, a list that includes Eni (NYSE: E), ExxonMobil (NYSE: XOM), Lukoil and BP (NYSE: BP). The request would ease a burden on Iraqi budgets.
Thanks for reading and we’ll see you next week.
Best Regards,
Tom Kool
Editor, Oilprice.com
Redigert 20.01.2021 kl 16:40
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Volf
28.03.2020 kl 10:54
5140
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Volf
31.03.2020 kl 07:57
4333
Fear of missing out (or FOMO) is one of the most dangerous emotions a trader can feel.
It is something you will have undoubtedly experienced recently as oil prices and stock markets plummeted and then bounced.
Disney (DIS) saw its stock collapse to $80 before jumping back up to $107.
Total (TOT) bottomed out at $26 and is now up above $36.
Shell (RDS.A) fell below $20 but has since hit $33 on its climb back up.
That is a lot of profit that you've missed out on.
But does that mean it is time to get back into markets?
Two weeks ago, the head trader of our Global Energy Alert service recommended RDS.A to subscribers. Those who followed his advice made close to a 40 percent return over a three day period.
So what is his take on trading this week?
It might surprise you to hear that in his column last Friday he recommended that you sit tight and stay away from energy stocks. A 40 percent return is great - but if you let FOMO drive you, you will very quickly lose a lot more than that.
It is not the time for short-term trades and certainly not the time to back a return to a bull market. Sure, there are still opportunities out there and, like with RDS.A, when our head trader sees them he will let you know. But don't let FOMO drive you into anything.
Read our head trader's latest take on markets here: Why This Is Not The Right Time To Buy Energy Stocks
And if you haven't signed up to Global Energy Alert then we highly recommend that you take advantage of your risk-free trial and read Friday's newsletter in its entirety, which includes:
- An analysis of how Covid-19 could drive an extra 1 million bpd of Libyan oil into the markets
- A technical breakdown of why oil prices are set to fall even further
- An overview of why Saudi Arabia is ignoring U.S. pleas for oil production cuts
- An examination of the key data in markets, including economic activity hitting a decade-low
In a time of great volatility in the energy markets and beyond, it has never been more important for you to stay informed, ignore FOMO and take advantage of big opportunities.
Sign up to Global Energy Alert today and protect yourself as uncertainty soars.
Kind regards,
Michael Scott
News Editor, Oilprice.com
PS: If you sign up today you will also get access to Oilprice.com's Top 10 Oil & Gas Companies of 2020 report. Sign up for the RISK-FREE trial today and you'll receive this report alongside others at no extra cost.
It is something you will have undoubtedly experienced recently as oil prices and stock markets plummeted and then bounced.
Disney (DIS) saw its stock collapse to $80 before jumping back up to $107.
Total (TOT) bottomed out at $26 and is now up above $36.
Shell (RDS.A) fell below $20 but has since hit $33 on its climb back up.
That is a lot of profit that you've missed out on.
But does that mean it is time to get back into markets?
Two weeks ago, the head trader of our Global Energy Alert service recommended RDS.A to subscribers. Those who followed his advice made close to a 40 percent return over a three day period.
So what is his take on trading this week?
It might surprise you to hear that in his column last Friday he recommended that you sit tight and stay away from energy stocks. A 40 percent return is great - but if you let FOMO drive you, you will very quickly lose a lot more than that.
It is not the time for short-term trades and certainly not the time to back a return to a bull market. Sure, there are still opportunities out there and, like with RDS.A, when our head trader sees them he will let you know. But don't let FOMO drive you into anything.
Read our head trader's latest take on markets here: Why This Is Not The Right Time To Buy Energy Stocks
And if you haven't signed up to Global Energy Alert then we highly recommend that you take advantage of your risk-free trial and read Friday's newsletter in its entirety, which includes:
- An analysis of how Covid-19 could drive an extra 1 million bpd of Libyan oil into the markets
- A technical breakdown of why oil prices are set to fall even further
- An overview of why Saudi Arabia is ignoring U.S. pleas for oil production cuts
- An examination of the key data in markets, including economic activity hitting a decade-low
In a time of great volatility in the energy markets and beyond, it has never been more important for you to stay informed, ignore FOMO and take advantage of big opportunities.
Sign up to Global Energy Alert today and protect yourself as uncertainty soars.
Kind regards,
Michael Scott
News Editor, Oilprice.com
PS: If you sign up today you will also get access to Oilprice.com's Top 10 Oil & Gas Companies of 2020 report. Sign up for the RISK-FREE trial today and you'll receive this report alongside others at no extra cost.
Volf
02.04.2020 kl 08:09
3847
Dear ,
James Stafford here, the founder and CEO of Oilprice.com. First and foremost, I'd like to extend my best wishes to you and your family in this time of need. We're facing a global crisis unlike anything we've ever seen, and it's taken a toll on households across the globe.
We here at Oilprice.com are dedicated to keeping our readers up to date on the news that matters most to you. And as we've grown, so too has our global spread of correspondents, contributors and 'boots on the ground." And now, given the current developments in the markets, we are receiving more of the highest quality and most detailed reporting from our network of over 650 sources than ever before.
We've been reporting on the strategic and economic impact of natural disasters and geopolitical power plays for years, but our current environment is unlike anything we've ever seen. That's why we're working harder than ever to provide our subscribers with everything they need to stay on top of the markets in these troubling times.
Our weekly communique, Global Energy Alert, is one of the most trusted and in-depth energy research services on the market. Traders, CEOs, decision-makers, and even politicians all rely on the weekly stories curated by our veteran analysts and journalists.
Here's how it works:
Every issue of Global Energy Alert is broken down into five sections...
The Week In Energy
If you only have time to read one thing per week, this is it. Our energy experts break down the biggest stories in both the oil and renewables sector each week and highlight exactly what you need to watch.
Behind The Numbers
Every week, you will receive a breakdown of the 7 most important data points in the energy market. Our expert analysts breakdown the significance and trends within both energy and commodities markets and draft easily digestible graphs.
Inside Opportunities
Here it is - the difference-maker. Our head trader's weekly column gives subscribers not only an insight into how a world-class trader thinks but also the opportunities he is pursuing. In times like these, having expert insight into how best to protect your portfolio and take advantage of the rebound could not be more important.
Global Forecasts
All of the most important mergers, acquisitions, auctions, regulations, and energy market updates are carefully outlined in each issue. This is also where the key geopolitical developments will be addressed.
Technical Trading Signals
Our technical team does a deep dive into oil price movements each and every week, highlighting the key data points for oil traders to keep an eye on. Knowing what the charts are saying is often just as important as having a grasp on fundamentals and what is driving them.
In addition to these weekly reports, subscribers also gain immediate access to a wealth of special reports, guides and a mound of research.
In fact, we've just released our yearly special report, "The Top 10 Oil And Gas Companies Of 2020."
We've examined thousands of oil & gas companies around the world across a set of essential performance indicators:
Production
Market Access
Financials
Diversification of Assets
Stability of Operation
Each company is then ranked based on their performance in these 5 fields, and the geopolitical and economic outlook of their respective environments. Not only will you find out who has topped the list for the year, you will receive a complete analysis of each company – including their greatest strengths and their largest risks.
Now, I understand that times are tough, and it's more important than ever to spend your cash wisely - that's why we'd like to extend a special risk-free trial to our Global Energy Alert communique. This means that if any time within the first 30 days of purchasing a subscription you feel like it is not for you, simply send us an email to cancel the service and we'll refund your money in full - no questions asked.
I hope you will be able to join us as cutting through the noise and understanding what is really important in the energy markets is essential to surviving these troubling times and even coming out ahead.
Kind regards,
James Stafford
Publisher, Oilprice.com
P.S. The timing has never been better to scoop up extremely discounted oil and energy stocks, but only if you know exactly where to look. That's why our analysts have been plugging numbers trying to find the perfect picks for our subscribers - and I believe they may have done just that. This timely opportunity will be included in this Friday's mail out, so be sure you are subscribed before then to get all of the information you need to stay on top of the markets!
James Stafford here, the founder and CEO of Oilprice.com. First and foremost, I'd like to extend my best wishes to you and your family in this time of need. We're facing a global crisis unlike anything we've ever seen, and it's taken a toll on households across the globe.
We here at Oilprice.com are dedicated to keeping our readers up to date on the news that matters most to you. And as we've grown, so too has our global spread of correspondents, contributors and 'boots on the ground." And now, given the current developments in the markets, we are receiving more of the highest quality and most detailed reporting from our network of over 650 sources than ever before.
We've been reporting on the strategic and economic impact of natural disasters and geopolitical power plays for years, but our current environment is unlike anything we've ever seen. That's why we're working harder than ever to provide our subscribers with everything they need to stay on top of the markets in these troubling times.
Our weekly communique, Global Energy Alert, is one of the most trusted and in-depth energy research services on the market. Traders, CEOs, decision-makers, and even politicians all rely on the weekly stories curated by our veteran analysts and journalists.
Here's how it works:
Every issue of Global Energy Alert is broken down into five sections...
The Week In Energy
If you only have time to read one thing per week, this is it. Our energy experts break down the biggest stories in both the oil and renewables sector each week and highlight exactly what you need to watch.
Behind The Numbers
Every week, you will receive a breakdown of the 7 most important data points in the energy market. Our expert analysts breakdown the significance and trends within both energy and commodities markets and draft easily digestible graphs.
Inside Opportunities
Here it is - the difference-maker. Our head trader's weekly column gives subscribers not only an insight into how a world-class trader thinks but also the opportunities he is pursuing. In times like these, having expert insight into how best to protect your portfolio and take advantage of the rebound could not be more important.
Global Forecasts
All of the most important mergers, acquisitions, auctions, regulations, and energy market updates are carefully outlined in each issue. This is also where the key geopolitical developments will be addressed.
Technical Trading Signals
Our technical team does a deep dive into oil price movements each and every week, highlighting the key data points for oil traders to keep an eye on. Knowing what the charts are saying is often just as important as having a grasp on fundamentals and what is driving them.
In addition to these weekly reports, subscribers also gain immediate access to a wealth of special reports, guides and a mound of research.
In fact, we've just released our yearly special report, "The Top 10 Oil And Gas Companies Of 2020."
We've examined thousands of oil & gas companies around the world across a set of essential performance indicators:
Production
Market Access
Financials
Diversification of Assets
Stability of Operation
Each company is then ranked based on their performance in these 5 fields, and the geopolitical and economic outlook of their respective environments. Not only will you find out who has topped the list for the year, you will receive a complete analysis of each company – including their greatest strengths and their largest risks.
Now, I understand that times are tough, and it's more important than ever to spend your cash wisely - that's why we'd like to extend a special risk-free trial to our Global Energy Alert communique. This means that if any time within the first 30 days of purchasing a subscription you feel like it is not for you, simply send us an email to cancel the service and we'll refund your money in full - no questions asked.
I hope you will be able to join us as cutting through the noise and understanding what is really important in the energy markets is essential to surviving these troubling times and even coming out ahead.
Kind regards,
James Stafford
Publisher, Oilprice.com
P.S. The timing has never been better to scoop up extremely discounted oil and energy stocks, but only if you know exactly where to look. That's why our analysts have been plugging numbers trying to find the perfect picks for our subscribers - and I believe they may have done just that. This timely opportunity will be included in this Friday's mail out, so be sure you are subscribed before then to get all of the information you need to stay on top of the markets!
Volf
03.04.2020 kl 08:06
3561
Oil prices have never been more volatile...
Brent and WTI are both seeing 20% rises and drops on nearly a weekly basis...
It's more important than ever to stay on top of these developments.
That's why we created Global Energy Alert - to help YOU stay informed.
Our main website is designed to keep people updated on happenings within the oil markets. But our premium service has been designed to help you stay ahead of events, to receive intelligence rather than news and to help position you for profit and avoid the various market risks others rush headlong into.
We've built a network of over 650 "on-the-ground' reporters, covering some of the biggest stories in energy in some of the most dangerous regions on the planet;
Every week, we share the intel we've received, and our team of analysts breaks it all down into an easily digestible communique...
Highlighting which companies are best positioned to gain, and which companies you should avoid.
Every issue of Global Energy Alert includes five columns:
The Week In Energy
If you only have time to read one thing per week, this is it. Our energy experts break down the biggest stories in both the oil & gas and renewables sector each week and highlight exactly what you need to be watching.
Behind The Numbers
Get a breakdown of the 7 most important data points in the energy market. Our expert analysts breakdown the significance and trends within each of these data sets in a digestible manner.
Inside Opportunities
Martin's weekly column gives our readers not only an insight into how a world-class trader thinks but also the opportunities he is pursuing.
Global Forecasts
All of the most important mergers, acquisitions, auctions, regulations, and energy market updates are carefully outlined in each issue. This is also where the key geopolitical developments will be addressed.
Technical Trading Signals
Our technical team does a deep dive into oil price movements each week, highlighting the key data points for oil traders to keep an eye on.
Now is the time to act - oil markets won't stay as they are forever, and you'll need to stay informed if you want to capitalize on this volatility.
And today, we'd like to give you a risk-free test drive of the service. Not only will you receive access to every Global Energy Alert issue we've ever published, but you'll also gain immediate access to an array of special reports, including:
"The Top 10 Oil And Gas Companies Of 2020."
We've examined thousands of oil & gas companies around the world across a set of essential performance indicators. You will find out who has topped the list for the year, and you'll receive a complete analysis of each company – including their greatest strengths and their largest risks.
And...
"The Looming $48 Trillion Energy Crisis"
From renewables to oil & gas, and everything in between, readers will learn about some of the most promising energy plays as the world adjusts to its new energy reality.
And if you decide that all of these resources are not for you...no problem. Simply email us within the first 30 days and we'll cancel your subscription and give you a FULL REFUND - no questions asked.
Kind regards,
Brent and WTI are both seeing 20% rises and drops on nearly a weekly basis...
It's more important than ever to stay on top of these developments.
That's why we created Global Energy Alert - to help YOU stay informed.
Our main website is designed to keep people updated on happenings within the oil markets. But our premium service has been designed to help you stay ahead of events, to receive intelligence rather than news and to help position you for profit and avoid the various market risks others rush headlong into.
We've built a network of over 650 "on-the-ground' reporters, covering some of the biggest stories in energy in some of the most dangerous regions on the planet;
Every week, we share the intel we've received, and our team of analysts breaks it all down into an easily digestible communique...
Highlighting which companies are best positioned to gain, and which companies you should avoid.
Every issue of Global Energy Alert includes five columns:
The Week In Energy
If you only have time to read one thing per week, this is it. Our energy experts break down the biggest stories in both the oil & gas and renewables sector each week and highlight exactly what you need to be watching.
Behind The Numbers
Get a breakdown of the 7 most important data points in the energy market. Our expert analysts breakdown the significance and trends within each of these data sets in a digestible manner.
Inside Opportunities
Martin's weekly column gives our readers not only an insight into how a world-class trader thinks but also the opportunities he is pursuing.
Global Forecasts
All of the most important mergers, acquisitions, auctions, regulations, and energy market updates are carefully outlined in each issue. This is also where the key geopolitical developments will be addressed.
Technical Trading Signals
Our technical team does a deep dive into oil price movements each week, highlighting the key data points for oil traders to keep an eye on.
Now is the time to act - oil markets won't stay as they are forever, and you'll need to stay informed if you want to capitalize on this volatility.
And today, we'd like to give you a risk-free test drive of the service. Not only will you receive access to every Global Energy Alert issue we've ever published, but you'll also gain immediate access to an array of special reports, including:
"The Top 10 Oil And Gas Companies Of 2020."
We've examined thousands of oil & gas companies around the world across a set of essential performance indicators. You will find out who has topped the list for the year, and you'll receive a complete analysis of each company – including their greatest strengths and their largest risks.
And...
"The Looming $48 Trillion Energy Crisis"
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Kind regards,
Volf
03.04.2020 kl 08:14
3509
Dear ,
A 25 percent spike in oil prices in a single day is enough to make even the most cynical market observers believe a market rebound is upon us.
The truth is, the movement you saw today was nearly entirely sentiment-driven and has next to nothing to do with oil market fundamentals. So whatever else you do in the next 24 hours... Do not go long on oil.
Oil prices shot up on Thursday on the back of a flurry of tweets from Trump and some positive noises coming out of Saudi Arabia about production cuts. But even a brief look at oil market fundamentals should be enough for market observers to understand that the current rally will be brief.
In Friday's newsletter, our intelligence team will outline the current state of the market and highlight why today's rally is not a turning point for markets. If you haven't already signed up, make sure you take advantage of your risk-free trial before tomorrow morning.
As well as an overview of current market fundamentals and an explanation of what Trump's tweets really mean, Friday's newsletter will contain:
- A global COVID-19 update that details the impact of the pandemic on the oil and gas industry around the world.
- A breakdown of the latest discoveries, deals, and disasters in the oil and gas space
- An analysis of the key number and data in the industry, including the collapse of gasoline demand and production cuts in the shale patch.
- Our head trader's take on how to play the oil market when the fundamentals take over.
- A technical analysis of WTI and where prices will go from here.
It's time to join a new level of energy intelligence. Get the news and analysis before it breaks anywhere else and stay ahead of the market.
Kind regards,
Michael Kern
News Editor, Oilprice.com
PS: For today only, we're going to throw in an exclusive report covering the "holy grail" of energy. This report includes several breaking opportunities in an emerging sector that you simply can't afford to miss. Sign up for the RISK-FREE trial today and you'll receive this report and the complete guide on investing in the space race.
A 25 percent spike in oil prices in a single day is enough to make even the most cynical market observers believe a market rebound is upon us.
The truth is, the movement you saw today was nearly entirely sentiment-driven and has next to nothing to do with oil market fundamentals. So whatever else you do in the next 24 hours... Do not go long on oil.
Oil prices shot up on Thursday on the back of a flurry of tweets from Trump and some positive noises coming out of Saudi Arabia about production cuts. But even a brief look at oil market fundamentals should be enough for market observers to understand that the current rally will be brief.
In Friday's newsletter, our intelligence team will outline the current state of the market and highlight why today's rally is not a turning point for markets. If you haven't already signed up, make sure you take advantage of your risk-free trial before tomorrow morning.
As well as an overview of current market fundamentals and an explanation of what Trump's tweets really mean, Friday's newsletter will contain:
- A global COVID-19 update that details the impact of the pandemic on the oil and gas industry around the world.
- A breakdown of the latest discoveries, deals, and disasters in the oil and gas space
- An analysis of the key number and data in the industry, including the collapse of gasoline demand and production cuts in the shale patch.
- Our head trader's take on how to play the oil market when the fundamentals take over.
- A technical analysis of WTI and where prices will go from here.
It's time to join a new level of energy intelligence. Get the news and analysis before it breaks anywhere else and stay ahead of the market.
Kind regards,
Michael Kern
News Editor, Oilprice.com
PS: For today only, we're going to throw in an exclusive report covering the "holy grail" of energy. This report includes several breaking opportunities in an emerging sector that you simply can't afford to miss. Sign up for the RISK-FREE trial today and you'll receive this report and the complete guide on investing in the space race.
Volf
03.04.2020 kl 22:40
3189
Friday, April 3rd, 2020
Oil prices surged by the most on record in percentage terms on Thursday, jumping by 25 percent. Prices were up again on Friday during early trading. The jolt came from a tweet from President Trump regarding a supposed 10-15 mb/d cut from Russia and Saudi Arabia. Riyadh did indeed call for an emergency OPEC meeting, but the tweet raised a ton of questions.
Russia denies, Saudi takes measured tone. Russia said that no conversations occurred and that it had not agreed to anything. Saudi Arabia called for a meeting but said that action on its part would depend on other countries participating. One OPEC official said the tweet was “Trump talking before his brain engages,” according to the FT.
Diplomacy picks up pace. While the numbers in Trump’s tweet appeared unrealistic, there is some degree of interest from all sides to collective production cuts. It’s not clear that the U.S. would offer anything – Reuters reported that the U.S. government would not ask domestic oil producers to cut output. In addition, Russia has shown a reluctance to cut output, eyeing a decline in U.S. shale. Indeed, oil prices at $25, or $20, or possibly even lower would impose production cuts even without any formal governmental arrangement. Still, a new round of negotiations could take place, possibly with U.S. involvement.
A 10 mb/d cut after all? By early Friday, there seemed to be some momentum on negotiations. Bloomberg reported that Russia was open to a global pact. At the time of this writing, OPEC was rumored to be exploring a scenario in which Saudi cuts by 3 mb/d, Russia cuts by 1.5 mb/d, non-Saudi Gulf States cut by 1.5 mb/d, and the U.S., Canada and Brazil cut by nearly 2 mb/d.
Alberta open to cuts. “If we see an effort at a global reduction in production, we would be open to further measures on our part,” Alberta’s Premier Jason Kenney said. Alberta has been suffering from sub-$5 oil.
Brent physical trades at $10 discount. Physical Brent barrels are trading at a $10-per-barrel discount to Brent futures, a sign that the underlying physical market is deeply oversupplied even as traders demonstrate optimism about the potential for a production cut.
Whiting Petroleum goes bankrupt, dishes out executive pay. Whiting Petroleum (NYSE: WLL) became the first major victim of the unfolding collapse in oil prices, filing for bankruptcy this week. The board approved roughly $14.6 million in executive bonuses just days before the Chapter 11 filing.
Chevron cancels contract in Venezuela. Chevron’s (NYSE: CVX) joint ventures with PDVSA cancelled service contracts in recent weeks, according to Reuters. A drop in maintenance could lead to production declines.
China’s refiners increase processing. China’s refineries have started to increase processing, with runs set to increase by 755,000 bpd in April, a 10 percent month-on-month increase.
Schlumberger to cut workforce. Schlumberger (NYSE: SLB) said that it would implement widespread salary and job cuts.
BP slashes spending 20 percent. BP (NYSE: BP) said it would cut spending by 20 percent, including a 50 percent cut in U.S. shale spending. “This may be the most brutal environment for oil and gas businesses in decades,” CEO Bernard Looney said in a statement.
Gas inventories rise. Warmer-than-average temperatures along with demand destruction have led to a spike in natural gas inventories in Europe. “There’s a chance we will see a collapse in prices in the U.S.,” Francisco Blanch, head of global commodities and derivatives research at Bank of America, told Bloomberg. “We are going to be weak on the demand destruction related to the virus, but the real issue is that we had a very warm winter and we are coming out with extreme high inventories.”
U.S. DOE to allow SPR storage. After a plan to buy oil for the U.S. SPR fell through, the Department of Energy is going to open up the SPR for leased storage. There is roughly 77 million barrels of capacity available.
Extraction Oil cuts spending 42 percent. Extraction Oil & Gas, a Denver-based driller, cut spending by 42 percent.
Mnuchin says oil industry won’t get direct loans. In response to pressure from Sen. Lisa Murkowski (R-AK), Sec. of Treasury Steven Mnuchin said that the oil industry would be eligible for loans from the new program created by the stimulus package, just like every other business, but that they wouldn’t receive direct loans from the government.
Trump considers import tariffs on oil. The White House is reportedly considering placing tariffs on imported oil as a way of throwing aid to U.S. oil producers. The plan has met strenuous opposition from refiners and even the API, an oil lobby group that some say reflects the interests of the oil majors. A group of oil executives are set to meet with President Trump on Friday.
Shale drillers hire Rick Perry. A group of shale drillers have tapped former DOE Secretary Rick Perry to pressure the Trump administration on protectionist measures, such as tariffs on imported oil.
European oil majors issue $12 billion bonds. Royal Dutch Shell (NYSE: RDS.A), Total (NYSE: TOT) and Equinor (NYSE: EQNR) are selling a combined $12 billion in bonds to cover costs and maintain dividends.
Thanks for reading and we’ll see you next week.
Best Regards,
Oil prices surged by the most on record in percentage terms on Thursday, jumping by 25 percent. Prices were up again on Friday during early trading. The jolt came from a tweet from President Trump regarding a supposed 10-15 mb/d cut from Russia and Saudi Arabia. Riyadh did indeed call for an emergency OPEC meeting, but the tweet raised a ton of questions.
Russia denies, Saudi takes measured tone. Russia said that no conversations occurred and that it had not agreed to anything. Saudi Arabia called for a meeting but said that action on its part would depend on other countries participating. One OPEC official said the tweet was “Trump talking before his brain engages,” according to the FT.
Diplomacy picks up pace. While the numbers in Trump’s tweet appeared unrealistic, there is some degree of interest from all sides to collective production cuts. It’s not clear that the U.S. would offer anything – Reuters reported that the U.S. government would not ask domestic oil producers to cut output. In addition, Russia has shown a reluctance to cut output, eyeing a decline in U.S. shale. Indeed, oil prices at $25, or $20, or possibly even lower would impose production cuts even without any formal governmental arrangement. Still, a new round of negotiations could take place, possibly with U.S. involvement.
A 10 mb/d cut after all? By early Friday, there seemed to be some momentum on negotiations. Bloomberg reported that Russia was open to a global pact. At the time of this writing, OPEC was rumored to be exploring a scenario in which Saudi cuts by 3 mb/d, Russia cuts by 1.5 mb/d, non-Saudi Gulf States cut by 1.5 mb/d, and the U.S., Canada and Brazil cut by nearly 2 mb/d.
Alberta open to cuts. “If we see an effort at a global reduction in production, we would be open to further measures on our part,” Alberta’s Premier Jason Kenney said. Alberta has been suffering from sub-$5 oil.
Brent physical trades at $10 discount. Physical Brent barrels are trading at a $10-per-barrel discount to Brent futures, a sign that the underlying physical market is deeply oversupplied even as traders demonstrate optimism about the potential for a production cut.
Whiting Petroleum goes bankrupt, dishes out executive pay. Whiting Petroleum (NYSE: WLL) became the first major victim of the unfolding collapse in oil prices, filing for bankruptcy this week. The board approved roughly $14.6 million in executive bonuses just days before the Chapter 11 filing.
Chevron cancels contract in Venezuela. Chevron’s (NYSE: CVX) joint ventures with PDVSA cancelled service contracts in recent weeks, according to Reuters. A drop in maintenance could lead to production declines.
China’s refiners increase processing. China’s refineries have started to increase processing, with runs set to increase by 755,000 bpd in April, a 10 percent month-on-month increase.
Schlumberger to cut workforce. Schlumberger (NYSE: SLB) said that it would implement widespread salary and job cuts.
BP slashes spending 20 percent. BP (NYSE: BP) said it would cut spending by 20 percent, including a 50 percent cut in U.S. shale spending. “This may be the most brutal environment for oil and gas businesses in decades,” CEO Bernard Looney said in a statement.
Gas inventories rise. Warmer-than-average temperatures along with demand destruction have led to a spike in natural gas inventories in Europe. “There’s a chance we will see a collapse in prices in the U.S.,” Francisco Blanch, head of global commodities and derivatives research at Bank of America, told Bloomberg. “We are going to be weak on the demand destruction related to the virus, but the real issue is that we had a very warm winter and we are coming out with extreme high inventories.”
U.S. DOE to allow SPR storage. After a plan to buy oil for the U.S. SPR fell through, the Department of Energy is going to open up the SPR for leased storage. There is roughly 77 million barrels of capacity available.
Extraction Oil cuts spending 42 percent. Extraction Oil & Gas, a Denver-based driller, cut spending by 42 percent.
Mnuchin says oil industry won’t get direct loans. In response to pressure from Sen. Lisa Murkowski (R-AK), Sec. of Treasury Steven Mnuchin said that the oil industry would be eligible for loans from the new program created by the stimulus package, just like every other business, but that they wouldn’t receive direct loans from the government.
Trump considers import tariffs on oil. The White House is reportedly considering placing tariffs on imported oil as a way of throwing aid to U.S. oil producers. The plan has met strenuous opposition from refiners and even the API, an oil lobby group that some say reflects the interests of the oil majors. A group of oil executives are set to meet with President Trump on Friday.
Shale drillers hire Rick Perry. A group of shale drillers have tapped former DOE Secretary Rick Perry to pressure the Trump administration on protectionist measures, such as tariffs on imported oil.
European oil majors issue $12 billion bonds. Royal Dutch Shell (NYSE: RDS.A), Total (NYSE: TOT) and Equinor (NYSE: EQNR) are selling a combined $12 billion in bonds to cover costs and maintain dividends.
Thanks for reading and we’ll see you next week.
Best Regards,
Volf
07.04.2020 kl 08:00
2816
Dear ,
These are very strange times for oil markets.
This week, one event is going to determine whether oil soars to $41 or crashes to $15.
And you need to make sure you're ahead of whatever happens.
Arguably the biggest oil meeting in history was due to take place today - but at the last possible moment, it was canceled.
Now, our technical experts are saying that the outcome of the newly scheduled meeting will send WTI to a minimum price of $41 or cause it to break the resistance level of $19.27 and head towards the fabled $15 mark.
If there were ever a time to take advantage of your risk-free trial of Global Energy Alert, this would be the week. Not only will you gain access to our technical trader's breakdown of where the charts say prices are moving, but our entire intelligence and trading team will be watching developments closely and keeping you fully informed.
Sign up today and read our take on how the OPEC meeting will unfold in Friday's newsletter. You will also get:
- Our head trader's take on how to find a bargain in a distressed energy sector, as well as a stock pick of a company that he thinks might be your best hope.
- A global COVID-19 update that details the impact of the pandemic on the oil and gas industry around the world.
- A breakdown of the latest discoveries, deals, and disasters in the oil and gas space
- An analysis of the key numbers and data in the industry, including the collapse of gasoline demand and production cuts in the shale patch.
- A technical analysis of WTI and where prices will go after the OPEC meeting.
It's time to join a new level of energy intelligence. Get the news and analysis before it breaks anywhere else and stay ahead of the market.
Kind regards,
Michael Kern
News Editor, Oilprice.com
PS: For today only, we're going to throw in an exclusive report covering the "holy grail" of energy. This report includes several breaking opportunities in an emerging sector that you simply can't afford to miss. Sign up for the RISK-FREE trial today and you'll receive this report and the complete guide on investing in the space race.
These are very strange times for oil markets.
This week, one event is going to determine whether oil soars to $41 or crashes to $15.
And you need to make sure you're ahead of whatever happens.
Arguably the biggest oil meeting in history was due to take place today - but at the last possible moment, it was canceled.
Now, our technical experts are saying that the outcome of the newly scheduled meeting will send WTI to a minimum price of $41 or cause it to break the resistance level of $19.27 and head towards the fabled $15 mark.
If there were ever a time to take advantage of your risk-free trial of Global Energy Alert, this would be the week. Not only will you gain access to our technical trader's breakdown of where the charts say prices are moving, but our entire intelligence and trading team will be watching developments closely and keeping you fully informed.
Sign up today and read our take on how the OPEC meeting will unfold in Friday's newsletter. You will also get:
- Our head trader's take on how to find a bargain in a distressed energy sector, as well as a stock pick of a company that he thinks might be your best hope.
- A global COVID-19 update that details the impact of the pandemic on the oil and gas industry around the world.
- A breakdown of the latest discoveries, deals, and disasters in the oil and gas space
- An analysis of the key numbers and data in the industry, including the collapse of gasoline demand and production cuts in the shale patch.
- A technical analysis of WTI and where prices will go after the OPEC meeting.
It's time to join a new level of energy intelligence. Get the news and analysis before it breaks anywhere else and stay ahead of the market.
Kind regards,
Michael Kern
News Editor, Oilprice.com
PS: For today only, we're going to throw in an exclusive report covering the "holy grail" of energy. This report includes several breaking opportunities in an emerging sector that you simply can't afford to miss. Sign up for the RISK-FREE trial today and you'll receive this report and the complete guide on investing in the space race.
De viste også til IEA og hvorfor avtale ikke betyr stort forrige dagen, selv om man skal være forsiktig med hva man tror og tenker om dagen. Trump vet jo ikke en gang selv hva han mener om min og resten av verden har gått fra å høre på en amerikansk president, til bare og forholde seg til ham.
I fare for å høres ut som en konspirasjons teoretiker, så kan det være andre grunner til olje krigen. Saudi står mot Russland i midt østen og krigs maskineriet til Russland, koster vannvittig mye penger, slike bagateller bryr Saudi seg fint lite om. Penger har de nok av, men uansett det er det bare de som vet noe om.
I fare for å høres ut som en konspirasjons teoretiker, så kan det være andre grunner til olje krigen. Saudi står mot Russland i midt østen og krigs maskineriet til Russland, koster vannvittig mye penger, slike bagateller bryr Saudi seg fint lite om. Penger har de nok av, men uansett det er det bare de som vet noe om.
Saudi-Arabia går konk lenge før Russland. Russland er uvenner med både SA og USA. SA må gjøre Trump fornøyd. Det trenger ikke Russland. Russland vil knekke skifern, det vil SA også. Så de har bare en ting til felles, at begge vil knekke skifer-oljen.
Jeg tipper at det enten blir ingen avtale, eller en avtale som ikke er tilstrekkelig til å dra prisene opp. Om SA/Russland kutter så durer bare skifer-oljen videre og de er like langt.
Jeg tipper at det enten blir ingen avtale, eller en avtale som ikke er tilstrekkelig til å dra prisene opp. Om SA/Russland kutter så durer bare skifer-oljen videre og de er like langt.
Redigert 07.04.2020 kl 14:23
Du må logge inn for å svare
Hvordan skulle de gå konk ? 1000 mann i konge familien og kjøper opp olje selskaper, så det kan være en del av planen. Arbeidere er slaver og religion er absolutt.
USA er avhengig av Saudi, for i det hele tatt ha noe som helst kontroll der og i tillegg avhengig av å selge våpen, som er viktig for USA.
Poenget er at det muligens ligger mer stor politikk bak, enn det andre noengang får vite noe om.
Så for man tro og tenke som man vil, men min erfaring er at det alltid ligger mer enn to sider bak slikt.
USA er avhengig av Saudi, for i det hele tatt ha noe som helst kontroll der og i tillegg avhengig av å selge våpen, som er viktig for USA.
Poenget er at det muligens ligger mer stor politikk bak, enn det andre noengang får vite noe om.
Så for man tro og tenke som man vil, men min erfaring er at det alltid ligger mer enn to sider bak slikt.
Volf
11.04.2020 kl 09:45
1859
Friday, April 10th, 2020
OPEC+ agreed to the largest oil production cuts in history on Thursday, but oil prices crashed towards $20 as markets decided that a 10 million bpd cut was insufficient to balance the demand deficit. Today, the G20 will meet to discuss more cuts and more details will likely come out about the OPEC+ deal. Markets are closed today and so all eyes will be on developments over the weekend.
OPEC+ strike 10 mb/d deal, oil prices fall. OPEC+ agreed to joint cuts on the order of 10 mb/d, a historic agreement. The deal calls for both Saudi Arabia and Russia capping production at 8.5 mb/d for May and June, after which cuts would ease in phases – down to 8 mb/d and then to 6 mb/d of cuts. The deal was not received well by the markets, which sold off WTI and Brent over fears that the reductions are inadequate. “The supply and demand fundamentals are horrifying,” said OPEC Secretary-General Mohammed Barkindo.
G20 meets to chip in. OPEC+ is also looking for help from other non-OPEC countries in the G20. Mexico temporarily held up the OPEC+ deal because it does not want to cut. At the time of this writing, Mexico’s president said that he spoke with President Trump, who promised to contribute to the cuts on Mexico’s behalf. “First they asked us for 400,000, then 350,000” Mexico’s President Lopez Obrador said. Mexico was only able to cut by 100,000 barrels a day, and Trump “very generously expressed to me that they were going to help us with an additional 250,000 to what they are going to contribute. I thank him.”
Demand loss at 20-30 mb/d. The OPEC+ deal is historically large, but still insufficient to plug a 20 to 30 mb/d decline in demand. Inventories are set to rise in the coming months. “The proposed 10 million bpd cut by OPEC+ for May and June will keep the world from physically testing the limits of storage capacity and save prices from falling into a deep abyss, but it will still not restore the desired market balance,” Rystad Energy said.
Analysts say cuts are too little, too late. Other analysts also said the risk is to the downside. “These cuts are not enough to prevent massive stockbuilds in May, let alone April,” JBC Energy wrote in a note. Oil prices could fall back despite the cuts.
Bearish EIA data. The weekly EIA data was negative – crude inventories jumped by 15.2 million barrels, gasoline stocks rose by 10.5 million barrels, and gasoline demand fell by another 1.6 mb/d.
Enbridge: 20-25% of Canadian oil to be shut in. Enbridge’s (NYSE: ENB) CEO Al Monaco said that 20-25 percent of Western Canada’s oil production could be shut in because of low prices. Roughly 135,000 bpd has already been shut in. RBC predicts declines of 1.1 to 1.7 mb/d.
Flood of Saudi oil heading to U.S. Saudi Arabia is sending “a flood” of oil to the U.S. Gulf Coast, according to Bloomberg, with an estimated 14 million barrels enroute, compared to just 2 million barrels a month ago.
IMF: Global economy hit worst since 1930s. The IMF said that just about all countries could see falling living standards this year, the first time that has occurred since the 1930s. “Today we are confronted with a crisis like no other,” the head of the IMF, Kristalina Georgieva, said.
OPEC+ agreed to the largest oil production cuts in history on Thursday, but oil prices crashed towards $20 as markets decided that a 10 million bpd cut was insufficient to balance the demand deficit. Today, the G20 will meet to discuss more cuts and more details will likely come out about the OPEC+ deal. Markets are closed today and so all eyes will be on developments over the weekend.
OPEC+ strike 10 mb/d deal, oil prices fall. OPEC+ agreed to joint cuts on the order of 10 mb/d, a historic agreement. The deal calls for both Saudi Arabia and Russia capping production at 8.5 mb/d for May and June, after which cuts would ease in phases – down to 8 mb/d and then to 6 mb/d of cuts. The deal was not received well by the markets, which sold off WTI and Brent over fears that the reductions are inadequate. “The supply and demand fundamentals are horrifying,” said OPEC Secretary-General Mohammed Barkindo.
G20 meets to chip in. OPEC+ is also looking for help from other non-OPEC countries in the G20. Mexico temporarily held up the OPEC+ deal because it does not want to cut. At the time of this writing, Mexico’s president said that he spoke with President Trump, who promised to contribute to the cuts on Mexico’s behalf. “First they asked us for 400,000, then 350,000” Mexico’s President Lopez Obrador said. Mexico was only able to cut by 100,000 barrels a day, and Trump “very generously expressed to me that they were going to help us with an additional 250,000 to what they are going to contribute. I thank him.”
Demand loss at 20-30 mb/d. The OPEC+ deal is historically large, but still insufficient to plug a 20 to 30 mb/d decline in demand. Inventories are set to rise in the coming months. “The proposed 10 million bpd cut by OPEC+ for May and June will keep the world from physically testing the limits of storage capacity and save prices from falling into a deep abyss, but it will still not restore the desired market balance,” Rystad Energy said.
Analysts say cuts are too little, too late. Other analysts also said the risk is to the downside. “These cuts are not enough to prevent massive stockbuilds in May, let alone April,” JBC Energy wrote in a note. Oil prices could fall back despite the cuts.
Bearish EIA data. The weekly EIA data was negative – crude inventories jumped by 15.2 million barrels, gasoline stocks rose by 10.5 million barrels, and gasoline demand fell by another 1.6 mb/d.
Enbridge: 20-25% of Canadian oil to be shut in. Enbridge’s (NYSE: ENB) CEO Al Monaco said that 20-25 percent of Western Canada’s oil production could be shut in because of low prices. Roughly 135,000 bpd has already been shut in. RBC predicts declines of 1.1 to 1.7 mb/d.
Flood of Saudi oil heading to U.S. Saudi Arabia is sending “a flood” of oil to the U.S. Gulf Coast, according to Bloomberg, with an estimated 14 million barrels enroute, compared to just 2 million barrels a month ago.
IMF: Global economy hit worst since 1930s. The IMF said that just about all countries could see falling living standards this year, the first time that has occurred since the 1930s. “Today we are confronted with a crisis like no other,” the head of the IMF, Kristalina Georgieva, said.
Volf
11.04.2020 kl 09:48
1845
Forsetelse;
Nearly 17 million newly unemployed. Nearly 17 million people filed for unemployment insurance in the U.S. in the last three weeks. “In its first month alone, the coronavirus crisis is poised to exceed any comparison to the Great Recession,” Glassdoor Senior Economist Daniel Zhao told Politico.
Banks to seize shale assets. Big U.S. lenders to shale drillers could seize energy assets in order to avoid losses from forthcoming bankruptcies, according to Reuters. JPMorgan, Wells Fargo, Bank of America and Citigroup are setting up companies to own oil and gas assets. The shale industry owes more than $200 billion in debt. “Banks can now believably wield the threat that they will foreclose on the company and its properties if they don’t pay their loan back,” Buddy Clark, a restructuring partner at law firm Haynes and Boone, told Reuters.
ExxonMobil to lower methane emissions. ExxonMobil (NYSE: XOM) said it would lower methane emissions at 1,000 of its Permian sites using drones, satellites and planes.
Franklin Resources preparing for Chesapeake default. Mutual-fund company Franklin Resources is taking steps to prepare for a potential bankruptcy by Chesapeake Energy (NYSE: CHK), according to the Wall Street Journal. Franklin Resources owns a significant portion of Chesapeake’s $9 billion in debt.
Occidental tells workers to write Congress for money. Occidental Petroleum’s (NYSE: OXY) CEO Vicki Hollub told her employees to send pre-written letters to Congress asking the government “to provide liquidity to the energy industry,” according to Bloomberg.
Coronavirus could kill fracking “fever dream.” The U.S. shale industry has never demonstrated profitability and has been built on a decade of cheap capital. “The dream was always an illusion,” Bethany McLean writes in the New York Times. “All that’s left to tally is the damage.”
Concho Resources shutting down Permian output. Concho Resources (NYSE: CXO) said that it is already curtailing production in the Permian. “Concho, as well as other operators in the Permian Basin, have begun shutting in uneconomic production in rapid response to the recent market shift,” the company said in a letter to the Texas Railroad Commission.
Thanks for reading and we’ll see you next week.
Best Regards,
Tom Kool
Nearly 17 million newly unemployed. Nearly 17 million people filed for unemployment insurance in the U.S. in the last three weeks. “In its first month alone, the coronavirus crisis is poised to exceed any comparison to the Great Recession,” Glassdoor Senior Economist Daniel Zhao told Politico.
Banks to seize shale assets. Big U.S. lenders to shale drillers could seize energy assets in order to avoid losses from forthcoming bankruptcies, according to Reuters. JPMorgan, Wells Fargo, Bank of America and Citigroup are setting up companies to own oil and gas assets. The shale industry owes more than $200 billion in debt. “Banks can now believably wield the threat that they will foreclose on the company and its properties if they don’t pay their loan back,” Buddy Clark, a restructuring partner at law firm Haynes and Boone, told Reuters.
ExxonMobil to lower methane emissions. ExxonMobil (NYSE: XOM) said it would lower methane emissions at 1,000 of its Permian sites using drones, satellites and planes.
Franklin Resources preparing for Chesapeake default. Mutual-fund company Franklin Resources is taking steps to prepare for a potential bankruptcy by Chesapeake Energy (NYSE: CHK), according to the Wall Street Journal. Franklin Resources owns a significant portion of Chesapeake’s $9 billion in debt.
Occidental tells workers to write Congress for money. Occidental Petroleum’s (NYSE: OXY) CEO Vicki Hollub told her employees to send pre-written letters to Congress asking the government “to provide liquidity to the energy industry,” according to Bloomberg.
Coronavirus could kill fracking “fever dream.” The U.S. shale industry has never demonstrated profitability and has been built on a decade of cheap capital. “The dream was always an illusion,” Bethany McLean writes in the New York Times. “All that’s left to tally is the damage.”
Concho Resources shutting down Permian output. Concho Resources (NYSE: CXO) said that it is already curtailing production in the Permian. “Concho, as well as other operators in the Permian Basin, have begun shutting in uneconomic production in rapid response to the recent market shift,” the company said in a letter to the Texas Railroad Commission.
Thanks for reading and we’ll see you next week.
Best Regards,
Tom Kool