|Day's range||39.27 - 40.99|
The rash of oil and gas bankruptcies in North America is set to continue for the remainder of 2020, a report by Haynes and Boone shows
Stock markets pulled back significantly during the trading session on Thursday as the market finally got a little bit of pullback finally.
Crude oil markets got a little bit of a hit on Thursday. The market still has a way to go, so I think we could get an opportunity to buy oil even cheaper.
Oil prices slumped as much as 3% on Thursday, the most in over two weeks, as the continued surge in new U.S. coronavirus cases sparked fears that the world’s largest economy might be forced into round of wide-scale lockdowns. “In the U.S., economic activity will require a successful reopening of schools in autumn and that may hinge on a major reversal on mandating masks,” Ed Moya, senior market strategist at New York-based OANDA said in a note on oil. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled down $1.28, or 3.2%, at $39.62 per barrel.
The early price action suggests an upside bias today. The weather models maintain a “solidly hot U.S. pattern” over the next 15 days.
Crude prices cratered more than 30% during the first half, which doesn't even describe the intense volatility as oil went negative before staging an epic rebound. This slump forced several oil companies to file for bankruptcy protection while putting many more on the brink. Three top oil stocks poised to benefit from this rebound are EOG Resources (NYSE: EOG), Enbridge (NYSE: ENB), and Magellan Midstream Partners (NYSE: MMP), making them top buys right now.
S&P; 500 futures are gaining ground in premarket trading as continuing jobless claims declined to 18.1 million.
Over the past few weeks, large but opposing forces have kept WTI hovering around $40 per barrel.
The take-away is the long-term turning point is a big deal, and gold could fall significantly before it soars due to extremely positive fundamental outlook.
(Bloomberg) -- Glencore Plc has restructured a $500 million oil-for-cash loan to Kurdistan in northern Iraq, reducing payments for 2020 as the semi-autonomous region struggles due to low petroleum prices.The so-called prepayment deals, in which a trading house advances a government money to be repaid with future oil shipments, have been popular among some African and Middle Eastern producers with few others ways of raising funds. But they have also proved controversial, in some cases creating an opaque form of debt that puts governments’ finances under strain when oil prices drop.The restructuring was announced via a regulatory filing on the Cayman Islands Stock Exchange, where debt notes linked to the Kurdish loan are listed.After oil plunged earlier this year, Kurdistan struggled to repay its oil-for-cash debt, as did the likes of Chad and the Republic of Congo. The loans are paid back with oil cargoes. If crude prices fall, countries need to divert more barrels to keep up with the payments.New TermsGlencore, the world’s largest commodity trader, lent the money to the Kurdistan Regional Government in January 2017, with repayments starting three years later.Under the new terms, the KRG will repay the loan at a rate of $3 million per month between June and November, compared with an original repayment schedule of $20.8 million per month, according to the July 8 regulatory notice. From December 2020 until December next year, the KRG agreed to increase its monthly repayments to about $29.9 million.The restructuring will affect global investors, including U.S. pension funds, because they bought five-year notes known as Oilflow SPV 1 DAC linked to the KRG loan. The notes, which have a 12% coupon, fell to a record 74 cents on the dollar in April and the yield rose above 60%, according to data compiled by Bloomberg.The price has since climbed to about 94 cents, partly because Brent crude’s more than doubled in that period with the easing of coronavirus lockdowns. At $43.46 a barrel, Brent’s still down 34% this year.A majority of investors in the notes approved the restructuring terms on Tuesday, according to the regulatory filing.A Glencore spokesperson declined to comment and a representative of the Kurdistan government didn’t immediately respond to a request for comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The analysts covering Abraxas Petroleum Corporation (NASDAQ:AXAS) delivered a dose of negativity to shareholders...
U.N. Secretary-General Antonio Guterres urged countries on Thursday to stop financing coal and pledge not to build new coal-fired power plants to enable a shift to clean energy. Costs for renewables such as wind and solar have plummeted over the last decade.
Singapore's residual fuel oil inventories jumped 6% in the week to July 8 to a more than three-year high, official data showed on Thursday, as limited bunker demand and steady imports pushed supplies higher. This came as Singapore became for the first time since at least 2015, or as far as available records show, a net importer of fuel oil from China in the latest sign of the rapid increase of Chinese fuel oil production. China's reliance on fuel oil imports from Singapore has begun to fade since it introduced new tax and export rules this year, encouraging refiners to ramp up fuel oil production and boosting its bunkering industry.
Global economic downturn and re-emergence of COVID-19 in several main markets are still playing havoc with global energy demand. The continuing barrage of positive figures presented by leading banks, financial institutions or OPEC exporters, seems to be weakening by the day.
Oil prices fell about 2% on Thursday as investors worried that renewed lockdowns to contain the spread of coronavirus in the United States would again sink fuel consumption. U.S. West Texas Intermediate (WTI) crude futures fell $1.07, or 2.6%, to $39.83 a barrel. "As the U.S., Brazil and other countries continue to get hammered by COVID-19, demand is at stake," said Louise Dickson, oil markets analyst at Rystad Energy.
European stock markets are set to edge higher Thursday, with investors hopeful of more government help to sustain the economic recovery while remaining wary of the mounting coronavirus cases ahead of the new earnings season. At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.2% higher. CAC 40 futures in France were up 0.8%, while the FTSE 100 futures contract in the U.K. rose 0.6%.
(Bloomberg) -- Australia’s second-largest pension fund aims to almost halve carbon emissions across its investments within a decade as it joins global peers in mitigating the risks of climate change.First State Super said it will advocate for Australia’s economy to reduce its greenhouse gas emissions by 45% by 2030 and replicate the target in its portfolio. The A$120 billion ($83 billion) fund will reduce emissions in its stock holdings by 30% by 2023, has divested from thermal coal producers and continues to review its energy portfolio to avoid owning so-called stranded assets.“Divestment from thermal coal mining is an important first step, but we recognize there is more to do,” Chief Executive Officer Deanne Stewart said in a statement. “It is essential that as a responsible owner, super funds set strong, ambitious and transparent targets to deliver the kind of action we need now to prepare for a more prosperous and sustainable future.”The action plan comes after months of pressure on Australia’s pension funds -- custodians of the world’s fourth-largest pot of retirement savings at A$2.7 trillion -- to follow firms like BlackRock Inc. and Europe’s Stichting Pensioenfonds ABP in cutting exposure to high-emitting companies. Those calls gained traction after the nation’s deadly wildfires heightened concerns about the impact of climate change.Wildfires Are Forcing Aussie Pension Funds to Be More GreenHere’s how First State is preparing for a low-carbon economy:Reduce scope 1 and scope 2 carbon emissions in its listed equity portfolio by 30% by 2023 from Dec. 31 levelFund has divested from companies that get more than 10% of revenue from thermal coal mining, including Anglo American Plc., Exxaro Resources Ltd., Whitehaven Coal Ltd., Stanmore Coal Ltd., New Hope Corp. and Washington H. Soul Pattinson & Co.Glencore Plc was looked at “very closely” but it didn’t meet the criteria, Liza McDonald, the fund’s head of responsible investment said by phone. First State also considered a lower threshold, but as the larger diversified miners sell coal assets, it instead will continue the engagement program to get them to lower their exposure, she said.Reduce carbon emissions in its whole portfolio by 45% by 2030 from Dec. 31 levelIncorporate a “shadow” carbon price on all its applicable assets and investmentsReview the fund’s energy portfolio mix and consider divesting or excluding areas that won’t be able to transition to a low-carbon economyInvest around A$500 million over three years into renewable energy and sustainable technologiesContinue to engage with individual companies around their emission reduction targets and plansTo be sure, there is a risk the fund won’t meet its ambitious emission reduction targets even as the coronavirus pandemic has heightened the need to focus on environmental, social and governance issues in investment decisions, McDonald said. The long-term goal can only be achieved if others join, she said.“We can’t do this on our own,” McDonald said. “We actually need the rest of the industry to step up as well, to set these targets and advocate for this with us.”(Updates with divestment of coal from second paragraph, details from first bullet)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil prices fell about $1 a barrel on Thursday as investors worried that renewed lockdowns to contain the spread of coronavirus in the United States would again sink fuel consumption. Brent crude <LCOc1> futures fell 94 cents, or 2.2%, to settle at $42.35 a barrel, after gaining 0.5% on Wednesday. "As the U.S., Brazil and other countries continue to get hammered by COVID-19, demand is at stake," said Louise Dickson, oil markets analyst at Rystad Energy.
Expectations are for a 57 Bcf Build
The crude oil markets have done almost nothing during the trading session on Wednesday, as the same area causes major issues.
Natural gas markets initially fell during the trading session on Wednesday but found plenty of support near the $1.80 level to show signs of life again.
Oil stays above the $40 level but fails to develop additional upside momentum as crude inventories increase by 5.7 million barrels.