|Day's range||58.65 - 59.13|
MOSCOW/LONDON (Reuters) - Russia has agreed to pay Kazakhstan a fixed per-barrel rate of compensation for tainted oil, industry sources said on Wednesday, a breakthrough in an oil contamination crisis that disrupted Russian and Kazakh flows earlier this year. It is the first such deal and could serve as a template for other agreements, including with Western buyers of Russian oil. Russian oil flows have been contaminated with chemicals along several transit routes since the end of April.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
(Bloomberg) -- Saudi Aramco is planning a $6 billion expansion at its South Korean refining unit as the state-owned producer signs deals to ensure long-term demand for its crude in Asia.Saudi Crown Prince Mohammed bin Salman took Aramco’s Chief Executive Officer Amin Nasser with him to Korea during a visit that saw a raft of deals from crude supply to ship building and automobile industry projects signed between the two countries. Aramco, officially known as Saudi Arabian Oil Co., and other Saudi businesses agreed to $8.3 billion worth of projects with Korean companies during the visit, the Korean energy ministry said.Prince Mohammed is leading the push to transform the crude-dependent Saudi economy by developing new industries at home. Korea Shipbuilding & Offshore Engineering Co. was among the companies that agreed to set up businesses like ship building and servicing in the kingdom, which is the largest supplier of oil to South Korea.That doesn’t mean the Saudis are turning their back on their cash cow. Aramco signed deals for crude supply and storage in Korea aimed at guaranteeing access to Asian markets. The state producer, which aims to nearly double refining capacity to about 10 million barrels a day by the end of the next decade, is investing in processing and chemical plants overseas to ensure it’s got buyers for its oil as competition from other suppliers increases.Aramco, plans to add units at its S-Oil Corp. refining venture in South Korea by 2024 to help further process oil into chemicals, the two companies said in separate statements. It will expand the 669,0000 barrel-a-day refinery and chemical complex at Onsan on Korea’s east coast by adding a steam cracker and olefins unit. S-Oil will study using technology that will allow it to transform crude directly into chemicals. Aramco owns around 63% of S-Oil.Like other Middle East oil producers, Aramco is moving into petrochemicals as a way to earn more from its energy deposits. The push into Asia highlights the importance of seaborne transit for crude and products. Amid tensions with Iran over the Strait of Hormuz, CEO Nasser stressed that Aramco remained prepared to supply markets even if disruptions to traditional trade routes occur.To contact the reporters on this story: Heesu Lee in Seoul at firstname.lastname@example.org;Shinhye Kang in Seoul at email@example.com;Anthony DiPaola in Dubai at firstname.lastname@example.orgTo contact the editors responsible for this story: Nayla Razzouk at email@example.com, Andrew Janes, Serene CheongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the U.S. East Coast and industry data that showed U.S. crude stockpiles fell more than expected. U.S. West Texas Intermediate (WTI) crude futures were at $58.96 per barrel, up $1.13 from their last settlement. Philadelphia Energy Solutions (PES) is expected to seek to permanently shut its oil refinery in the city after a massive fire caused substantial damage to the complex, two sources familiar with the plans said on Tuesday.
Russia is zeroing in on one of the last truly underdeveloped oil & gas frontiers in the Middle East, and the mighty Barzani family is helping it to achieve this goal
China’s increasing foreign oil imports are seen as a strategic risk by its rulers, and Beijing has now taken steps to make the country less reliant on foreign crude
Aramco is ready to continue shipping crude oil even if maritime transport through the Strait of Hormuz is disrupted
Shipments of coking coal from the United States and Canada rose to a sixth of all Indian imports of the fuel during the year ended March 2019, as steelmakers in the coal guzzling country look to cut their dependence on Australia. Australia's share in India's coking coal market fell to 71%, or 36.91 million tonnes, during the year ended March 2019 from about 88% three years ago, India coal ministry data reviewed by Reuters showed. The United States and Canada had a 5.6% share of the market three years ago.
On June 24, the US crude oil August 2019 futures closed ~$2.48 above the August 2020 futures. On June 17, the futures spread was at a premium of $0.57.
On June 24, US crude oil prices rose 0.8% and settled at $57.9 per barrel. In the trailing week, US crude oil prices rose 11%. On June 17–24, the S&P; 500 Index (SPY) rose 1.9%.
In the next quarter, the US crude oil production might increase. For the week ending June 14, US crude oil’s weekly production was at 12.2 million barrels per day—near its record high.
(Bloomberg) -- Saudi Arabian Oil Co. has the experience and infrastructure it needs to keep crude flowing should supply through the Strait of Hormuz be disrupted, according to the chief executive officer of the state-run producer.“We are increasing our readiness,” Amin Nasser said in an interview in Seoul on Tuesday. “We can supply through the Red Sea and we have the necessary pipelines and terminals.”Brent crude has jumped about 8% since mid-June as worsening relations between the U.S. and Iran have magnified fears that shipments could be disrupted through the Strait of Hormuz, a narrow choke-point through which about one-third of all seaborne crude flows. There have been a series of attacks on tankers over the past few weeks and the downing of an U.S. Navy drone, which American officials have blamed on Iran.“It’s a concern for the whole world because that is an important supply route for a lot of crude, not only from Saudi Arabia,” Nasser said.Saudi Aramco operates a pipeline with a capacity of 5 million barrels a day that carries crude 1,200 kilometers (746 miles) between the Gulf and Red Sea, enabling it to ship oil from both sides of the country. But that compares with the company’s total exports of around 7 million barrels a day, meaning it would need to find other ways of getting any remaining oil to the market.In mid-May, flows through the cross-country link were halted after two pumping stations were hit by a drone attack by Yemen’s Iranian-backed Houthi rebels.The state-run company, which is the world’s biggest oil exporter, traces its beginnings to the 1930s and kept pumping crude through the Iran-Iraq war and the two Gulf Wars. Aramco would draw on that experience to keep supplies flowing, Nasser said.“We had experience through the Gulf conflict but we have always met our commitments to our customers,” he said. “So we have a track record of building enough flexibility in the system to manage a situation or a crisis.”Stakes in KoreaNasser is visiting South Korea this week along with a Saudi delegation including Crown Prince Mohammed bin Salman. Saudi Aramco has been the biggest shareholder of South Korea’s S-Oil Corp. since 1991 and it bought a 17% stake in Hyundai Oilbank Co. for $1.2 billion in April.Hyundai Oilbank’s purchases of Saudi crude are set to rise from the current level, Nasser said. The company bought about 15.5 million barrels of oil from the kingdom last year, according to Korea National Oil Corp. data. Separately, S-Oil will announce Wednesday plans to start another feasibility study on further expanding its refining capacity, which will be bigger than the latest capacity addition at its Ulsan plant, he said, without giving further details.See also: Tanker Attacks Making U.S. Oil More Attractive for South KoreaWhile Saudi Arabia was South Korea’s biggest oil supplier last year, with shipments of 885,000 barrels a day accounting for about 29% of total imports, crude from the U.S. jumped more than fourfold during the same period, KNOC data showed.With rising geopolitical risks in the Gulf region and the Organization of Petroleum Exporting Countries and its allies trimming output, Korean processors may further boost purchases from America. Still, Nasser said he’s not worried about the competition from the U.S.“We are not concerned,” he said. “We have the lowest cost position with an excellent infrastructure to supply to our customers. In the past, we have never failed to supply and meet our deliveries. We also have different types of crude, which is critical.”(Adds details on Aramco’s Korean investments from 9th paragraph.)To contact the reporter on this story: Heesu Lee in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Alexander Kwiatkowski, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Developers of coal mines and coal-fired power plants in Asia are facing difficulties growing their businesses as global financial institutions refuse to back their projects to avoid criticism over climate change, industry participants said on Tuesday. "Coal power plant financing is very challenging," said Dharma Djojonegoro, Deputy Chief Executive Officer of Indonesia's PT Adaro Power, the power generation unit of the country's second-largest coal miner PT Adaro Energy.
Saudi Aramco can meet the oil needs of customers using its spare capacity despite developments in the Gulf that are a cause for concern, the head of the state-run energy giant said on Tuesday. Attacks in May and June on oil tankers near the Strait of Hormuz, the entrance to the Gulf, has raised concerns about the safety of ships using the strategic shipping route. "What's happening in the Gulf is definitely a concern," Amin Nasser, president and chief executive of Aramco, told Reuters in an interview in Seoul.
(Bloomberg) -- Oil pushed higher as an industry report suggested U.S. crude stockpiles continue to shrink, a bullish signal for a market that’s been beset by economic jitters and an uncertain standoff in the Middle East.Futures jumped almost 1% in New York within minutes of an American Petroleum Institute report said to show U.S. inventories dropping by 7.55 million barrels, more than twice the median drop predicted by analysts in a Bloomberg survey. If confirmed by government data on Wednesday, it would be the second straight stockpile drop and the biggest in three months.Prices had flipped between gains and losses several times during a choppy trading session that also brought reminders of the fragile economic outlook.Acting Secretary of Defense Mark Esper said the U.S. isn’t looking to go to war with Iran, Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.West Texas Intermediate for August delivery rose 1.2%, or 72 cents, to $58.62 at 4:45 p.m. on the New York Mercantile Exchange, after closing the official trading session at $57.83. Brent for August settlement rose 92 cents, or 1.4%, to $65.78 a barrel on London’s ICE Futures Europe Exchange.See also: Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+“The United States is not looking to go to war with Iran; rather we want to get into a diplomatic path,” Esper told reporters en route to Brussels Tuesday for a North Atlantic Treaty Organization conference. The administration wants to work with its allies to bring Iran “back to the negotiating table,” he said.\--With assistance from Tsuyoshi Inajima.To contact the reporters on this story: Alex Nussbaum in New York at firstname.lastname@example.org;Grant Smith in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Reg Gale, Catherine TraywickFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil prices were mixed on Tuesday ahead of data expected to show U.S. crude stocks declining, outweighing investors' concerns that U.S.-China trade tensions could dampen fuel demand. U.S. crude futures fell 7 cents, or about 0.1%, at $57.83 a barrel. Oil-market jitters over the escalating tension between the United States and Iran have eased after Trump targeted Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, after calling off a retaliatory air strike, analysts said.
Investing.com - Oil prices fell on Tuesday in Asia even after the U.S. slapped sanctions on Iran this week after the latter shot down an unmanned American drone last week.
A new federally led study of oil seeping from a platform toppled off Louisiana’s coast 14½ years ago found releases lower than other recent estimates, but contradicts the well owner’s assertions about the amount and source of oil.
MOSCOW/LONDON (Reuters) - In the opinion of Russian officials, the oil contamination crisis that disrupted flows from the world's second-largest exporter of crude this spring is long over. Two months since buyers discovered Russia was shipping oil contaminated with organic chloride, which is designed to boost output but can destroy refining equipment, less than half of the tainted crude loaded on tankers has found end-users. In China, buyers have refused to take dirty Russian oil, forcing trader Vitol to send a cargo back to Europe.
California’s oil production has been falling steadily as a result of the environmental push of the local government and legislators, but its consumption has been rising, creating an unsustainable situation
Today we'll evaluate Goodrich Petroleum Corporation (NYSEMKT:GDP) to determine whether it could have potential as an...