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Oil Prices

Weak Oil Threatens US Export of LNG

Plunging global oil prices may turn hopes for cheap liquefied natural gas supplies from the United States into a costly disappointment for Asian buyers who have already invested billions of dollars in long-term contracts. The 26 percent price slide since June to $85 a barrel exposes cracks in the assumption by utilities and industrial companies from Japan to India that cheap U.S. LNG would muscle into high-value Asian energy markets from 2016. Oil prices form the backbone of LNG trade to Asia, because exporters outside the United States typically tie 25-year supply deals to crude oil prices. If prices continue to fall, these suppliers from Qatar to Australia will regain their edge over upstart U.S. producers. "From the buyer's view, $80 oil makes oil-linked supplies less expensive ... it makes U.S. LNG relatively less attractive for buyers," said one industry source with a commercial focus on North American projects. When Asian buyers signed for U.S. supply deals, the discount to rival oil-linked LNG supply was around $1.90 per mmBtu, but now that could be as low as 90 cents, and an oil price of $80 a barrel effectively results in a dead heat. Asian buyers such as Korea Gas Corp., Tokyo Electric and India's Gail now face the potential for a glut of increasingly cheap oil-linked LNG. Projects Suffer


Offshore Recovery Stalled For Now

As crude oil prices reach Gulf War highs and recent memories of historic low crude prices fade, capital spending on finding and developing new oil reserves continue to play catch up. "The recent oil-price crisis set back non-OPEC output growth for at least a year," a recent report released by Deutsche Banc Alex. Brown states, adding, "While currently high oil prices should spur investment, the extensive 16-month price slide should delay any significant output response from non-OPEC producers


Big Oil Profits Expected To Fly High

The near record oil prices have left U.S. oil majors as the envy of industry during the third quarter reporting period, according to many industry analysts. "This is clearly a sector that investors shouldn't worry about having disappointing earnings surprises," said one. "The question is not whether they will beat consensus estimates, but by how much they'll beat estimates," said another. Such expectations from analysts and investors come as crude oil prices in the third-quarter hit


EIA: Would More Crude Oil Help?

Yesterday (April 27), the Center for Strategic and International Studies (CSIS) and the U.S.-Saudi Arabian Business Council co-hosted a conference on “U.S.-Saudi Relations and Global Energy Security.” At this conference, as he has stated recently in other venues, the Saudi Arabian Minister of Petroleum and Mineral Resources, Ali al-Naimi, stated that, “There is no general shortage of crude oil in today's market -- supplies are readily available


Venezuela's Oil Falls to $42.44

Image for Venezuelas oil

  Venezuela's petroleum export basket dropped to $42.44 per barrel this week from $47.05 last week to reach a 5-1/2-year low, the Petroleum Ministry said on Friday. The South American OPEC member's basket, which includes crude oil and refined products, trades at a discount to other benchmarks because of its higher content of heavy oil. Venezuelan oil prices averaged $88.42 last year, down from $98.08 in 2013.


China Shipbuilders may Merge to Stay Afloat

Picture by China COSCO Container Shipping

 The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.   The chances of mergers between China Ocean Shipping, China Shipping Container Lines, Sino Trans & CSC Holdings and China Merchants Group  has improved as they now suffer in a lackluster business climate, the Chinese-language Securities Daily reports.  


Oilfield Stocks Take A Hit As Crude Dips Below $30

Profit-taking hit oilfield service and drilling stocks on Monday as U.S. crude oil prices shed over a dollar to dip below $30 a barrel for the first time since February 28. On Monday afternoon, the Philadelphia Stock Exchange's oilfield service index was off 4.82 points or 4.6 percent at 100.03, while U.S. April crude oil futures were $1.23 lower at $29.68 a barrel. Halliburton Co., the world's biggest oilfield service provider, was off more than five percent at 36-3/8 while Schlumberger Ltd


Oil Prices Slip

According to reports, oil prices fell by three per cent Monday, slipping below $59 a barrel as traders looked ahead to U.S. supply data due out Wednesday that is expected to show rising inventories of crude. Doubts about OPEC's ability to implement a 1.2 million barrels a day production cut also weighed on prices. Last week, oil prices surged after the U.S. Energy Department data showed a large decline in crude-oil inventories


DP World: Low Bunker Prices to Fuel Economic Growth

Photo courtesy of DP World

Falling ship operating costs and low bunker prices will translate into higher profitability fueling economic growth, says Dubai-headquartered DP World.   As bunker fuel prices drop, so too could shipping costs. Dubai-headquartered DP World says falling oil prices are good news for global shipping.  It plans to double investments this year, local media reports.   The Chairman of  DP World Sultan Ahmed bin Sulayem has stated that the fall in oil price may stimulate


OPEC Sees Oil Prices Returning to $80/Barrel by 2020

OPEC forecasters expect oil prices will rise by no more than $5 a barrel a year to reach $80 by 2020, with a slowing in rival non-OPEC production growth not enough to absorb the current oil glut, according to OPEC sources.   The sources said the figures came from an updated mid-term strategy report discussed this week by representatives from the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, which has yet to be fully endorsed by OPEC ministers.  


Japan Starts Probe of LNG Shipping Restrictions

File Image (CREDIT: Parker Bestobell)

Japan's Fair Trade Commission (JFTC) has ordered the country's liquefied natural gas (LNG) buyers to provide details on contract requirements that prevent them from reselling the fuel to third parties, according to a source with direct knowledge of the inquiry.


As Operators Look for the Bottom, Gulf Gloom Persists

Credit: Yesenia Rodriguez

Gulf of Mexico vessel operators want to see sustained, higher oil prices. After a rough two years, supply boat owners and operators in the Gulf of Mexico hope crude oil prices will improve in 2017. That would encourage activity among the offshore drillers that they service and would put


Maersk, DONG in Talks over $10 Bln Oil Merger

File photo: DONG Energy

Denmark's A.P. Moller-Maersk and DONG Energy are in talks to merge their oil and gas operations in a deal that would create a business worth more than $10 billion including debt, sources familiar with the matter said.   Maersk is working with Bank of America on the potential deal


Carriers Playing Poker with Ports

Image: Drewry Shipping Consultants Limited

 Container shipping lines are in danger of putting future port investment at risk in their demands for terminal handling cost reductions, according to the recently launched Ports and Terminals Insight report published by global shipping consultancy Drewry.  


GE to Merge Oil & Gas Unit with Baker Hughes

Photo: GE

General Electric Co said on Monday it would merge its oil and gas business with Baker Hughes Inc, creating the world's second-largest oilfield services provider as competition heats up to supply more-efficient products and services to the energy industry after several years of low crude prices.


Statoil Submits Trestakk Plan for Development and Operation

Photo: Statoil

 Statoil, on behalf of the license holders, has submitted a Plan for Development and Operation of the Trestakk discovery on the Halten Bank to the minister for petroleum and energy, Tord Lien, in Bodø.   Capital expenditures are estimated at approximately 5.5 billion NOK.


Maersk Box Unit Records Q3 Loss

File image (Credit: port of Savannah)

A.P. Moller-Maersk , the world's biggest shipping firm, said the container business on which it is staking its future made a loss in the third quarter of the year as freight rates declined further.   Shares in the Danish company fell as much as 9 percent after profit in the three months to


Singapore Considering Financial Aid to Marine Sector

(File photo: Jill Friedman)

Singapore's minister of trade and industry S. Iswaran said the government is working in consultation with the marine and offshore engineering sectors, plus the region’s financial institutions, to review the possible need for measures to help them recover from the economic downturn


EOG Resources Posts Smaller Quarterly Loss

 Oil producer EOG Resources Inc's loss in the third quarter was smaller than a year earlier the company took an impairment charge of more than $6 billion.   The company posted a net loss of $190 million, or 35 cents per share, compared with a loss of $4.08 billion, or $7


Canada Oil Spill Program Hit by Cheap Crude

The two-year oil price crash has hurt a Canadian government program that funds research on oil spill cleanups, resulting in fewer applicants than expected, a senior federal official said. As a result, the government will expand the scope of its Oil Spill Response Science Program and open a


Finnlines Improves Profit despite Lower Revenues

File photo: Finnlines

Despite a dip in revenues during the third quarter and first nine months of 2016, Finland-based shipper Finnlines Group was able to improve profits for both bother periods by cutting expenses. The group’s €60.9 million result for January-September was about €20 million better


Low Oil Price to Stimulate Tanker Market: NAT

Graph: Nordic American Tankers

 The development of the world economy affects the tanker industry. A low oil price is stimulating the world economy which is positive for the tanker market, says a report by Nordic American Tankers.   The drybulk and container sectors are weak


US Drillers Continue to Add Oil Rigs -Baker Hughes

U.S. oil drillers increased rigs this week for a 21th week in the last 24, as energy firms follow through on plans to add rigs made months ago when crude was still trading over the key $50 a barrel level analysts said should lead to more drilling.  


Cosco Sinks Further into Red in Q3

Photo: COSCO Corporation (Singapore) Limited

 COSCO Corporation (Singapore) Limited has seen its net loss widen in the third quarter of 2016 to SGD 102.3 million (USD 72.6 million) from SGD 82.1 million (USD 58.2 million) reports Business Times.   “It has been another difficult quarter for our industry


Oil Prices Soar 4%

Oil prices jumped 4 percent on Tuesday, bouncing back from multi-month lows on expectations that OPEC will agree later this month to cut production to reduce a supply glut. Saudi Energy Minister Khalid al-Falih is expected to travel to the Qatari capital, Doha






 
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