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Sunday, January 21, 2018

Crude Oil Prices News

Indonesia, CNOOC Talks End in Deadlock

Early renegotiation of gas selling price with China National Offshore Oil Company (CNOOC) has ended in deadlock as the ceiling price proposed by CNOOC was seen as too low, according to Asian Pulse. Indonesia has signed a long term contract to supply China's Fujian province with 2.6 million tons of liquefied natural gas (LNG) annually from Tangguh, Papua. Under the agreement in 1992 the LNG price was tide with crude oil price or around $2.4 per MMBTU based on a ceiling price of $25 per barrel of crude oil. The ceiling price is no longer acceptable to Indonesia with the soaring crude oil price at present. Currently the LNG price is around $8 per MMBTU based on a crude oil price of $65 per barrel.

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., the industry's No. 2, was down 3-12/16 at 70-9/16. Transocean Sedco Forex Inc., the world's largest offshore drilling company, saw its stock trade 3-5/8 lower at 39-3/8, a loss of more than eight percent on the day.

U.S. Crude Oil Production October Exceeded Imports Reports EIA

Diesel chart courtesy of EIA

The U.S. Energy Information Administration (EIA) releases latest short-term energy outlook. Monthly estimated domestic crude oil production exceeded crude oil imports in October 2013 for the first time since February 1995. The weekly U.S. average regular gasoline retail price has fallen by more than 40 cents per gallon since the beginning of September. EIA's forecast for the regular gasoline retail price averages $3.24 per gallon in the fourth quarter of 2013, $0.10 per gallon less than forecast in last month's STEO.

Crude Oil Prices Falls

Crude oil prices fell after reports indicated that a Caribbean tropical storm likely won't induce heavy damages like Hurricane Katrina, which ripped into Gulf of Mexico platforms and refineries a year ago. According to the National Hurricane Center in Miami, tropical storm Ernesto weakened as it swept over Haiti and carried sustained winds of about 50 miles per hour, less than a third of Katrina's 170 miles per hour winds that tore oil and gas platforms off their moorings. Crude oil for October delivery fell $1.27, or 1.75 percent, to $71.24 a barrel in electronic trading on the New York Mercantile Exchange in Paris. Oil reached $73.75 a barrel on August 25, on concern Ernesto would disrupt output at the Gulf of Mexico, source of a quarter of U.S. oil production.

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.” The Saudi Arabian minister pointed to the “balkanized gasoline markets” and a shortage in U.S. refining capacity as reasons why gasoline prices are high in the United States. But the U.S. Deputy Secretary of Energy, Kyle McSlarrow, stated at the same conference that crude oil prices are “the driver” in the recent rise in gasoline prices.

Recovery for European Shipowners?

Pic: Maersk Line

European Shipowners may increase freight rates or renegotiate bunker clauses in the coming year in order to capitalise on lower crude oil prices and consolidate the recovery seen in 2015, reports ICIS. Bunker fuel prices came down significantly amid lower crude oil prices but some shipowners have been unable to take advantage of this because of the bunker clauses they agreed to. A bunker clause is an agreement between charterer and shipowner whereby the charterer pays for fuel at the port and then the shipowner reimburses the charterer for the fuel left in the vessel on its return…

India: Negative Outlook on Shipping Sector

Image: Shipping Corporation of India

India Ratings and Research (Ind-Ra) has maintained a negative-to-stable outlook for the shipping sector for the current financial year. The agency expects the performance of dry bulk and container operators to continue to be affected by weak global trade growth and persistent overcapacity, while the offshore segment will face the negative impact of lower crude oil prices. The agency, however, believes that the tanker segment, which accounts for a majority of the Indian fleet will remain an exception due to its better demand-supply situation.

Cosco in Loss, Blames Low Oil Price

Picture: Cosco Corporation (Singapore) Limited

Cosco Corporation has warned investors of an expected net loss for the second quarter ended 30 June 2015, as against a profit in the previous corresponding period. The company said the loss is mainly due to the low crude oil prices over recent months which have had an adverse impact on the global offshore marine industry. Further details of the Company’s financial performance will be disclosed when the Company announces its 2Q 2015 Results, which are scheduled to be released July 31.

Oil Prices Rally On Tight Supplies

Crude oil prices bolted higher Monday as traders returned from a long holiday weekend to indications that exporting countries may extend the supply cuts that have helped double petroleum prices this year. Crude oil for delivery in February closed 46 cents higher at $26.33 a barrel on the New York Mercantile Exchange, but still failed to lift shares of companies such as Exxon Mobil Corp. and Chevron Corp. in stock market trading.

U.S. Crude Imports To Continue To Rise

Due to declining domestic crude oil production and rising oil demand, crude imports will continue to increase over the next two decades accounting for 64 percent of U.S. oil supplies by 2020, the U.S. Energy Information Administration (EIA) said in its annual long-term energy outlook. Currently, the U.S. imports 52 percent, or 8.6 million bpd of its oil and domestic oil output at 6 million bpd is at its lowest level since the early 1950s. U.S. petroleum consumption is projected to rise an average 1.3 percent annually over the next two decades, growing from the current 19.4 million bpd to 25.1 million bpd by 2020, EIA said. Although world crude oil prices have more than doubled since the beginning of 1999…

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.S. Maritime Trade -- are gaining steam. A new report from the Government Accounting Office (GAO) will surely add fuel to the "export oil" fire now, as GAO reports that U.S. consumers could save on gasoline if the ban on crude oil exports were lifted, even if such a move creates uncertain environmental risks. Allowing more domestic fuel to reach the global energy market would probably boost the national economy and ease the U.S. trade deficit, but other implications are less clear, the GAO said.

AP Moller Unit Orders $300M Oil Rig

Oil and shipping conglomerate A.P. Moeller has placed a $300 million order with a South Korean shipyard for a new jack-up oil rig for its Maersk Drilling unit. Officials declined to give the name of the shipyard. The order may signal that the strengthening of crude oil prices in the past year has sparked increased exploration activity globally, analysts said, noting that Denmark-based A.P. Moeller's Maersk Drilling had last taken delivery of a new jack-up oil rig 10 years ago.

$300M Oil Rig Ordered

Oil and shipping conglomerate A.P. Moeller has placed a $300 million order with a South Korean shipyard for a new jack-up oil rig for its Maersk Drilling unit. Officials declined to give the name of the shipyard. The order may signal that the strengthening of crude oil prices in the past year has sparked increased exploration activity globally, analysts said, noting that Denmark-based A.P. Moeller's Maersk Drilling had last taken delivery of a new jack-up oil rig 10 years ago.

EIA: Falling Fuel Costs, Rising U.S. Production Ahead

The U.S. Energy Information Administration (EIA) has released its latest Short-Term Energy and Winter Fuels Outlook (http://www.eia.gov/forecasts/steo/). •         EIA projects average U.S. household expenditures for natural gas, heating oil, electricity, and propane will decrease this winter heating season (October 1 through March 31) compared with last winter, which was 11% colder than the previous 10-year average nationally. Projected average household expenditures for propane and heating oil are 27% and 15% lower, respectively, because of lower heating demand and prices. Lower heating demand and higher prices contribute to natural gas and electricity expenditures that are 5% and 2% lower than last winter. •         Driven in large part by falling crude oil prices, U.S.

U.S. Federal Court Bars OPEC From Price Fixing

A U.S. federal court reportedly has granted a one-year injunction barring oil producer group OPEC from fixing prices. Prewitt Enterprises won a civil anti-trust case in an Alabama court, accusing the Organization of the Petroleum Exporting Countries (OPEC) of conspiring to fix oil prices through oil supply agreements. OPEC is for the next year "restrained from entering any agreements among themselves or with third parties to raise, lower, or otherwise determine volumes of production and export of crude oil," a Senior U.S. District Judge ruled March 21. OPEC made successive cuts in production through 1998 and 1999 that pushed crude oil prices to their high level since the Gulf War and lifted gasoline pump prices to record highs.

Short-Term U.S. Energy Outlook

Short-Term Energy Outlook - U.S. Energy Information Administration  EIA .

The U.S Energy Information Adminstration have provided projections in their short-term Energy Outlook. * Driven in large part by falling crude oil prices, U.S. regular gasoline retail prices fell to an average of $3.49/per gallon (gal) in August, 12 cents below the July average and 21 cents below the average in June. U.S. regular gasoline retail prices are projected to continue to decline to an average of $3.18/gal in December, 12 cents lower than projected in last month's STEO. EIA expects U.S.

Rig Rates Down 10 Percent

According to a Nov. 25 report from Business Standard, the current global credit crisis and an over 63 percent fall in crude oil prices in the last four months have resulted in oil companies drilling fewer wells in offshore areas. This has increased the availability of rigs across the world and helped bring down rig rentals by up to 10 percent in the recent past. The rig rates have corrected primarily in the shallow water fields where there have been traditionally more rigs available. (Source: Business Standard)

Ship Collision; Iranian Tanker Burns; 32 Missing

© Nightman1965/Adobe Stoc

A tanker carrying Iranian oil and run by the country's top oil shipping firm was ablaze and spewing cargo into the East China Sea on Sunday after colliding with a Chinese freight ship, leaving the tanker's 32 crew members missing, the Chinese government said. Thick clouds of dark smoke could be seen billowing out of the Sanchi tanker  engulfing the vessel as rescue efforts were hampered by bad weather and fire on and around the ship, Mohammad Rastad, head of Iran's Ports and Maritime Organization, told Iranian television.

Oil Majors Celebrate Higher 1Q Earnings

Not only did most oil producing companies post increased income and revenues in the first quarter 2000, compared to 1999, but in some cases, the increases were record-setting. In fact, Conoco's first quarter was the best quarter in the company's 125-year history. Here is a capsulated report of several companies' earnings. USX-Marathon Group's net income adjusted for special items was $199 million in first quarter 2000, compared with a net loss adjusted for special items of $11 million in first quarter 1999. The Marathon Group recorded first quarter 2000 net income of $254 million, which included a $55 million favorable aftertax gain on the sale of its 33.34 percent interest in the Angus/Stellaria development in the Gulf of Mexico. Net income in first quarter 1999 was $119 million.

API: U.S. Oil Stocks Are Down

U.S. oil supply worries found fresh impetus on Tuesday after the American Petroleum Institute said that both crude oil and product stocks had fallen again -- hard on the heels of a massive draw earlier this month. U.S. crude stocks are now at their lowest level since March 1976. Crude oil prices were up sharply in after-hours trading after a decidedly bullish API report showed a 2.1 draw for the week ended August 4, despite a rebound in crude oil imports, which rose 1.34 million barrels to 9.36 million bpd. Compared with this week a year ago, crude stocks are down 40.4 million barrels. The API also showed that U.S. distillate stocks were down 1.2 million barrels on the week (down 27.7 million barrels from this week last year)…

Drilling Sector May Have Missed Chance For Consolidation

Despite the announcement of a large offshore drilling merger this summer, the fragmented industry may have missed its chance for further consolidation due to a recent swift cyclical upswing, according to analysts. Shlumberger Ltd.'s announcement in July that it would merge its offshore drilling unit, Sedco Forex, with Transocean Offshore Inc., to form the world's largest offshore driller, was expected to set off a wave of consolidation in the industry, matching some of the activity among oil majors. But analysts now say a rebound in crude oil prices has closed the window of opportunity by prompting companies to hold out for wider operating margins.

Texaco's Profits Drop; ARCO's Surge

Texaco Inc., the nation's fourth largest oil company, reported that second quarter income dropped 13 percent as low refinery profits abroad were only partially offset by stronger crude oil prices. Texaco, which broke off merger discussions with Chevron Corp., slipped past analysts' expectations with second quarter income of $286 million before special items. In the same period last year, Texaco reported income before special items of $335 million. But Texaco's results were overshadowed by a strong showing from nation's fifth largest oil company, Atlantic Richfield Co. (ARCO), which is being acquired by oil giant BP Amoco Plc. Benefiting from a combination of stronger crude oil and California gasoline prices, ARCO said its second quarter income rose 37 percent from a year ago.

Profitable Year for Shipbuilding Companies

Increased spending on offshore exploration & production (E&P) of oil and gas has increased order-book positions of Indian shipbuilders. ABG Shipyard has an order backlog of Rs 1,300 crore, while Bharati Shipyard has pending orders worth Rs 676 crore on its books. The jump in order books is getting reflected in stock prices of these companies as well. BSL has seen its market cap soar to almost Rs 900 crore from Rs 309 crore at the beginning of 2005. Newly-listed ABG Shipyard has gained 40 percent since its listing in December last year to Rs 1,900 crore. State-owned Cochin Shipyard is also doing well, with 20 ships having been ordered -- 19 of these are foreign orders. Cochin Shipyard had taken a policy decision to concentrate on the overseas business.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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