Trump Rails Against Oil Prices, OPEC Pushes Back
U.S. President Donald Trump accused OPEC on Friday of "artificially" boosting oil prices, drawing rebukes from some of the world's top energy exporters."Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!" Trump wrote on Twitter.It was unclear what triggered the tweet, Trump's first mention of OPEC on social media during his term.U.S. oil prices are near a three-year high…
Trump's Revenge: US Oil Floods Europe, Hurting OPEC, Russia
U.S. supplies to Europe set for all-time high in April; on course to overtake Russia, Saudi. As OPEC's efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits - and flooding Europe with a record amount of crude. Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices close to four-year highs.
Subsea 7 Makes Hostile Bid for McDermott
Offshore oil services firm Subsea 7 has made an unsolicited offer worth about $2 billion for U.S. rival McDermott, potentially breaking up the U.S. company's agreed deal with onshore engineering firm Chicago Bridge & Iron (CB&I).The deal could make Oslo-listed Subsea 7 the market leader in supplying and installing subsea equipment for oil and gas firms with a combined market share of 24 percent, followed by TechnipFMC with 20 percent and Saipem with 15 percent, an Oslo-based consultancy…
Semco Maritime Generated Positive Operating Results in 2017
Semco Maritime’s revenue shrunk to DKK 1,408 million in 2017 against DKK 1,598 million in 2016 as the offshore services provider observed continued price pressure and market hesitancy amid postponed projects and growing competition across its business areas.“Even though oil and gas prices increased during the year, the majority of 2017 was characterized by continued low activity and tough competition in the oil and gas industry. Towards the end of the year, demand from customers…
Odfjell Drilling to Expand Fleet
Offshore rig firm Odfjell Drilling plans to expand its floating rig fleet to between six and 10 from four now, it said on Friday, the latest sign of recovery in the energy industry.After cuts in exploration spending following an oil price plunge that began in 2014, energy firms are now hiring rigs as crude prices have recovered some ground.Odfjell raised $175 million via a new share issue on Thursday to help buy semi-submersible Stena Midmax Rig from Samsung Heavy Industries for $505 million.
US Court Approves Seadrill's Bankruptcy Exit Plan
A U.S. judge said on Tuesday he would approve Seadrill Ltd's plan to exit its Chapter 11 bankruptcy, in which the global offshore oil and gas drilling company would shed billions of dollars of debt and raise $1 billion in new investment. U.S. Bankruptcy Judge David Jones in Houston overruled two minor objections to the reorganization plan during a 90-minute hearing. The plan extends maturities on more than $5 billion of bank loans and converts about $2.3 billion in bond debt into equity in a reorganized Seadrill.
Oil Price Bottoming Depends on Global Growth - IEA chief
International Energy Agency (IEA) chief Fatih Birol said on Sunday that oil prices may have bottomed but that would depend on global economic growth. Asked if oil prices had reached a bottom, Birol told Reuters: "It may well be the case, but it depends on economic growth." He expected global oil demand to grow by 1.2 million barrels per day this year while non-OPEC oil production would fall by more than 700,000 bpd. (Reporting by Osamu Tsukimori; Editing by Jacqueline Wong)
Shipbuilders See More Growth with Oil Price Rise
The Korea Times reported that shipbuilders who were enjoying solid sales have also secured an additional growth engine for further expansion rising oil prices. With oil prices hitting record highs, offshore oil exploration has picked up, leading to strong demand for drilling rigs and for the conversion of oil tankers into floating-production, storage and offloading (FPSO) vessels. The unit price of Dubai crude oil, South Korea’s benchmark, rose to a record high of $71.13 in August, an increase of $1.64 from a month earlier, according to data from the National Statistical Office (NSO). The statistics agency added that it is the first time for oil import prices to exceed $70 a barrel. Industry sources said oil prices have quadrupled since 2002.
OPEC Leader Calls For Price Stability
Venezuelan President Hugo Chavez, who has emerged as a leading OPEC oil price hawk, said he did not want world oil prices to fall from last year's level, when they averaged their highest in 17 years. Despite complaints from the United States and Europe that high oil prices were damaging economic growth, the South American leader said current prices, about $2.50 per barrel below last year's average, were not high enough. "It is vital for us that the average oil barrel price is maintained around where it was last year, at $26.28 per barrel (for Venezuela's basket)," Chavez told a gathering of public sector workers. "This year the price has been below last year…
Market Report Shows Oil Prices Bullish
Burgeoning momentum to own oil seems poised to push oil prices higher for now. On the week, U.S commercial stocks built led by crude, while Japanese crude stocks drew strongly, according to a market report by NYC-based PIRA Energy Group. It is hard not to be bullish oil prices with the global economy gradually improving, tight physical oil markets and MENA turmoil, which is already substantially reducing global oil supplies and has the potential to reduce supplies further. Current positioning and likely September deflationary type headlines, due in part to a challenging calendar, but also the startup of Iranian nuclear negotiations, pose downside risks to oil prices.
NAT CEO: Low Oil Prices Benefit the Tanker Market
Nordic American Tankers Limited Chairman & CEO Herbjørn Hansson addressed the impacts of low oil prices on the tanker business in a letter to shareholders, citing the decrease in oil price as an overall positive for the world tanker market and possible trigger for the recent rate upswing for Suexmax tankers. “The upswing in Suezmax tanker rates in the recent past may have to some extent to do with the decrease in the oil price,” Hansson said. Hansson went on to say that low prices…
OSV Market Poised for Growth -Report
The global offshore support vessel (OSV) market is expected to grow from an estimated $20.06 billion in 2018 to $25.66 billion by 2023, according to a recent report published by MarketsandMarkets. Ongoing offshore activities across the U.S., China, Brazil and the North Sea will help the market to expand at a CAGR of 5.04 percent during the forecast period, according to the report. Offshore exploration and production investments in the Middle East and the Asia Pacific regions are also expected to play a role in the forecasted growth.
Oil Price Crash Claims First US LNG Project Casualty
Excelerate Energy's Texan liquefied natural gas terminal plan has become the first victim of an oil price slump threatening the economics of U.S. LNG export projects. A halving in the oil price since June has upended assumptions by developers that cheap U.S. LNG would muscle into high-value Asian energy markets, which relied on oil prices staying high to make the U.S. supply affordable. The floating 8 million tonne per annum (mtpa) export plant moored at Lavaca Bay, Texas advanced by Houston-based Excelerate has been put on hold, according to regulatory filings obtained by Reuters. The project was initially due to begin exports in 2018. Excelerate's move bodes ill for thirteen other U.S.
Low Bunker Prices to Support Tanker Earnings
Lower oil prices performed wonders for the tanker market in 2015, says Drewry Maritime Research. Tonnage demand surged and oil trade expanded because of high consumption demand and increased stocking activity. Tonnage supply was also kept in check as the contango in oil prices engaged many large tankers as floating storage because onshore storage tanks were full. The most important positive effect of lower oil prices came in the form of reduced bunker costs for vessel owners.
Is Oil Price Pain, Shipping Industry's Gain?
Tumbling prices and oversupply may be cause for concern in the oil industry, but shipping industry it can represent a window of opportunity. A simple statistical data can put things in perspective for you: Two out of every three barrels of oil that are transported are moved around in ships. The remaining one-third is transported via pipelines. Therefore, the shipping industry plays a crucial role in the integrated oil business. To start with, the cost of shipping could go down thanks to the current slide - this is what a study by Middle East's The National shows. Malaysia's MIDF Equities Research shipping sector is set to benefit from the current low crude oil prices. It doesn't have a direct instant impact on shipping, but the situation augers well for maritime sector.
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 $65 per barrel.
Saudi Wants Oil Price US$ 100 per Barrel
Saudi Oil Minister has said the kingdom would be happy with a an oil price of US$ 100 per barrel Saudi oil minister Ali Al-Naimi has said the kingdom wants an oil price of around $100 a barrel and would like to see global inventories rise before demand picks up in the second half of the year, Reuters has reported. "We want a price around $100, that's what we want," Naimi told reporters ahead of an industry event in Australia. "A $100 price is great." Naimi said last week that producers were pumping enough to deal with the impact of the sanctions on the oil market. He reiterated that producers were pumping 1.3m barrels per day (bpd) to 1.5m bpd above demand, which is helping to build inventory.
Oil Prices a Nine-Year High As Iraq Suspends Exports
Oil prices rocketed to a new nine-year high on Nov. 22 after Iraq suspended oil exports under its humanitarian exchange program with the United Nations. London January Brent futures opened at $25.90, the highest oil price since January 1991, when allied forces were preparing to eject Iraqi troops from Kuwait. Later in the day Brent stood at $25.67 a barrel, 63 cents up from Friday's close. Prices leapt as Iraq's Oil Minister Amir Mohammed Rasheed confirmed that Iraq had stopped oil deliveries under the latest six-month phase of its oil-for-food exchange with the UN. Baghdad protested the UN's proposal to extend by two weeks the sixth phase of the program and accused the United States of trying to push other Security Council members into accept a draft resolution on weapons inspections.
Clinton Administration Worried About High Oil Prices
The Clinton administration said that oil prices have soared to "dangerously high" levels, and crude oil could be sold from the nation's emergency stockpile if already-tight supplies are disrupted by Y2K computer problems at the end of the year. Energy Secretary Bill Richardson sent to the White House contingency plans for selling oil from the Strategic Petroleum Reserve if necessary. The reserve, created after the 1970s Arab oil embargo, holds about 572 million barrels of oil in underground caverns. While the millennium computer bug problem is a major concern, Richardson also made it clear that the administration was closely monitoring current oil prices with an eye toward possible action if necessary.
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.
BHP: GoM Mad Dog Project Viable with sub-$50 Oil
BHP Billiton said the second phase of its Mad Dog offshore joint venture with BP in the Gulf of Mexico was economical at oil prices below $50 per barrel. Originally slated for development in 2013, the project has been deferred due to low oil prices and moves to reduce construction costs. After losing three-quarters of its value from mid-2014 to early 2016, the price of benchmark U.S. crude has rallied more than 80 percent since February to nearly $50 per barrel. Reporting by James Regan
Record Oil Prices to Come – Iran Minister
Iran's finance minister believes sanctions against his country could cause the oil price to reach US$ 160 per barrel "We must pay close attention when we speak of oil revenues and sanctions against oil sales, who are the winners and the losers of such sanctions?" Shamseddin Hosseini told CNN's "Fareed Zakaria GPS" in a recently broadcasted interview. Eighty percent of Iran's foreign revenues are derived from oil exports, and an embargo by the EU set to go into effect in July will further devastate its economy. But Hosseini said the embargo would also likely hurt the EU, which is grappling with its own weakened economy. Oil prices as a result of the sanctions, he said, "will go considerably higher than $100 per barrel."
Denmark's Budget Gap May Flirt with EU Limit if Oil Stays at $50
Denmark's government estimates its budget would lose 7.5 billion Danish crowns ($1.1 billion) if oil prices remained around $50 a barrel, according to a document submitted by the finance minister to a parliamentary committee. That figure, which takes into account the positive financial impact from lower oil prices, represents 0.4 percent of gross domestic product (GDP) and would push the budget deficit to 2.9 percent, close to the European Union's 3.0 percent cap. In the document, the ministry outlines oil price scenarios. Crude at $60 for the whole year would bring losses of 5.7 billion crowns and at $70, 3.7 billion crowns. Denmark produces oil and gas from the North Sea but its 245,000-barrel per day (bpd) production is dwarfed by Norway's 1.5 million bpd.