Baku, Azerbaijan, Feb. 4
By Dalga Khatinoglu – Trend:
Six members of the OPEC have agreed to hold an urgent meeting, Shana news agency reported Feb. 4.
After a meeting with his Iranian counterpart Bijan Namdar Zanganeh, Venezuela's oil minister Eulogio del Pino said that Russia also support an urgent meeting between OPEC members to cut production level to push the prices up.
Venezuela's oil minister has started a round of trips to major oil producers to convince them to decrease production level in order to raise the prices.
He met with his Russian counterpart Alexander Novak on Monday and after Iran, Eulogio del Pino will visit Saudi Arabia and Qatar.
According to the International Energy Agency (IEA), the global oil production reached 96.31 mbpd, while demand was 94.47 mbpd in 2015.
Huge amount of oil glut has pushed the prices down, from $108 in the first half of 2014 to the current $35.
Eulogio del Pino said that Iran, Oman and Iraq are among OPEC members who have willingness to hold OPEC's urgent meeting.
He also called on the other non-OPEC producers on cutting the oil output and supporting prices.
Senior Gulf sources make clear that the idea of a 5% cut is not a proposal authored by Saudi Arabia, but that the Kingdom would not stand in the way of a deal.
So where does this leave the oil market? Investment banking giant Goldman Sachs, which has been one of the most bearish firms when it comes market oversupply, said it's too late for the major players to save oil anyway.
Away from the EIA figures, the dollar slumped yesterday after weak data on the US services sector pushed back expectations of when the Federal Reserve will again raise interest rates. A weaker dollar makes oil cheaper for overseas consumers in big markets such as China, which is seen as positive for demand.
Finally – and arguably most importantly – the market continues to trade oil up on hopes of a deal among oil-producing nations to cut exports from their multi-year highs. Last night, there were reports that several members of Opec and Russia, the key non-Opec oil power, are set to meet to discuss coordinated action.
(Bloomberg) -- Oil bulls distressed that last week’s rally fizzled can find some comfort in forecasts for a bigger and longer rebound by the end of the year.
Analysts are projecting prices will climb more than $15 by the end of 2016. New York crude will reach $46 a barrel during the fourth quarter, while Brent in London will trade at $48 in the same period, the median of 17 estimates compiled by Bloomberg this year show. A global surplus that fueled oil’s decline to a 12-year low will shift to deficit as U.S. shale output falls, according to Goldman Sachs Group Inc.
U.S. production will drop by 620,000 barrels a day, or about 7 percent, from the first quarter to the fourth, according to the Energy Information Administration. Meanwhile, the International Energy Agency forecasts total non-OPEC supply will fall by 600,000 barrels a day this year. That may pave the way for a rebound as lower prices have stimulated global demand. Oil is the “trade of the year,” according Citigroup Inc., which is among banks from UBS Group AG to Societe Generale SA that predict a gain in the second half.
“U.S. shale should take the hit, that’s where you will see cuts and supply should start to taper off,” Daniel Ang, an investment analyst at Phillip Futures, said by phone from Singapore. “On top of that, there are bullish demand forecasts for the second half.”
West Texas Intermediate and Brent both closed at the lowest level since 2003 on Jan. 20. New York futures for March delivery closed at $29.88 a barrel on Tuesday and would need to gain 54 percent to reach the median estimate of $46 a barrel. The London contract for April delivery closed at $32.72 and needs a 47 percent boost to hit $48. The median price outlook was taken from estimates provided this year by 17 analysts who gave forecasts for both oil grades.
The oil price rout will shut sufficient production to erode the global glut and crude will turn into a new bull market before the year is out, analysts in
When it comes to dealmaking among big, integrated oil companies, it's not a question of who will do deals this year, but when, according to top-rated energy analyst Doug Terreson of Evercore ISI.
Mergers and acquisitions activity in the U.S. energy patch fell to a five-year low in the final quarter of 2015 as oil and gas companies preserved cash and entered "survival mode," PricewaterhouseCoopers reported last week.
But by the end of the first half of this year, big oil firms like ExxonMobil, Chevron, and Royal Dutch Shell could start buying smaller companies that have been beaten up during a more than year-long oil price rout, Terreson said.
"We think they're all going to do a big deal," he told CNBC's "Fast Money: Halftime Report." "We think when you consider that [exploration and production] reserves are trading at about half the level they can find reserves for with the drill bit, there are great opportunities for these companies."
I Believe you! but I believe more XOM cause 33 years they are paying it and no matter what oil price they adjust their profit on upstream or downstream production or even assets sale...
Change in Directors or Principal Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
This Amendment to the registrant's Current Report on Form 8-K filed on December 15, 2015 is being filed pursuant to Instruction 2 to Item 5.02 to add the following information regarding committee assignments that had not been determined at the time of the original filing:
On January 27, 2016, Darren W. Woods was elected an alternate member on a rotational basis of the Executive Committee of Exxon Mobil Corporation's Board of Directors.
The remainder of the information contained in the original filing as set forth below remains unchanged.
(b), (c) At a meeting on December 9, 2015, the Board of Directors elected Darren W. Woods President of Exxon Mobil Corporation effective January 1, 2016. Mr. Woods, 50, has served as a Senior Vice President of the Corporation since June 1, 2014 and previously held a number of domestic and international assignments including serving as Vice President, Supply & Transportation of ExxonMobil Refining & Supply Company from July 1, 2010 to July 31, 2012 and as President of ExxonMobil Refining & Supply Company and a Vice President of the Corporation from August 1, 2012 to May 31, 2014.
At a meeting of the Compensation Committee of the Board of Directors on December 9, 2015, in connection with his election as President Mr. Woods was awarded an annual salary of $1,000,000 effective January 1, 2016 and was granted a short-term incentive award of $339,000 payable half in cash and half in Earnings Bonus Units and 26,400 restricted stock units to be settled in stock. The terms of Earnings Bonus Units and restricted stock units granted to executive officers are described in the Corporation's most recent proxy statement dated April 14, 2015. Like all other executive officers of the Corporation, Mr. Wo