|Day's Range||59.18 - 59.66|
Callon Petroleum shares fell sharply Monday after the oil producer said it had struck an all-stock deal to acquire Carrizo Oil & Gas.
U.S. oil companies on Monday began restoring some of the nearly 74% of production that was shut at U.S. Gulf of Mexico platforms ahead of Hurricane Barry, the U.S. offshore drilling regulator said. There were 1.3 million barrels per day (bpd) of oil production offline in the U.S.-regulated areas of the Gulf of Mexico on Monday, about 80,000 barrels fewer than on Sunday, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Workers also were returning to the more than 280 production platforms that had been evacuated.
Oil markets, probably more than any commodity markets, have long been criticized as responding excessively to short-term developments and ignoring long-term trends. Yes, oil is higher than it was at the start of the month. Instead, the just-concluded week ended with three reports – from the Energy Information Administration of the U.S. Department of Energy, the International Energy Agency and OPEC itself – that all said pretty much the same thing: the world needs a lot less oil from OPEC next year than it is producing now.
From the flow of oil on ships passing through the Persian Gulf to the electric current coursing through wires in Midtown Manhattan, reminders of the fragility of our energy infrastructure are on full display this summer. Engineers in New York City are still busy investigating the root cause of a massive power outage that struck at the heart of Manhattan on Saturday. The blackout affected 42 blocks of Manhattan between Fifth Avenue and the Hudson River—a patch of land that includes The Wall Street Journal’s headquarters.
The combined company will have about 200,000 net acres in the two basins and produce a total of 102,300 barrels of oil equivalent per day. Based on Carrizo's outstanding shares, the equity value of the deal is $1.21 billion. The deal, expected to close in the fourth quarter, will immediately add to earnings, cash flow and net asset value per share, the companies said.
* Palm charts third session of gains * Malaysian July exports should be supportive -trader * Palm oil could rise to 1,966 rgt/T -technicals (Updates with closing prices) By Emily Chow KUALA LUMPUR, July 15 (Reuters) - Malaysian palm oil futures climbed on Monday to their highest in more than a week, tracking strength in U.S. grains on the Chicago Board of Trade (CBOT) and related edible oils on China's Dalian Commodity Exchange. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.8% at 1,959 ringgit ($476.99) a tonne at the close for a third straight session of gains.
NEM’s XEM takes a hit early on but could find support from the broader market. A move through to $0.065 levels will be key.
(Bloomberg) -- If you’re looking for signs of China’s slowdown, you won’t find much in the data for output of the commodities needed to power and build the world’s second-biggest economy.Production of a swathe of materials -- from crude steel to coal and aluminum -- reached record levels in June, contributing to stronger-than-expected industrial output even as the wider economy expanded at its slowest pace since the early 1990’s. While each market has its own dynamics, the burst of heavy-industry activity supports the idea that policy action is stabilizing growth and boosting expectations for the second half of the year.“It reflects confidence from the commodity producers,” Helen Lau, analyst at Argonaut Securities Asia Ltd., said by phone from Hong Kong. “Even though June is the start of a weak season, cyclically speaking, they still want to produce because they basically expect that going forward, things will be back on track.”The strong output data slots into signs of tentative stabilization in Monday’s economic figures, with infrastructure spending and manufacturing investment both also picking up. Better-than-expected retail sales may point to an improvement in the property and auto sectors -- both a vital source of commodities demand.Highlights from NBS output data:Crude steel production rose 10% from a year earlier and average daily production reached a record. Run-rates were equivalent to more than a billion tons a year. Coal output rose 10% from a year earlier.The country’s oil refineries and aluminum smelters were running at record rates, measured by average daily output.Production of crude oil was at its highest in two years.To contact Bloomberg News staff for this story: Martin Ritchie in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Phoebe Sedgman at email@example.com, Keith GosmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil prices sank about 1% on Monday on signs that the impact of a tropical storm on U.S. Gulf Coast production and refining would be short-lived, while Chinese economic data dimmed the crude demand outlook. Both contracts last week made their biggest weekly gains in three weeks on cuts in U.S. oil inventories and diplomatic tensions in the Middle East. "Crude prices softened as oil companies returned workers to offshore platforms as the effects of (the storm) have subsided," said Edward Moya, senior analyst at OANDA in New York.
Investing.com - Oil prices fell on Monday in Asia after the International Energy Agency (IEA) said it expects the return of an oversupplied market next year.
The main Polish opposition group vowed Saturday to eliminate coal-generated power by 2040 as it launched a general election campaign against the governing Law and Justice (PiS) party. Coal is the main source of energy for Poland, which relies on its own deposits as well as imports and has some of the highest carbon emissions in the European Union. The right-wing PiS, in power since 2015, said last year that it would still use coal to meet 60 percent of the country's electricity needs in 2030, compared with around 80 percent today.
The Strait of Hormuz, where the BP-operated oil tanker was "harassed," is touted as the most important global passageway for transporting crude.
Twenty top U.S. energy companies agreed to contribute $16.5 million to open new schools in West Texas, where an influx of oil and gas workers have strained schools, roads and other civic services. This is the first initiative by the Permian Strategic Partnership, a consortium of shale producers which has pledged to raise $100 million to address civic strains, a spokesman for the group said. The companies all operate in the Permian Basin, the top U.S. shale field.
The U.S. crude oil benchmark rose for the sixth time in seven sessions, while Brent crude oil advanced 0.3% as traders focused on the impact of Tropical Storm Barry on Louisiana refineries.
(Bloomberg) -- Oil capped its best week since mid-June as Tropical Storm Barry gained strength, approaching refineries in Louisiana and leaving deserted offshore platforms on its path.Futures in New York gained 4.7% for the week after prices held above $60 a barrel for a third day on Friday. Forecast to make landfall as a hurricane early Saturday, Barry has already curbed about half of U.S. Gulf of Mexico production.Coupled with rising tensions between the U.K. and Iran, as well as a steep drop in American crude stockpiles, the storm helped offset concerns over weakening demand.“After quite a few weeks of very bearish petroleum numbers the last two weeks have actually been supportive,” said Kyle Cooper, a consultant at Ion Energy Group in Houston. “It’s a bullish backdrop. I don’t think we’re going to run away here, but the mid-$50s to low $60s seems like a reasonable level.”Still, the longer-term outlook looks less promising. The Organization of Petroleum Exporting Countries warned Thursday of a glut in 2020 as U.S. shale production surges. The International Energy Agency said Friday there had been a surprise pile-up of inventories in the first half of this year, and that OPEC may need to cut output to the lowest in 17 years to prevent another overhang.The uncertainties have slowed the market’s momentum in recent days. While oil has traded higher in six of the last seven sessions, it’s also been stuck within a $1 range the past two days, the first time trading has been that narrow since April. An index of price volatility was at its lowest since May 22.West Texas Intermediate crude for August delivery closed Friday 1 cent higher at $60.21 a barrel on the New York Mercantile Exchange. Brent for September settlement rose 20 cents, or 0.3%, to $66.72 a barrel on the ICE Futures Europe Exchange.Barry may drop as much as 25 inches (64 centimeters) of rain in some places, according to an advisory from the U.S. National Hurricane Center. Gulf of Mexico operators have shut-in about 1 million barrels a day of oil production because of the storm, the Bureau of Safety and Environmental Enforcement said in a notice.Meanwhile, Britain raised the threat level to the highest possible for ships operating in the Persian Gulf as tensions escalate in a region accounting for a third of seaborne petroleum trade. The U.K. government designated the region a level-3 risk on Tuesday, a day before British warship HMS Montrose had to stop Iranian vessels from impeding a BP Plc oil tanker as it exited the region, according to a person with knowledge of the matter.\--With assistance from James Thornhill and 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: David Marino at firstname.lastname@example.org, Carlos Caminada, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Xcel Energy Inc. has begun tearing down a 600-foot coal-boiler chimney in a suburb of Minneapolis/St. Paul in what amounts to the most visible sign of the utility's local transition away from coal and to natural gas.
Frustration is palpable among Canadian energy executives who have flocked to the annual Calgary Stampede celebrations in Canada's oil capital this week, even though a recent pipeline approval gives them something to celebrate amid the rodeo competitions, corporate parties and pancake breakfasts. The federal government's approval of the Trans Mountain expansion last month was a boost for the battered industry. On top of that, crude oil prices have stabilized, an aggressively pro-energy party has come to power in Alberta and overall production in the country is around 5 million barrels per day - making Canada the world's fourth-largest producer.
Join Quartz reporter Akshat Rathi in a discussion of Occidental Petroleum CEO Vicki Hollub's goal to make the company carbon neutral.