|Day's Range||54.11 - 57.02|
Nigerian President Muhammadu Buhari appointed a new head of the country's under-performing oil company on Thursday, amid plans to resume searching for oil in Lake Chad, an area wracked by the Boko Haram insurgency. Mele Kolo Kyari, a geologist from the volatile northeastern Borno state, will take over as group managing director of the state-run Nigerian National Petroleum Corporation (NNPC) from Maikanti Baru, who was appointed in 2016, the company said in a statement. Seven other senior officials were also appointed to head NNPC's subsidiaries.
The Peabody Energy (BTU), Arch Coal (ARCH) joint venture can deliver results as decline in cost of operation will make it more competitive against natural gas and renewable sources of energy.
The federal governments EIA report revealed that crude inventories fell by 3.1 million barrels for the week ending Jun 14, after rising to a nearly 2-year high in the previous week.
Oasis Petroleum operates with a production mix of 72% in oil. On June 13, Moody's upgraded Oasis Petroleum rating to "B1." On the same day, Oasis Petroleum's stock prices rose 5.6%.
Chesapeake Energy and Southwestern Energy were among the stocks that had the highest correlation with US crude oil prices. On June 12–19, US crude oil active futures rose 5.1%.
California Resources and Oasis Petroleum were the outperformers among oil-weighted stocks. California Resources had the second-highest correlation with US crude oil prices in the last three months.
Oil prices rose sharply on Thursday after Iran’s revolutionary guard said it had shot down a US drone, escalating tensions between Washington and Tehran. after it violated Iranian airspace. US officials confirmed a drone had been downed, but said it had been in international airspace over the Strait of Hormuz, one of the world’s most important shipping routes for oil and gas.
Matt Worner is the CEO of Talon Petroleum Limited (ASX:TPD). This report will, first, examine the CEO compensation...
(Bloomberg) -- OPEC is poised to extend oil-output cuts for the rest of the year when its members meet next month to assess supply and demand for crude.Saudi Arabia, Iraq and the United Arab Emirates -- the group’s three biggest members -- all want to keep restraining production in a bid to buttress crude amid signs of faltering demand. Having resolved a month-long fracas over when to meet, the Organization of Petroleum Exporting Countries and its allies now look likely to roll over the cuts when they gather on July 1-2 in Vienna.“I am not expecting a very difficult process in approving the extension,” United Arab Emirates Energy Minister Suhail Al Mazrouei told reporters on Wednesday in Abu Dhabi. Discussions at the July meeting will focus on the duration of the next agreement, he said.Al Mazrouei’s remarks echoed views expressed over the weekend by Saudi Energy Minister Khalid Al-Falih and earlier in the month by Iraqi Oil Minister Thamir Ghadhban. Russia, the largest producer outside OPEC, remains a question mark as it has yet to clarify whether it will join in any cuts.Market TurmoilThe producer coalition known as OPEC+ agreed earlier Wednesday to meet at the beginning of July. However, the group’s difficulty in picking a date highlighted political differences among its members and stoked turmoil in markets just weeks before their current production cuts expire. West Texas Intermediate for July delivery traded up 1.3% at $54.47 a barrel on the New York Mercantile Exchange as of 9:45 a.m. Thursday in Singapore.The threat of conflict in the Persian Gulf adds to market volatility. Tensions between Iran and the U.S. are escalating after attacks last week on oil tankers near the Strait of Hormuz. A rocket strike on Wednesday near an Exxon Mobil Corp. workers’ camp in Iraq had no effect on that nation’s oil fields or exports, according to a person with knowledge of the matter.OPEC’s Economic Commission Board, which met this week in Vienna, sees global oil inventories contracting by almost 500,000 barrels a day if the group continues to curb supply in the second half, a delegate said. That means that while they’re planning to extend their agreement to trim output, countries like Saudi Arabia -- which are making deeper cuts than promised -- will still have scope to pump more without violating the deal.“We are hoping that we will reach consensus to extend our agreement when we meet in two weeks time in Vienna,” Saudi Arabia’s Al-Falih told reporters on Sunday in Japan. The kingdom, OPEC’s biggest member, is seeking to balance global oil markets before 2020, he said.Iraq, OPEC’s second-largest producer, sees the group and its allies extending production cuts “at least” on current terms without “serious difficulties,” Ghadhban said on June 7 in St. Petersburg.(Updates oil price in fifth paragraph.)To contact the reporters on this story: Mahmoud Habboush in Abu Dhabi at email@example.com;Grant Smith in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Nayla Razzouk at email@example.com, Bruce Stanley, Mohammed Aly SergieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil rose more than 3% towards $64 a barrel on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington. Expectations that the U.S. Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in U.S. crude inventories also supported prices. "The risk of a military conflict in the Middle East has risen because of a ratcheting up of tensions between the United States and Iran," said Abhishek Kumar of Interfax Energy in London.
Three key U.S. House of Representatives Democrats on Wednesday asked Marathon Petroleum to disclose any communications between the White House and federal agencies on the Trump administration's proposal to freeze fuel efficiency standards at 2020 levels through 2026. Energy and Commerce Committee Chairman Frank Pallone and two subcommittee chairs asked Marathon for all documents it exchanged between the National Highway Traffic Safety Administration, Environmental Protection Agency and White House and to disclose if the oil company was involved in the controversial rule's development.
Oil prices closed lower as worries about demand outweighed government data showing a decline in U.S. production and crude stockpiles.
WINNIPEG, Manitoba/CALGARY, Alberta (Reuters) - Construction to expand the Trans Mountain oil pipeline could begin in September, assuming the next regulatory steps go smoothly, the project's chief executive said on Wednesday. The C$7.4 billion ($5.56 billion) project was stalled a year ago after a Canadian court ruled the federal government, which also owns Trans Mountain, failed to adequately consult indigenous groups. Prime Minister Justin Trudeau on Tuesday reapproved the expansion, cheering the oil industry but angering environmental groups.
(Bloomberg Opinion) -- Wyoming’s Powder River Basin has been generating some buzz in oil and gas circles as a potential source of new supply (as if oil and gas need that). On Wednesday, though, its real significance was as a strategic signpost.The PRB, as it is known, is more famous for coal; and two of the biggest miners, Peabody Energy Corp. and Arch Coal Inc., are throwing their lot there together. A planned joint venture will combine five mines in Wyoming and Colorado into a single operation producing more than 60% of the basin’s coal. It will be roughly two-thirds owned by Peabody, with Arch taking the rest.The PRB produces a cheaper form of coal, with lower energy content, relative to what comes out of Appalachia – and its market is crumbling. Cheap shale gas, renewable energy and flat consumption have cut coal use in U.S. power plants by almost 40% over the past decade. Despite creative attempts by the White House to reverse that trend, the Energy Information Administration expects it to drop by another 19% through the end of next year. Cloud Peak Energy Inc., which operates several PRB mines, is currently in chapter 11 – from which both Peabody and Arch have only emerged themselves within the past few years. And the combined output of their mines in Wyoming, which constitute the vast majority of the joint venture’s output, has dropped away:So Arch and Peabody want to get those assets together, squeeze out costs and try to be the last guy(s) standing. The two miners expect synergies they value at $820 million, or roughly a fifth of their combined market cap. That alone is reason to try. It also puts some distance between the PRB assets and the companies’ metallurgical-coal operations, where prospects (and profits) are better. This is a textbook deal for two commodity producers faced with terminal decline in their market. For Arch, it continues a strategy of rejecting the growth impulse that pushed much of this industry into chapter 11 within the past decade in favor of a more realistic approach that has shrunk the company. Arch has bought back almost a third of its stock in the past few years, generating healthy returns at odds with the industry’s broader fortunes (see this). The stock jumped as much as 8% on Wednesday morning and is close to its post-bankruptcy peak.Frackers in shale would do well to take this on board. Oil and gas markets aren’t facing the same pressure as U.S. thermal coal, but are also challenged. Natural gas demand isn’t growing quickly enough to absorb surging production; and neither is oil, judging from its comatose state in the face of all sorts of geopolitical provocations. Despite some consolidation, the Permian basin, especially, remains very fragmented, and legacies of poor returns and weak governance keep investors on the sidelines. Having shown some progress on living within their means last year, frackers once again outspent cash flow in the first quarter.Consolidation – especially in the form of nil-premium, all-stock deals – would go a long way to cutting the bloated overhead that comes from having dozens and dozens of companies targeting the same acreage. It’s not often a literal canary in the coal mine shows up, let alone two.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Despite OPEC oil production cuts and Venezuela and Iran sanctions, the world seems to be oversupplied with crude oil, with the excess amounting to some 90 million barrels above the average 2018 level
After two consecutive weeks of crude oil inventory builds, this week the Energy Information Administration offered some respite for prices with a draw, of 3.1 million barrels for the week to June 14
Historic flooding in the Midwest and poor demand from electric utilities are stranding coal hoppers west of the Mississippi, pushing up prices for storing railcars. The American Association of Railroads said last week that weekly coal volumes were down 16 percent from a year earlier to 71,526. The week prior number of 70,737 railcars marked the second-lowest number of weekly loadings this year.
Oil and gas company SM Energy is increasing its yearlong production outlook after test wells it drilled in the Permian Basin and Austin Chalk areas of Texas surpassed company expectations. The Denver-based company (NYSE: SM) on Tuesday upped its second-quarter and full-year guidance, hiking its forecast for oil and gas pumped in the second quarter as much as 4% and its 2019 yearlong production forecast by nearly 1%. “Higher than expected production volumes in the Permian reflect strong early performance from a number of new wells including the Wolfcamp D and Dean tests, as well as completion timing.
Investing.com - Official government data released Wednesday showed a larger-than-expected fall in U.S. crude inventories, sparking a turnaround in oil prices.