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Production from the Permian Basin of Texas and New Mexico is set to climb by 71,000 barrels per day to a record of about 4.485 million barrels per day in October.
The premier of Canada's main oil-producing province Alberta said on Wednesday he is hopeful of more progress this month on talks between his government and producers about easing oil curtailments, as long as extra output is shipped by rail. Alberta introduced mandatory production curtailments, effective Jan. 1 2019, to ease congestion on export pipelines and support crude prices. Last month Premier Jason Kenney's government extended those curtailments into 2020 because of slow progress in building new pipelines.
The attack on oil facilities in Saudi Arabia that brutally knocked out half of the kingdom's crude production fuelling a record surge in prices, highlights the vulnerabilities of the sector, experts said Wednesday. "There are two principal things oil companies could take away, the first is that oil facilities are, by their very nature, vulnerable to attack, all sorts of attack," Anoush Ehteshami, professor for international relations at Durham University in the UK, told AFP. Aware of risks to its oil facilities in a region regularly shaken by conflict, Saudi Arabia invests heavily in sophisticated defence and weapons systems, such as Patriot surface-to-air missiles made by US giant Raytheon.
The statement sent oil prices plunging after a steep rise early in the week triggered by fears a return to full production would take months. Saudi Arabia is the world's biggest oil exporter, normally shipping more than 7 million barrels every day.
After its sudden spike following attacks on Saudi oil infrastructure, crude oil benchmarks retreated on the announcement production will return to normal rates by the end of the month
The attacks on two major Saudi Arabian oil facilities went from a game-changing shift to a brief blip that will have almost no net impact on global production.
Drone attacks against the Abqaiq and Khurais oil fields on Sept. 14 in Saudi Arabia have roiled oil markets and, by extension, the global economy. The attacks, which Iran-allied Houthi rebels in Yemen have claimed responsibility for, immediately led to the disruption of 5.7 million barrels of crude production per day. The economic impact is significant for the Saudi economy.
Investing.com - Crude stockpiles rose unexpectedly last week, the U.S. Energy Information Administration said Wednesday.
(Bloomberg) -- Sasol Ltd. is planning to sell its South African coal-mining business, according to people familiar with the matter.The company will begin a formal sales process in the coming weeks, said the people, who asked not to be identified as the information isn’t public yet. The mining business had turnover of 20 billion rand ($1.4 billion) in the 2018 financial year, according to the company’s financial report, mostly from internal sales to Sasol’s other operations.The company is the world’s biggest manufacturer of fuel from coal, an energy-intensive process. Sasol’s coal mines produce about 40 million tons of coal a year, almost entirely for use in its own operations, according to its website.The company would plan to sign a coal-purchase agreement with whoever buys the asset, said one of the people.Sasol announced a long-term review process in November 2017 that would involve disposing of some assets at prices that ensure value for the company, it said in an emailed response to questions, while declining to comment directly on a possible mine sale.“We do not wish to comment at this stage on which assets have been earmarked for divestment, since they form a part of a disciplined and confidential M&A process,” it said. “Sasol will update the market as and when appropriate regarding progress on the asset review process.”The mine sale plan comes as Sasol grapples with cost overruns and delays at its giant U.S. chemicals project. Selling its coal mines may also help Sasol reduce its environmental liabilities at a time when more investors are focusing on how businesses affect climate change.The Lake Charles chemical plant in Louisiana, which is starting up this year, will transform Sasol’s production mix to focus on chemicals. Yet the company has lurched from one setback to the next, with the project now estimated to cost as much as $12.9 billion, about 50% more than initially planned.Sasol’s shares have tumbled 48% in the past 12 months. Besides the cost overruns and startup delays, the company has also twice postponed its annual financial results while it completes an investigation into what went wrong at Lake Charles.The company said in May it would accelerate the previously announced asset sale program. It said on Wednesday the company would “proceed only if there is value for Sasol and we will not sell assets at sub-optimal prices.”To contact the reporters on this story: Loni Prinsloo in Johannesburg at email@example.com;Paul Burkhardt in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, ;Gordon Bell at firstname.lastname@example.org, Liezel Hill, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
OIL prices fell today after Saudi Aramco said its production would be back to normal inside two weeks after the attack on its plants last weekend.The oil market was thrown into turmoil on Monday, with prices soaring on fears of a crash in supply.
Global oil prices extended declines Wednesday even as President Donald Trump said he would "substantially" increase U.S. sanctions on Iran.
Oil prices retreated about 2% on Wednesday, extending the previous day's declines after Saudi Arabia said it would quickly restore full production following last weekend's attacks on its facilities and as U.S. crude stockpiles rose unexpectedly. Tension in the Middle East remained elevated, however, after the Saudi Defence Ministry held a news conference, displaying drone and missile debris it said was "undeniable" evidence of Iranian aggression. U.S. President Donald Trump on Wednesday said he ordered a major increase in sanctions on Iran in the latest U.S. move to pressure Tehran.
India plans to invite bids from global firms for the first time for coal mining blocks before end-2019, sources familiar with the matter said, a move that would end Coal India Ltd's near-monopoly for the fuel as the nation tries to cut imports. Coal is among the top five commodities imported by India, one of the world's largest consumers of the fuel. Coal imports are surging after the government failed to open the industry to competition, despite having passed a liberalization policy 19 months ago.
As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I...
Crude oil prices plunged on Tuesday after the Saudi energy minister said the kingdom’s oil supply will soon be back online. The drop in crude oil prices spread weakness throughout the Asia Pacific region on Wednesday.
(Bloomberg) -- Saudi Arabia joined a U.S.-led coalition to secure sea lines vital to oil shipping in the Middle East in the aftermath of a devastating attacks on Aramco’s oil facilities.The International Maritime Security Construct’s area of operation covers the Strait of Hormuz, the world’s most critical waterway for oil supplies, the Strait of Bab al-Mandab, the Gulf of Oman and the Persian Gulf. The move aims to support efforts to thwart threats to trade as well as guarantee energy security, the state-run Saudi Press Agency reported.U.S. Seeks Support to Watch Gulf Shipping as Iran Tensions RiseA showdown between Iran and the Trump administration after the U.S. pulled out of the 2015 nuclear agreement with the Islamic Republic has threatened shipping in the region. Attacks on tankers and drones prompted the U.S. to call for a coalition of allies to protect ships passing through the area.About 40% of the world’s seaborne oil travels through the Strait of Hormuz. The U.S. and U.K. have stepped up their military presence in the region amid calls to ensure the waterway remains open.The International Maritime Security Construct task force is headquartered in Bahrain, and its members include the U.S., the U.K., Australia as well as the host country.Shaped like an inverted V, the waterway connects the Persian Gulf to the Indian Ocean, with Iran to its north and the United Arab Emirates and Oman to the south. Its shallow depth makes ships vulnerable to mines, and the proximity to land -- Iran, in particular -- leaves large tankers open to attack from shore-based missiles or interception by fast patrol boats and helicopters.To contact the reporter on this story: Abbas Al Lawati in Dubai at email@example.comTo contact the editors responsible for this story: Shaji Mathew at firstname.lastname@example.org, Alaa ShahineFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Indian power plants’ appetite for imported coal is on the rise again. The country’s electricity generating firms are expected to import up to 74 million tonnes of the fossil fuel in the current financial year ending March 2020, according to India Ratings and Research. Coal imports to produce electricity have already risen by five million tonnes year-on-year in the April-July period, at the end of which they stood at a total 23 million tonnes.
(Bloomberg) -- Crude declined as investors shifted attention to a speedy return of Saudi Arabia’s crude production amid signals that global inventories are plentiful.Futures dropped 2.1% on Wednesday in New York. The kingdom’s damaged Abqaiq oil facility is now operating at around 40% of its pre-attack levels and the facility should return to about 4.9 million barrels by the end of the month, Aramco Chief Executive Officer Amin Nasser said Tuesday. Meanwhile, the International Energy Agency’s Executive Director Fatih Birol said the oil market remains well supplied with ample stockpiles, despite the weekend attacks.The "Saudi oil minister said production will be back," reassuring supply for the market, said Bob Yawger, director of the futures division at Mizuho Securities USA.Earlier in the session, oil had eased some losses after Saudi Defense Ministry spokesman Turki al-Maliki said Saturday’s attacks on the kingdom’s critical oil infrastructure were “unquestionably sponsored by Iran” and did not originate from Yemen.Iran has denied responsibility for the aerial attack that shut 5% of global supply, with President Hassan Rouhani saying it was carried out by Yemeni rebels fighting the Saudi-led coalition. President Donald Trump said the U.S. will add “some very significant sanctions” and announce them within the next 48 hours.The IEA’s Birol also said its members held about 1.55 billion barrels of emergency oil stocks, which are more than enough to offset any disruption.West Texas Intermediate crude for October delivery dropped $1.23 to settle at $58.11 a barrel at the New York Mercantile Exchange.Brent for November settlement slid 95 cents to end the session at $63.60 a barrel on the ICE Futures Europe Exchange, and traded at a $5.56 premium to WTI for the same month.An Energy Information Administration report showed domestic oil inventories rose by 1.06 million barrels last week, about double what the American Petroleum Institute reported Tuesday. Gasoline stockpiles increased 781,000 barrels, while distillate supplies increased 437,000 barrels.\--With assistance from Jessica Summers.To contact the reporter on this story: Sheela Tobben in New York at email@example.comTo contact the editors responsible for this story: Serene Cheong at firstname.lastname@example.org, Jessica Summers, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.