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If Iran's oil exports are cut to zero, international waterways will not have the same security as before, its president said on Wednesday, cautioning Washington against upping pressure on Tehran in an angry confrontation between the longtime foes. The comment by President Hassan Rouhani coincided with a remark by Iranian Foreign Minister Mohammad Javad Zarif that Tehran might act "unpredictably" in response to "unpredictable" U.S. policies under President Donald Trump. "World powers know that in the case that oil is completely sanctioned and Iran's oil exports are brought down to zero, international waterways can't have the same security as before," Rouhani said while meeting Supreme Leader Ayatollah Ali Khamenei, according to Khamenei's official website.
Russia's Rosneft, one of the world's top oil producers and exporters, has notified customers that future tender contracts for oil products will be denominated in euros not dollars, five trading sources told Reuters. Rosneft, which accounts for over 40% of oil output in Russia, produced 45.8 million tonnes of oil products at home in the first six months of this year - from diesel and gasoline to fuel oil and petrochemicals. The bulk of oil products for export are sold at tenders: Rosneft holds annual tenders as well as a number of spot or short-term tenders, with BP, Glencore, Trafigura, Vitol and Cetracore among top buyers.
(Bloomberg) -- Canada’s oil-rich province of Alberta is extending its output cuts by a year as delays to key pipelines threaten to prolong a glut of crude in the region.The curtailment program, which will now end in December 2020, had been slated to wrap up at the end of this year as Enbridge Inc.’s expansion of the Line 3 pipeline began moving oil. But that project was set back by a year because of permitting delays in Minnesota, leaving the province’s drillers churning out more oil than they could ship to refineries. TC Energy Corp.’s planned Keystone XL line and the Canadian government’s expansion of the Trans Mountain conduit also have been bogged down by legal challenges.Alberta’s delay in ending the curtailment program may help support oil prices, as U.S. Midwest and Gulf Coast refiners face the prospect of constrained shipments of Canadian heavy crude at the same time that they’re getting reduced supplies from Mexico and Venezuela. The policy is a mixed bag for Canadian drillers, who are benefiting from the higher prices but frustrated by their inability to expand output.“This is a short-term solution, and it is the last thing we want to be doing,” Alberta Energy Minister Sonya Savage said during a news conference. “We’re doing it because it’s essential.”Ending the program too early could cause a collapse in Western Canadian Select crude prices, hurting producers and reducing the value of royalties paid to the province, she said. Alberta could still end the curtailment before December 2020, but will need to do so in an orderly fashion, she said.Without curtailment, the province estimates that production would exceed takeaway capacity by about 150,000 barrels a day.The extension won applause from Cenovus Energy Inc., a major oil-sands producer that was among the most vocal supporters of the curtailment plan last year.“We’re pleased that the province has taken steps to provide further market stability by extending the curtailment program until there is greater certainty regarding increased pipeline capacity,” Al Reid, the company’s executive vice president for stakeholder engagement, said in an emailed statement.Some producers, like Suncor Energy Inc., criticized the program because their refining business was benefiting from lower crude prices and they weren’t as affected as others by the pipeline crunch.Crude by RailTo be sure, the production limits had already been raised throughout the year as more rail-shipping capacity has come online and pipeline operators expanded the volume that can go through their lines with improvements to pump stations or the addition of drag-reducing agents. The provincial production limit for October will be about 3.79 million barrels a day, up from 3.56 million in January.The province also said on Tuesday that it’s raising the amount of a producer’s output that’s exempt from curtailment to 20,000 barrels a day from 10,000. That change, which takes effect in October, will shrink the number of producers affected by curtailment to 16, from 29 previously. The province has about 300 producers in total.The curtailment program was drawn up last year after the pipeline pinch sent Canadian heavy crude tumbling to a record low, below $14 a barrel. Even before the system went into effect in January, the prospect of the production cuts sent prices surging. Since peaking above $56 in early-April, the heavy blend has lost roughly 23% to about $43 on Tuesday.Before the recent price slide, curtailment had the unintended effect of making Canadian oil too expensive for refiners to receive via more-costly rail shipping, which for much of the year has kept storage levels in Alberta high. Those inventories finally started to shrink over the summer, with stockpiles dropping to about 46% of Alberta’s storage capacity in the three weeks through July 26, according to Genscape. That’s the lowest since November 2017.Higher LimitsCanadian producers including Suncor and Cenovus had been asking Alberta’s government to allow them to raise their limits if they can ensure that the additional production would be moving by rail and not taking up scarce pipeline space.The province still is considering that proposal, and it’s also in the process of divesting 120,000 barrels of daily rail-shipping capacity that was purchased by the previous Alberta government to private-sector companies, Savage said.An eventual end to the curtailment program depends on when Enbridge’s Line 3 expansion is completed, said Kevin Birn, IHS Markit’s director of North American crude oil markets. Keystone XL and the Trans Mountain expansion won’t begin shipping until late 2021 or 2022, meaning they’ll provide little relief for producers, he said.“The underlying issues issues that led to the differential blowout, and ultimately to curtailment, remain unresolved,” Birn said in an interview.“That’s what underpins all of the government’s decisions.”To contact the reporter on this story: Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editor responsible for this story: Carlos Caminada at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BP and Glencore are struggling to sell around 600,000 tonnes of tainted Russian oil more than three months after the contamination was discovered, according to six trading sources. Russia's oil industry was plunged into a crisis in April after about 5 million tonnes of oil for export was found to be contaminated with organic chloride, a chemical used to help boost oil extraction but which can damage refining equipment. Exports through the Druzhba pipeline that transports oil to Germany, Poland, Hungary, Slovakia, the Czech Republic, Ukraine and Belarus were halted.
Crude oil futures rose more than 1% on Wednesday after industry data showed a larger than expected drop in U.S. crude inventories, but gains were capped by lingering worries about a possible global recession. Brent crude had gained 90 cents, or 1.5%, to $60.93 a barrel by 1225 GMT, while U.S. crude was up 58 cents, or 1.03%, at $56.71 a barrel. U.S. crude oil stocks fell by 3.5 million barrels in the week to Aug. 16, data from industry group the American Petroleum Institute (API) showed on Tuesday.
Investing.com - Oil prices gained on Wednesday after the American Petroleum Institute (API) reported that U.S. crude inventories fell for the first time in three weeks. U.S. Crude Oil WTI Futures gained 0.3% to $56.32 by 12:30 AM ET (04:30 GMT). International Brent Oil Futures rose 0.5% to $60.31. The API, which often serves as an early indication of weekly petroleum levels, reported a 3.5 million-barrel drawdown last week. Analysts expected a decrease of 1.9 million barrels. The Energy Information Administration (EIA) will release its weekly petroleum report later in the day. The EIA is expected to report crude stockpiles fell by 1.889 million barrels last week. The report has confounded economists’ estimates lately, showing a build for two consecutive weeks against expectations for a decline. Meanwhile, traders will pay close attention to the release of the U.S. Federal Reserve’s July meeting minutes and Fed Chairman Jerome Powell’s speech this week. Tensions in the Middle East remained in focus as U.S. Secretary of State Mike Pompeo said the country would take every action possible to stop an Iranian tanker sailing in the Mediterranean from delivering oil to Syria in contravention of U.S. sanctions. Pompeo also commented on the Sino-U.S. trade dispute, saying that he believes the trade war would end by 2020, while U.S. President Donald Trump said he will “take China on” even if it causes short-term impact on the U.S. economy.
Norwegian behemoth Equinor (EQNR) started oil production from the Mariner field in the UK North Sea, while British supermajor BP plc (BP) inked a new JV in India to set up 5,500 petrol pumps.
Petroleum and natural gas production in the United States jumped by 16 percent and 12 percent, respectively, in 2018, setting new production records and placing the United States as the world’s single largest producer of oil and natural gas
Alberta's previous New Democratic Party government imposed production limits in January to drain a glut of oil in storage that built up due to congested pipelines. The curtailments have dramatically reduced a painful discount on Canadian heavy crude, but investor confidence remains shaken and energy stocks are trading around historic lows. Premier Jason Kenney's United Conservative Party government, which took office in the spring, has steadily eased curtailments as inventories drained.
Canadian inflation data for July is due on Wednesday and retail sales for June will come out on Friday. Reuters polls predicted a 1.7% annual rate of inflation and a 0.1% decrease for June retail sales. "Key points will be tomorrow's CPI and then retail sales on Friday ... so I think people are just more of a wait-and-see on the data," said Don Mikolich, executive director of foreign exchange sales at CIBC Capital Markets The Canadian dollar was trading 0.1% higher at 1.3311 to the greenback, or 75.13 U.S. cents, at 3:44 p.m. (1944 GMT).
Oil markets are on edge as trade war uncertainty has once again taken center stage, with Mike Pompeo’s harsh comments about Huawei counteracted by wavier extension for the Chinese tech giant
San Antonio-based EPIC Crude Holdings LP has delivered its first barrels of Permian Basin crude oil to terminals at the Port of Corpus Christi, the company announced Monday. EPIC Crude, a subsidiary of EPIC Midstream Holdings LP, became the second company this month to begin delivering West Texas barrels to the port, after the Plains All American Pipeline LP sent its Cactus II barrels to NuStar Energy LP's (NYSE: NS) Corpus terminal last week. Because its crude oil pipeline is under construction, the company is using an adjacent natural gas liquids pipeline to ship the crude from the West Texas town of Crane to Robstown, just outside of Corpus Christi.
As I stated yesterday, crude oil was running into a bit of trouble just above and it does look in fact as if that prediction is going to come true. Because of this, there’s a bit of a trend line keep in the market down, and of course major moving averages.
The British pound has fallen a bit during the trading session on Tuesday as we continue to see a lot of weakness involving global risk appetite and of course the Brexit. All things being equal it’s likely that we will continue to see this pair fall.
The oil and gas sector on the Forbes 2019 list of the world’s biggest public companies saw the largest profit growth among the top 10 sectors on the list
The Canadian dollar weakened to a two-month low against its U.S. counterpart on Tuesday as investor appetite for risk eased and oil prices decreased. Oil prices edged lower on Tuesday on persisting concerns over demand. U.S. crude oil futures were down 1.5% at $55.38 a barrel.
Based on Monday’s close at $56.14 and today’s early price action, the direction of the October WTI crude oil futures contract is likely to be determined by trader reaction to the main 50% level at $55.72.
(Bloomberg) -- The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades produced in Saudi Arabia, Abu Dhabi and Qatar. Once considered a one-off arbitrage, the flow of American oil to Asia has increased in recent years.“It’s another tasty entree on the oil buffet table that may be quite appetizing for some of the Asian buyers,” said John Driscoll, chief strategist at JTD Energy Services Ltd. in Singapore. “Considering that U.S. crude exports have steadily been ramping up, this move could be disruptive for the traditional suppliers in the Middle East.”While U.S. shipments of grades such as WTI Midland and Eagleford are typically priced off the American benchmark WTI, Shell’s offer makes it easier for buyers to compare it against similar-quality oil that refiners across South Korea, Japan and China typically take. The crude can be transferred to other vessels in the Malacca Strait near Singapore, making the logistics less complicated for buyers across Asia.American exports have eroded the dominance of Middle Eastern crude in Asia, at a time when the Organization of Petroleum Exporting Countries and its allies are restricting their output in an effort to prop up prices. South Korean oil imports from the U.S. rose to about 8.5 million barrels in June, compared with 3 million barrels a year earlier. American shipments to Asia are likely to expand further due the start up of two Permian pipelines this year.The offer by Shell was made for a WTI Midland cargo for delivery on Oct. 15-25 at a premium of $4.55 a barrel to Dubai benchmark price, the traders said. The deal was subject to the buyer’s acceptance of a vessel named Phoenix Jamnagar.(Updates with chart.)To contact the reporter on this story: Sharon Cho in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
KUALA LUMPUR/JAKARTA, Aug 20 (Reuters) - Leading palm oil players in Indonesia see production growth being hit in the short to medium term, as the world's top grower of the edible oil faces drought across major planting regions that is expected to delay fruit ripening and lower output. Drought has hit large parts of the archipelago as a mild El Nino disrupts the dry season, weather officials say, with its peak now expected to run from mid-August to mid-September.
Oil prices steadied on Tuesday on optimism U.S.-China trade tensions will ease and hopes major economies will take stimulus measures to ward off a possible economic slowdown, after falling earlier on concerns over future demand. Brent crude settled 29 cents, or 0.5%, higher at $60.03 a barrel, while U.S. crude rose 13 cents to $56.34 a barrel. U.S. crude turned lower in post-settlement trade after U.S. President Donald Trump said he was not ready to make a trade deal with China.