|Day's Range||20.23 - 21.79|
Signs of life in the Chinese economy—the world’s second largest—sent global stock markets higher Tuesday morning. U.S. stock futures were flat
European stock markets extended gains Tuesday after a largely positive showing across Asia and as oil prices rebounded from 18-year lows, with a jump in Chinese factory activity providing a surprise boost for the virus-hit global economy. Around midday, Europe's main stock markets were up more than one percent on average. "China provided Western investors with a light at the end of the tunnel," said Connor Campbell, analyst at Spreadex trading group.
The latest analyst coverage could presage a bad day for International Petroleum Corporation (TSE:IPCO), with the...
(Bloomberg Opinion) -- Well there’s a surprise. During a telephone conversation on Monday, Presidents Donald Trump and Vladimir Putin “agreed on the importance of stability in global energy markets.” However, it’s very unlikely either will go beyond extolling stability and waiting for (or pressuring) somebody else to do something about it.According to the Kremlin, energy officials from the U.S. and Russia, the world’s first and third-largest oil producers, will hold discussions — although they didn’t elaborate on what they might cover. But don’t expect them to lead anywhere. Neither president is renowned for his statesmanship or flexibility.Putin’s most recent diplomatic “successes” include the annexation of Crimea and sending troops to support Bashar al-Assad’s regime in Syria. Trump has become the master of the empty photo-op, most notably with North Korea’s Kim Jong Un.In the energy sector, points of contention between the two men include Russia’s role in Venezuela’s oil export trade; U.S. sanctions on Russia’s oil and gas industries, including those targeting the second Nord Stream gas pipeline from Russia to Germany and others that have prevented foreign investment in Arctic oil and gas projects; and Russia’s own nascent shale sector.Putin has no interest in throwing another lifeline to the U.S. shale sector. Trump still seems to see the problem as being caused by Russia and Saudi Arabia both going “crazy” and launching a price war.Let’s get one thing straight. The collapse in oil demand as a result of the worldwide response to the Covid-19 virus is a much, much bigger problem than the additional barrels threatened by Saudi Arabia and Russia — none of which has arrived yet. As airplanes stop flying and drivers stop driving, they are going to struggle to find buyers for their oil, just like everyone else. Saudi Arabia is already threatening to boost its exports by a further 600,000 barrels a day in May because its own refineries don’t want the crude. This is simply more stranded oil trying to find a buyer.Goldman Sachs estimates that global oil demand this week is down by 26 million barrels a day, or 25%. That’s more than the combined consumption of the U.S., Canada, Mexico, Central America and the entire Caribbean.Sadly, the loudest voices in America still seem to be those calling for the use of bully-boy tactics against the world’s other heavyweights. A letter sent to Secretary of State Mike Pompeo last week from six Republican senators, including Lisa Murkowski from Alaska and John Hoeven from North Dakota, characterizes the Saudi and Russian decisions to end output restriction as “economic warfare against the United States.” The lawmakers argue that “Saudi Arabia must change course,” when what they really mean is that the kingdom led by Crown Prince Mohammed bin Salman must return to its previous course, and they name-check the whole gamut of pressure tactics the U.S. has at its disposal to get it to do so, from the threat of “tariffs and other trade restrictions to investigations, safeguard actions, sanctions, and much else.”I get that senators from oil-producing states want someone else to cut back to keep the oil price high enough so that their local fossil-fuel industries can keep functioning. But the Saudis might well argue that the current situation would be easier to deal with had the U.S. not doubled its oil production in less than a decade.Targeting Saudi Arabia and Russia for behaving as American leaders have always urged them to behave — by removing “artificial” restrictions on their oil production — will not solve the crisis faced by oil producers everywhere. As I wrote Sunday, we are now getting the free-market in oil. The demand destruction caused by the collapse in oil demand as a result of responses to the Covid-19 virus will not be solved by sanctions or tariffs.The world’s Big 3 oil producers might have had a chance to get together to organize a global response to the temporary loss of oil buyers, but they squandered it. As things stand, the companies (and countries) that bear the brunt will be those who can’t find buyers or storage tanks for their oil. No amount of bullying, or half-hearted diplomacy, can change that now.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil clawed back some losses as signs of a recovery in the Chinese economy bolstered hopes for a rebound in demand though prices are still headed for the worst quarter on record.
Investors are busily assessing progress on containing the virus and the torrent of stimulus all amid the prospects of buying an economic trajectory that is poised to drop sharply in 2Q20.
Oil prices firmed on Tuesday after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks aimed at stabilising energy markets, with benchmarks climbing off 18-year lows hit as the coronavirus outbreak cut fuel demand worldwide. Brent crude was up 87 cents, or 3.8%, at $23.63 a barrel by 1106 GMT after closing on Monday at $22.76, its lowest finish since November 2002. Oil markets have faced a double whammy from the coronavirus outbreak and a race to win market share between Saudi Arabia and Russia after OPEC and other producers failed this month to agree on deeper supply cuts to support oil prices.
With both oil prices and gasoline prices, the media constantly reports only one or two numbers to represent the entire industry, but the reality of these products around the world is far more diverse.
Plunging demand, surging supply, and strained storage capacity have put so much downward pressure on oil prices that producers are now considering shutting-in oil wells
Brazilian state-owned oil company Petrobras is increasing liquefied petroleum gas imports, it said on Monday, as consumer demand in some parts of the country for cooking gas has soared on worries that coronavirus-related controls might limit supply. In a statement, Petroleo Brasileiro SA said three ships are on their way to Brazil loaded with LPG, each with a capacity of 20 million kilograms (20,000 tonnes), equal to 1.6 million canisters used in homes. The first is scheduled to arrive on Monday, while the other two are due April 6 and 10, Petrobras said.
Gulf state and non OPEC oil producer Oman might be forced to sell of valuable oil & gas assets as the ongoing oil war has blown a hole in its state budget
U.S. corn futures fell more than 1% on Monday on slowing grain demand from ethanol makers, as tightening coronavirus pandemic travel restrictions limited demand for the biofuel. Soybeans ended mixed, with nearby contracts lifted by firm soymeal prices and concerns coronavirus restrictions may impede South American soy shipments. Wheat ended mostly higher as top exporter Russia appeared poised to restrict shipments.
President Trump said he will call Russian President Vladimir Putin to discuss oil prices as crude continues falling to new lows.
Oil stocks, natural gas producers and other commodity-based firms stand apart from one another based on factors such as where they're located and how efficient their operations are. But much of their success boils down to this simple idea: The higher the price of the commodity, the bigger the profits.Unfortunately, the inverse is also true, which is why many energy stocks are getting pummeled right now.Oil prices were already struggling with the fallout from the U.S.-China trade war and its effect on the global economy. But the coronavirus' economic ripple effect across the world - combined with Saudi Arabia's volley against other oil producers - has sent West Texas Intermediate (U.S. crude) oil prices to around $20 per barrel. Those are lows not seen since February 2002.The specific issue: Oil prices (and natural gas, for that matter) are well below the cost of production for even some of the leanest companies out there. Thus, many energy producers are losing money simply by virtue of operating their businesses. Mounting losses, rising debts, cut dividends and even bankruptcies are all on the table.Here are seven oil stocks and natural gas producers that are in considerable danger at the moment. While it's understandable that investors might want to seek out values in the beat-up energy sector, these are seven stocks to avoid. SEE ALSO: 15 Dividend Cuts and Suspensions Chalked Up to the Coronavirus
The United States' flagship crude oil grade plunged on Monday to trade at about $10 a barrel, the weakest since late 1998 as demand plummeted due to the coronavirus pandemic and storage filled quickly. The grade, priced at the heart of the Permian basin in Midland, Texas, traded at $9.50 below benchmark prices, traders said, bringing the outright price to near $10 a barrel. West Texas Intermediate crude (WTI) at Midland, along with other actively traded U.S. crude oil grades, have sharply weakened since the coronavirus pandemic has restricted the movement of billions of people around the world and shriveled energy demand.
NEW YORK/HOUSTON (Reuters) - U.S. energy producers face the threat that banks will slash their credit as March's crash in oil prices means the asset backing their main loan facility - crude reserves - is worth less than half of what it was a month ago. The oil price collapse has crushed U.S. energy companies, sending valuations spiraling and squeezing financing options, as they face a likely 20% drop in worldwide oil demand in coming quarters due to the coronavirus pandemic. U.S. crude prices have dropped to about $20 a barrel as the number of virus cases exploded worldwide and destroyed demand while top producers Saudi Arabia and Russia ended an alliance to curb supply - and promptly started ramping up production to maximum capacity.
Global commodities trader Trafigura's chief economist said oil demand could fall by more than 30 million barrels per day (bpd) in April, as the global economy grinds to a near halt due to the coronavirus. The forecast, the highest yet from a senior industry forecaster, equates to around a third of the world's daily oil consumption. Saad Rahim, chief economist at the Geneva-based trader, said a battle for market share between Saudi Arabia and Russia had become increasingly irrelevant now that some 3 billion people are under lockdown to the prevent the spread of COVID-19, with no clear end in sight.
More fuel-intensive shipping like airfreight and trucking may become more attractive than less fuel-intensive methods, a Raymond James analyst says.
Oil prices plunged on Monday to their lowest levels in eighteen years, below $20 per barrel, as the coronavirus pandemic continues to cripple global oil demand with no signs of Saudi Arabia backing down on its promised supply surge
Collapsing oil prices are costing some OPEC members not only lost revenue when they most need it to tackle the coronavirus crisis, but also market share they may never recoup. OPEC producers such as Nigeria, Angola, Algeria and Venezuela cannot compete with the lower costs of erstwhile allies Saudi Arabia and Russia, who are flooding the market. The Republic of Congo's oil minister wrote to OPEC secretary general Mohammad Barkindo this month asking for urgent talks to help to keep some members from sliding into recession.
Oil prices have plunged this year, as supply has jumped and demand has plummeted. On Monday, they took a new leg down, with West Texas Intermediate crude futures temporarily falling below $20. Oil prices bounced back slightly around 9 a.m., with crude futures down 8.1% to $22.92 and crude down 5.4% to $20.35.
Indian refiner Hindustan Petroleum Corp Ltd has issued a force majeure notice to Iraq's Oil Marketing Company (SOMO) to cancel two oil cargoes as local fuel demand is hit by a lockdown to stem spread of coronavirus, an industry source said. State-run HPCL was scheduled to lift these cargoes containing one million barrels each in the first half of April, this source said. No immediate comment was available from HPCL.
China said it is to remove import quotas on some tax-free onshore and offshore oil and gas drilling equipments used in some specified regions, the finance ministry said in a statement on Monday. China introduced an application-based import quota regime in 2016 to offer import tax waivers for nearly 400 pieces of equipment used in oil and gas exploration, in order to boost domestic energy output. The import tax waiver will be implemented on oil and gas drilling at some onshore projects in Inner Mongolia, Qinghai, Xinjiang and Tibet and offshore exploration projects.