|Day's Range||54.03 - 54.03|
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The drone and missile attacks on Saudi Arabian oil facilities do not appear to be a doomsday event for crude tankers. The most directly exposed shipping segment is very large crude carriers (VLCCs), tankers designed to carry around two million barrels of crude oil each. According to Clarksons Platou Securities, VLCC rates initially shot up by 26% or $7,500/day on Monday, Sept. 16, to $36,100/day.
Silver has posted gains on Thursday, but remains shy of the $18 level. The Federal Reserve lowered rates on Wednesday, but was more hawkish than expected in its assessment of the U.S. economy.
Based on the early price action and the current price at 1.1067, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the Fibonacci level at 1.1073 and the downtrending Gann angle at 1.1074.
Bahamas Petroleum Company plc (LON:BPC) continues its loss-making streak, announcing negative earnings for its latest...
Saudi Arabia's ability to avert a global oil supply crunch will only become clear in a few weeks, because for now its crude held in storage can fill the gap and mask the scale of damage to its facilities, traders and analysts say. Riyadh says production will be back to normal levels in two to three weeks, which means restoring output to about 10 million barrels per day (bpd), after Saturday's attacks on two sites that usually process and clean up about 5.7 million bpd. While it carries out repairs, the world's biggest oil exporter has promised to keep the physical crude market supplied from its inventories held in the kingdom and abroad, estimated to have been about 180 million barrels in July.
Before the market can really become stable, Saudi inventories are going to have to return to pre-attack levels, the damaged facilities are going to have to be repaired and working at full capacity and further threats will have to be prevented.
Today, the EIA plans to report natural gas inventories for the week ended September 13. A negative inventories spread could support natural gas prices.
(Bloomberg) -- Buyers of Venezuelan crude used to visit the building across from Petroleos de Venezuela SA’s headquarters in Caracas. Not anymore.Now, the place to go is a helix-shaped skyscraper popularly known as “The Screw,” in Panama City that houses a Rosneft Oil Co PJSC office, according to people with knowledge of the situation. The office, staffed by three oil traders, two of whom used to work for PDVSA, helped Rosneft to handle 70% of all oil exported by Venezuela in August, data compiled by Bloomberg show.Rosneft has taken on a more active role in trading Venezuelan oil after the U.S. tightened sanctions earlier this year against the South American nation in a bid to oust President Nicolas Maduro. As China National Petroleum Corp.’s subsidiary PetroChina Co. Ltd., the biggest taker of Venezuelan crude prior to sanctions, halted loadings in August and September, Rosneft was allocated larger shares of Venezuelan crude, and so has Cuba and PDVSA’s subsidiary Nynas AB, which owns refineries in Europe.Client ComplaintsPDVSA and Rosneft have been partners in oil-producing ventures in Venezuela and since 2014 Rosneft has loaned about $6.5 billion to PDVSA in exchange for oil. After initial delays, PDVSA caught up with payments and reduced the outstanding debt to $1.1 billion in the second quarter. The crude loaded as payment is being resold to refiners in China and India. Rosneft-backed Nayara Energy Ltd., based in Mumbai, has adjusted its diet and is taking more Venezuelan barrels.PDVSA’s trading department now is staffed with employees brought in from the Housing Ministry, the former home of now oil minister and PDVSA president Manuel Quevedo, some of the people said. Complaints include that most PDVSA traders don’t speak English, the language of oil business worldwide, and many struggle with common-place concepts such as arbitrage and freight rates. Another common complaint is that most phone calls and emails go unanswered, some of the people said.Rosneft didn’t respond to a request for comment and PDVSA declined to comment.In a Sept. 10 statement, Rosneft said it’s following the law because all oil contracts, including the ones of loading crude oil or delivering gasoline, were signed prior to sanctions. Threats of imposing sanctions on Rosneft while the U.S. allows American companies to operate with PDVSA under waivers can be seen as “unfair competition aimed at gaining advantages by American companies in the global oil market,” the Moscow-based company said.To contact the reporter on this story: Lucia Kassai in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Jessica Summers, Catherine TraywickFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As the UK£14m market cap Chariot Oil & Gas Limited (LON:CHAR) released another year of negative earnings, investors...
Brent crude oil prices rose more than 1% on Thursday on fears of longer-than-expected supply shortfalls following Saturday's attacks on a key Saudi Arabian oil processing facility and escalating tensions in the Middle East. Global benchmark Brent settled 80 cents, or 1.3%, higher at $64.40 a barrel, while U.S. West Texas Intermediate (WTI) crude pared earlier gains and ended largely steady at $58.13 a barrel, just 2 cents firmer. Saturday's attacks knocked out around half of Saudi Arabia's crude production and severely limited the country's spare capacity, a cushion for oil markets in any unplanned outage.
The palm oil industry was responsible for at least 39% of forest loss in biodiversity-rich Borneo island between 2000 and 2018, data from an Indonesia-based research firm shows. The Center for International Forestry Research (CIFOR) data, published this month via its Borneo Atlas tool, comes as a smoky haze has spread across Southeast Asia from fires in Borneo and others parts of Indonesia, causing a drop in air quality to unhealthy levels in neighbouring Singapore and Malaysia. Some palm oil farmers have been accused of using slash-and-burn methods to clear land for planting.
Global oil prices spiked higher Thursday following multiple media reports that Saudi Arabia has asked neighboring Iraq for as much as 20 million barrels of crude to support domestic refineries.
China's total planned coal-fired power projects now stand at 226.2 gigawatts (GW), the highest in the world and more than twice the amount of new capacity on the books in India, according to data published by environmental groups on Thursday. The projects approved by China amount to nearly 40% of the world's total planned coal-fired power plants, according to the Global Coal Exit List database run by German environmental organisation Urgewald and 30 other partner organisations. The new China projects would be more than Germany's existing installed power capacity of around 200 GW by the end of 2018.
Infrastructure in Saudi Arabia and other Middle Eastern nations critical to the global economy remains vulnerable to new attacks in the future, whether from Iran, its regional allies or other groups, industry experts, security analysts and former U.S. officials warn.
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.
Based on the early price action and the current price at $1497.10, the direction of the December Comex gold market into the extended close is likely to be determined by trader reaction to the main 50% level at $1489.10.
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.