May 01, 2019 12:25 PM / By Tom Kool Editor, Oilprice.com
Today, we will take a quick look at some of the critical figures and data in
the energy markets this week.
We will then look at some of the key market movers early this week before
providing you with the latest analysis of the top news events taking place in
the global energy complex over the past few days. We hope you enjoy.
U.S exports of total petroleum products hit a record high in 2018, averaging 5.6 million barrels per day, which was
up 366,000 bpd from a year earlier.
Petrobras (NYSE: PBR) plans on
raising $20 billion through the sale of eight of its refineries, according to Reuters.
- Occidental Petroleum (NYSE: OXY) was
to Hold by Jefferies, which cited “risky” battle for Anadarko
Petroleum (NYSE: APC). Chevron (NYSE: CVX) is also
seeking to buy Anadarko.
Diamond Offshore (NYSE: DO) saw
its share price sink more than 6 percent on Monday after reporting first quarter earnings, which saw a 21 percent
year-on-year decline in revenues.
Tuesday April 30, 2019
Oil rebounded on Tuesday after two days of declines, pushed higher by turmoil
in Venezuela and the insistence by Saudi officials that the OPEC+ production
cuts would be extended in the second half of 2019.
Saudi Arabia wants cuts extended. Saudi oil
minister Khalid al-Falih told the Russian press that OPEC+ should maintain production cuts in some
form through the end of the year. Oil prices bounced on the news.
Venezuela military uprising underway. As of
Tuesday morning, opposition leader Juan Guaidó had reportedly launched an
attempted military coup. “The definitive end of the usurpation started today,”
said Guaidó, according to Argus Media. “The National Armed Forces, today, brave soldiers,
patriots loyal to the constitution, have heeded our call.” The reports suggest
that some generals in the armed forces have ordered their troops to back the
coup. At the time of this writing, it was unclear how successful the campaign
U.S. regulators pan Trump’s plan for Alaska drilling. The
U.S. Fish and Wildlife Service said that the Trump administration’s plan to
open up the Alaska National Wildlife Refuge (ANWR) for drilling did not
adequately consider the impacts of oil spills, climate change and the welfare
of polar bears. The Interior Department is hoping to hold a lease sale later
this year in ANWR, but Fish & Wildlife (which is housed within Interior) said the environmental assessment and permitting process was flawed. That
could open up the lease plan to litigation.
ExxonMobil looking at Permian acquisitions. ExxonMobil
(NYSE: XOM) is interested in making more acquisitions in the
Permian, according to the FT. A senior VP at Exxon told analysts on an earnings call
last week that he “would be surprised if over time we did not pick up more
Permian acreage.” The comments come in light of the battle between Chevron
(NYSE: CVX) and Occidental Petroleum (NYSE: OXY) for
Petroleum (NYSE: APC). Whoever wins that bidding war will
substantially increase their presence in the Permian.
Warren Buffet to invest $10 billion on Occidental winning Anadarko
fight. Warren Buffet’s Berkshire Hathaway said it would invest $10 billion into Occidental Petroleum (NYSE: OXY),
although contingent on the company winning the bidding war for Anadarko
(NYSE: APC). Occidental’s bid for Anadarko is viewed as more
generous than that of Chevron (NYSE: CVX), at least at
the moment, but to date, Anadarko has seemed to prefer Chevron. That could
change with the backing of Buffet.
Trafigura ships first cargo of West Texas Light. Trafigura
shipped the first-ever cargo of West Texas Light (WTL), a new
blend that is differentiated from West Texas Intermediate (WTI). WTL is a blend
of light and ultralight oil, and it is an outgrowth of the booming supply of
ultralight oil in the Permian. South Korea took the first shipment as it looks
to replace condensate imports from Iran.
Venezuelan opposition seeks Trump’s help in paying bond. Venezuela’s
opposition in the National Assembly is set to vote on legislation seeking the approval from the U.S. Treasury Department
to tap frozen funds in order to allow Citgo to make an interest payment. Citgo
has been put into the hands of the Venezuelan opposition, but is at risk of
creditor action if it can’t make payments. Citgo is one of the top assets the
opposition has and would be key in building a new regime in Venezuela.
UK fracking looking bleak. Regulations on seismic
activity and the influx of cheap LNG has all but killed any hopes of getting
fracking off the ground in the UK. A UK government liaison between industry and
local communities just resigned her post, blaming environmentalists from stifling development.
Iraq to be fourth largest producer by 2030. Iraq
is set to be the world’s fourth largest oil producer by 2030, adding more than
1 mb/d over the next decade to top 6 mb/d, according to a recent IEA report. If it succeeds, Iraq would only trail the U.S., Saudi
Arabia and Russia. However, Iraq will need large volumes of water for oil field
injections to realize these goals. "Without it, production rates could
struggle to climb much beyond their current levels," the IEA said in its
Steel demand in drilling set to increase. More
than 1 million kilometers of new oil and gas wells will be drilled over the
next five years, according to Rystad Energy. The depth of these wells is equivalent to 25 times around
the equator. Steel used in casing is set to remain elevated as a result.
BP profits fall. BP (NYSE: BP) said that first quarter profits declined by 12 percent to $2.1 billion due
to weaker oil prices at the start of the year. The performance echoed that of
its peers, with ExxonMobil (NYSE: XOM), Chevron
(NYSE: CVX) and Total (NYSE: TOT) citing similar
Prices Crash As OPEC Prepares To Boost Supply - OIR 260419
Hits 2019 High On Iran Sanctions – OIR 230419
3. Can Saudi Arabia
Still Sway The Oil Market?
4. The Firm Floor
Under Oil Prices - OIR 190419
5. Oil Bulls
Undaunted By OPEC Fears - OIR 160419
6. Average Prices
of PMS, AGO, HHK and Cooking Gas – March 2019
7. Oil Climbs For
Sixth Straight Week - OIR 120419
8. GACN Issues Gas
Purchase Order to Axxela and NGMC Joint Mini LNG Project
9. Smart Money Is
Piling Into Oil
10. Brent Breaks $70
On Libya Violence - OIR 090419
11. Oil Hits $70 On
Libya Unrest, Crisis In Venezuela – OIR 050419
12. Sahara Group
Canvasses Intra-Africa Solution for Petroleum Sector Challenges
13. Axxela Now 100
Percent Owned by Helios
14. 5.32bn Litres of
PMS Imported Into Nigeria in Q4 2018 - NBS
15. Oil Hits 2019
High On Shale Slowdown - OIR 020419
16. Oil Breaks $60
As Bullish News Mounts - OIR 290319
17. Sahara Group
Advocates Adoption of Uniform Petroleum Products Standards in Africa