|Day's range||54.77 - 56.27|
Investing.com - The U.S. stockpile of crude oil supplies fell less than expected last week, the Energy Information Administration said Thursday.
It looks like the coronavirus story is not going to go away over the near-term and actually conditions could worsen. It’s difficult for professionals to gauge the impact on demand at this time so we may not see a bottom until the speculators stop shorting the market.
The UAE has made a tremendous amount of money off its oil resource base, but smart investing and an effective divestment strategy are now starting to pay off
Crude oil markets broke down during the trading session on Wednesday, slicing through the last vestiges of support and looking very vulnerable at this point.
Tensions between Turkey and Cyprus that have been simmering for decades flared up again this month after Cyprus called Turkey a “pirate state”
The British pound took off during the trading session on Wednesday as we have bounced from a major trend line, broken above the 50 day EMA, and then break even higher from there.
(Bloomberg) -- Kuwait plans to restart oil production by March at the Wafra field that it shares with Saudi Arabia, more than four years after the neighbors halted output.Wafra has been shut since May 2015, due to a dispute over Saudi Arabia’s renewal of Chevron Corp.’s concession there. The field will resume pumping by March, Kuwaiti Oil Minister Khaled Al-Fadhel said Wednesday by phone.Kuwait’s parliament voted earlier in the day to ratify the agreement the country reached with Saudi Arabia in December to resume production at their shared oil deposits. Fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.Kuwaitis and Saudis alike have said a resumption would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. The neutral zone, spanning more then 5,700 square kilometers (2,200 square miles), was created by a 1922 treaty between Kuwait and the fledgling Kingdom of Saudi Arabia. In the 1970s, the two Gulf Arab monarchies agreed to divide the area and incorporate each half into their respective territory while still sharing and jointly managing the zone’s petroleum wealth. The region contains two main oil fields: the onshore Wafra and offshore Khafji.Khafji was shut down in 2014 after a spat between the neighbors. The disagreement escalated over the Wafra field, when Saudi Arabia extended the original 60-year concession of the field, giving California-based Chevron, through its subsidiary Saudi Arabian Chevron Inc., rights there until 2039. Kuwait was unhappy over the announcement and claims Riyadh never consulted it about the extension.Chevron, which operates Wafra with Kuwait Gulf Oil Co., said in December that it expected full production there to be restored within 12 months.To contact the reporter on this story: Fiona MacDonald in Kuwait at email@example.comTo contact the editors responsible for this story: Nayla Razzouk at firstname.lastname@example.org, Bruce Stanley, Amanda JordanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right...
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.A brewing diplomatic spat between India and Malaysia has got an unusual victim in the crossfire: palm oil.New Delhi abruptly restricted imports of refined palm oils this month, apparently irked by Malaysian Premier Mahathir Mohamad’s comments on steps taken by the administration of Indian Prime Minister Narendra Modi that affect Muslims in India. The South Asian country is the world’s biggest palm buyer and is a major market for Malaysia, the No. 2 producer.While India didn’t publicly say the move was in retaliation to Mahathir’s comments, the Southeast Asian nation counts refined palm oil as an integral part of its economy and any loss in sales will deal a huge blow.If India’s refined imports from the nation drops from about 2.6 million tons a year to reach to 2018 levels, about 2 million tons of Malaysian processed products worth $1.4 billion may need new buyers, said Khor Yu Leng, an independent economist with Segi Enam Advisors, who has published papers on Malaysia’s political economy.Tensions between the two countries began in September when Mahathir told the United Nations that India “invaded and occupied” Kashmir and later criticized India’s citizenship amendment act. His comments made the Modi government uneasy and led to an influential processors’ group in Mumbai asking its members to avoid buying palm oil from Malaysia.The Indian government has also informally told local importers to avoid purchasing crude palm oil from Malaysia, according to traders and industry officials, who asked not to be identified due to the sensitivity of the matter. The spokeswoman of the commerce ministry was not immediately available for comment.Since then, many Indian palm oil buyers have started shifting to Indonesia amid concerns that Modi’s government may restrict purchases from Malaysia or hike import taxes.Malaysia’s refined palm oil shipments to India surged to about 2.66 million tons last year from 650,000 tons in 2018, while exports of the crude variety dropped to 1.75 million tons from 1.87 million tons, according to Malaysian Palm Oil Board data. Benchmark palm oil prices fell 0.4% to 2,875 ringgit a ton on Bursa Malaysia Derivatives by the midday break on Wednesday.PremiumsThe rift may not only hit Malaysia, but also hurt Indian consumers as suppliers from Indonesia have started charging a premium of $15-$20 per ton over benchmark prices, traders said. Although, Malaysia on Friday said it will raise its export duty on crude palm oil to 6% in February from 5% a month earlier, analysts said it may come under pressure to cut the levy.“If India doesn’t buy from Malaysia, the country has to find other buyers,” said Oscar Tjakra, analyst at Rabobank International in Singapore. “Malaysia may have to change its export duties to remain attractive.”Palm may average at 2,950 ringgit per ton in the first quarter and at 2,750 ringgit in the April-June period, Tjarka said. That compares with an average of 2,588 ringgit during the Oct.-Dec. quarter.To minimize the blow, Malaysia has started promoting its palm oil in other markets. Primary Industries Minister Teresa Kok said during a recent visit to Pakistan that both the countries were planning to improve trade in palm oil and other commodities. While Malaysia will use diplomatic channels to reach a solution with India, the country is also exploring ways to boost palm oil shipments to central Asia, Africa and the Middle East.Malaysia’s shipments to Pakistan surged more than 80% from a month earlier to 74,000 tons during the first 20 days of January, according to cargo surveyor SGS Malaysia Sdn. Exports to India slumped almost 49% to 30,500 tons, figures showed.Indonesia CheeringMeanwhile, rival Indonesia is cheering as it expects higher purchases by India.Indonesia has enough supply to fulfill India’s demand, and the country is hoping to regain its export share in the south Asian nation that was lost after China overtook India in becoming Indonesia’s biggest buyer, said Mukti Sardjono, executive director of the Indonesian Palm Oil Association.“Indonesia is bound to benefit from this but it’s negative for palm oil as a whole,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental. “Demand will be hit badly.”(Updates to add palm oil data, prices in eighth paragraph)\--With assistance from Eko Listiyorini and Shruti Srivastava.To contact the reporters on this story: Anuradha Raghu in Kuala Lumpur at email@example.com;Pratik Parija in New Delhi at firstname.lastname@example.orgTo contact the editors responsible for this story: Anna Kitanaka at email@example.com, ;Unni Krishnan at firstname.lastname@example.org, Atul Prakash, James PooleFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- From Galicia in the north to Andalucia in the south — Spain’s old coal plants are running out of steam. The Iberian nation last year cut use of the dirtiest fossil fuel faster than anyone else in western Europe as renewable energy and cleaner natural gas take over. The combustible rock, which has kept the region humming through world wars and economic boom times, is increasingly out of favor with lawmakers and executives under pressure to do more to stop global warming."We are in a hurry, we have to move fast, everybody has to move fast,’’ Iberdrola SA Chief Executive Officer Ignacio Galan said on Tuesday at the World Economic Forum in Davos. The Spanish utility plans to permanently shut its two remaining coal-fired power stations this year, replacing them with new wind and solar capacity. Coal’s share in the nation’s electricity fell to a four-decade low of less than 5% from 14% a year earlier, according to the nation’s grid operator Red Electrica SA. The sharp drop is yet another sign how the unprecedented surge in renewable power output coupled with the lowest seasonal gas prices in a decade have upended traditional energy economics. Spain was anticipating exiting the fuel by the end of the decade, while the U.K. will shut all its plants by 2025. Germany last week struck a deal with its biggest power producers. “The fall in coal generation means Spain could phase out the fuel much faster than the government ever imagined,” said Dave Jones, an analyst at non-profit group Sandbag in London.The nation burned as much as 70% less coal in 2019 than a year earlier, while the level in Germany fell 28%, according to data from S&P Global Platts.The Spanish government made a start by shutting all coal-mining operations last year after striking a deal with unions to invest 250 million euros ($277.7 million) in impacted regions to enable a smoother transition to a green economy. That allowed a tax on burning natural gas at power plants to be abolished. It had been introduced to prop up the ailing mining industry.Output is poised to fall further this year as both Iberdrola and Naturgy Energy Group SA plan to retire their plants this year. Energias de Portugal SA and Viesgo Holdco SA will shut their units by the middle of the decade. That would leave Endesa SA, the biggest producer of power from coal, as the only remaining operator after 2025. The company said that from 2022, its last operating plant will run for less than 10% of its theoretical maximum hours in any given year. If the utilities stick to earlier statements, then Spain could be entirely without coal as early as 2027 as the chart below shows. The prevailing market and political forces working against coal mean that Spanish plants faced a projected loss of 992 million euros in 2019, according to a report from Carbon Tracker, a think tank focusing on the energy transition.The nation’s lead in exiting coal is helped by having some of the best renewable resources in Europe, which, coupled with subsidies, has stimulated more power capacity than needed to keep the lights on.“Spain is the most oversupplied electricity market in Europe,” said Jones. “So it has the capacity to shut coal power plants and not wait for new capacity to come online.”Preliminary analysis from the group showed that the fuel’s share of Europe’s electricity mix fell by 23% in 2019 from a year earlier and is set to decline further in 2020.Spain’s new coalition government plans to pass a climate law, proposed more than a year ago, saying that all electricity needs to come from renewables by 2050. It also includes plan to reach 74% by 2030. Spain generated 38% of its electricity from green sources last year.For Jahn Olsen, a London-based analyst at BloombergNEF, coal is unlikely to ever bounce back after the jump in carbon emission costs in Europe over the past couple of years.“The rationale to keep running coal power plants in Spain just isn’t there,” he said. “These plants are losing money right now, and they will continue to lose money in the coming years.”(Updates with comment from Endesa in eighth paragraph. )\--With assistance from Demetrios Pogkas.To contact the authors of this story: Akshat Rathi in London at email@example.comJeremy Hodges in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Lars Paulsson at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
According to a new report from the IEA, the oil and gas industry is facing an existential threat from the loss of profitability and the loss of social acceptability as the energy transition accelerates
Despite the kickback from the anti-oil movement, the oil industry discovered some 12.2 billion barrels of oil equivalent last year, and this trend is set to continue in 2020
Oil prices fell on Tuesday morning as a deadly virus in China stoked fears of an economic slowdown, and even the escalation in Libya’s oil war couldn’t bring bullish sentiment back
Guyana has exported its first crude from the Liza project, and with new oil blocks up for development, the government of the small South American country is now debating a rise in royalties
Barclays expects crude oil demand this year to rise by 1.4 million bpd, up from 900,000 bpd last year, thanks to the improved global economy outlook
The S&P; 500 initially pulled back a bit during the trading session on Tuesday, as traders came back from the Martin Luther King Jr. holiday. At this point, the market is very likely to continue to look at large round numbers as a potential booster.