Tag: Oil and Gas

India COVID surge drives oil prices down for second straight day
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India COVID surge drives oil prices down for second straight day

India, the world’s third-largest oil user, has seen record numbers of new COVID cases and deaths recently.Oil prices have fallen for a second day on concerns that soaring COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer. Brent crude futures for June fell 52 cents, or 0.8 percent, to $66.05 a barrel at 01:57 GMT on Wednesday, after dropping 48 cents on Tuesday. United States West Texas Intermediate (WTI) crude futures for June fell 56 cents, or 0.9 percent, to $62.11 a barrel. The May contract expired on Tuesday down 1.5 percent at $62.44. “You’ve seen refiners there (in India) scale back runs because demand has fallen with the spread of lockdowns. That’s clearly weighing on the market and sentiment,” said Lachlan Shaw, head of commodity research...
Oil gains on strong China data, rally capped by vaccine concerns
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Oil gains on strong China data, rally capped by vaccine concerns

Analysts express concern that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth.Oil prices settled higher Tuesday on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth. Global benchmark Brent crude oil futures settled up 39 cents, or 0.6 percent, at $63.67 a barrel, while United States West Texas Intermediate crude oil futures gained 48 cents, or 0.8 percent, to $60.18 a barrel. Both contracts have recorded changes of less than 1 percent for five straight sessions. “We’ve been trading in a range, and need clear demand data and direction on US inventories to break out of this trough,” said Phil Flynn, senior analyst at P...
US oil output climbs toward level not seen since pandemic’s start
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US oil output climbs toward level not seen since pandemic’s start

Higher prices are buoying drillers’ confidence: Benchmark Nymex oil gained nearly 35 percent in the past four months after OPEC and its alliance cut production to strike a balance between demand and supply.The Permian Basin, the U.S.’s most prolific shale patch, will produce crude oil at levels not seen since the start of the pandemic in the latest sign the global economy is heating back up. Higher prices are buoying drillers’ confidence. Benchmark Nymex oil gained nearly 35% in the past four months after OPEC and its alliance cut production to strike a balance between demand and supply. The fossil fuel is also getting a bump as Covid-19 vaccinations progress and Americans travel again, boosting gasoline consumption. Output in the basin will reach 4.466 million barrels a day in May, the mo...
Aramco’s new disclosures still understate its carbon footprint
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Aramco’s new disclosures still understate its carbon footprint

Saudi Aramco still has a long way to go in ensuring that its emissions disclosures match those of other oil majors.Oil companies are under pressure to cut emissions. That process starts with disclosing their entire carbon footprint so that investors and the public can hold them to account. Earlier this year, a Bloomberg Green analysis showed that the world’s largest oil company, Saudi Aramco, understated its emissions by as much as 50%. The company’s 2019 disclosures only included wholly owned assets that were in Saudi Arabia, leaving out a number of high-emitting assets abroad. In response, the company said it would boost its reporting. In its latest annual report released in March, Aramco revised its 2019 emissions from 57.9 million metric tons of carbon-dioxide equivalent to 71 million ...
Saudi launches $1.3 trillion private sector investment push
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Saudi launches $1.3 trillion private sector investment push

Saudi Arabia is trying to wean its economy off its reliance on oil exports, which account for more than half its income.Saudi Arabia’s crown prince says oil firm Aramco and petrochemical firm SABIC will lead investments of five trillion riyals ($1.3 trillion) by the country’s private sector by 2030 under an economic diversification programme. The move, announced on Tuesday, aims to mobilise the Gulf Arab state’s private sector to help wean the economy off its reliance on oil exports, which still account for more than half the state’s income, and develop new sectors to help create jobs for millions of Saudis. The programme is part of 12 trillion riyals ($3.2 trillion) worth of investments planned by 2030, Crown Prince Mohammed bin Salman said in televised remarks. That also includes three t...
Saudi Arabia ready to extend oil cuts by OPEC+: Report
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Saudi Arabia ready to extend oil cuts by OPEC+: Report

A fresh wave of COVID lockdowns may cause OPEC+ to extend cuts into May when it meets Thursday, Reuters reports.Saudi Arabia is prepared to support extending oil cuts by OPEC and allies into May and June and is also ready to extend its own voluntary cuts to boost oil prices amid a new wave of coronavirus lockdowns, the Reuters news agency reported, citing a source briefed on the matter. With oil prices making steady gains earlier this year, the Organization of Petroleum Exporting Countries and allies, known as OPEC+, had hoped to ease output cuts. But last week, four OPEC+ sources told Reuters a fresh wave of lockdowns would most likely encourage the group to extend cuts into May when it meets on Thursday. On Monday, the source said Saudi Arabia was keen to extend cuts into June. “They don...
US stocks hover near record highs as bank losses temper gains
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US stocks hover near record highs as bank losses temper gains

United States stocks stabilised in afternoon trading Monday and hovered near the record highs they set last week, but losses for big banks tempered gains. The Dow Jones Industrial Average closed up 98.49 points, or 0.3 percent, to land at 33,171. The broader S&P 500 index – a proxy for the health of retirement and college savings accounts – lost 0.09 percent while the Nasdaq Composite Index ended the trading day 0.6 percent lower. Financial stocks dropped to some of the market’s sharpest losses amid worries about how much pain big banks will take following soured trades made by a major US hedge fund. Stocks of energy producers were also weak after the price of crude oil edged lower. Technology stocks also fell broadly as China announced more tax breaks to bolster its own chip sector. G...
War-torn Syria rations fuel amid ongoing closure of Suez Canal
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War-torn Syria rations fuel amid ongoing closure of Suez Canal

Blockage of the Suez Canal by a stranded ship impacts oil imports to beleaguered Syria, which was already suffering from fuel shortages.The Syrian government has started rationing the distribution of fuel in the country amid concerns that shipments could be delayed because Egypt’s Suez Canal is being blocked by a giant cargo ship that ran aground, according to the oil ministry. The blockage has held up a ship that was carrying fuel and oil products from Iran, an ally of the Syrian government, the Syrian oil ministry said on Saturday. Pending a resolution, “the ministry is rationing the distribution of available oil products” to ensure the continuity of essential services, such as bakeries and hospitals, the ministry statement said. The Ever Given container ship has been stuck sideways in t...
Africa-bound: Ships set for costly detour amid Suez blockage
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Africa-bound: Ships set for costly detour amid Suez blockage

Ships are beginning costly and time-consuming detours around Africa with the Suez Canal still blocked by a massive container vessel, as concerns mount that a complex rescue mission could take weeks. The prospect of a longer-than-anticipated outage along what’s arguably the world’s most important maritime trade route threatens further turmoil in a shipping sector that’s already scrambling to keep sea transportation for everything from finished goods to energy and commodities on track. Work since Tuesday to re-float the stricken Ever Given has so far been unsuccessful, with tugs and diggers failing to budge the giant, 400-meter long vessel and clear the route for stranded oceangoing carriers hauling billions of dollars worth of oil and consumer goods. If containers can be left aboard the Eve...