Home / Oil & Energy / Oil & Companies News

Oil & Companies News

Investors See Oil Break Out of Narrow Range With Record Bets

Oil has been bound to the tightest price range in more than a decade, and yet hedge funds have never been so confident it will eventually rally. Money managers boosted their bets on rising West Texas Intermediate prices to a record on speculation that the Organization of Petroleum Exporting Countries and its partners will manage to ease a global supply glut. America’s crude producers, which are increasing output, aren’t so sure. They’ve been hedging against price declines for this year and 2018. Oil has traded above $50 a barrel since ...

Read More »

U.S. Shale Surge Threatens OPEC Strategy

OPEC’s Nov. 30 output agreement to cut production by 1.2 million barrels a day may have put a floor under the oil price, but has also awakened U.S. shale. Exploration and production companies have added 77 rigs this year to Feb. 24, according to the latest figures from Baker Hughes, while U.S shale production is forecast to reach about 4.87 million barrels a day in March, according to the Energy Information Administration’s latest Drilling Productivity Report. That’s the highest since May 2016. Estimates of just how much shale will be ...

Read More »

Abu Dhabi finalizes once in a generation deal: Fuel for Thought

At the start of last week, Abu Dhabi finalized a 40-year deal that formally cemented the UAE’s shift to Asia and struck a delicate balance in tailoring the deal to fit the needs of most stakeholders already in the concession. The Asia pivot has been ongoing for some time in terms of oil flows, but the previous Adco concessions had no Asian companies or states involved, and now the ownership structure reflects those flows. Adco had earlier signed up Japan’s Inpex with 5% and South Korea’s GS Energy with 3%, ...

Read More »

Rising US shale output undermining Opec

Societe Generale oil analyst Michael Wittner has been underlining that the US shale oil output was recovering faster than expected. “Rig counts are increasing at an accelerating pace, and given the technological advances of the past three years, this should translate into significant supply,” Wittner told the press. “US shale is coming back, and it’s coming back strong.” And the Permian basin of West Texas is the real reason behind the ongoing speculation. Permian acreage is a prized asset today because of its geology that allows drillers to produce oil ...

Read More »

With Shale Oil Production Like This, Who Needs Trump?

The second coming of shale could be even more powerful than the first. OPEC seems to be getting caught unawares. The current boom in U.S. oil production is even stronger now than the run from July 2011 to April 2015. And this is with oil prices at half their previous level and before President Donald Trump has done anything to meet his pledge to “lift the restrictions on American energy and allow this wealth to pour into our communities.” Output growth could accelerate if prices rise, or costs fall further. ...

Read More »

Iran describes OPEC compliance with oil cuts as ‘acceptable’

OPEC’s level of compliance with production cuts in January has been acceptable, Iran’s oil minister said on Monday, expressing hope for further cooperation from non-OPEC members in the near future. The Organization of the Petroleum Exporting Countries agreed on Nov. 30 to cut output by 1.2 million bpd to 32.5 million bpd for the first six months of 2017, in addition to 558,000 bpd of cuts agreed to by producers such as Russia, Oman and Mexico. “OPEC members’ level of compliance to cut oil production in January has been acceptable ...

Read More »

UK Crude Output Rises for 2nd Consecutive Year

UK production of crude oil and natural gas liquids increased by 4.8% on the year in 2016, the second annual rise in a row, the UK Department for Business, Energy and Industrial Strategy said in its provisional figures for 2016. Most of the growth came from fields that feed into the Flotta and Forties terminals in the North Sea, the department said, Oil Price reported on Friday. The UK’s gas production increased by 3.6% in 2016, the third consecutive annual increase, mostly due to production from the new Laggan field ...

Read More »

Russia says may speed up oil output cuts

Russia may cut oil production as part of an OPEC-led agreement designed to boost prices faster than it had previously expected, if its domestic companies are able, Energy Minister Alexander Novak said on Monday. Russia had said it would cut oil output by 200,000 barrels per day (bpd) by the end of the first quarter compared with October’s levels, and by a further 300,000 bpd in April as part of the global deal. “We will be aiming to cut faster … Depending on companies’ capabilities,” Novak told reporters on the ...

Read More »

Lukoil’s Middle East Head Sees Oil at $55-$65 a Barrel on Cuts

Oil will stabilize around $55 to $65 a barrel as OPEC fulfills its agreement to cut output, with stockpiles and shale production keeping prices from rising much more, the Middle East head of Lukoil PJSC said. Russia’s second-largest oil producer hasn’t had to reduce production in Iraq as a result of the curbs pledged by OPEC, Gati Al-Jebouri said Monday in a Bloomberg television interview. Lukoil’s output in Iraq is about 400,000 barrels a day, he said. OPEC’s cutbacks have brought a period of stability to the market, he said. ...

Read More »

Funds prepare $2 billion oil market play as supply tightens

Passive investment funds are poised to shift an estimated $2 billion from far-term to near-term crude futures over the next week, anticipating an energy market rally as a historic OPEC output cut slashes supply. The switch may foreshadow the end of a global oil glut that built up during a two-year price war. On Friday – for the first time in six years – a rule in one of the most popular commodity market indices was triggered, requiring funds tracking the index to sell Brent crude futures contracts for December ...

Read More »

Man Who Moved Oil With His Words Won’t Talk About It Anymore

For more than two decades, the oil market hung to Ali al-Naimi’s every word — whether he was taking a characteristic stroll at dawn on Vienna’s Ringstrasse, hurrying through a hotel lobby after a conference, or dodging throngs of reporters at an OPEC meeting. Now that he’s done with his near 21-year stint as Saudi Arabia’s oil minister, during which his utterances could move everything from crude to currencies and stocks worldwide, al-Naimi says he doesn’t want to talk about the market anymore. “As far as oil prices and oil, ...

Read More »

Algeria’s Sonatrach in talks to begin offshore drilling – source

Algeria’s Sonatrach wants to start offshore oil drilling and has begun discussions with U.S. operators Exxon Mobil Corp (XOM.N) and Anadarko (APC.N) as well as Italy’s Eni (ENI.MI), a source at the state energy company told Reuters on Sunday. The North African OPEC member nation has struggled to attract oil investment in recent years because of tough terms that have made foreign companies wary. Sonatrach last year began a more flexible approach to bilateral talks with foreign partners. Low oil prices have also pressured Sonatrach, prompting it to focus on ...

Read More »

Sasol finds oil off Mozambique, cuts capex as H1 earnings fall

South African petrochemicals group Sasol has found promising signs of oil and gas in wells drilled off Mozambique, raising the hydrocarbon profile of the impoverished southern African country. Mozambique has vast untapped offshore gas reserves and inland coal deposits but is one of the world’s poorest countries and is in the throes of a financial and debt crisis. Sasol, which announced first-half results on Monday, said it remained committed to its projects in Mozambique despite the financial challenges the country is facing. The company said four of 12 planned wells ...

Read More »

Russia’s Rosneft sees capex at around 1.1 trillion roubles in 2017

Russia’s largest oil producer Rosneft expects its capital expenditure to be around 1.1 trillion roubles ($19 billion) “plus or minus” 10 percent in 2017, depending on the tax regime, the company’s chief financial officer, Pavel Fedorov, said on Monday. He also said during a conference call that the company would decide on the first interim dividend payout in the second half of this year. The payout ratio stands at 35 percent of net income under international financial reporting standards, he added. Source: Reuters (Reporting by Vladimir Soldatkin; Editing by Polina ...

Read More »

Oil steady as rising U.S. output offsets record bullish bets

Oil prices ended little changed on Monday as the prospect for U.S. crude production to continue growing offset reports of high compliance to the OPEC production cut agreement and record bullish bets that prices would rise further. On its penultimate day as the front-month contract, Brent futures for April delivery lost six cents, or 0.1 percent, to settle at $55.93 a barrel, while U.S. West Texas Intermediate crude (WTI) gained six cents, or 0.1 percent, to $54.05. Investors raised their bets on rising Brent crude oil prices to a new ...

Read More »

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping