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Oil market roiled by too much gasoline, not enough diesel

Global oil markets are increasingly over-supplied with light distillates, such as gasoline, while there are not enough middle distillates, such as diesel, which has opened a big price differential between the two fuels. To keep meeting healthy demand for mid-distillates, refiners are processing high volumes of crude and creating a glut of gasoline. U.S. gasoline prices for delivery in June 2019 are trading just $7 per barrel above benchmark Brent futures for the same month, compared with a premium of $18 per barrel for low-sulphur distillate fuel oil. Early in ...

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Analyis: US crude stocks soar amid record production, nearly flat refinery runs

US crude supply increased to a 48-week high last week on the back of record-high production and languishing refinery runs, Energy Information Administration data showed Thursday. Commercial crude storage expanded for an eighth-straight week, adding 10.27 million barrels during the week ending November 9 to 442.05 million barrels, EIA data showed. The build far exceeded analyst expectations of a 2.33 million-barrel increase reported in an S&P Global Platts analysis Monday, and puts inventories 4.8% above the EIA-reported five-year average. The EIA data release was delayed to Thursday due to a ...

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Upset by Trump’s Iran waivers, Saudis push for deep oil output cut

When U.S. President Donald Trump asked Saudi Arabia this summer to raise oil production to compensate for lower crude exports from Iran, Riyadh swiftly told Washington it would do so. But Saudi Arabia did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh’s arch-rival down to zero, OPEC and industry sources say.Angered by the U.S. move that has raised worries about over supply, Saudi Arabia is now considering cutting output with ...

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Oil and gas 4.0 will transform our business, benefit people: ADNOC CEO

Artificial Intelligence, Big Data and the Blockchain are shaping Oil and Gas 4.0, which Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, believes will make the oil and gas sector more efficient, more productive and create greater value. “At the core of Oil and Gas 4.0 is a basic truth,” Dr Al Jaber said. “While advances in technology are impacting every industry, it is time to really focus on how it can evolve the oil and gas industry. The oil and gas industry must think ...

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Oil Majors Have Started Their Low-Carbon Journey, But Progress Is Painfully Slow

When it comes to climate change and the need to decarbonize, the oil majors have changed their tune in recent years. In the wake of the Paris Agreement on climate change and increased pressure from investors, many have agreed to shareholder resolutions asking them to explain how they will deal with climate impacts, they have stepped up their investments in renewable energy and electric vehicle infrastructure, and a number have even set dates by which they believe oil and gas demand will peak. And yet, two new pieces of research ...

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Canada’s Oil Industry Is Sparring Over Forced Output Cuts

Canada’s oil sector is divided over whether to force a temporary cut to production, with some major producers pushing the controversial idea in a bid to ease a supply glut and halt a steep plunge in prices, according to seven people familiar with the matter. Executives from Canadian Natural Resources Ltd. and Nexen Energy ULC are among those who made the pitch to Alberta’s premier last month, the people said, speaking on condition of anonymity as the meeting was private. Cenovus Energy Inc. is also publicly advocating for a forced ...

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The Wolfcamp play has been key to Permian Basin oil and natural gas production growth

Increased oil and natural gas development in the Wolfcamp play has helped drive overall crude oil and natural gas production growth in the Permian Basin during the past decade. Drilling and completion operations within the Wolfcamp play have been responsible for much of the crude oil and natural gas production growth in the Permian Basin since 2007. As of September 2018, the Wolfcamp accounted for about 1 million barrels of crude oil per day (b/d) and 4 billion cubic feet of natural gas per day (Bcf/d). Crude oil production in ...

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US rig count rises by 21 on week to 1,200: S&P Global Platts Analytics

The US oil and natural gas rig count surged by 21 this week to 1,200, the highest total since early 2015, with gas-oriented rigs accounting for the bulk of the additions, according to data by S&P Global Platts Analytics. This week’s total is the highest figure seen since January 2015, and marked the fourth straight increase. It also coincided with a jump in spot and futures gas prices. The gas-oriented rig count rose by 11 to 229 and oil-driven rigs increased by seven while the remaining additions targeted both oil ...

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Oil edges up in volatile session but headed for weekly loss

Oil traded up slightly in a volatile session on Friday, supported by expectations that the Organization of the Petroleum Exporting Countries would agree to cut output next month, though prices were set to for a weekly drop on underlying oversupply worries. OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day, around 1.5 percent of global supply, to support the market, sources told Reuters this week. But other producers, including Russia, have been reluctant to agree to a cut. Brent ...

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Head of Libyan oil firm says Opec, non-OPEC producers need to cooperate

It is important for OPEC and non-OPEC producers to cooperate to maintain oil market stability, the head of Libyan state oil firm NOC said in a statement on Thursday. Mustafar Sanalla issued the statement after meeting Saudi Energy Minister Khalid al-Fali. Source: Reuters (Reporting by Ulf Laessing; Editing by Alexandra Hudson)

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Two Words That Sent the Oil Market Plunging: Negative Gamma

As oil suffered its biggest one-day slump in three years, it wasn’t OPEC or President Donald Trump that was shaking the market. Instead, trading desks were abuzz with chatter of “negative gamma.” So what is it? This obscure concept starts out on the options desks of Wall Street. There’s a lucrative business for banks that facilitate trades allowing crude producers — individual companies, or sometimes entire countries — to reduce their exposure to volatile markets by locking in a price for their future production. Say the government of a large ...

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Russian crude oil spot premiums hold steady on firm Asian demand

Spot premiums for Russian crude oil grades Sokol and ESPO Blend sold in Asia stayed firm on Friday, supported by strong demand for crude that have high middle distillates yields, trade sources said. * At least three January-loading Sokol cargoes moved this week at premiums of $4.80 to just above $4.90 a barrel to Dubai quotes, steady levels compared with earlier deals, they said * Sokol was highly valued by Asian refiners for its strong middle distillates yield, one of the sources said * ONGC and Exxon Mobil will sell ...

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Renowned energy trader Mark Fisher says the worst is over for oil and it’s time to buy

Renowned energy trader Mark Fisher said the “worst is over” for the crude oil market following a six-week rout that has seen U.S. crude lose over a quarter of its value. The MBF Clearing founder and CEO said he’d be a buyer right now rather than a seller. The market outlook for crude oil has recently flipped. Investors were worried about a shortage of oil as U.S. sanctions shrank Iran’s crude exports. But the market now expects supply to outstrip demand as the outlook for consumption growth weakens and Washington ...

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Oil’s Slide Has Hedging Bet Finally Paying Off for U.S. Drillers

The plunge in oil prices may finally make oil producers’ hedging contracts into a financial winner for 2018. After more than a year of surging prices made the contracts a drag on profits, the slide in West Texas Intermediate crude to around $55 a barrel this month means some of the hedges are edging toward profitability, said Anastacia Dialynas, a Bloomberg NEF analyst. A BNEF analysis based on regulatory filings by top Permian shale basin producers shows Diamondback Energy Inc. with 49 percent of its output hedged for 2018 at ...

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Oil heads for week of losses despite talk of supply cut

Oil rose on Friday on expectations that OPEC and its allies would agree to cut output next month but prices were still down on the week on concerns that the global market was oversupplied. Brent was up $1.15 at $67.77 a barrel by 1150 GMT. The global benchmark looked set for a third day of gains since hitting an eight-month low on Tuesday. But it was still down more than 3 percent on last week’s close. U.S. light crude was up 90 cents at $57.36 after their steepest one-day loss ...

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