Hess Corp said on Wednesday it expects oil and gas output to grow more than 10 percent a year compounded through 2025, touting development of its Bakken shale and offshore Guyana projects. The company projects higher margins will drive compound annual cash flow growth of 20 percent through 2025, it said ahead of a meeting with Wall Street investors. Hess shrugged off a recent dip in oil prices and said it was moving from growth and investment mode to where its major assets will start producing free cash flow. “We ...

Oil prices climbed 1 percent on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought. OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if top producers stick to the deal, the International Energy Agency said in its monthly Oil Market Report. [IEA/M] U.S. crude inventories at Cushing, Oklahoma, the delivery ...

The global oil market could move into deficit sooner than expected thanks to OPEC’s output agreement with Russia and to Canada’s decision to cut supply, the International Energy Agency said on Thursday. The Paris-based IEA kept its 2019 forecast for global oil demand growth at 1.4 million barrels per day, unchanged from its projection last month, and said it expected growth of 1.3 million bpd this year. Uncertainty over the global economy stemming from U.S.-China trade tensions could undermine oil consumption next year, as growth in supply gathers pace. “For ...

Bob Goodlatte, outgoing chair of the House of Representatives Judiciary Committee, pressed the Justice Department’s Makan Delrahim on Wednesday to support legislation that would make it easier for the U.S. government to sue to stop OPEC members from pushing up oil prices. Goodlatte, a Republican, noted that the Organization of the Petroleum Exporting Countries agreed this month to cut production to push up oil prices, something that would normally violate U.S. law. “The fact that OPEC is not being held accountable for its anticompetitive behavior makes a mockery of U.S. ...

Intercontinental Exchange Inc. is betting it can keep its futures and options markets — home to half of the world’s crude oil trading — in London in the event of a no-deal Brexit, a strategy at odds with the plans of almost every other major U.K.-based trading venue. The owner of ICE Futures Europe is seeking so-called recognition from national regulators in “a handful” of the European Union’s most important member states, according to a person familiar with the matter. The approvals, if granted, would allow firms from those states ...

Shanghai’s new yuan-denominated derivatives contract is set to propel global crude oil futures trading volumes to a record high in 2018, eating into the market share of the two most active crude contracts, Brent and WTI. Launched in late March by Shanghai International Energy Exchange (INE), China’s first serious attempt to establish an Asian oil price benchmark has seen strong take-up, grabbing a spot market share of around 6 percent versus international Brent LCOc1 and U.S. West Texas Intermediate (WTI) CLc1, taken equally from both benchmarks. Spot crude oil volumes ...

Petroliam Nasional Bhd (Petronas) expects a better outlook in 2019 for key segments in the upstream oil and gas (O&G) sector, compared with its projection last year. This can be gleaned from its 2019-2021 Petronas Activity Outlook (PAO) report published today, compared with its 2018-2020 PAO report’s projections. It is more positive on its expectations for the drilling segment, going by the expected number of jack-up rigs — of between 16 and 19 — required for the three-year period, which is almost double the projection of between six and 10 ...

The oil price fell below $60 a barrel on Thursday, under pressure from high global inventories and a smaller-than-expected drawdown in U.S. crude stockpiles. “The energy complex is drifting lower as sellers continue to bask in the bearish afterglow of yesterday’s (U.S.) stats,” PVM Oil analyst Stephen Brennock said. Benchmark North Sea Brent crude oil was down 60 cents at $59.55 per barrel by 1210 GMT. U.S. light crude was 60 cents lower at $50.55. Global oil supply has outstripped demand over the last six months, inflating inventories and pushing ...

Russia plans to cut its oil output by at least 50,000 to 60,000 barrels per day (bpd) in January, its energy minister said, less than its final target under a global production deal reached last week, aiming for gradual, smooth reductions. This would mean Russian oil output coming in at around 11.35 million bpd next month, off the post Soviet-record high of 11.41 million bpd reached in October and down from 11.37 million bpd last month. Energy Minister Alexander Novak reiterated to reporters that the country planned to cut its ...

Oil prices steadied on Thursday, under pressure from high inventories but buoyed by a drawdown in U.S. crude stockpiles and indications that the trade war between the United States and China may be easing. Global oil supply has outstripped demand over the last six months, inflating inventories and pushing crude oil to its lowest in more than a year at the end of November. But the Organization of the Petroleum Exporting Countries and other big producers, including Russia, agreed last week to reduce supply to try to trim the surplus. ...

Despite dramatic slides in the oil market, some forecasters remain positive on prices and demand going into 2019. A year ahead outlook report from Bank of America Merrill Lynch expects Brent crude to regain its recent losses in 2019 and settle at $70 a barrel. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus. “Volatility will be high in the near future, but going into 2019, we are constructive on oil prices,” Hootan Yazhari, head of global frontier markets ...

OPEC and its allies defied market expectations last week and agreed 1.2 million barrels a day of production cuts for 2019, but crude prices are yet to rally. Unlike when a deal was reached to cut supply in 2016, the market is more skeptical this time around about exactly how the Organization of Petroleum Exporting Countries can go about supporting prices. That’s despite Saudi Arabia’s energy minister Khalid Al-Falih announcing Friday that 900,000 barrels a day of the kingdom’s crude will be taken out of the market between November and ...

Crude Oil Price Movements The OPEC Reference Basket (ORB) ended November down by $14.06, or 17.7%, month-on-month (m-o-m), to average $65.33/b, its lowest level since last March. Year-to-date (y-t-d), the ORB value was $19.14, or 37.1%, higher at $70.75/b compared with the same period in 2017. Crude oil futures also dropped in November amid weaker market fundamentals as the market focused on global oil supply, which rose faster than expected. ICE Brent prices witnessed eight consecutive weekly declines to reach their lowest level since October 2017 on a daily basis. ...

Refiners and buyers of Middle Eastern sour crudes in Asia have been largely unfazed by the OPEC-led supply cut announced in Vienna last week, market sources said on Wednesday. OPEC will cut 800,000 b/d of combined crude oil production from October levels, with Russia and other producers also cutting 400,000 b/d for a combined reduction of 1.2 million b/d. Production by several Middle Eastern producers including Saudi Arabia and the UAE was at an all-time high in October, Platts data showed. OPEC in total produced 33.04 million b/d, an increase ...

The U.S. government left its forecast for domestic crude production unchanged for 2019 even with prices averaging almost $11 a barrel lower than its previous estimate. Oil producers will pump an average 12.06 million barrels a day next year, up from 10.88 million in 2018, the Energy Information Administration said in a monthly outlook. The agency saw output dropping during October, when some offshore production was shut in due to Hurricane Michael, before recovering in November. The swift growth of American shale production has complicated efforts by OPEC and its ...