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Mexico refused to extend a cut in oil production to the end of July which was agreed by OPEC members and other key producers. The OPEC and its allies agreed on Saturday to extend through July the historic output cuts for May and June. But during a visit to a petrochemical plant in Veracruz state, Energy Minister Rocio Nahle told reporters that Mexico would not comply.
With the oil prices surging, following the historical “Zero-Dollar” oil façade; economies have begun to reopen. But, oil executives from Shell and BP believe that we might have already reached peak demand for oil and are amid a crisis of uncertainty. Demand destruction on the order of nearly 30 million barrels per day (mb/d) may have been brief, but we are a long way from the old 100-mb/d oil market.
After the US crude futures collapsed into negative territory, the suppliers have become very cautious. According to the sources, crude and condensate sellers to Asia have added 'zero price' clause in their contracts. This will prevent the prices of their crude to go down below $0 and protect their interests. The new clause has been appreciated by Asian buyers.
According to the sources, Saudi Arabia has planned to cut crude supplies to China by at least 500,000 bpd. This decision has been taking keeping in the slower refinery demand after the coronavirus outbreak. China is the world's largest crude importer and takes 1.8 million bpd to 2 million bpd of Saudi crude. Due to slower demand, the refineries in China have also cut their crude processing rate in February.
Libyan state-run National Oil Corporation yesterday informed that the country's oil production fell by almost 80% ever since the Libyan National Army blocked its five key ports on January 18. The blockade has pushed the oil major to enact force majeure on exports from the terminals. NOC took to Twitter to inform that Libya's oil output tumbled to 284,153 b/d on January 24, from over 1.2 million b/d.
According to the sources, OPEC and its allies were close to agreeing on one of the deepest output cuts of the decade. The group might increase the current cuts of 1.2 million barrels per day by more than 400,000 bpd. Saudi's Energy Minister has commented that he "feels good" about this week's meeting. Since 2017, OPEC+ has been curbing the output in order to balance the increasing output from US.
Vietnamese state-backed Binh Son Refining and Petrochemical Co (BSR) has reached an agreement with SOCAR to purchase 5 mln barrels of crude in 2020. A statement on BSR’s website read that SOCAR will supply 5 mln barrels of Azeri Light crude to BSR-operated Dung Quat refinery. Vietnam has seen increased dependence over imported crude due to slow domestic output and China's stance in the region which hampers offshore exploration.
EIA weekly report showing record US crude production last week sent oil prices on a downhill today. International Brent crude futures dropped 0.3%, to $66.87 per barrel. US West Texas Intermediate (WTI) crude oil futures fell 0.2% and were priced at $56.84 per barrel. EIA data released yesterday indicated crude oil production in US hitting 12 million bpd, making it the only country to reach 12 million bpd of production.
Oil prices on Wednesday gained over OPEC’s supply cut statement and US sanctions on Venezuela. International Brent crude futures rose 0.8%, to $62.93 per barrel. US WTI crude oil futures climbed 0.9% to $53.60 per barrel. OPEC on Tuesday said that the cartel had curbed its output by approximately 800,000 bpd in January to 30.81 million bpd.
Oil prices on Monday climbed over 1% in the International market. Benchmark Brent crude futures climbed by 1.1%, to $54.42 a barrel. US West Texas Intermediate (WTI) crude futures saw an increment of 0.8%, to $45.96 per barrel. Signs of recent price drop may start hampering supply from the United States fuelled the rise, though global economic outlook continues to weigh on investors.
Concerns about rising US crude inventories and widespread economic slowdown sent oil prices downhill on Wednesday. Benchmark Brent crude oil futures lowered by 1.1% to $61.37 per barrel. US WTI crude futures were down by 1.1%, to $52.64 a barrel. The API weekly report indicated a 5.4 million barrels rise in the US crude inventories to 448 million barrels.
Oil market struggled to gain its ground on Wednesday after falling by 7% in the previous session. The supply has taken a hike but at the same time demand has kept the investors on edge. Brent increased by 4%, at $65.51 per barrel. WTI dropped a little and was traded at $55.54 per barrel. This has been a major decline in the crude value since the collapse in 2014.
Crude oil prices dropped in the international market today, amid expected rise in US stocks. Official data is due for release on Wednesday. President Trump’s comments added further to the slump. Brent crude futures were down by 1% from Monday, trading at $69.42 per barrel. NYMEX December light sweet crude contract lowered 1.37%, to $59.11/b.
A strong dollar and increasing US crude supply restricted oil prices from gaining any further on the rates in last session. Brent crude oil futures LCOc1 were traded at $84.86 per barrel. US West Texas Intermediate (WTI) crude futures CLc1 were priced at $75.24 a barrel. Data released yesterday by API showed a rise of 907,000 barrels in the US commercial crude inventories.
Oil prices, today, rose over a drop in U.S. crude inventories, supported by the expected disruptions in supply coming from Iran and Venezuela. Benchmark Brent crude oil futures LCOc1 edged up to $77.21 per barrel. U.S. West Texas Intermediate (WTI) crude futures CLc1 rose to $69.65 a barrel. US crude inventories were down by 2.6 million barrels to 405.79 million barrels, in the week that ended on Aug 24th.
The OPEC Governor of Saudi Arabia disclosed the country’s plans of future crude supplies and oil prices fluctuated in response. Brent crude futures were down by 0.06%, at $72.54 per barrel, while the NYMEX August light sweet crude contract was 0.19% higher at $68.59/b. Saudi Arabia's crude exports will fall in August, by about 100,000 b/d. Meanwhile, offshore workers in Norway have settled to call off a 10-day strike.
OPEC ministers have come together for a meeting today in the Austrian capital, Vienna, so as to decide on the increment in oil production of the member countries. The meeting kicked off an hour late, owing to a private bilateral talk between Saudi Arabia and Iran. Saudi Energy Minister made it clear in a talk with reporters that he would stand with his one-million-barrel-a-day proposal, although the boost would be a gradual one.
The Permian Basin, which saw record crude oil production in past couple of years, is now facing major transportation limitations. The pipeline network is almost full, compelling steep discounts for oil transporting from the region. Bloomberg has reported that the number of drilled but uncompleted wells (DUCs) are on the rise, meaning that companies are drilling wells but not completing them because they cannot ship the oil.