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Oil prices rose on Wednesday to their highest since February 2020 after Saudi Arabia agreed to reduce output more than expected in a meeting with allied producers, while industry figures showed U.S. crude stockpiles were down last week. Brent crude rose as much as nearly 1% to $54.09 a barrel. U.S. West Texas Intermediate (WTI) futures reached $50.24 a barrel.
On Monday, oil prices climbed on the back of hopes of improvement in fuel demand after vaccine rollout. However, tanker explosion in Saudi Arabia capped the gains of the session. Brent went up bu 0.8% and was traded at $50.35 a barrel. WTI increased by 0.7% and was traded at $46.89 a barrel.
Saudi Arabia’s energy infrastructure-Saudi Aramco was attacked by a missile on a fuel depot in the Red Sea city of Jeddah. The authorities assured for no human casualties as well no oil products were lost. Houthi rebels in neighboring Yemen claimed responsibility for the attack. The strike was condemned by Saudi Arabia, stating-"terrorist and sabotage acts committed against vital installations target the security and stability of energy supplies to the world."
Saudi Arabia, the world's largest oil producer is now eyeing to become a leader in hydrogen export. In order to secure its role as an energy supplier even to countries who are cutting down their carbon generating fuels, the former is going to produce more blue hydrogen and also plans to generate green hydrogen (hydrogen from solar power) both of which are pivotal for curbing climate change.
Oil prices fell on Monday. Brent crude was at $42.04 a barrel, down 62 cents, the lowest since July 30. U.S. WTI crude skidded 63 cents, to $39.14 a barrel, the lowest since July 10. The prices fell as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months and uncertainty over China’s oil demand cloud the oil market’s recovery.
Saudi Aramco has discovered two new oil and gas fields in the northern regions. The new Abraq al-Toloul oil field in the northern city of Arar, flows with a daily rate of 3,189 bpd, along with 3.5 million cubic feet of natural gas. Hadabat al Hajara gas field in the al-Jof region has a daily production rate of 16 million cubic feet of natural gas, along with 1944 bpd of oil condensate
Aramco reported a 73.4% fall in second-quarter net profit, a steeper drop than analysts had forecast, and it expected capital expenditure for 2020 to be at the lower end of a $25 billion to $30 billion range. But the company is sticking with the plan to pay $75 billion in dividends this year. Net profit fell to 24.6 billion riyals for the quarter to June 30 from 92.6 billion riyals a year earlier.
Shelf Drilling has received a notification from Saudi Aramco that operations of the jackup High Island IV will be suspended for a period of up to 12 months. The suspension, at a zero-day rate, will take effect on completion of work currently in progress: the term of the contract will be extended by a period equal to the suspension period, Shelf Drilling added.
Saudi Arabia's export revenue was Riyal 197.84 billion ($52.69 billion) in Q1 2020, down 20.7% from the same quarter in 2019, mainly due to a 21.9% decline in oil export revenue, the kingdom's General Authority for Statistics announced June 7. Total oil export revenue for Q1 was Riyal 149.95 billion, down from Riyal 192.03 billion for the same quarter the previous year.
Oil futures rose on Tuesday, following an unexpected commitment from Saudi Arabia to deepen production cuts by 1 million barrels per day (bpd) in June. Consequently, Brent crude futures climbed to a high of $30.11 a barrel and were up 0.9%, or 28 cents, at $29.91. The benchmark fell $1.34 on Monday. WTI crude futures were up 1%, or 24 cents, at $24.38 after touching a high of $24.77.
Abu Dhabi yesterday informed about selling $7 billion worth of bonds in the third major sale this month, aimed at countering declining oil prices. The transaction contained three tranches: a $2 billion five-year tranche, a $2 billion 10-year segment, and the third tranche of $3 billion aging after 30 years. Recently, Saudi Arabia raised $7 billion in a bond sale, while Qatar sold-out $10 billion worth of bonds.
The world's largest oil exporter, Saudi Arabia has assured some of the refiners in Asia to supply full contractual volumes of crude in May. According to the sources, though there is no change in the volume of the supply the ratio among crude grades has been altered by Saudi Aramco. This has been done by increasing the quantity of Arab Light and reducing Arab Heavy.
Oil prices plummeted in the international market on Friday, as markets largely remained worried about plunging demand due to the coronavirus outbreak. Brent crude slipped by 2%, to $32.55 a barrel. US WTI crude dropped 2.1%, to $30.84 a barrel. After OPEC+ meeting fell apart last week, Saudi Arabia and the UAE have opened the flood gates of low-priced oil into the market further intensifying the pressure on prices.
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.
With the death toll in China still on the rise due to corona virus, oil prices fell by more than 2%. Brent went down by 2.2%, to $59.33 per barrel. WTI fell by 2.4%, to $52.89 a barrel. Saudi's Energy Minister said that markets are being “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite (the virus’s) very limited impact on global oil demand”.
The energy supermajor, Saudi Aramco informed about a new agreement between Saudi Arabia and Kuwait. After this agreement, oil production in the zone shared between two countries can be resumed. "With the signing of this new accord, both parties have reached the consensus that now is the right time to resume production in this zone", said Aramco's CEO.
Oil prices jumped on Tuesday, as OPEC de facto leader, Saudi Arabia pushed the cartel to deepen a supply cut agreement. Brent crude futures rose 0.3%, to $61.11 per barrel. U.S. WTI crude was priced 0.4% higher, at $56.17 a barrel. Sources familiar with the discussions said that the cartel is aiming to increase its existing supply cut by 400,000 bpd and prolong the pact until June.
On Sunday, Saudi Arabia revealed the value of world's biggest IPO. Aramco's IPO will be of up to $1.71 trillion and it will sell 1.5% of the company through this. But the IPO has missed Crown Prince's initial target of $2 trillion. The energy giant has already started taking bids from the investors in a price range of 30-32 Saudi riyals.