Venezuelan Oil Exports Rise on Larger Sales to Asia
Venezuela’s oil exports rose in February to over 700,000 barrels per day (bpd), their highest level in 10 months, pushed by more sales of fuel oil cargoes to new clients in Asian markets, according to Refinitiv Eikon’s tanker tracking data and documents.A growing number of clients with no track record in oil trading has been helping Venezuela’s state-run PDVSA to allocate crude and fuel in Asia, especially since the U.S. Treasury Department halted oil swaps by PDVSA’s long-term customers in the last quarter of 2020 as part of tightening sanctions.These buyers…
Venezuela's Oil Exports Stagnant in July
Venezuela exported about 388,100 barrels per day of crude and fuel in July, almost unchanged versus the previous month, as U.S. sanctions on PDVSA continued limiting sales, according to Refinitiv Eikon and internal data from the state-run company.Washington has ramped up pressure this year on PDVSA’s customers, trade partners and shippers aiming to stop the re-sale of Venezuelan oil and block efforts to hide or change its country of origin.That is making it increasingly difficult for many of the company’s clients to…
Trafigura Takes a Bet with North Sea Oil
Commodities trader Trafigura has seized the moment and taken a rare dominant position in the North Sea crude market over the past two weeks as oil demand jumped, trading sources said.A combination of OPEC-led global production cuts, cheap freight rates, and oil stuck in floating storage sent crude markets into overdrive starting at the end of April as fuel demand looked set to pick up with easing lockdown.Differentials to benchmark dated Brent for grades around the world have shot up $6 a barrel in many cases, returning to trade at levels not seen since March before the peak lockdown period in April.In the last two weeks…
Venezuelan Oil Exports Rose in April
Venezuela's oil exports ticked higher in April after falling in March to their lowest average in seven months, helped by new trading partners that were re-selling cargoes in Asia, according to documents from state-run PDVSA and vessel tracking data.Venezuela shipped 31 cargoes of crude and refined products last month carrying an average of 848,500 barrels per day (bpd), a small increase from the 814,000 bpd the previous month, the data showed.This year, the United States sanctioned two units of longtime PDVSA business partner Rosneft over allegations of hiding the country of origin for Venezuelan crude shipments.U.S.
Brent's Fall Creates Steepest Contango in 11 Years
The discount on front-month Brent crude oil futures to later contracts increased to an 11 year high on Thursday, as the coronavirus pandemic continued to cause an unprecedented slump in global demand. The spread on the May to November contracts had widened to as much as minus $10.31 per barrel at 1004 GMT, a level not seen since January 2009. The so-called contango market structure implies traders expect oil prices to be higher in the future, in this case when the virus pandemic has hopefully passed, leading them to store crude onshore or in some cases at sea.
Oil Traders Bet on Economic Upswing in 2020
Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.Most of the divergence can be explained by differing assumptions about global growth in 2020.The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries are all projecting that the oil market will be in surplus in 2020.Each of the three agencies…
Venezuela's Oil Exports top 800,000 bpd Again
Venezuela's oil exports eased in October, but surpassed 800,000 barrels per day (bpd) for second month in a row, helping to drain an inventory buildup that had forced the OPEC country to cut output, according to documents and data.Since the United States imposed sanctions on Venezuelan state-run oil firm PDVSA in January to oust socialist President Nicolas Maduro, the OPEC-member country has struggled to find customers and tankers for its oil.New rounds of sanctions in August and September on Venezuela and maritime firms carrying the nation's oil pushed its crude stocks to record levels…
Oil Rises After Saudi Pledge, Declining U.S. Inventories
Oil prices rose on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, and after an industry group reported a surprise decline in U.S. oil inventories.Brent crude, the global benchmark, was up $1.07, or 1.7 percent, at $63.49 a barrel at 9:55 a.m. EST (14:55 GMT), while U.S. West Texas Intermediate futures were up 91 cents, or 1.7 percent, at $54.01."The feel-good factor is back in play but oil bulls are by no means out of the woods yet," PVM Oil…
US Oil Drillers Cut Most Rigs Since May 2016
U.S. drillers this week cut oil rigs by the most in over two year even as record production has turned the United States into a net oil exporter for the first time in history.Energy companies cut 10 oil rigs in the week to Dec. 7, the biggest weekly decline since May 2016, bringing the total count down to 877, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.More than half the total U.S. oil rigs are in the Permian Basin, the country's biggest shale oil formation.
Conoco Gets $345 mln from Venezuela's PDVSA
U.S. oil producer ConocoPhillips on Thursday said it received $345 million in cash and commodities last quarter from Venezuelan state oil firm PDVSA under a settlement that came after Conoco seized some of PDVSA's assets in the Caribbean.The proceeds were part of a first installment under a deal to satisfy a $2 billion arbitration award Conoco won earlier this year over broken oil contracts in the South American country.The payment, disclosed with the company's third-quarter earnings, came months after Conoco went to local courts and obtained the right to seize most of Petroleos de Venezuela's Caribbean inventories…
Venezuela Dodges Oil Asset Seizures with Export Transfers at Sea
Venezuela's state-run oil company PDVSA has limited the damage from an unprecedented slump in crude exports by transferring oil between tankers at sea and loading vessels in neighboring Cuba to avoid asset seizures.But the OPEC member nation is still fulfilling less than 60 percent of its obligations under supply deals with customers.Venezuela has been pumping oil this year at the lowest rate in three decades after years of underinvestment and a mass exodus of workers. The state-run firm's collapse has left the country…
Russian Oil Bought by PDVSA for Cuba Discharges in Curacao
A tanker that for more than a month was unable to deliver Russian crude to Venezuela's PDVSA amid a dispute between the state-run firm and ConocoPhillips has discharged its cargo in the Caribbean, and a second vessel is soon to follow, according to Reuters data and a source with knowledge of the sales. Conoco in May got court orders to seize PDVSA's assets, inventories and oil cargoes in the Caribbean to satisfy a $2 billion arbitration award. The measures were later partially revoked, but PDVSA has been unable to fully use its refining and storage facilities in the region, diverting cargoes that have contributed to export delays.
What Saudi Arabia Does Now is Key for Global Crude Markets: Russell
If it were possible to boil the crude oil market down to just one determining factor for the coming months, it would be this: What will Saudi Arabia actually do? The Saudis appear to have emerged as the winners from last week's meeting of the Organization of the Petroleum Exporting Countries (OPEC), and the subsequent talks between OPEC and its allies in the deal to restrict output. The outcome of the meetings would seem to indicate that crude oil supply should rise by as much as 1 million barrels per day (bpd). That's…
Enterprise Adds Vessel Fueling Capabilities at Houston
Enterprise Products Partners, as of June 1, 2018, is the exclusive provider of residual marine fuel (RMG 380) and marine gas oil (MGO) at its Enterprise Hydrocarbons Terminal (EHT) on the Houston Ship Channel. RMG 380 and MGO are the primary transportation fuels used by deep-draft vessels that dock at the EHT facility. “Being able to fuel ships as they load and offload product at our EHT marine terminal significantly streamlines the process, saving our customers time and money by not having to stop at a third party facility,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.
PDVSA Halts Caribbean Storage, Shipping; Diverts Oil Cargo
Venezuela's state-run PDVSA suspended oil storage and shipping from its Caribbean facilities following a move by ConocoPhillips to temporarily seize the firm's assets on four islands, according to a PDVSA source and Reuters data.PDVSA has begun concentrating most shipping in its main crude terminal of Jose on Venezuela's eastern coast and recalling tankers to Venezuelan waters to avoid seizures that would further cut its exports and worsen an economy on the verge of collapse.U.S.-based Conoco is attaching PDVSA's overseas assets to enforce a $2 billion arbitration award in April on the nationalization of the U.S.
Hedge Fund Oil Bulls Downplay Macro Risks: Kemp
Hedge fund managers have turned bullish again towards oil prices, casting aside the caution that prevailed during much of February and March. Hedge funds and other money managers increased their net long position in the six most important futures and options contracts linked to petroleum prices by 85 million barrels in the week to March 27. Portfolio managers have increased their net long position in Brent, NYMEX and ICE West Texas Intermediate crude, U.S. gasoline, U.S. heating oil and European gasoil by a total of 180 million barrels over the two most recent weeks.
U.S. Considers Venezuela Oil Sanctions
The Trump administration is considering sanctioning a Venezuelan military-run oil services company and restricting insurance coverage for Venezuelan oil shipments to ratchet up pressure on socialist President Nicolas Maduro, a U.S. official said. With Maduro running for another term in an April election that Washington and its allies oppose as a sham, the United States is weighing sanctions that would target Venezuela’s vital oil sector beyond what has been done before, the official told Reuters on Wednesday. Some measures could come before the vote and others could be imposed afterwards. The official, who is close to U.S.
Hedge Funds Show Signs of Oil 'Exhaustion'
Hedge fund managers have boosted their bullish positions in Brent futures and options in response to the shutdown of the Forties oil pipeline, according to an analysis of regulatory and exchange data. But bullishness in Brent cannot completely conceal the increasing staleness of long positions in the rest of the rest of the petroleum complex, as prices fail to rise further and the end of year approaches. Portfolio managers raised their net long position in Brent by 10 million barrels to a record 544 million barrels in the week ending on Dec. 12 (http://tmsnrt.rs/2ke0CD4).
Hedge Funds Go All-in on Oil: Kemp
Hedge funds have built record or near-record bullish positions in almost all parts of the petroleum complex anticipating that prices will keep rising. Hedge funds and other money managers had amassed a net bullish position in crude and refined products amounting to more than 1 billion barrels of oil as of Oct. 31 (http://tmsnrt.rs/2hgNlvd). Portfolio investors held a net long position in the five major petroleum futures and options contracts amounting to 1,022 million barrels, according to records published by exchanges and regulators on Friday.
Noble Group sells Oil Unit to Vitol
Oil liquids unit to be sold for about $580 million. Struggling commodities trader Noble Group agreed to sell its Americas-focused oil trading business to Vitol for about $580 million as part of a debt-cutting strategy, and warned of a big loss for its third quarter. Monday's move came after Reuters reported late on Friday that Vitol, the world's largest oil trader, was nearing a deal to buy Singapore-listed Noble's oil liquids unit. Noble, whose founder Richard Elman took advantage of a commodities bull run to build it into one of the world's biggest traders after starting it in 1986…
