Total losses from the US-Iran War still trail 1979 Oil Shock
LONDON, 3 July - According to calculations based upon data from the International Energy Agency, OPEC, and the U.S. Department of Energy, the 1979 Iranian Revolution is the greatest 'oil crisis in terms of cumulative supply losses. The U.S. and Israeli war against Iran has prompted comparisons to the 1973 Arab oil 'embargo', the Iranian Revolution, and the Gulf War of 1991, while highlighting the evolution of global energy markets. The Iran War has disrupted the supply of crude oil, natural gases, refined fuels, and fertilisers simultaneously, unlike previous crises.
Back to square one for ROI? Mike Dolan: Markets predict the end of the Iran war.
The International Monetary Fund and global investors seem to agree that the Iran War is over, barring the shouting. Energy?markets are less certain, and there may be a lot of shouting. But many asset prices are back to square one. IMF's difficult task of predicting global economic growth in the face of a Middle East conflict and an energy shock has left as many questions and answers as it has scenarios. Choose your favorite. What the Fund didn't do was more powerful than what it did. The IMF did not change its forecast of global GDP growth for 2027 from its previous update in January, three months prior to the war.
Mike Dolan: The US Treasury's seismograph is twitching after the Iran oil shock.
The Iran oil crisis has thrown rate forecasts into disarray and caused turbulence in the U.S. Treasury market - pushing?volatility up to its highest level in almost a year, and forcing sales that are taking a heavy toll on liquidity. The danger is that these tremors will spread. The sheer size of the U.S. Treasury market is one of its main attractions. The $30 trillion market is large enough for the biggest buyers and sellers in the world to trade in and out without affecting?the price. This is a rare feature in any asset markets.
Danish funds challenge Nordea at AGM over Arctic Oil
A shareholder resolution urging Nordea to stop funding companies that are expanding Arctic oil and natural gas production is supported by at least?three Danish institutions investors. The pension funds Akademiker Sampension and Velliv announced their voting intentions on Tuesday, ahead of the annual general meeting of the bank. The activists' motion comes in the wake of the oil crisis caused by the Iran War and after Norway announced plans to increase drilling in its Arctic offshore region. The resolution is aimed at Norwegian energy companies?Equinor BP and Var Energi which are involved with Arctic exploration and drilling.
Danish funds challenge Nordea at AGM over Arctic Oil
Two Danish institutional investors have backed a shareholder resolution calling on the Nordic region's largest bank,?Nordea, to cease all financing of companies that are expanding Arctic oil and gas production due to environmental risks. Investors, pension funds Sampension and Akademiker, informed the annual general meeting of the bank on Tuesday about their voting intentions. The activist motion comes in the wake of the oil crisis caused by the Iran war and after the Norwegian Government announced last year plans to increase drilling in Norway's Arctic offshore region.
Investors predict that the war in Iran will increase Chinese demand for renewable energy
Investors rush into Chinese renewable stocks betting that the oil shock caused by the Iran War will increase?global green energy demand, a sector China dominates. This 'portfolio' trend in Asia is a result of growing concerns about energy security in Asia and a growing distrust for Washington. It contrasts with the United States, which has shifted back to oil and gas. Aaron Costello, Cambridge Associates' head of Asia, said at a conference in Hong Kong that countries should now focus on energy security. They need to build their renewables and energy grids further, perhaps more nuclear power. And they should focus more on defense.
Birol, IEA chief, says that the IEA is discussing future oil releases.
Fatih Birol, the Executive Director of the International Energy Agency, said that they are consulting with governments from Asia and Europe on how to release more oil "if needed" because of Iran's war. We will, of course do so if it's necessary. IEA members nations agreed to release a record number of 400 million barrels from their strategic oil stockpiles on March 11,?to counter the surge in global crude prices. The 20% drawdown was a result of the overall stockpiles. Birol stated that there would not be any specific level of crude oil price to trigger a new release. It is not a solution to the problem.
Oil stocks held back by G7 nations as Iran crisis raises prices
France's Finance Minister said that G7 countries haven't yet decided whether to release their emergency oil reserves, as prices are surging above $119 per barrel because of the Iran War. He added that there was no immediate shortage in supply. We have agreed to use all necessary tools to stabilize the market, including releasing any stockpiles that may be necessary. On?Monday?, oil prices soared to $119 per barrel, a level not seen since the mid-2022 period, as major producers cut back on supplies due to fears of a prolonged disruption in shipping caused by the 'U.S. - Israel war against Iran.
Occidental Petroleum predicts flat production and lower spending in 2026
Occidental Petroleum, an oil and gas company, said Tuesday that it expects a flat growth in production and lower spending than the current year levels by 2026 as crude prices fall. The U.S. shale oil producers are coping with a global oil crisis, as prices remain in the $60 per barrel range. This is due to OPEC+ production increases and a slowing of global demand. Benchmark Brent crude prices have fallen by about 12.7% this year. Sunil Mathew, Chief Financial officer of Occidental, said in a conference call that the company expects production to remain flat or increase by 2% between 2026 and 2027…
Chevron hires TotalEnergies to shake up its exploration team
Chevron named a new global exploration head on Tuesday as CEO Mike Wirth strives to improve the track record of the company in discovering new oil and gas sources. Kevin McLachlan, vice president of exploration, will succeed Liz Schwarze in November, after she retires from Chevron in February, following 36 years. McLachlan's experience includes senior vice presidents of exploration for several oil companies, including TotalEnergies. He has also held positions at Murphy Oil and Nexen. Wirth is disappointed with the recent exploration results. Chevron has oil and gas reserves.
OPEC+ Oil Pact Hinges on Mexico Joining
Saudi Arabia's energy minister said on Friday that a final OPEC+ oil supply pact to reduce 10 million barrels per day (bpd), which was agreed on Thursday, hinges on Mexico joining in the cuts.OPEC, Russia and other allies, a group known as OPEC+, outlined plans on Thursday to cut their oil output by more than a fifth, but said a final agreement was dependent on Mexico signing up to the pact after it balked at the production cuts it was asked to make. Discussions among top global energy ministers will resume on Friday."I hope (Mexico) comes to see the benefit of this agreement not only for Mexico but for the whole world.
OPEC+ Outlines Record Oil Production Cut; Mexico Balks
OPEC, Russia and other allies outlined plans on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.But the group, known as OPEC+, said a final agreement was dependent on Mexico signing up to the pact after it balked at the production cuts it was asked to make. Discussions among top global energy ministers will resume on Friday.The planned output curbs by OPEC+ amount to 10 million barrels per day (bpd) or 10% of global supplies…
As Oil Crisis Deepens, Hedge Funds Sense a Turnaround
Hedge fund managers sensed oil prices were nearing a turning point last week, and for the first time in more than two months started to add long positions in anticipation prices would bounce from an unsustainable low.Overall, hedge funds and other money managers were still net sellers of 19 million barrels of petroleum in the six most important futures and options contracts in the week ending on March 31.But they initiated 40 million barrels of new purchases as well as 59 million barrels of fresh sales, according to position records published by ICE Futures Europe and the U.S.
Russian Oil Output Down in October
Russia lowered its oil output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, missing again its obligations under a global pact to curb production, energy ministry data showed on Saturday.The Organization of the Petroleum Exporting Countries, Russia and other producers - a group known as OPEC+ - have since January implemented a deal to cut oil output by 1.2 million barrels per day to support the market.According to Reuters calculations, which use a tonnes/barrel ratio of 7.33…
Equinor Looks to Cut More Costs at Giant North Sea Oilfield
Norway's Equinor sees scope to further reduce development costs at the Johan Sverdrup oilfield in the North Sea, as it looks to maximize the potential of what could be the last giant field to be found off the Nordic country.The field, one of the five largest oil finds offshore Norway, is estimated to contain up to 3.1 billion barrels of oil equivalents, mainly crude oil, enough to meet Britain's oil demand for five years.Sverdrup is on track to begin production in late 2019 and could produce up to a quarter of Norway's overall petroleum output at its peak.Equinor…
Chesapeake Energy Woes Cast Shadow on U.S. Pipeline Companies
U.S. oil and gas pipeline companies including Williams Companies Inc and Kinder Morgan Inc have contracts worth billions of dollars that might be at risk as Chesapeake Energy Corp aims to slash its debts amid collapsing energy prices. Chesapeake said on Monday it had no plans to file for bankruptcy after sources told Reuters the firm, whose debt is eight times its market value, had asked its longtime counsel to look at restructuring options. The way it deals with its financial woes could be a lifeline or death sentence for midstream pipeline companies.
U.S. Shale and OPEC, the Altered Balance of Power
Two landmark events this month will underscore the extent to which the oil market's balance of power has been transformed by the shale revolution. In Washington, Congress will begin considering legislation to permit the export of crude oil from the United States, reversing a four decade ban put in place after the first oil crisis in 1973/74. In Vienna, the Organization of the Petroleum Exporting Countries (OPEC) is expected to roll over its crude production target of 30 million barrels per day (bpd) even though prices have fallen more than 40 percent over the last 12 months.
U.S. Set to for More Accurate Oil Production Data
Figures on U.S. oil production are subject to much more uncertainty than the numbers for oil stocks, refinery throughput and imports because the Energy Information Administration (EIA) has to rely on state-level data rather than its own surveys. That could be about to change, however, because the EIA has received approval from the White House to launch its own mandatory monthly survey of oil and condensate production. The first of the new survey forms have gone out and respondents are beginning to submit data.
Petrobras is Largest Operator of Floating Production Platforms
Petrobras now operates more floating production platforms (including self-owned and chartered ones) than any other company in the world, according to Petrodata, a consulting firm that specializes in providing information about the global oil industry. According to the company’s latest figures, as of December 2014 Petrobras operated 110 offshore production units off the Brazilian coast. This total included 45 floating platforms, broken down into 29 floating production, storage and offloading vessels (FPSOs), 15 semi-submersible platforms, and one production vessel, P-53, which differs from FPSOs in that it does not store oil.
Kemp: News of OPEC's Demise Has Been Much Exaggerated
The Organization of the Petroleum Exporting Countries (OPEC) last week made no change to its production target despite a 40 percent slide in oil prices over just five months, causing some commentators to pronounce the cartel irrelevant. If OPEC cannot act to defend the prices and revenues of its member countries, does the organization still serve any purpose? There is an assumption among some commentators that OPEC is only relevant and working if ministers can reach a production agreement in response to shifts in prices, and that strong disagreement is a sign of dysfunction.