Sovcomflot's revenue drop blamed on Western sanctions
Sovcomflot, the largest Russian tanker company, said that Western sanctions against Russian oil tankers are affecting its financial performance. It reported a decline in revenues and earnings. In February, the United States imposed sanctions against Sovcomflot as part of Washington’s efforts to reduce Russia’s revenue from oil sales which it could use to fund its war in Ukraine. Sovcomflot's revenue for the nine months of 2012 fell by 22.2%, to $1.22 Billion. Its earnings before interest tax, depreciation, and amortization dropped 31.5%, to $861 MILLION.
Russian Oil Revenues Falling Because of Price Cap -US Official
Russian oil revenues are falling due to the price cap that Western countries imposed on its crude oil shipments and, ahead of further caps on Russia's oil products, Europe is well positioned to manage any price pressures, a U.S. Treasury official said on Wednesday.The Group of Seven countries, Australia and the European Union will extend sanctions on Russia for its war in Ukraine by putting a price cap on its oil products, such as gasoline and diesel, on Feb. 5. The coalition placed a $60 per barrel limit on sea-borne Russian crude oil sales late last year.Russia is losing a great deal of money daily because of the cap…
Country-by-Country Look at Dropping Fuel Demand
It's hardly news that the COVID-19 pandemic has sent most every market into tumult, most notably the oil and gas market as political power plays flood the world with oil precisely when demand has plummeted. Here we provide some recent insights on just how steep falls in fuel demand has been as lockdowns to contain the spread of the novel coronavirus limit the movement of more than 4 billion people.UNITED STATESU.S. fuel demand has dropped 28% in the last four weeks, the Energy Information Administration said on April 29.Overall finished motor gasoline demand is still down 44% over the past four weeks from the year-ago period…
Mexico's Pemex to Receive $313 mln in Hedge Payouts
Mexican state oil company Petroleos Mexicanos (Pemex) expects this year to receive some $313 million from oil and financial firms involved in its annual oil hedging program, Chief Executive Octavio Romero said on Wednesday.Pemex's hedge, which this year covers about a quarter of its gross exports volume, protects the company from price variations and helps it to cover production costs.A larger hedging program contracted by the government secures the oil revenues needed for the federal budget.Pemex is "partially" covered by its hedging program…
US Sanctions on Rosneft Trading Shifting Crude Flows
U.S. sanctions on Russian Rosneft's trading arm will disrupt a slice of global crude flows and may prompt refineries in Europe, India and the United States to shift purchases to other crude suppliers, traders said.The United States on Tuesday redoubled efforts to oust Venezuelan President Nicolas Maduro by barring U.S. dealings with Rosneft Trading S.A., a subsidiary of Russia's state oil major Rosneft, which Washington said provides him a financial lifeline. Russia has called the sanctions illegal and said it plans to consider options in reaction.The ban will likely hit some U.S.
Iran's Oil Tanker Fleet Being Squeezed as Sanctions Bite
Iran is running short of options to replace its ageing fleet of tankers and keep oil exports flowing because renewed U.S. sanctions are making potential sellers and flag registries wary of doing business with Tehran, Western and Iranian sources said.Since U.S. President Donald Trump reimposed sanctions in November, exploratory talks with South Korea for up to 10 new supertankers have stalled and Panama has also removed at least 21 Iranian tankers from its registry forcing Tehran to put the vessels under its own flag, the sources said.Washington has put restrictions on Iran's port…
US Oil Export Boom Sparks Battle to Build Texas Ports
Booming U.S. oil exports have set off a scramble to build Gulf Coast ports to handle more than 3 million barrels per day in new supplies expected over the next five years.Of seven proposed oil-export projects, nowhere is the opportunity greater or the competition more fierce than in Corpus Christi, Texas, where three firms are vying to open the state's first deepwater port.Commodities trader Trafigura has taken an early lead with a planned offshore facility that has an easier path to regulatory approval and faces fewer objections…
Oil Slips Back Toward 18-month Lows
Oil prices fell on Thursday after rebounding 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices.Brent crude oil dropped $1.67 a barrel, or 3.1 percent, to a low of $52.80 before recovering to around $53.45 by 1415 GMT. U.S. light crude oil slipped $1.30 to $44.92 and was last 70 cents lower at $45.52.Oil prices reached multi-year highs in early October but are now approaching their lowest levels for 18 months.Both crude oil benchmarks have lost…
Oil Falls on Oversupply Worries Despite Iran Sanctions
Oil prices dropped on Friday, heading for a third weekly loss after Saudi Arabia warned of oversupply, while a slump in stock markets and concerns about trade clouded the outlook for fuel demand.Brent crude oil fell $1.12 or 1.5 percent to a low of $75.77 per barrel and was trading around $76.34, down 55 cents, by 1318 GMT. The contract is on course for a weekly loss of over 4 percent and is down more than $10 in three weeks.U.S. crude was 60 cents lower at $66.73, set for a 3.4 percent loss this week."Fears of a supply surplus are rife even as Iranian exports continue to decline ahead of next month’s sanctions deadline…
Tehran Says Saudi Arabia Unable to Replace Lost Iranian Oil
Iran's Oil Minister Bijan Zanganeh has dismissed as "nonsense" claims by the Saudi crown prince that Saudi Arabia can replace sanctions-hit Iranian oil in the market."(Mohammed) bin Salman's remarks and such bragging can only satisfy (U.S. President Donald) Trump. No one else will believe him. Iran's oil cannot be replaced by Saudi Arabia nor any other country," Zanganeh was quoted as saying on his ministry's website.Prince Mohammed told Bloomberg on Friday that the kingdom had met its promise to Washington to make up for Iranian oil supplies lost through U.S.
Indonesia to Issue Rules on Crude Oil Sales Next Week
* Indonesia expects to issue rules next week prioritising Pertamina and other domestic refinery operators in sales of crude oil produced locally by contractors, Oil and Gas Director Djoko Siswanto said on Wednesday* The rules require Pertamina to agree on crude purchases at prices based on business negotiations with domestic oil producers, Siswanto told reporters at a news conference* This could affect up to 110,000 barrels per day (bpd) of oil produced by Chevron and 27,000 bpd from Exxon Mobil at their operations in Indonesia, he said* The rules have been signed by the energy and mineral resources minister and are awaiting final approval by the Law and Hu
U.S.: Global Oil Capacity Will Make Up for Iran Cutbacks
The United States aims to reduce Tehran's oil revenue to zero in an effort to force the Iranian leadership to change its regional. A senior U.S. State Department policy adviser said they believe there is enough spare global oil capacity to make up for a lower supply from Iran. Brian Hook, the State Department's director of policy planning, told a news conference that the U.S. goal was to get as many countries as possible down to zero Iranian oil imports. The United States would work with allies on a case-by-case basis but Washington did not plan to offer exemptions from sanctions, Hook added.
Oil Rises on Supply Losses, U.S. Push to Isolate Iran
Oil prices rose on Wednesday on supply disruption in Canada, falling U.S. crude stocks, uncertainty over Libyan exports and U.S. demands that importers stop buying Iranian crude from November.Brent crude was up 85 cents a barrel at $77.16 by 1335 GMT. U.S. light crude was $1.20 higher at $71.73."Fundamentals still remain favorable for oil prices to rise over the next six months," said BNP Paribas senior oil strategist Harry Tchilinguirian. "We would not be surprised if Brent were to trade once again above $80 a barrel."A supply outage at Syncrude in Canada has locked in 350…
Idemitsu Founding Family to Accept Showa Shell Merger
Idemitsu, Showa Shell to merge next spring via stock swap; Idemitsu to make family member as director of merged company. Idemitsu's founding family will drop its opposition to plans for a merger of Idemitsu Kosan and Showa Shell Sekiyu, paving the way for the Japanese oil firms to combine, the Nikkei reported. The family, led by descendants of founder Sazo Idemitsu and which has a little over 28 percent stake in Idemitsu, has said the two firms are too different for any merger to work, while the Idemitsu management says the combination is necessary to compete in Japan's shrinking oil products market.
Oil Rises on Supply Losses, U.S. Push to Isolate Iran
U.S. tells countries to cut Iran crude imports to zero as Canada supply disruption and Libya uncertainty push up crude. Oil prices rose on Wednesday on supply disruption in Canada, falling U.S. crude stocks, uncertainty over Libyan exports and U.S. demands that importers stop buying Iranian crude from November. Brent crude was up 65 cents a barrel at $76.96 by 1155 GMT. U.S. light crude was 65 cents higher at $71.18. "Fundamentals still remain favourable for oil prices to rise over the next six months," said BNP Paribas senior oil strategist Harry Tchilinguirian.
Iran Prepares to Export New Oil Grade amid Sanctions Threat
Iran is readying the first commercial exports of its West Karoun crude oil grade for May or June, two sources familiar with the matter said, even as fresh economic sanctions against the country loom.Iran has already been shipping samples of the grade to customers since production from the West Karoun oilfields in southwest Iran nearly doubled in the past year to 300,000 barrels per day (bpd), the sources said. A new export facility allows West Karoun to be shipped directly rather than blended with other grades."Initial cargoes…
India to offer $3-4 bln Development Plan for Giant Iran Gas Field
India is set to offer a $3-4 billion development plan for the Farzad B gas field to Iran next week after Tehran reduced the scope of the project, two sources familiar with the matter said. Relations between the two countries, which have long held deep trade ties, were strained last year after Iran sought other investors for the field and media reports suggested Tehran would award it to Russia's Gazprom. In retaliation, India directed its state refiners to cut oil imports from Iran. At a meeting in New Delhi in February, Iran reduced the scope of the development plan for the Farzad B field and asked India to submit a revised proposal…
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.
Congo Seeks Debt Relief From Trading Houses
IMF pushing Congo to renegotiate debt; loans primarily came from Trafigura, Glencore. Congo Republic is set to become the latest African country to start debt relief talks with trading houses after borrowing $2 billion from merchants such as Trafigura and Glencore but now finding its debt levels unsustainable, sources familiar with the matter said. Trading houses regularly lend money to resource-rich clients in financial distress - be it countries such as Congo, Chad, Morocco or Iraq's Kurdistan region - when other lenders walk away. But traders often charge heavy interest on loans and require access to resources.
Ex-PDVSA oil czar Ramirez Probed in $4.8B Scandal
Venezuela is investigating Rafael Ramirez, a once powerful oil minister and former head of state oil company PDVSA, in connection with an alleged $4.8 billion Vienna-based corruption scheme, the state prosecutor's office announced on Friday. Prosecutor Tarek Saab said Ramirez and at least four other oil executives from the South American OPEC nation sold crude oil at below market prices in exchange for bribes. Venezuelan authorities had warned earlier this month that they planned to launch a criminal investigation of the former oil czar, in an escalation of a corruption purge that has resulted in the arrest of dozens of senior oil executives.
