|Day's Range||50.91 - 51.96|
According to estimates in the Financial Times’ Lex column, a third of fossil fuel assets around the globe may become stranded due to government attempts to reduce emissions
Another low volatility day keeps the USD/CNY within a short-term bearish pattern. Key price levels are close by to help show the way.
The Coronavirus is going to have a lasting effect on oil markets, with bearish sentiment likely to continue through to the end of the year
Crude oil production in North Dakota could peak over the next five years as producers will have drilled up the core production areas
OPEC slashed on Wednesday its global oil demand growth forecast for 2020, expecting the coronavirus outbreak to weigh heavily on fuel demand in the world’s oil demand growth driver, China
OPEC slashed it forecast for global oil demand by almost a quarter million barrels per day as the coronavirus pandemic cripples fuel use in China
Libya’s oil production is down to less than 200,000 bpd, and the uncertainty surrounding the outage create complications for OPEC+ as it looks to cut deeper
(Bloomberg) -- Distressed oil supplies are being offered to India as the spread of the coronavirus crimps fuel consumption across China, prompting requests for cargo deferrals and cancellations by Asia’s no. 1 importer.State-owned Bharat Petroleum Corp Ltd. received offers for supplies of crude from the Caspian Sea and South America for March loading, said R. Ramachandran, director of refineries at the company. The shipments, originally meant for Chinese refiners, were being shown at low prices, potentially yielding up to 15% more returns when processed, he said in a phone interview.Oil importers across China’s state-owned and private refining sector have struggled to take delivery of purchased crude and gas cargoes -- with one buyer declaring force majeure -- as quarantines and flight restrictions eroded fuel demand and cut processing throughput by at least 2 million barrels a day. The purchasing process for the crudes on offer was underway and could be finalized by the end of the week.READ: China May Need 1.1M B/D Cut in Crude Imports to Balance Mkt: IHS“We see opportunity for acquiring such cargoes extending for one more month,” Ramachandran said. BPCL is also interested in cargoes that have loaded onto tankers but are still in transit, which China is now unable to absorb, he said.The Indian refiner received offers for March-loading cargoes of grades including CPC Blend. Separately, sellers were also trying to find alternative buyers for other grades from Brazil and Russia last week after Chinese demand dried up. Trading giants including Vitol SA, Royal Dutch Shell Plc and Litasco SA were asking about hiring supertankers for storage purposes as the industry tries to deal with a glut that’s emerging in Asia.Cheaper crude cargoes will be a relief for Asian processors that have been struggling with record-low margins. Asia’s complex refining margins were the lowest in data going back to 2007 in December. It stayed near that level in January before staging a recovery so far this month.(Updates with Asian refining margins in sixth paragraph.)\--With assistance from Andrew Janes.To contact the reporter on this story: Dhwani Pandya in Mumbai at email@example.comTo contact the editors responsible for this story: Serene Cheong at firstname.lastname@example.org, Ben SharplesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.
As the world grapples with containing carbon emissions to fight climate change, scientists have created a new material that has the potential to reduce emissions from crude oil refining
The Canadian province of Alberta has agreed to divest its contracts to move additional crude by rail to market, Premier Jason Kenney said on Tuesday, but he declined to release details and said the agreements were still being finalized. The contracts to ship a collective 120,000 barrels per day were negotiated by the previous New Democratic Party government, and Kenney has long said his government planned to transfer them to the private sector. Alberta's provincial government has for more than a year curtailed oil production by its largest producers to reduce a glut in storage due to congested pipelines.
Chevron has boosted oil production at its joint venture with Venezuela’s PDVSA to the highest in almost a year, Bloomberg reports, adding that the Maduro government is considering giving foreign oil field operators more control over their joint business with PDVSA
Crude oil markets rallied a bit during the trading session on Tuesday, to continue to show signs of resilience. Ultimately, it’s very unlikely that the entire fundamental situation has changed.
The US dollar has rallied a bit during the trading session on Tuesday, reaching towards the ￥110 level. That’s an area that is significant resistance based upon previous action and of course psychological importance. Pulling back from there makes quite a bit of sense.
Based on the early price action and the current price at $50.50, the direction of the March WTI crude oil market the rest of the session on Tuesday is likely to be determined by trader reaction to the minor pivot at $50.81.
The tight trading range is being generated by comments from Russia Energy Minister Alexander Novak on Friday. He said Russia needs a few more days to assess proposals for deeper oil output cuts and could formulate a response possibly this week.
Inexperienced oil traders are in danger of overestimating the impact of the coronavirus on oil markets, a mistake that could well leave them caught short in Q2
Oil sees further downward pressure from a rising dollar and global economic slowdown fears due to the spread of coronavirus.