RIYADH, Oct 14 — Russian Energy Minister Alexander Novak said today there were no talks underway to change the global output deal under which Opec and non-Opec oil-producing countries have curbed output in order to support prices. Moscow is fully…
DUBAI, Oct 13 — Russian President Vladimir Putin said in remarks aired today that global oil inventories need cutting to “reasonable levels” and that Russia would work with Saudi Arabia and other partners to “reduce to zero” attempts to…
SEOUL: Oil prices jumped by 2% on Friday after Iranian news agencies said a state-owned oil tanker was struck by two missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions from a crucial producing region.
Iranian state TV reported that the oil tanker Sinopa, owned by the National Iranian Oil Co, was struck offshore the Saudi Arabian city of Jeddah. The ship suffered heavy damage and was leaking oil into the water, unnamed sources told Iran’s Students News Agency ISNA.
All crew members of the Iranian oil tanker are safe and the situation of the tanker is stable, Iran’s Nour news agency said.
International benchmark Brent crude futures rose as much as 2.3% to $60.46 a barrel and were at $60.13 per barrel, up $1.02, by 0648 GMT.
U.S. West Texas Intermediate (WTI) crude futures rose as much as 2.1% to $54.69 a barrel and were at $54.47 per barrel, up 92 cents.
“Spare capacity remains fragile and with supply chain vulnerability a worrying concern at virtually every middle east oil field, traders continue to hedge supply risk premium,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.
The report of Iranian oil tanker incident follows the Sept. 14 attacks on two Saudi Arabian oil processing plants that knocked out more than half of the kingdom’s crude oil output that caused a spike in oil prices.
Tensions in the Middle East have escalated in the wake of attacks on tankers and U.S. drones in the Strait of Hormuz, a key shipping artery of the global oil trade.
LONDON, Oct 10 ― Saudi Arabia, the world's largest oil exporter, told Opec that the kingdom's oil production in September fell by 660,000 barrels per day (bpd) compared with August to 9.13 million bpd in the wake of attacks on its energy…
LONDON: Exxon Mobil has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the US firm accelerates a vast disposal programme, banking and industry sources said.
The Malaysian assets, which include stakes in two large fields, are expected to fetch over $2 billion, the sources said.
Exxon did not respond to a request for comment. Bank of America declined to comment.
Irving, Texas-based Exxon has ramped up sales of assets around the world in recent months with the goal of raising $15 billion from disposals by 2021. Those include production in Norway, Australia, Nigeria, Azerbaijan and Britain.
Exxon operates in Malaysia 35 oil and gas platforms in 12 offshore fields and has working interests in another 10 platforms in five fields in the South China Sea, according to its website.
The operations produce 15% of Malaysia’s oil output of 600,000 barrels per day and half of its natural gas output of over 2 billion cubic feet per day.
The fields are operated under a 50% and 78% stake in two large production sharing contracts (PSC), consultancy WoodMackenzie said in a note.
“The Malaysian assets are both operated and generally highly mature, with a significant amount of ageing infrastructure. A buyer will need to have strong operating credentials, and be recognised by (Malaysian national oil company) Petronas to be a suitably qualified and reputable operator,“ one banker said. -Reuters
SINGAPORE: Oil prices slipped for a third consecutive session on Wednesday as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand.
US industry data showing a bigger-than-expected rise in stockpiles at the world’s top oil producer also depressed prices: Brent crude futures fell 27 cents, or 0.5%, to $57.97 a barrel by 0148 GMT, while US West Texas Intermediate crude was at $52.38, down 25 cents or 0.5%.
Negotiators from the world’s top two economies will meet in Washington on Thursday and Friday in the latest effort to hammer out a deal aimed at ending a long-running trade dispute that has slowed global economic growth.
But tensions between the pair rose this week after the United States imposed visa restrictions on Chinese officials for the detention or abuse of Muslim minorities, while a row escalated over comments by a leading US National Basketball Association official in support of protests in Hong Kong.
The issues have set markets on a risk-aversion course, said Howie Lee, an economist with Singapore’s OCBC bank, even though the global oil market remains in a supply deficit which should in theory support prices at above $60 a barrel.
“The market is just over-bearish at the moment, too focused on the demand side of the equation,“ Lee said.
That has even overshadowed the threat of losing at least a third of Ecuador’s oil supply amid anti-government protests in the member of the Organization of the Petroleum Exporting Countries that have seriously affected oil output.
Ecuadorean state-run firm Petroamazonas estimates it could lose some 188,000 barrels per day (bpd), or more than a third of its crude production, due to unrest at its facilities.
In the United States, meanwhile, crude stockpiles rose by 4.1 million barrels in the week ended Oct. 4 to 422 million, data from industry group the American Petroleum Institute showed on Tuesday. Analysts had expected an increase of 1.4 million barrels, a Reuters poll showed.
The weekly US Energy Information Administration (EIA) report is due at 10:30 a.m. EDT on Wednesday.
The EIA said on Tuesday US crude production is expected to rise by 1.27 million barrels per day (bpd) in 2019 to a record 12.26 million bpd, slightly above its previous forecast for a rise of 1.25 million bpd.
Output in 2020 is forecast to rise by 910,000 bpd to 13.17 million bpd, according to the EIA, lower than its previous estimate of a rise of 990,000 bpd to 13.23 million bpd. -Reuters
KUALA LUMPUR: Malaysian palm oil stockpiles in September likely rose for the first time in seven months, as production grew and export demand eased for the edible oil, a Reuters survey showed.
Inventories in the world’s second-largest palm oil producer are forecast to rise 11.9% from August to 2.52 million tonnes in September, their highest in five months, according to a median estimate of eight planters, traders and analysts polled by Reuters.
Higher stocks could put further pressure on benchmark palm oil prices, which hit a more than one-month low at the end of September.
Prices have been trading in a tight range since then, and were last 0.6% higher at RM2,161 at the midday break on Monday.
Stockpiles were largely expected to rise as exports slumped for the first time in three months.
Exports likely shrank by 19.4% to 1.4 million tonnes from a three-year high in the previous month, as demand from markets such as India eased.
“We saw lower exports to India as they purchased more refined oil from Indonesia instead due to the recent change in duty structure,“ said a manager at a Malaysian plantation firm, who declined to be named as he was not authorised to speak to the media.
“Though September exports are lower month-on-month, they are still considered good as August exports were the highest in three years.”
India, the world’s biggest edible oils importer, in September raised the tax on refined palm oil from Malaysia to 50% from 45% for six months to curb imports and boost local refining.
Industry players had forecast that Indian demand for Malaysian refined palm oil would drop sharply following the tax hike, limiting further exports from the Southeast Asian country and leading to higher inventories.
Malaysian palm oil output likely rose in line with seasonal trend, contributing to the gain in inventories and marking a third straight month of gains in production.
The poll pegged September production at 1.91 million tonnes, up 4.6% from the previous month and the highest in nearly a year. “Fresh fruit bunch yields remain strong and growth is mainly coming from East Malaysia estates,“ Ivy Ng, regional head of plantations research at CIMB Investment Bank, said in a note.
Malaysia’s eastern states of Sabah and Sarawak are the country’s top two producing regions of palm oil. – Reuters
MOSCOW, Oct 7 — When Saudi Arabian oil installations sustained major attacks last month, Russia’s energy minister, Alexander Novak, was ready to ramp up production to fill the supply gap. “If there had been a need we would have been ready for…
DUBAI, Oct 6 — Iran will not succumb to US pressure and will use every possible way to export its oil, Iranian Oil Ministry’s website SHANA quoted Oil Minister Bijan Zanganeh as saying today. Iran’s crude oil exports were reduced by more than…
QUITO, Oct 4 — Ecuador expects crude production to rise to 590,000 barrels-per-day (bpd) in 2020 after its planned withdrawal from the Organisation of the Petroleum Exporting Countries (Opec), the energy minister said yesterday. The Andean…