INDUSTRY NEWS
Goldman Sachs: Oil Demand Could Exceed Supply By End-May
Oil demand could rebound enough to exceed supply by the end of this month, Goldman’s head of commodities Jeffrey Currie told Barron’s Market Brief, noting that this would be in no small part because of the production cuts implemented by all major producers.
A Major Bull Run Is Forming In Oil Markets
The oil market is facing an unprecedented crisis as COVID-19 causes demand destruction and OPEC+ has proven powerless to stop oil prices from crashing. But behind what seems like an endless flow of bearish news, a new bull market is already forming.
Texas Railroad Commission rejects statewide oil production cuts
The Railroad Commission of Texas voted 2-1 on Tuesday to reject a proposal that would have enacted statewide oil production cuts but voted unanimously in favor of waiving fees for new crude oil storage projects.
Brent Oil Price Could Double By December
UBS’ Chief Investment Officer Mark Haefele, this morning said that "While the oil market is heavily oversupplied this quarter, we expect it to move toward balance next quarter and become under-supplied in 4Q this year as lockdown restrictions are eased and oil demand picks up."
U.S. Probes Insider Trading Tied To OPEC+ Oil Deal
The U.S. Commodity Futures Trading Commission (CFTC) is investigating whether non-American traders had obtained insider information about Russia’s position in the OPEC+ negotiations last month, which they may have later illegally used to bet on crude oil futures, Bloomberg reported, citing two people with direct knowledge of the issue.
Trump Says He Will Add to Oil Reserve
President Donald Trump said he wants to add as much as 75 million barrels of oil to the nation’s Strategic Petroleum Reserve, taking advantage of record low prices for crude, and that he’ll consider blocking imports of crude from Saudi Arabia.
Russia paid a heavy price to end the oil price war
Vladimir Putin’s deal with OPEC to cut oil output and boost prices three years ago was a triumph for the Russian leader, bolstering his clout on the global stage. But now he’s had to make stinging concessions after U.S. President Donald Trump stepped in to end a price war.
OPEC+ Agrees To Less Than 10 Million Bpd Cut
OPEC and its partners led by Russia had been discussing the cuts for four days with all big players agreeing to cut deep. Somewhat surprisingly, however, Mexico refused to sign up for a cut of 400,000 bpd like OPEC+ had asked.
OPEC Can’t Kill U.S. Shale
OPEC’s strategy in the past has been to alter its oil production in order to bring about market stability. However, the rise of U.S. shale oil forced the cartel to alter its strategy in favor of market share even at the cost of lower oil prices.
What Will It Take To See $65 Oil Again This Year?
“[M]y prediction is oil will bounce back! And it won’t be because of the emotional reactions Saudi Arabia and Russia took last night, poking out their chests over production cuts. It will be because of basic supply and demand and a lot of people will be scratching their heads saying, ‘Why didn’t I invest in the oil markets when prices were low?’” Young said in his post.
Joe Biden puts Pennsylvania native son status in question by pushing fracking ban
Joe Biden stepped on his claim of being the guy who has the blue-collar worker's back Sunday night when he pledged that his energy policy will include "no new fracking." That promise won't help him win back the blue-collar workers that fled Biden’s party in 2016 to either support President Trump or just stay home. That's especially true in western Pennsylvania and in the former vice president's hometown of Scranton, where the natural gas industry has revitalized and created economic opportunity in both regions after decades mired in collapse.
Three Potential Oil Market Scenarios
According to IHS Markit’s latest note, the “current situation” points to the possible buildup of the “most extreme” global oil supply surplus ever recorded. The company estimates that, if the price war continues amidst a global recession and coronavirus crisis, the surplus could range between 800 million and 1.3 billion barrels in the first six months of this year.
Shale’s Low Prices Will Have US Natural Gas Electricity Breaking Records Again This Summer
In 2019, U.S. natural gas easily led commodities with prices dropping by nearly 30% (e.g., Zinc was second, down 5%). Importantly, this drastic fall in the cost of gas came even with unprecedented use. At 86 Bcf/d, “U.S. natural gas consumption sets new record in 2019.”
Plunging oil prices might be just what U.S. gas drillers needed
“The collapse in the crude market is going to create a more constructive gas setting,” said Matthew Portillo, managing director of exploration and production research at Tudor, Pickering, Holt & Co. “Slowing U.S. growth is going to significantly affect associated gas production.”
Saudis Slash March Crude Oil Exports To China As Demand Slumps
China’s top oil supplier and the world’s largest oil exporter, Saudi Arabia, will be cutting its crude exports to the world’s top oil importer by at least 500,000 bpd in March because of a slump in refinery demand amid the coronavirus outbreak, Reuters reported on Thursday, citing sources familiar with the plans.
A US gas pipeline operator was infected by malware—your questions answered
Assessing the threat that the event posed to public safety requires an understanding of ICS and the way ransomware infections have evolved. What follows are answers to some of the most frequently asked questions:
The Permian Pipeline Even Environmentalists Should Support
Kinder Morgan just got cleared by a court to build a 2-billion-cu-ft pipeline that will carry natural gas from the Permian to Houston. That’s 2 billion cu ft of gas that will not be flared. From an environmentalist point of view, the pipeline should be, if not good, then at least a lesser evil than the alternative.
What A Bernie Sanders Fracking Ban Would Mean For Texas
Bernie Sanders is one of the leading candidates seeking the Democratic nomination for president. However, the senator from Vermont has policies that traditionally could be a hard sell here in Texas. Last week Sanders filed a bill that, if passed, would ban fracking.
Judge allows contested pipeline to proceed through central Texas
U.S. District Judge Robert Pitman wrote in an eight-page decision that Central Texas landowners, the City of Austin and other local governments had not proven they would suffer “irreparable harm” if Houston-based Kinder Morgan is allowed to move forward on the Permian Highway Pipeline while litigation against it continues.
America, Not Paris, is the Environment’s Best Champion
“The Paris Accord would’ve been a giant transfer of American wealth to foreign nations that are responsible for most of the world’s pollution,” President Trump said at the Shale Insight conference in Pittsburgh. “My job is to represent the people of Pittsburgh, not the people of Paris.”