Tag Archives: OILQ

Business

Nestle, tobacco groups latest companies to pull back from Russia

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March 9 (Reuters) – Nestle(NESN.S), Philip Morris (PM.N)and Imperial Brands (IMB.L)joined the list of multinationals stepping back from Russia on Wednesday as pressure mounts from consumers in the West to take a stand against the invasion of Ukraine.

The world’s biggest packaged food group fell into line with rivals Procter & Gamble (PG.N) and Unilever (ULVR.L) in halting investment in Russia, while cigarette maker Philip Morris said it would scale down manufacturing and Imperial went further and suspended it.

The moves came after Coca-Cola (KO.N) and McDonald’s (MCD.N) halted sales in Russia, where a senior member of the ruling party has warned that foreign firms which close down could see their operations nationalised. read more

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McDonald’s said the temporary closure of its 847 stores in the country would cost it $50 million a month. read more

Sportswear firm Adidas (ADSGn.DE)also quantified the cost of scaling back its operations, saying it would take a hit to sales of up to 250 million euros. read more

PepsiCo (PEP.O) and Starbucks (SBUX.O) have also joined the dozens of global companies closing stores, factories or exiting investments to comply with sanctions or due to supply disruptions. read more

Those supply hurdles include the world’s top three shipping giants suspending container routes.

Yum Brands Inc (YUM.N), parent of fried chicken giant KFC, said it was pausing investments in Russia, a market that helped it achieve record development last year. read more

‘LAWS OF WAR’

In response to the exodus, Andrei Turchak, secretary of the ruling United Russia party’s general council, warned that Moscow might nationalise idled foreign assets.

“United Russia proposes nationalising production plants of the companies that announce their exit and the closure of production in Russia during the special operation in Ukraine,” Turchak wrote in a statement published on the party’s website on Monday evening. read more

The statement named Finnish privately owned food companies Fazer, Valio and Paulig as the latest to announce closures.

“We will take tough retaliatory measures, acting in accordance with the laws of war,” Turchak said.

SANCTIONS

Moscow, which calls its invasion of Ukraine a “special military operation”, has been hit by sweeping Western sanctions that have choked trade, led to the collapse of the rouble and further isolated the country.

Banks and billionaires have also been targeted, with the European Commission preparing new sanctions targeting additional Russian oligarchs and politicians and three Belarusian banks, Reuters reported. read more

While the war in Ukraine and the sanctions have bolstered prices for commodities which Russia exports such as oil, natural gas and titanium, those sanctions have largely barred Moscow from taking advantage of the high prices.

On Tuesday the United States banned Russian oil imports. read more

U.S. oilfield services company Schlumberger (SLB.N), which derives about 5% of its revenue from Russia, said the ongoing conflict would likely hurt its results this quarter. read more

Global commodities trader Trafigura Group raised a $1.2 billion revolving credit facility from banks to help address soaring energy and commodity prices. read more

Norway’s Yara (YAR.OL), a top fertiliser maker, said on Wednesday it would curtail ammonia and urea output in Italy and France due to surging gas prices.

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Reporting by Reuters bureaux; writing by Sayantani Ghosh and Paul Sandle; editing by Jason Neely and Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

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Business

Oil prices climb more than 1% to 7-year highs on supply disruption fears

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The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant//File Photo

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  • Oil in supercycle, prices forecast to rise above $100/bbl -JP Morgan, RBC Capital
  • U.S. drillers add most oil rigs in a week since Feb 2018 -Baker Hughes

SINGAPORE, Feb 14 (Reuters) – Oil prices hit their highest in more than seven years on Monday on fears that a possible invasion of Ukraine by Russia could trigger U.S. and European sanctions that would disrupt exports from the world’s top producer in an already tight market.

Brent crude futures was at $95.65 a barrel by 0742 GMT, up $1.21, or 1.3%, after earlier hitting a peak of $96.16, the highest since October 2014.

U.S. West Texas Intermediate (WTI) crude rose $1.28, or 1.4%, to $94.38 a barrel, hovering near a session-high of $94.94, the loftiest since September 2014.

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Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets.[MKTS/GLOB]

Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday. read more

“If … troop movement happens, Brent crude won’t have any trouble rallying above the $100 level,” OANDA analyst Edward Moya said in a note.

“Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation.”

The tensions come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, struggle to ramp up output despite monthly pledges to increase production by 400,000 barrels per day (bpd) until March.

While geopolitical tensions help add to the bullish view, this oil supercycle is fundamentally driven, RBC Capital analysts said.

“We see upside visibility for prices to touch or flirt with $115/bbl or higher this summer,” said analyst Mike Tran in a note.

The International Energy Agency said the gap between OPEC+ output and its target widened to 900,000 bpd in January, while JP Morgan said the gap for OPEC alone was at 1.2 million bpd. read more

“We note signs of strain across the group: seven members of OPEC-10 failed to meet quota increases in the month, with the largest shortfall exhibited by Iraq,” JP Morgan analysts said in a Feb. 11 note.

The bank added that a supercycle is in full swing with “oil prices likely to overshoot to $125 a barrel on widening spare capacity risk premium”.

Investors are also watching talks between the United States and Iran to revive the 2015 nuclear deal.

Iran’s foreign ministry spokesman said on Monday during a news conference in Tehran that the talks have not reached a dead end, even though a senior Iranian security official said earlier that progress in talks was becoming “more difficult”. [nS8N2S109G] read more

In the United States, the robust oil prices are encouraging energy firms to ramp up output as they added the most oil rigs in four years last week, energy services firm Baker Hughes Co said on Friday. read more

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Reporting by Florence Tan; Editing by Kenneth Maxwell and Kim Coghill

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Business

Oil rises on demand outlook, despite China fuel reserves release

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Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song

  • Kuwait, Iraq say OPEC+ should stick to increased targets
  • China releases gasoline, diesel reserves to bolster local supply
  • Biden pushes G20 energy producing countries to boost production

LONDON, Nov 1 (Reuters) – Oil prices rose on Monday as expectations of strong demand and a belief that a key producer group will not turn on the spigots too fast helped reverse initial losses caused by the release of fuel reserves by China, the world’s biggest energy consumer.

Brent crude futures rose 70 cents, or 0.8%, to $84.42 a barrel by 1012 GMT, after hitting a session low of $83.03.

U.S. West Texas Intermediate (WTI) crude futures gained 40 cents, or 0.5%, to $83.97, having fallen to $82.74 earlier.

“Fundamentals have not changed, and the oil market will remain tight in the near-term,” said Stephen Brennock of oil brokerage PVM Oil.

A Reuters poll showed that oil prices are expected to hold near $80 as the year ends, as tight supplies and higher gas bills encourage a switch to crude for use as a power generation fuel. read more

Oil rallied to multi-year highs last week, helped by a post-pandemic demand rebound and the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, sticking to gradual, monthly production increases of 400,000 barrels per day (bpd), despite calls for more oil from major consumers.

OPEC+ is expected by analysts to stick to that number at its Nov. 4 meeting, with members Kuwait and Iraq in recent days voicing their support for it, saying those volumes were adequate. read more

U.S. President Joe Biden on Saturday urged major G20 energy producing countries with spare capacity to boost production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC+ to supplies. read more

Prices rose despite China saying in a rare official statement that it had released gasoline and diesel reserves to increase market supply and support price stability in some regions. read more

Spurred by rising oil prices, U.S. energy firms added oil and natural gas rigs for a 15th month in a row in October, taking them to the highest since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday. read more

Exxon (XOM.N) and Chevron (CVX.N) are looking to add drilling rigs in the Permian shale basin after sharply cutting crews and output in the region last year, the companies said on Friday. read more

Additional reporting by Yuka Obayashi in Tokyo; Editing by Muralikumar Anantharaman

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Business

Oil prices extend gains to multi-year highs on tight supply

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Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, U.S., March 24, 2016. REUTERS/Nick Oxford

  • WTI touches highest since Oct 2014, Brent hits three-year high
  • Speculators raise U.S. crude oil net long positions -CFTC
  • U.S. oil & gas rig count falls for first week in 7 -Baker Hughes

LONDON, Oct 25 (Reuters) – Oil prices extended pre-weekend gains on Monday to hit multi-year highs, lifted by tight global supply and strengthening fuel demand in the United States and beyond as economies recover from pandemic-induced slumps.

Brent crude futures rose by 81 cents, or 1%, to $86.34 a barrel, following on from last Friday’s 1.1% gain. Earlier on Monday they touched $86.43, the highest price since October 2018.

U.S. West Texas Intermediate (WTI) crude futures rose 86 cents, or 1%, to $84.62 a barrel after gaining 1.5% on Friday. They hit their highest since October 2014 at $84.76 earlier on Monday.

Both benchmarks closed last week with slight gains despite rising numbers of coronavirus cases in the United Kingdom and Eastern Europe, signalling a potentially difficult winter ahead.

“It seems that continuous global stock drawdowns are still widely anticipated in coming months and only a dent in demand growth could change the underlying sentiment,” said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Goldman Sachs said a strong rebound in global oil demand could push Brent crude prices above its year-end forecast of $90 a barrel. The bank estimated gas-to-oil switching could contribute at least 1 million barrels per day (bpd) to oil demand. read more

After more than a year of depressed fuel demand, gasoline and distillate consumption is back in line with five-year averages in the United States, the world’s largest fuel consumer. read more

Meanwhile, U.S. energy firms last week cut oil and natural gas rigs for the first time in seven weeks even as oil prices rose, energy services firm Baker Hughes Co (BKR.N) said on Friday. read more

Money managers raised their net long U.S. crude futures and options positions in the week to Oct. 19, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday, underlining strong market sentiment.

Oil prices have also been bolstered by worries over coal and gas shortages in China, India and Europe, which spurred fuel switching to diesel and fuel oil for power.

Reporting by Noah Browning
Additional reporting by Yuka Obayashi
Editing by David Goodman

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Business

Oil steady as Ida outages offset Saudi price cuts

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General view of Aramco tanks and oil pipe at Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah/File Photo

  • Saudi cuts October prices for Asia by at least $1 a barrel
  • U.S. offshore oil output lags after Ida
  • U.S. oil rig count falls by most since June 2020 -Baker Hughes

NEW YORK, Sept 6 (Reuters) – Oil prices steadied on Monday as gains on production outages after Hurricane Ida were tempered by Saudi Arabia’s sharp cuts to crude contract prices for Asia, reviving concerns over the demand outlook.

Brent crude futures fell 16 cents to $72.45 a barrel by 10:52 a.m. EDT (1452 GMT). U.S. West Texas Intermediate crude fell 12 cents to $69.17 a barrel.

Both contracts had been down by $1 in earlier trade.

State oil group Saudi Aramco notified customers in a statement on Sunday that it will cut October official selling prices (OSPs) for all crude grades sold to Asia, its biggest buying region, by at least $1 a barrel.

The price cuts were larger than expected, based on a Reuters poll of Asian refiners. read more

“When the Saudi giant cuts its selling prices to Asia for October, signaling it sees the supply-demand relationship slightly shifting, traders can’t but follow down that path today,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.

Global oil supplies are increasing as the Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, are raising output by 400,000 barrels per day (bpd) each month between August and December. read more

“Given that OPEC+ is continuing its plan to raise production monthly, despite weak data from China and the U.S. raising slowdown fears and Saudi Arabia looking for market share in the region, oil is likely to remain under pressure,” said Jeffrey Halley, senior market analyst for Asia Pacific at brokerage OANDA.

The earlier decline in crude futures added to falls on Friday after a weaker-than-expected U.S. jobs report indicated a patchy economic recovery that could mean slower fuel demand during a resurgent pandemic. read more

Losses were capped by concerns that U.S. supply would remain limited in the wake of Hurricane Ida.

The U.S. government is releasing crude from strategic petroleum reserves as production in the U.S. Gulf Coast struggles to recover.

About 1.6 million barrels of crude oil remained offline, with only about 100,000 barrels added since Saturday. Another 1.8 billion cubic feet per day of natural gas output also was shut-in. [nL1N2Q70BU]

The hurricane also led U.S. energy companies to cut the number of oil and natural gas rigs operating for the first time in five weeks, data from Baker Hughes showed on Friday. The oil rig count last week fell the most since June 2020.

Reporting by Stephanie Kelly in New York; additional reporting by Julia Payne and Florence Tan
Editing by Jason Neely, David Goodman and Sonya Hepinstall

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