DIRS.INFO The most relevant business & tech news

☆ Oil will jump 28% in 2023, with another energy crunch set to push prices higher, Eurasia Group says
▼ + stars: | 2023-01-04 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Oil prices will rise above $100 a barrel in 2023, according to a projection in the Eurasia Group's top risks of the year. Oil demand looks poised to grow as China recovers quickly after backing off zero-COVID polices and the US experiences only a shallow recession. Brent and WTI crude prices recently traded below $78 a barrel each. They said those two factors would bolster demand growth for crude oil and expose an acute lack of new supply. China's economic recovery and increased global demand for liquefied natural gas will likely drive US natural gas prices closer to $8 per million British thermal units or more.

☆ Oil set to end turbulent 2022 with second annual gain
▼ + stars: | 2022-12-30 | by ( Alex Lawler | ) www.reuters.com time to read: +2 min

FILE PHOTO: A view shows Chao Xing tanker at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. “Next year is set to be another year of uncertainty, with plenty of volatility.”On Friday, Brent crude was up 32 cents, or 0.4%, to $83.78 a barrel by 0915 GMT. So I think oil prices may fall to $60 next year,” he said. Oil’s fall in the second half of 2022 came as central banks hiked interest rates to fight inflation, boosting the U.S. dollar. 2 consumer in 2022 posted its first drop in oil demand for years.

☆ Oil set to end volatile 2022 with second annual gain
▼ + stars: | 2022-12-30 | by ( Laila Kearney | ) www.reuters.com time to read: +2 min

FILE PHOTO: A view shows Chao Xing tanker at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana MeelCrude surged in March with international benchmark Brent reaching $139.13 a barrel, the highest since 2008, after Russia’s invasion of Ukraine upended global crude flows. U.S. crude was set to rise about 5% in 2022, following last year’s gain of 55%. “So I think oil prices may fall to $60 next year..Oil’s decline in the second half of 2022, largely on rising interest rates to fight inflation, boosted the U.S. dollar. The world’s top oil importer and second biggest consumer in 2022 posted its first drop in oil demand for years.

☆ Brent could quickly top $90/bbl on Fed pivot, China demand recovery - BofA
▼ + stars: | 2022-12-12 | by ( ) www.reuters.com time to read: +1 min

Dec 12 (Reuters) - Global oil benchmark Brent could rebound and quickly rise past $90 per barrel on the back of a dovish pivot in the U.S. Federal Reserve's monetary policy and a "successful" economic reopening by China, Bank of America (BofA) Global Research said. Lately, oil prices have been steadily declining due to fears that a weakening global economy would slash fuel demand, setting prices on track for a second consecutive quarterly fall. Moreover, a 2 million bpd OPEC+ output cut could be implemented in full to support prices, the bank said in a research note dated Dec. 9. However, "our oil demand and price projections for 2023 rely heavily on robust China and India demand growth, so any Asia reopening delays could affect our expected price trajectory," said the bank, adding the path to a post-pandemic environment may be bumpy "given the low levels of immunity in China". Reporting by Kavya Guduru in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Saudi Arabia reports its first budget surplus in nearly 10 years on higher oil prices
▼ + stars: | 2022-12-08 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Saudi Arabia reported its first budget surplus in nearly 10 years, thanks to its revenue being ramped up by elevated oil prices. The 2022 surplus came to 102 billion riyals ($27 billion), constituting 2.6% of Saudi gross domestic product, according to the kingdom's finance ministry, releasing what it said were preliminary estimates. Total revenue for this year was estimated at 1.234 trillion riyals, while spending amounted to 1.132 trillion riyals. The government of the hydrocarbon-rich country approved a 1.114 trillion riyal budget for 2023 and expects to still see a surplus of 16 billion riyals. Economists estimate Saudi Arabia needs the price of oil to be between $75 and $80 a barrel in order to balance its budget.

China, Russia's top oil buyer, has not agreed to the price cap. The light sweet crude is favoured by Chinese refiners due to their proximity and the oil's high middle-distillates yield. At current Brent levels, the $6 discount implies a price of $68 a barrel including freight and insurance costs. "They (independent plants) don't really care about the price cap. With the price cap in place, China, India and Turkey could have more bargaining power, the analysts added.

Here is why:DEPRESSED DEMAND FOR FUELSChina is the world's largest crude importer and second- largest oil consuming nation, second only to the United States. But in 2022, strict government intervention to contain coronavirus cases starkly reduced industrial and economic output as well as demand for travel. China's measures depressed oil demand by as much as 30% to 40% in China, according to analyst estimates. Overall economic activity also declined across the globe, most notably in China but also in the United States. The market's rally was also built in part on fears that a series of sanctions imposed on Russia by European nations and the United States would throttle that nation's supply.

LONDON, Dec 7 (Reuters) - British finance minister Jeremy Hunt will meet leaders of North Sea oil and gas producers on Friday to discuss the government's windfall tax, three industry sources told Reuters on Wednesday. The government said the levy would raise funds to help people struggling with increased living costs, largely driven by energy prices that surged after energy exporter Russia invaded Ukraine in February. A Treasury source confirmed Hunt would meet oil and gas executives this week. Benchmark Brent oil prices traded below $80 a barrel, the lowest since January and far below a spike well above $100 shortly after the Ukraine war began. Natural gas prices remain above their historical average .

But keeping Russian oil on the market and global prices low soon became the bigger priority as oil prices jumped, people familiar with the mechanism's evolution and energy analysts said. Analysts said the cap will have little immediate impact on the oil revenues that Moscow is currently earning. "I really think that the U.S. Treasury's main objective was to defuse the EU embargo," on Russia's oil exports, Cahill said. The official said the price cap is "institutionalizing" current market discounts, arguing that the price cap created them. The $60 price cap level was agreed on Friday after fierce debate.

PRICE FLOORNeither climate campaigners nor the industry are happy with the new windfall tax. Benchmark Brent oil prices are trading above $80 a barrel, far below a spike well above $100 shortly after the Ukraine war began. Jacques Tohme, director and founder of Tailwind, a North Sea producer, said he did not object to a higher tax but a lack of stable rules created the risk of "flight of investment" from the North Sea. "We're happy to pay higher tax, but we need a floor of $75 to $100 a barrel above which a true windfall tax can be applied," Tohme said. Companies including Shell (SHEL.L) and Equinor have already said they will review their North Sea investments.

☆ European Union agrees to a $60-per-barrel price cap on Russian oil
▼ + stars: | 2022-12-02 | by ( The Associated Press | ) www.nbcnews.com time to read: +4 min

BRUSSELS — The European Union tentatively agreed to a $60-per-barrel price cap on Russian oil, a key step as Western sanctions aim to reorder the global oil market to prevent price spikes and starve President Vladimir Putin of funding for his war in Ukraine. The $60 figure sets the cap near the current price of Russia’s crude, which recently fell below $60 a barrel. There is a big risk to the global oil market of losing large amounts of crude from the world’s No. Putin has said he would not sell oil under a price cap and would retaliate against nations that implement the measure. “The reality is that it is unlikely to be binding given where oil prices are now.”Others have criticized the measure, a brainchild of U.S. Treasury Secretary Janet Yellin.

☆ U.S. urges caution on low-quoted Russian oil prices as EU debates price cap
▼ + stars: | 2022-12-01 | by ( David Lawder | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 30 (Reuters) - The Biden administration broke its silence on Wednesday on European Union deliberations over a $65-70 per barrel Russian oil price cap on Wednesday, warning far-lower prices cited for some Russian Urals crude shipments should be approached with caution. The U.S. official cited concerns over using prices that represent a subset of Russian oil sales. A price cap of $65 a barrel on Russian crude would represent a meaningful price reduction from recent prices, citing an estimated average of $78 per barrel since March 2022. The cap was conceived as a way to limit Moscow's oil revenues while keeping Russian crude on the global market to avoid a massive spike in oil prices. The price cap will be enforced by denying insurance, shipping and other maritime services provided by G7 democracies and Australia to shipments priced above the cap.

☆ Goldman Sachs' Currie says oil stocks are trading 'far below' their long-term trend
▼ + stars: | 2022-11-30 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Shares of energy companies could surprise markets and continue to rise, according to Goldman Sachs' head of commodities research, despite a recent fall in crude prices. Jeff Currie told CNBC that historically, stocks in the sector have traded at a higher premium to crude oil prices compared to current price levels . "There is a catch-up game going on between oil prices and ... equities," Currie said Tuesday. Spot oil prices and energy stocks tend to move in tandem. OPEC+ has recently hinted it could impose deeper output cuts to spur a recovery in crude prices .

Organizations: & $

☆ UAE's ADNOC to cut 5% of Dec crude volumes to term-buyers in Asia - sources
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +1 min

SINGAPORE, Nov 28 (Reuters) - Abu Dhabi National Oil Company (ADNOC) will cut 5% of the December crude oil supply to some term-lifters in Asia but will provide full contractual volumes in January, five sources with knowledge of the matter said on Monday. ADNOC exports the bulk of its crude to Asia and its grades include Murban, Umm Lulu, Das and Upper Zakum. "The output cut has to be reflected in the market. And it makes sense that oil producers want to hold off selling at such oil prices," a Singapore-based trader said. read moreSpot premiums of Middle Eastern crude, Oman, Dubai and Murban, slid this month as market sentiment soured amid oversupply fears.

☆ Oil muted as price cap proposal eases supply concerns
▼ + stars: | 2022-11-24 | by ( Nia Williams | ) www.reuters.com time to read: +3 min

A bigger-than-expected build in U.S. gasoline inventories and widening COVID-19 controls in China also added downward pressure on crude prices. Both benchmarks plunged more than 3% on Wednesday on news the planned price cap on Russian oil could be above the current market level. European Union governments remained split over what level to cap Russian oil prices at to curb Moscow's ability to pay for its war in Ukraine without causing a global oil supply shock, with more talks possible on Friday if positions converge. A higher price cap could make it attractive for Russia to continue to sell its oil, reducing the risk of a supply shortage in global oil markets. Oil prices also came under pressure after the Energy Information Administration (EIA) said on Wednesday that U.S. gasoline and distillate inventories rose substantially last week.

A bigger-than-expected build in U.S. gasoline inventories and widening COVID-19 controls in China also added downward pressure on crude prices. Both benchmarks plunged more than 3% on Wednesday on news the planned price cap on Russian oil could be above the current market level. European Union governments remained split over what level to cap Russian oil prices at to curb Moscow's ability to pay for its war in Ukraine without causing a global oil supply shock, with more talks possible on Friday if positions converge. A higher price cap could make it attractive for Russia to continue to sell its oil, reducing the risk of a supply shortage in global oil markets. "When one considers that the current Russian export price is below the proposed limit, the price cap automatically implies uninterrupted Russian exports," said PVM Oil analyst Tamas Varga.

The G7, including the United States, as well as the whole of the European Union and Australia, are planning to implement the price cap on sea-borne exports of Russian oil on Dec. 5. India has emerged as the second-largest single buyer after China of Russian oil since the conflict began in February. Indian refiners have taken the place of refiners in countries that have imposed sanctions on Russian crude imports, or have steered clear of Russian crude to avoid negative publicity. That means even the delivered cargoes are about the same level as the price cap. The U.S. Treasury guidance does not allow buyers in countries that have imposed sanctions on Russian crude imports, such as in the United States and the European Union, to buy Russian oil even under the price cap.

☆ Northern Europe has already slashed Russian oil imports by 90%, 2 weeks before the EU ban kicks in
▼ + stars: | 2022-11-22 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Russia's crude shipments to Northern Europe fell 92% in the four weeks to November 18, compared to February. That's a huge departure from 2021, when Germany, the Netherlands, and Poland were the top European importers of Russian oil. Even so, importers have already begun reducing their dependence on Russian energy supply — its key market Northern Europe has already slashed seaborne Russian oil imports by over 90%, according to Bloomberg analysis based on vessel tracking data. This is significant, because the Northern European nations of Germany, the Netherlands and Poland were the top European importers of Russian oil in 2021. While pipeline crude from Russia to EU is exempt from the December 5 ban, it made up just about one-third of all Russian crude oil exports to the EU last year.

LAUNCESTON, Australia, Nov 8 (Reuters) - China's imports of crude oil rebounded in October, but the details aren't as strong as the headline number suggests. PetroChina started trial operations at a 200,000 bpd crude unit at its new refinery in Guangdong, while Shendong Petrochemical is also starting operations at its new 320,000 bpd plant in Jiangsu province. This appears to have resulted in China boosting imports from the kingdom, with Refinitiv Oil Research estimating that October arrivals were 1.91 million bpd, up from 1.84 million bpd in September. Rising exports of refined products are also acting as a spur to crude imports, with 4.46 million tonnes of fuel being shipped out in October. This was down from September's 1.5 million bpd and August's 1.23 million bpd, but it's worth noting that the past three months have been strongest since July last year.

☆ Biden is threatening a windfall tax on energy companies, after he slammed them for 'war profiteering'
▼ + stars: | 2022-11-01 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

US President Joe Biden called on energy companies to boost production or pay a windfall tax. He said energy companies will have to boost output and refining capacity or face the consequences. Biden said energy companies are entitled to a fair return for work or innovation, but the profits this time are "so high, it's hard to believe." "A windfall profit tax might make for good soundbites, but as policy, it's bad for consumers. Ben van Beurden, the CEO of UK-based Shell, seems to agree with the view that energy companies should pay higher taxes.

☆ Oil falls on U.S. output gains, Chinese demand doubts
▼ + stars: | 2022-10-31 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

U.S. West Texas Intermediate (WTI) crude fell $2.41 to $85.49 a barrel, a 2.7% loss. Biden will call on Congress to consider requiring oil companies to pay tax penalties and face other restrictions," the official said. The president has previously pushed oil companies to raise production rather than use profits for share buybacks and dividends. Strict COVID-19 curbs in China have hit economic and business activity, curtailing oil demand. The Organization of the Petroleum Exporting Countries (OPEC) on Monday raised its forecast for medium and long-term oil demand and said $12.1 trillion of investment is needed to meet this demand despite the energy transition.

☆ Microsoft says the global energy crisis can cost the company $800 million more in energy costs this year
▼ + stars: | 2022-10-26 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Microsoft posted on Tuesday its first-quarter revenue of $50.1 billion for the fiscal first quarter. CFO Amy Hood warned of an additional $800 million in energy costs this fiscal year. Microsoft on Tuesday posted first-quarter revenues of $50.1 billion — an 11% increase from a year ago, which beat analysts' expectations of $49. "A lot of it is in Europe," Hood said, referring to where the expenditure is expected to be incurred, per Bloomberg. Energy costs have been on the up since end-2020, as demand rebounded on the easing of pandemic restrictions.

Benchmark Brent crude futures were up 35 cents to $93.61 a barrel by 12:59 p.m. EDT (1659 GMT), while U.S. West Texas Intermediate crude futures rose by 71 cents to $85.29. The U.S. dollar index fell during afternoon trade, making dollar-denominated oil less expensive for other currency holders and helping to push prices higher. Further support came from comments by Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, that energy stocks were being used as a mechanism to manipulate markets. U.S. crude oil inventories are expected to rise this week, which could limit price gains. Analysts polled by Reuters estimated on average that crude inventories rose by 200,000 barrels in the week to Oct. 21.

☆ Oil falls by more than $1/bbl as demand fears linger
▼ + stars: | 2022-10-25 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

REUTERS/Andrew KellyLONDON, Oct 25 (Reuters) - Oil prices fell by more than $1 per barrel on Tuesday as bearish economic data from key global economies heightened demand fears. Register now for FREE unlimited access to Reuters.com RegisterSupply and demand fundamentals remain largely stable, leaving economic sentiment centre-stage for the oil market, said Vandana Hari, founder of oil market analysis provider Vanda Insights. Signs of uncertain economic activity in the United States and China, the world's two biggest oil consumers, continued to weigh on prices on Tuesday. Government data on Monday showed China's crude oil imports in September were 2% lower than a year earlier, continuing a trend of lower imports at the same time it reported slowing retail sales. U.S. crude oil inventories are also expected to rise this week, which may limit price gains.

☆ Oil rises as U.S. dollar loses steam though demand fears linger
▼ + stars: | 2022-10-25 | by ( Mohi Narayan | ) www.reuters.com time to read: +3 min

International benchmark Brent crude futures gained 3 cents to $93.29 per barrel by 0652 GMT, after falling 0.3% in the previous session. U.S. West Texas Intermediate crude futures for December delivery rose 11 cents to $84.69 per barrel, after a previous decline of 0.6%. Supply and demand fundamentals remain largely stable, leaving economic sentiment at the centre-stage for the oil market, Hari added. U.S. crude oil inventories are also expected to rise this week, which may limit price gains. Analysts polled by Reuters estimated on average that crude inventories rose by 200,000 barrels in the week to Oct. 21.

Search resuls for: "Benchmark Brent"

25 mentions found