Is a Russia-Saudi ​d​eal on the ​h​orizon?

04/07/17 •lweb.es/f2685 •bit.ly/2oar6WZ

Military, Oil, prices, Russia, Saudi Arabia

Russian president Vladimir Putin met with Saudi Defense Minister in Sochi on October 11th, while Russian Foreign Minister Sergei Lavrov was holding a meeting with his Saudi counterpart. The parties discussed Syria and agreed upon the necessity to prevent the creation of a terrorist caliphate. The levers of a hypothetical Russian-Saudi deal would be: a rise in oil prices, possibly accompanied by Saudi arms purchases, and on the Russian side, the guarantee that Assad will leave after a transition period, along with some kind of a Saudi “right of scrutiny” on Russian arms sales to Iran.

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China To Import Record Amounts Of Crude Oil From West Africa

04/06/17 •lweb.es/f2759 •bit.ly/2qfYdIN

China, crude, Nigeria, Oil

West African producers led by Angola and Nigeria are set to send crude to China at the rate of 1.48 million barrels a day in April, the most since Bloomberg began compiling the data in August 2011, according to loading programs and traders. Overall Asian imports of West African crude are poised to reach 2.4 million barrels a day this month, also a record. Asia’s increasing purchases of West African crude provides a valuable source of income for Angola and Nigeria, both of which rely heavily on oil revenues to fund government spending.

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The Americas Has The Potential To Become A Global Oil Trading Hub

04/06/17 •lweb.es/f2758 •bit.ly/2oxu3EB

Asia, China, Oil, Trader

China’s largest crude oil refiner Sinopec aims to ship more cargoes from Brazil, the United States and Canada to help ensure stable crude supplies. Asia, which will account for a third of the world’s refining capacity by 2020 will have to look beyond the traditional markets Middle East and Africa for crude supplies. China will soon import its first Southern Green Canyon and Thunderhorse crude from the United States, and Brazil overtook Venezuela as the top South American crude supplier to China in the first two months of this year.

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Rosneft Loans To Venezuela: Default Would Involve Citgo In U.S.

04/05/17 •lweb.es/f2757 •bit.ly/2oKx3Z9

Debt, Oil, Venezuela

Venezuela’s economy is in slow collapse, accelerated by the fall in oil prices; oil service companies such as Schlumberger are cutting back activities because they are not being paid; and Russia has become the leading foreign oil investor. Russia is also the country’s key financier. Venezuela has pledged half the shares of its subsidiary Citgo – an important US refiner and fuel-retailer – as collateral for the loans from Russia’s Rosneft. If Venezuela were to default, the prospect of the Russian state firm owning American refineries would be political dynamite in Washington.

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South China Sea: Beijing’s Military Bases Are Ready For Use

03/30/17 •lweb.es/f2695 •bit.ly/2ojz8Po

China, Military, Oil

According to the Center for Strategic and International Studies’ Asia Maritime Transparency Initiative, major construction at three of China’s large man-made islands in the disputed South China Sea is wrapping up, allowing Beijing to deploy fighter jets and mobile missile launchers to the area at any time. China has continued to militarize the waters as it seeks to reinforce effective control of much of the waterway, through which $5 trillion in trade passes each year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims.

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PetroChina: Record-Low Profit But Capex To Rise Over 40%

03/30/17 •lweb.es/f2687 •bit.ly/2nOos7y

China, Oil, Uncategorized

PetroChina’s profit fell 78% to the lowest on record as the oil price crash punished the country’s biggest oil and gas producer for a third year. Net income dropped to 7.86 billion yuan (US$1.1 billion). While PetroChina expects its crude production to fall a second year in 2017, it sees gas sales rising 10% this year and to be its main growth driver to the end of the decade. PetroChina expects its 2017 global crude production to be 879 million barrels, down 4.5%.

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More Export Destinations For U.S. Crude In 2016

03/29/17 •lweb.es/f2697 •bit.ly/2oQhXFR

Oil, prices, USA

Due to a surge in oil hedges, the oil-price weakness will not prompt US producers to pull back on drilling. The producers rushed to lock in oil prices above $50 a barrel after the OPEC production cuts announcement in November, and will use hedging gains to help plug any budget deficits caused by sub-$50 spot prices. However, most of the hedges expire by 2018, and oil futures prices must recover before producers can lock in prices over $55 a barrel for next year – a level needed for significant tight-oil production growth.

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Russia Sticking To $40 Oil Scenario: Protection Against Worst-Case

03/24/17 •lweb.es/f2698 •bit.ly/2nWvh7E

Oil, prices, Russia

Policy makers in Moscow see Urals oil at an average of $50 a barrel this year, but falling to $40 at end-2017 and then staying near that level in 2018-2019. Russia’s Finance Ministry similarly highlighted the $40 level in January when it announced that the central bank would start buying foreign currency on its behalf when crude exceeds that level in order to insulate the exchange rate from oil volatility. The price of $40 is additionally being used to calculate the country’s budget in 2017-2019.

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Saudi Arabia: Long-Term Strategy For Asian Investment

03/23/17 •lweb.es/f2703 •bit.ly/2peKLnK

Asia, Investments, Oil, Saudi Arabia

Saudi King Salman’s lavish tour of Asia had a mission – to cement the kingdom’s place as leading oil supplier to the world’s biggest consumer region. The string of deals inked on his three-week tour to Malaysia, Indonesia, Japan, and China – the big prize – also point to a fresh strategy: growth in the downstream. Chief executive officer of Aramco, Amin Nasser, said on this: “The growth in that sector is very important, and anything integrated between refining, petrochemical, with marketing and distribution, is of interest to us.”

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China’s Sinopec Buys Its First Major Refinery In Africa

03/23/17 •lweb.es/f2699 •bit.ly/2oTNcwJ

Africa, China, Oil, Refinery

China’s Sinopec has agreed to pay almost $1 billion for a 75 percent stake in Chevron’s South African assets and its subsidiary in Botswana, securing its first major refinery on the continent. The assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities. They also include 220 convenience stores across South Africa and Botswana. With a growing middle class, demand in South Africa for refined petroleum has increased by nearly 5 percent annually over the past five years.

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Oil At $40 No Problem: Hedging As A Shield

03/20/17 •lweb.es/f2705 •bit.ly/2oTZd5d

Oil, USA

American oil explorers are shrugging off the 14% slide in prices this year. The price would have to drop to the $30s or lower to dent the bottom line of many drillers now working U.S. shale fields. That’s because many producers have already locked in future returns with financial contracts that guarantee the price of their oil for most of the rest of the decade. “We’re in a boom again in Texas…” said Michael Webber of the University of Texas’ Energy Institute in Austin. “The cowboy spirit is back. Hedging is playing a big role.”

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