CHEVRON: 1Q DOWN
WSJ. Chevron Corp. said its first-quarter global oil and gas production is expected to drop from the year-ago quarter, as poor weather led to downtime in the U.S., Canada and other regions.
Chevron, the second-largest U.S. oil company in market value after Exxon Mobil Corp., forecast first-quarter earnings to be lower than the fourth quarter, hurt by foreign-currency fluctuations and asset impairments and other charges.
The company said global oil-equivalent production in January and February totaled 2.58 million barrels a day, down 2.5% from the year-ago period.
Throughout the oil giant's interim report, Chevron compared the first two months of the first quarter with the entire quarter of the year-earlier period and all of the fourth quarter of 2013.
Chevron's U.S. production in the first two months of the quarter reached about 637,000 barrels of oil and natural gas a day, an decrease of 1.1% from a year earlier and falling 2% from the fourth quarter.
International production reached 1.94 million barrels a day, falling 2% from a year ago but rising 0.8% sequentially.
Chevron said current-year production has been stung by poor weather across multiple regions, including Kazakhstan, Canada and the U.S.
Realized U.S. oil prices decreased 3.4% from the first quarter of 2013 to an average of $91.26 a barrel, while international oil prices fell 3.9% to $98.37.
Realized U.S. natural-gas prices averaged $4.70 per thousand cubic feet in the first two months of the quarter, 51% higher than a year ago. Outside the U.S., natural-gas prices averaged $5.95 per thousand cubic feet, down 2% from last year.
Chevron is slated to report full first-quarter results on May 2.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.