OIL: DOWNSIDE RISK PRODUCTION
In April, continued tensions between Russia and Ukraine, supply outages in Libya and northern Iraq, and increased crude buying as refiners come out of maintenance turnarounds combined to offset the impact of seasonally weaker demand and pushed up oil prices marginally, the International Energy Agency said in its most recent Oil Market Report.
In this month's report, IEA forecast worldwide oil demand to average 92.8 million b/d in 2014, 65,000 b/d higher than projected in last month's report. The revision was based on raised historical non-OECD (Organization for Economic Cooperation and Development) demand and higher estimates for OECD deliveries across this year's first quarter, partially offset by the International Monetary Fund's curbed macroeconomic outlook.
In the latest quarterly World Economic Outlook published in April, IMF expects the global economy to grow by 3.6% in 2014, up from 3% in 2013 but below 3.7% assumed in January's WEO.
IEA's assessment this year's first-quarter global demand has been raised by 190,000 b/d to 91.3 million b/d, reflecting mostly stronger-than-expected demand in the US in February and other upward revisions for Japan, Germany, and the UK.
After reaching 5-month lows in March, crude oil supply from countries of the Organization of the Petroleum Exporting Countries flirted near the 30 million b/d mark again in April, led by higher output from Iraq, Saudi Arabia, Kuwait, and Algeria.
Overall non-OPEC production is now expected to increase by about 1.5 million b/d for 2014 as a whole, roughly 100,000 b/d below last month's forecast and 400,000 b/d lower than projected last October. Downside risk is present for non-OPEC production forecast, principally due to continued political, technical, and operational issues, IEA noted in the report.
"South Sudan and Colombia saw their 2014 outlook downgraded due to civil conflict, pipeline attacks, and issues with local communities. Kazakhstan and Canada also saw reduced output forecasts as technical problems and heavier-than-expected maintenance took their toll on supply," IEA said.
OECD industry inventories slipped by 2.5 million bbl in March to 2.57 billion bbl, broadly in line with seasonal trends. The deficit of inventories vs. 5-year average levels remained at a wide 110 million bbl. Refined products accounted for 98 million bbl of the deficit while crude stood at a 7 million bbl shortfall.
|December, 15, 13:20:00|
|December, 15, 13:15:00|
|December, 15, 13:10:00|
|December, 15, 13:05:00|
|December, 15, 13:00:00|
|December, 15, 12:55:00|
LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.