HIGH RISK FOREVER
BOE wrote, oil demand should start accelerating by year's end, and outside of Saudi Arabia the prospect for production growth among OPEC members looks bleak.
Oil prices have swung up and down this month following an August rally spurred by speculation that Russia and the Organization of Petroleum Exporting Countries would move to stabilize the market. The countries have fueled the volatility in recent weeks, as they talked of freezing output even while boosting production to new highs.
It predicted a large output contraction down the road with decline rates accelerating at these low prices. While assuming healthy OPEC growth going forward, conservative supply and demand balance continues to point towards hefty stock draws during the second half of the year.
The market remains bullish, onshore visible inventories will draw and oil prices will move higher.
The Commodities Master Fund gained 38 percent in 2014, when oil prices began a two-year slide. In August, the fund gained 4.2 percent, bringing annual returns to 8.3 percent, according to the letter. The hedge fund industry as a whole gained 1 percent in August and is up 2.2 percent this year, according to data compiled by Bloomberg.
Investment in new oil supplies is drying up, thanks to low prices and climate-change worries that are fueling a push toward renewable energy.
It seen 2017-2020 as still having the potential for much higher prices. After 2020, there is a high risk that electric vehicle penetration will change the oil market forever.
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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.