OIL PRICE: STILL ABOVE $54
The US Energy Information Administration's latest Drilling Productivity Report forecasts crude output from the seven major US onshore producing regions to increase 124,000 b/d month-over-month in May to average 5.193 million b/d .
The Permian is expected to rise 76,000 b/d during the month to 2.362 million b/d, while the neighboring Eagle Ford is projected to gain 39,000 b/d to 1.216 million b/d.
"The battle between the 'sheiks and the shale oil producers' is far from decided," Commerzbank analysts said in a research note. A pact among members of the Organization of Petroleum Exporting Countries and several major non-OPEC producers to rebalance the global oil market by collectively curbing output by 1.8 million b/d is set to expire at the end of June.
OPEC will evaluate whether or not to continue the agreement into the second half during a May 25 meeting in Vienna. If the deal is continued and inventories drop as a result, Citi analysts see oil prices moving "above $60/bbl by the second half of the year," according to a research note.
If the agreement isn't extended, prices could drop "precipitously lower," they said.
The crude oil contract for May delivery on the New York Mercantile Exchange fell 53¢ on Apr. 17 to close at $52.65/bbl. The June contract lost 49¢ to $53.11/bbl.
The natural gas price for May declined 6.4¢ to a rounded $3.16/MMbtu. The Henry Hub cash gas price closed Apr. 17 at $3.06/MMbtu, up 8¢.
Heating oil for May decreased 1.66¢ to a rounded $1.63/gal. Reformulated gasoline stock for oxygenate blending for May dropped 1.53¢ to a rounded $1.72/gal.
The Brent crude contract for June on London's ICE also declined 53¢, settling at $55.36/bbl. The July contract was down 49¢ to $55.88/bbl. The gas oil contract for May lost 25¢ at $497.75/tonne.
The average price for OPEC's basket of benchmark crudes on Apr. 17 was $52.94/bbl, down 43¢.
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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.