Oil prices climbed on Friday as markets tightened amid output cuts by producer club OPEC, but surging U.S. supply and concerns of global economic slowdown kept a lid on further gains.
The next 10-15 years will be a period of stable development for the oil industry and prices will remain relatively high at $60-$70/b, the CEO of Lukoil, Russia's second-largest crude producer, said Wednesday.
Brent crude oil spot prices averaged $59 per barrel (b) in January, up $2/b from December 2018 but $10/b lower than the average in January of last year.
MEOG - Saudi Aramco CEO Amin Nasser gave a speech at London Petroleum Week about the oil and gas industry's future--or, rather its perceived lack of a future. He addressed what he called a "worrying and growing belief among policy makers and regulators, investment houses, NGOs, and many others that we are an industry with little or no future."
Novatek’s Chief Financial Officer Mark Gyetvay said the company would build all equipment and technology in Russia to protect itself. “We will not hold ourselves hostage to U.S. sanctions,” he told the IP Week conference in London.
Russia delivered a record amount of liquefied natural gas (LNG) to Europe in February, becoming the biggest supplier of the chilled fuel to the continent for the first time.
U.S. BEA - Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the fourth quarter of 2018, according to the "initial" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.4 percent.
IMF - Looking ahead, Armenia's growth is expected to moderate to about 4½ percent in 2019, reflecting a weaker global environment and copper prices, and remain in the 4-5 percent range over the medium term. CPI inflation is projected to gradually converge to the CBA’s target of 4 percent over the next two years, as one-off factors wane. The current account deficit is expected to gradually narrow to around 5 percent of GDP. The risks to the outlook are mainly external.
NB - The Government Pension Fund Global returned -6.1 percent, or -485 billion kroner, in 2018.
Repsol posted net income of 2.341 billion euros in 2018, a 10% increase from the 2.121 billion earned in 2017 and the highest in eight years. This was achieved with average Brent oil prices at 71 dollars per barrel last year, compared with more than 111 dollars in 2011.
Oil prices rose on Wednesday after a report of declining U.S. crude inventories and as producer club OPEC seemed to stick to its supply cuts despite pressure from U.S. President Donald Trump.
Abu Dhabi: Energy Minister Suhail Al Mazroui said the oil market is on the “right track” and that the market will quickly return to balance in the first quarter of this year.
REUTERS - Based on current market data, the so-called OPEC+ group is “likely to continue with the production cuts until the end of the year”, the source told Reuters.
REUTERS - Gazprom’s share of the European gas market rose to a record high 36.7 percent last year from 34.7 percent in 2017, the company said.
EXXONMOBIL - Exxon Mobil Corporation added 4.5 billion oil-equivalent barrels of proved oil and gas reserves in 2018, replacing 313 percent of the year’s production.