OIL PRICE: NOT ABOVE $64 YET
BLOOMBERG - Oil dropped below $58 a barrel as investors weighed an increase in U.S. oil drilling rigs against OPEC's promise to extend output cuts through the end of next year.
Futures fell as much as 0.9 percent in New York after adding 1.7 percent Friday. OPEC and its allies including Russia last week agreed to keep their supply cuts in place and beefed up the extension with the inclusion of Nigeria and Libya. Executives from three of the biggest independent U.S. drillers said while they won't increase activity just because prices rise after OPEC agreed to prolong curbs, they will continue to grow.
Oil has advanced for three consecutive months through November amid optimism that output cuts by Organization of Petroleum Exporting Countries and its partners are helping to balance the market. Drillers targeting crude in the U.S. added two rigs to 749 last week, the highest level since late September, according to Baker Hughes Inc.
"Even though adding Nigeria and Libya is a positive sign, OPEC has basically played all its cards after deciding to extend production curbs through next year," Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone. "As long as U.S. shale suppliers exist, it will be hard to see further gains in oil prices from now on."
West Texas Intermediate for January delivery was at $57.93 a barrel on the New York Mercantile Exchange at 2:02 p.m. in Seoul, down 43 cents. The contract gained 96 cents to settle at $58.36 on Friday. Total volume traded was about 21 percent below the 100-day average.
Brent for February settlement dropped 36 cents to $63.37 a barrel on the London-based ICE Futures Europe exchange. Prices added $1.10, or 1.8 percent, to close at $63.73 on Friday. The global benchmark crude was at a premium of $5.43 to February WTI.
Pioneer Natural Resources Co., Parsley Energy Inc. and Newfield Exploration Co. said their emphasis will be on maintaining spending discipline and generating profits, rather than just boosting supply on higher oil prices. Pioneer plans to boost output from about 300,000 barrels of oil equivalent a day this quarter to more than 1 million by 2026.
|August, 17, 12:01:00|
|August, 17, 11:55:00|
|August, 17, 11:50:00|
|August, 17, 11:45:00|
|August, 17, 11:40:00|
|August, 17, 11:35:00|
U.S. FRB - Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months. Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of growth, the index for mining declined 0.3 percent. At 108.0 percent of its 2012 average, total industrial production was 4.2 percent higher in July than it was a year earlier. Capacity utilization for the industrial sector was unchanged in July at 78.1 percent, a rate that is 1.7 percentage points below its long-run (1972–2017) average.
NPD - Preliminary production figures for July 2018 show an average daily production of 1 911 000 barrels of oil, NGL and condensate, which is an increase of 64 000 barrels per day compared to June.
GAZPROM NEFT - For the first six months of 2018 Gazprom Neft achieved revenue** growth of 24.4% year-on-year, at one trillion, 137.7 billion rubles (RUB1,137,700,000,000). The Company achieved a 49.8% year-on-year increase in adjusted EBITDA, to RUB368.2 billion. This performance reflected positive market conditions for oil and oil products, production growth at the Company’s new projects, and effective management initiatives. Net profit attributable to Gazprom Neft PJSC shareholders grew 49.6% year on year, to RUB166.4 billion. Growth in the Company’s operating cash flow, as well as the completion of key infrastructure investments at new upstream projects, delivered positive free cash flow of RUB47.5 billion for 1H 2018.
REUTERS - Front-month Brent crude oil futures LCOc1 were at $72.34 per barrel at 0648 GMT, down by 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 23 cents, or 0.3 percent, at $66.81 per barrel.