2020-05-27 12:20:00
OIL PRICE: ABOVE $35
REUTERS - MAY 27, 2020 - Oil prices fell on Wednesday after U.S. president Donald Trump said he was working on a strong response to China's proposed security law in Hong Kong.
A potential deterioration in relations between the world's two biggest economies could ratchet up the pressure on global businesses and oil demand already weakened by the coronavirus pandemic.
Brent crude fell 53 cents, or 1.5%, to $35.64 by 0827 GMT and U.S. West Texas Intermediate (WTI) crude was down 50 cents, or 1.5%, at $33.85.
"Simmering U.S.-China tensions added pressure on crude again," said Avtar Sandu, senior manager commodities at Phillip Futures.
Gloomy forecasts over the economic impact of the pandemic also weighed on crude prices.
The euro zone economy is likely to shrink between 8% and 12% this year, European Central Bank President Christine Lagarde said, warning that a mild scenario is already outdated and the outcome would be between the medium and severe.
Traders were also paying attention to early signals on a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and its allies in less than two weeks.
The group known as OPEC+ is cutting output by nearly 10 million barrels per day (bpd) in May and June, but the question is whether it will continue to do so as demand recovers after the easing of coronavirus lockdowns in many countries.
“Stock builds are falling and the market will be balanced in June, so who wants to willingly forego millions of crude barrels in sales if he’s able to sell it in a recovering market,” said Rystad Energy’s head of oil markets, Bjornar Tonhaugen.
U.S. crude inventories are forecast to have fallen for a third week last week, according a Reuters poll of analysts.
Global energy investment is expected to fall by about 20%, or $400 billion, this year because of the coronavirus outbreak, the International Energy Agency (IEA) said on Wednesday.
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Earlier:
2020, May, 26, 10:50:00
OIL PRICE: ABOVE $36
Brent were up nearly 1.7%, or 61 cents to $36.14, WTI gained 3.4%, or $1.12, to $34.37 a barrel
2020, May, 25, 12:45:00
U.S. ENERGY MARKET DOWN
Oil markets are being significantly disrupted due to global market dynamics and the coronavirus pandemic, the oil price crash was "causing financial and credit challenges, including oil company bankruptcies."
2020, May, 25, 12:35:00
RUSSIA'S OIL SUPPORT
Putin ordered ministers to work out “special rates” that pipeline operator Transneft PJSC and Russian Railways JSC will charge for transporting crude and petroleum products
2020, May, 22, 13:17:00
OIL MARKET BALANCE
"When it comes to oil, there are signs that the market has tightened in recent weeks. The OPEC+ agreement, voluntary cuts outside OPEC-++, and production shut-ins are working together to start to rebalance the market. This will take time. As economies begin to open up, demand will follow, but the path to the next normal is not a straight line," Dr. Sultan Al Jaber, CEO of ADNOC Group and UAE minister of state said.
2020, May, 22, 13:10:00
OIL & GAS: THE RETURN OF EQUITY 6%
The return on equity for energy companies and U.S. manufacturing decreased to 6% and 13%, respectively, in 2019
2020, May, 22, 12:55:00
OILFIELD SERVICES DOWN 49%
Oilfield services companies have lost approximately 49% of their market capitalization since the beginning of this year.
2020, May, 19, 11:55:00
OIL&GAS INDUSTRY: THE NEXT TRANSFORMATION
To change the current paradigm, the industry will need to dig deep and tap its proud history of bold structural moves, innovation, and safe and profitable operations in the toughest conditions. The winners will be those that use this crisis to boldly reposition their portfolios and transform their operating models. Companies that don’t will restructure or inevitably atrophy.
