Crude oil production in May from the seven major US shale regions is expected to fall 114,000 b/d month-over-month to 4.84 million b/d, according to the US Energy Information Administration’s latest Drilling Productivity Report (DPR).

China National Offshore Oil Corp. towed the rig, known as HYSY 981, into a disputed area of the South China Sea in May 2014, triggering an uproar in Vietnam. Anti-Chinese riots broke out in several parts of the country while Chinese and Vietnamese coast-guard and fishing vessels stood off against each other at sea.

The squeeze puts further pressure on the shale industry to sell assets, cut jobs and drilling and shrink capital spending. It also raises the risk that more companies will tip into bankruptcy.

The world's top crude oil exporter asked banks for a loan worth between $6 billion and $8 billion that would run for five years, sources told Reuters last month, as the kingdom seeks to plug a record budget deficit caused by low oil prices.

OAO Yamal LNG (“Yamal LNG”) announced the signing of an agreement with Sberbank and Gazprombank on a 15-year credit line facility for the total amount of EUR 3.6 billion at EURIBOR 6M plus 4.7% annual interest rate. The agreement signed with the Russian banks is part of the project financing package for Yamal LNG.

Crude output from Cepu more than tripled throughout 2015 from around 40,000 bpd in 2014, hitting around 130,000 bpd in December when Exxon commenced operation of the project's central processing facility.

Lissik responded that on the contrary, Nord Stream 2 did not enter the EU internal market, and that Russia was not banned from trading with the EU. Economic exchange with Russia was continuing, and it is unfair to project political views and to focus on conflict when discussing Nord Stream 2. “We are trying to depoliticise the project. Its only target is to have a business case,” he said. “This is not the Kremlin.”

The two countries also signed agreements to develop a 2250 Megawatt electricity plant with a cost of $2.2 billion, set up agriculture complexes in Sinai and develop a canal to transfer water, a statement from the Presidency said.

Chevron Corp. and Royal Dutch Shell Plc had their ratings reduced by one level, while Total SA’s was cut two steps, according to statements by the New York-based rating company on Friday. Chevron will generate negative cash flow amid rising debt for at least the next two years, while Shell will have elevated leverage following its acquisition of BG Group Plc, Moody’s said. Prices are expected to stay low through this year and next and continue to pressure Total’s operating cash flows and credit metrics, Moody’s said.

U.S. Rig Count is down 7 rigs from last week to 443, with oil rigs down 8 to 354, and gas rigs up 1 to 89. Canadian Rig Count is down 8 rigs from last week to 41, with oil rigs down 3 to 8, and gas rigs down 5 to 33.

Europe became a low-priced ‘market of last resort’ for the global LNG trade, with most world supply growth absorbed by the region -- up 16% at 83.15mn mt, as net imports recovered thanks in part to a 31% fall in re-exports – but imports by the Middle East also grew.

Saudi Arabia is the largest supplier of crude oil to India, where oil demand grew by 5.7% last year and is expected by the International Energy Agency to increase 6.3% this year.

"The level of $45-50 (per barrel) is acceptable from the point of view of market balance: if prices go higher shale oil production could start to recover."

Oil-producing countries can come to an agreement capping crude production at January levels even if Iran doesn’t join the move to help shore up prices.

Poorly conceived policies could restrict development of abundant domestic natural gas resources and deny the US energy security, economic, and geopolitical opportunities.