OPEC + cuts, supply disruptions and easing trade tensions between the US and China have increased crude oil to a three-month high.
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– Bank of America Merrill Lynch says Brent is likely to trade between $ 50 and $ 70 a barrel over the next five years.
– But, the bank also said that a global economic downturn would throw this forecast out of the window. Some worrying economic data in China is one of the major drawbacks to the oil market.
• Occidental Petroleum (NYSE: OXY) was downgraded two notches by Barclays, from overweight to underweight, with a price target of $ 70. deficit, its aggressive growth target, and the valuation was all for the downgrade.
• Eni (NYSE: E) saw their shares jump on Friday after it reported $ 1.65 billion in fourth quarter profits, beating expectations.
• US Silica (NYSE: SLCA) reported a fourth quarter loss of $ 256 million, down from a profit of $ 72 million the year before. Frac sand sales were "negatively affected by the well-informed industry headwinds linked to budget exhaustion and lack of takeaway capacity, as well as additional rates
Tuesday, 19 February 2019
] Oil is approaching a breakout? Some analysts see higher prices ahead, as the OPEC + cuts provide a tighter backdrop. Any unexpected errors can send prices much higher, while a breakthrough in the commercial war could remove one of the major drawbacks "Brent and WTI are both seriously testing a large resistance zone, around $ 65 and $ 55, where violations may be the catalyst for another rally," Craig Erlam, senior market analyst at OANDA brokerage, wrote in a morning marketing.  Saudi Arabia cuts deeply. Saudi Arabia goes beyond production interruptions, but it is unclear how long Riyadh will be willing to take on the burden alone. "Saudi Arabia Bias's production slump with more than the required level also serves to compensate for non-compliance with countries such as Iraq. It is doubtful that Saudi Arabia will be willing to make it so long-term. After all, the Saudis lose market share to US oil producers, "wrote Commerzbank in a note. A 495 megawatts energy storage system combined with a solar farm to be installed in Texas Ironically, the project is supposed to support the oil operations in Permian, according to Bloomberg, the energy storage system will be the world's largest.
VW extends electrical offerings VW (OTCMKTS: VWAPY) announced plans to expand its electric vehicle offerings over the coming years, with a view to adding models to the Chinese market, VW plans to spend 9 billion euros on 20 EV models by 2025.
BP: Renewable Energy and Natural Gas Dominate Growth. According to BPs (NYSE: BP) latest energy demand, renewable one ergi and natural gas collectively receive 85 per cent of the world's energy supply growth by 2040. The new analysis "focuses on how quickly the world's energy systems change and how the dual challenge of more energy with fewer emissions affects the future," says BP CEO Bob Dudley.
Mexico to spend $ 5.2 billion on Pemex. Mexican President Andres Manuel Lopez Obrador announced a $ 5.2 billion state-owned Pemex rescue package. "We've made the decision to support Pemex with everything," AMLO said last week. "We will launch an introductory plan, but if they need more, there will be more support." The package means that Pemex will not turn to the bond markets this year. Critics see state aid not only as insufficient to put Pemex on a sustainable path – Pemex is the world's most debt oil company – but it will also act as a murder of the Mexican budget.
War on plastic can cut demand for oil. The petrochemical sector is expected to be one of the few sectors that will see great demand for crude oil in the coming decades. Much of it is the result of turning oil and natural gas fluids into plastic. However, policies aimed at plastic use are spreading. Recycling and banning disposable plastics could reduce the estimated oil consumption in petrochemicals by as much as 20 percent by 2040, FT reports, and "bring expected peak oil demand forward by a decade."
] India signs oil agreement with USA Indian Oil Corp., India's top refiner, signed an agreement to buy US oil through March 2020. The company will become the first state refiner in India to enter into a contract with a US company the seller was not named).
Guyana oil boom and lessons from Venezuela. Guyana is set to become a petrostat with production expected to reach 750,000 bpd by 2025. WoodMac offered some advice, with experience from the collapse of nearby Venezuela. A sovereignty fund has been useful to other petroleum states to even out the effects of booms and busts. Other sectors of the economy must also be developed, and investments in infrastructure and education are important. Related: 5 Giant Game-Changing Energy Trends to Watch in 2019
Citgo removes top executives . Citgo, the American subsidiary PDVSA, removed three senior executives near Venezuela's President Nicolas Maduro. It can pave the way for allowing the recognition of a new board, which changes the strength of the company in the hands of the opposition.
European refiners damaged by the tight acid market. U.S .. sanctions on Venezuela are accelerating the loss of heavy sour raw, tightening up sour raw supplies. It has damaged some US Gulf Coast refineries, but also European refineries who now have to pay more for the offer. "Look forward to April and May, it will also be interesting, given that Venezuelan is gone and that Iran will deprive [likely not be extended]," a trader told S & P Global Platts. "In general, heavier raw materials do very well – heavy North Sea grades, Urals, we also heard heavily sweet from WAF [West Africa] see good deals because the acidic market is tight," he added.
Oil discovery in China could put off skiferbonanza . A test by PetroChina in the western province of Xinjiang shows a high potential for commercialization. An estimate by Morgan Stanley states that the shale region could reach 100,000 to 200,000 bpd by 2025.
By Tom Kool for Oilprice.com
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