OPEC+ Powerless As Oil Prices Near $20

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

OilPrice.com Tuesday, April 14, 2020 – Oil has given up all the gains it had made since the start of the month as markets come to view the OPEC+ deal as inadequate. OPEC+ agreed to cut nearly 10 Mb/d, and depending on who is doing the accounting, additional cuts from other non-OPEC countries take the reductions up close to 20 mb/d. In reality, however, the market-based cuts from the likes of the U.S. will occur anyways and won’t be switched off overnight. Oil showed little life after the historic deal was announced, highlighting the magnitude of the massive drop in global demand.

Analysts say OPEC+ deal comes up short. Goldman Sachs said it was “too little and too late” for the oil market. JBC Energy said it was “just plaster on an open wound.” The 9.7-mb/d OPEC+ cut is likely not going to be enough to halt the build in oil inventories. Goldman estimates that even with full compliance of the OPEC+ cuts, another 4.1 mb/d of shut-ins are likely by May.

Duration of OPEC+ deal questioned. OPEC+ agreed to a two-year deal in an attempt to inspire confidence about market stability. However, analysts also questioned the solidity of that commitment. “The current deal has been forged under duress and is much more likely to fall apart over time,” Bjarne Schieldrop, chief commodities analyst at SEB, said in a statement. “Saudi Arabia’s economic need for a production volume of 12-13m bl/day in a $50/bl world, and Russia’s strong distaste for production cuts as a means for achieving higher prices, are fundamentals which the current deal cannot circumvent.”

Saudis say more cuts might be needed. Saudi Arabia said that more cuts are possible. “Flexibility and pragmatism will enable us to continue to do more if we have to,” Prince Abdulaziz bin Salman told reporters on a conference call yesterday. “We have to watch what’s happening with demand destruction or demand improvement, depending on how things evolve.”

- Advertisement -

IMF: Worst downturn since 1930s depression. Oil fell back not only because of the OPEC+ deal coming up short but also because the global economic outlook is dire. The IMF warned on Tuesday that global GDP will shrink by 3 percent in 2020 and that the economic shock would be worse than the recession a decade ago.

Texas RRC considers cuts. The Texas Railroad Commission held a hearing on Tuesday to weigh a proposed cut in production in the state. Pioneer Natural Resources (NYSE: PXD) CEO Scott Sheffield said the state should order a 20 percent cut in production, which would amount to a 1-mb/d reduction. Odds are low, according to some analysts. “It’s a very small minority that wants to take action so it’s hard to imagine the commissioners will impose limits”, Regina Mayor, KPMG International’s global head of energy, told Bloomberg. “It’d not only be un-American but unimaginably un-Texan.”

Read Also:  PepsiCo to debut Pepsi Cafe, a coffee-cola drink

China’s imports rise. China’s oil imports rose in March by 4.5 percent year-on-year, as refiners took advantage of cheap crude to stock up.

Saudi Arabia says U.S. shale was not a target. Saudi Arabia said that U.S. oil producers were not the target of the recent price war. “I made it clear that it was not on our radar or our intention to create any type of damage to their industry,” Saudi energy minister Prince Abdulaziz bin Salman said.

- Advertisement -

Fracking company hires restructuring advisers. FTS International (NYSE: FTSI), a hydraulic fracturing company, hired advisers to plan for a debt restructuring.

Gazprom: oil could hit $45 this year. If oil demand rebounds then oil prices could rebound to $45 per barrel by the end of the year, the chief executive of Gazprom said.

Shell shuts production in Gulf on Exxon leak. Royal Dutch Shell (NYSE: RDS.A) said that a leak at an offshore pipeline operated by ExxonMobil (NYSE: XOM) forced Shell to shut in production at its 100,000-bpd Perdido platform in the U.S. Gulf of Mexico.

Chevron suspends work at Tengiz site. The Chevron (NYSE: CVX) led Kazakhstan venture will suspend construction work at the $45 billion Tengiz expansion project due to the coronavirus outbreak. Dozens of cases of the virus have been reported at a workers’ camp near the field.

- Advertisement -

Trump admin denies requests for royalty relief. The Interior Department said it would not issue blanket royalty relief for oil and gas companies but would offer relief on a case-by-base basis.

Saudis take $1 billion stake in European oil companies. Saudi Arabia’s sovereign wealth fund invested $1 billion in four European oil majors – Equinor (NYSE: EQNR)Royal Dutch Shell (NYSE: RDS.A)Total (NYSE: TOT) and Eni (NYSE: E).

More than half of global licensing rounds could be cancelled. The pandemic and the collapse of oil prices could lead to more than half of global licensing rounds for new oil and gas offerings getting cancelled, according to Rystad Energy. “This year was slated to be another remarkable year for exploration with about 45 countries launching at least 52 lease rounds, about 60% of them in offshore areas,” Rystad said in a report. Half of those could be cancelled.

Argentina’s Vaca Muerta on life support. Argentina’s YPF (NYSE: YPF) cut production at its flagship Loma Campana field by 50 percent as demand collapses and pipelines clog up. The Vaca Muerta, one of the most exciting shale basins in the world outside of North America is in freefall due to low oil prices.

- Advertisement -
OPEC+ Powerless As Oil Prices Near $20 - Brand SpurOPEC+ Powerless As Oil Prices Near $20 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Read Also:  URDAB INTEGRATED SERVICES NIGERIA PRESENTS THE 2ND EDITION OF ITS POP-UP MARKET EVENT - EASTER EDITION (Pictures)
OPEC+ Powerless As Oil Prices Near $20 - Brand SpurOPEC+ Powerless As Oil Prices Near $20 - Brand Spur

Latest News

New entrant AECO Energy launches business innovation to deliver ‘last mile of value chain’ to Singapore’s maturing open electricity market

  • AECO Energy announces the launch of its operations in Singapore to provide innovation to the open electricity market for businesses with generation 2.0 of its technology and service offerings.
  • The company will introduce three solutions as part of its initial portfolio, customisable to specific business needs.


SINGAPORE - Media OutReach - 13 April 2021 - AECO Energy, a new entrant to Singapore's electricity sector, has today announced the launch of its operations. AECO Energy will be the first-of-its kind energy technology and services company aimed at innovating customer-centric offerings in electricity and renewable energy markets.

With over 12 years of experience in delivering open market electricity services and solutions to businesses in Australia under the Power Choice brand, AECO Energy is bringing its second generation of services and technology to Singapore for the first time. AECO's second generation delivers on two major offerings.

Firstly, AECO delivers the 'last mile' of value in Singapore Open Electricity Market (OEM) value chain by providing innovative services to assist businesses to manage, plan and make better buying decisions.

AECO is all about enabling increased profits for businesses. AECO has a customer-centric mission to use its low-cost proven technology and expert-led services to enable better business decisions within a complex electricity market with multiple providers and opaque medium- to long-term pricing information. This comes against the backdrop of Singapore's maturing OEM, which gives businesses and consumers the autonomy to buy and choose their electricity providers - the freedom to choose.

AECO Energy's technology platform, MarketPro™ with its unique, electricity futures market simulator Rate Watch™, delivers business and electricity efficiency and empowers businesses through relevant and timely pricing information, while also helping Singapore businesses make better buying decisions via automated tenders and reverse auctions. Moreover, for businesses who do not have the capability and capacity to manage and purchase its own electricity, AECO Energy Portfolio™ delivers scalable buying power with a fully-managed contract management and purchasing aggregation service for small, medium and large businesses.

Alan Jones, CEO, Chairman & Founder, AECO Energy, said: "We are incredibly excited and humbled to be joining Singapore's dynamic energy scene with our low-cost, high-value products and services. Our mission is clear: just like Amazon is revolutionising the 'last mile' of product supply chains with its same day delivery, we are also delivering the 'last mile' of the value chain in Singapore's OEM that enables more businesses better purchasing decisions, more business profitability and growing all of Singapore's economy."

Secondly, with SGX-listed entities, enterprises and multinational corporations (MNCs)' increasing emphasis on sustainability, AECO (through its SustainPro™ offering) will bring for the first-time in Singapore the benefit of AECO's direct relationship with generators of International Renewable Certificates (I-REC). This enables Southeast Asian markets the benefit of medium- to long-term low-cost and structured REC solutions to meet renewable energy targets and sustainability goals. This translates to more profits by providing more predictable costs for businesses in meeting their sustainability and renewable energy goals.

"As a specialised company, unburdened with corporate overheads and distractions from Singapore's local market participants, we can offer companies who are based anywhere in Southeast Asia, sustainability and renewable energy solutions that span markets and countries at a lower and more predictable price. We are honoured to play our part to bring sustainability and increased renewable energy throughout the world and to do so while benefiting our customers' cost structures," continued Mr. Jones.

AECO Energy is introducing three offerings as part of its electricity management solutions:

  • MarketPro™: Businesses can optimise costs and seize market opportunities with exclusive access to customised market price information through AECO Energy's integrated online procurement and management platform equipped with Rate Watch™, a market simulation and automated procurement technology from as low as SGD $149 per month.
  • Portfolio™: Businesses get exclusive access to economies of scale with better buying power through professional and expert-managed energy procurement portfolios overseen by AECO Energy experts. This allows enterprises to focus on their core business while AECO Energy experts will fully-manage their electricity contracts and make better buying decisions on their behalf from as low as an additional SGD $74 per month.
  • SustainPro™: SustainPro focuses on helping businesses meet their sustainability goals at the lowest cost. AECO Energy offers lower costs on the procurement of Renewable Energy Certificates (RECs) and tailored REC supply solutions designed to meet transition needs towards a more sustainable business.

"With the understanding that business needs are unique for every organisation, our energy experts will work closely with customers here in Singapore to help them reduce costs, drive efficiency and make better buying decisions. By providing technology-enabled, insights-driven energy technology solutions, we want to create a profound impact on our customers' businesses to better position them for sustainable growth in the long-term," concluded Alan.


About AECO Energy:

Based in Singapore, the AECO Pacific Group owns and operates the Power Choice and AECO Energy brands. A leading pioneer for more than 12 years in electricity brokerage and consulting services in Asia Pacific focusing on deregulated electricity markets, AECO Pacific helps businesses with electricity procurement and management backed by market intelligence. Transforming and saving businesses more, AECO's combined experience in energy leadership and innovative technology solutions remain unmatched in dynamic and changing energy markets. For more information, visit https://powerchoice.com.au/ and https://aecoenergy.sg/.

OPEC+ Powerless As Oil Prices Near $20 - Brand Spur
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -OPEC+ Powerless As Oil Prices Near $20 - Brand SpurOPEC+ Powerless As Oil Prices Near $20 - Brand Spur