#TrumpVirus spread is mainly due to inaction by US leadership at the highest levels despite being warned repeatedly about the seriousness. US servicemen travelling to Italy caused the outbreak there which lead to the spread throughout Europe. POTUS calling this worldwide health crisis a "hoax" in the early stages have made things unimaginably worse
Have Russia and Saudi Arabia decided to play nice in the sandbox yet? If so then I say oil holds steady. Lowering price isn’t going to move supply and demand at this point.
Regardless, not looking good for my Chesapeake Energy stock either way. They’ve got more problems than just barrel price. If they can restructure debt and miraculously dig out of this mess the reward could be great but still it’s just a lottery ticket.
Regardless, not looking good for my Chesapeake Energy stock either way. They’ve got more problems than just barrel price. If they can restructure debt and miraculously dig out of this mess the reward could be great but still it’s just a lottery ticket.
i incorrectly posted in another thread that OPEC had agreed to cut; WTI was all over the map yesterday, spiked then got taken to the woodshed . As it turns out, Mexico was not on aboard. They r now. Was uncertain if USA is on board, they appear to be
Mexico reaches deal paving way for OPEC, Russia oil output cuts
The OPEC oil cartel and nations including Russia have agreed to boost oil prices by cutting as much as 10 million barrels a day in production, or a tenth of global supply. More countries, including the United States, were discussing Friday their own cuts in what would be an unprecedented global pact to stabilize the market.
The agreement between OPEC and partner countries aims to cut 10 million barrels per day until July, then eight million barrels per day through the end of the year and six million barrels a day for 16 months beginning in 2021.
<section id="inread-wrapper-id-20108984" style="font-family: "Open Sans", sans-serif; font-size: 16px;"></section>Mexico had initially blocked the deal but its president, Andres Manuel Lopez Obrador, said Friday that he had agreed with U.S. President Donald Trump that the U.S. will compensate what Mexico cannot add to the proposed cuts.
That paves the way for cuts that experts estimate could reach 15 million barrels a day in all — about 15 per cent of world production. Such a move would be unprecedented both in its size and the number of participating countries, many of whom have long been bitter rivals in the energy industry.
The U.S. is already on track for a production decline of 2 million to 3 million barrels per day, said Dan Brouillette, secretary of the U.S. Energy Department, at a meeting of the G20 Friday.
"For our part, the United States is taking action to open our strategic petroleum reserve to store as much oil as possible," Brouillette said. "This will take surplus oil off the market at a time when commercial storage is filling up and the market is oversupplied."
Trump also spoke Friday with President Vladimir Putin of Russia about the latest efforts to combat the coronavirus pandemic and maintain stability in global energy markets, said White House spokesperson Judd Deere. The two leaders also covered critical bilateral and global issues, he said.
It's unclear how a production cut in the U.S. would work, since oil production is not state-run, and there are thousands of independent producers. Even so, some producers in Texas and Oklahoma have been calling on state regulators to consider setting up a system which ensures that any cuts are spread fairly.
The price of crude is down by over 50 per cent since the start of the year and while that helps consumers and energy-hungry businesses, it is below the cost of production for many countries and companies. That has strained the budgets of oil-producing nations, many of which are developing economies, and it has pushed private companies in the U.S. toward bankruptcy.
Analysts warn even these proposed cuts may not be enough to offset the loss in demand over the longer term, as the coronavirus pandemic has decimated demand for energy around the world.
"COVID-19 is an unseen beast that seems to be impacting everything in its path," OPEC secretary-general Mohammed Barkindo said at the start of the meeting, according to a statement. "There is a grisly shadow hanging over all of us. We do not want this shadow to envelop us. It will have a crushing and long-term impact on the entire industry.
One breakthrough came after Mexico relented in its opposition to the deal, in which it was being asked to cut its output by 400,000 barrels a day. Mexico's president said his country will instead cut its production by 100,000 barrels per day from its current level of 1.7 million barrels a day. The U.S. will add a cut of 250,000 barrels per day to what it has already agreed.
More nations were expected to add to the effort, with Saudi Arabia chairing a G20 virtual meeting of energy ministers on Friday to discuss the oversupply in the market.
The meeting is expected to bring onboard a wider number of countries, including the U.S.
Saudi media quoted energy minister Prince Abdulaziz bin Salman as saying in his opening remarks that the pandemic means it is more vital than ever that reliable and affordable energy supplies are available. The meeting also includes representatives of OPEC.
Trump spoke earlier with King Salman of Saudi Arabia about the negotiations. The U.S. is interested in a deal because the oil price crash has caused thousands of job losses in the oilpatch just as the virus outbreak is causing a record spike in unemployment.
"There's so much production nobody even knows what to do with it, that's how it's working," Trump said at a White House news briefing.
The oil market was already oversupplied when Russia and OPEC failed to agree on output cuts in early March. Analysts say Russia refused to back even a moderate cut because it would have only served to help U.S. energy companies that were pumping at full capacity. Stalling would hurt American shale oil producers and protect market share.
Russia's move enraged Saudi Arabia, which not only said it would not cut production on its own but said it would increase output instead and reduce its selling prices in what became effectively a global pricing war.
In the time since, prices have collapsed as COVID-19 causes have largely halted global travel. International benchmark Brent crude was around $32 US ($44 Cdn) a barrel as of Friday, while the U.S. benchmark West Texas crude closed under $23 ($32 Cdn).
Russia relies on oil as the main source of income and the price collapse caused the ruble to crash. That boosted the cost of imports and sped up inflation.
Kremlin spokesperson Dmitry Peskov said Friday that Putin views "very positively" the result of the negotiations and added that Russia welcomes Mexico's decision to join the deal.
The agreement is a win for everyone, the world's economy would have "plunged into chaos" if the deal had been broken off, Peskov added.
Analysts nevertheless warn the proposed 10 million barrel per day cut for May and June will not be enough to offset plummeting demand for oil globally, and runs the risk of coming too late as storage capacity for oil nears its maximum. Even if North American producers took five million barrels a day off the market, there could still be an excess supply of five-10 million barrels per day.
Research firm Rystad Energy estimates the imbalance for April is 27.4 million barrels per day. The firm says global storage of crude is already close to being filled to the brim, estimating that on average 79 per cent of the world's oil storage capacity is already full. Around 7.4 billion barrels of crude and products are in storage, including 1.3 billion currently aboard tankers at sea.
Chris Midgley, global head of analytics for S&P Global Platts, said the proposed cuts are unlikely to have any significant impact on April supply, and thus run the risk of getting close to exhausting all available storage in May.
However, a cut of 10-15 million barrels per day is enough to prop up oil prices and helps to reduce strain on crude storage facilities, analysts said.
USO
6 mth daily, 8 ema
playing in a box: $6 - $4.95ish....lots of buy stops at $6..........she needs to reclaim the 8 ema.
Mexico reaches deal paving way for OPEC, Russia oil output cuts
The OPEC oil cartel and nations including Russia have agreed to boost oil prices by cutting as much as 10 million barrels a day in production, or a tenth of global supply. More countries, including the United States, were discussing Friday their own cuts in what would be an unprecedented global pact to stabilize the market.
The agreement between OPEC and partner countries aims to cut 10 million barrels per day until July, then eight million barrels per day through the end of the year and six million barrels a day for 16 months beginning in 2021.
<section id="inread-wrapper-id-20108984" style="font-family: "Open Sans", sans-serif; font-size: 16px;"></section>Mexico had initially blocked the deal but its president, Andres Manuel Lopez Obrador, said Friday that he had agreed with U.S. President Donald Trump that the U.S. will compensate what Mexico cannot add to the proposed cuts.
That paves the way for cuts that experts estimate could reach 15 million barrels a day in all — about 15 per cent of world production. Such a move would be unprecedented both in its size and the number of participating countries, many of whom have long been bitter rivals in the energy industry.
The U.S. is already on track for a production decline of 2 million to 3 million barrels per day, said Dan Brouillette, secretary of the U.S. Energy Department, at a meeting of the G20 Friday.
"For our part, the United States is taking action to open our strategic petroleum reserve to store as much oil as possible," Brouillette said. "This will take surplus oil off the market at a time when commercial storage is filling up and the market is oversupplied."
Trump also spoke Friday with President Vladimir Putin of Russia about the latest efforts to combat the coronavirus pandemic and maintain stability in global energy markets, said White House spokesperson Judd Deere. The two leaders also covered critical bilateral and global issues, he said.
It's unclear how a production cut in the U.S. would work, since oil production is not state-run, and there are thousands of independent producers. Even so, some producers in Texas and Oklahoma have been calling on state regulators to consider setting up a system which ensures that any cuts are spread fairly.
The price of crude is down by over 50 per cent since the start of the year and while that helps consumers and energy-hungry businesses, it is below the cost of production for many countries and companies. That has strained the budgets of oil-producing nations, many of which are developing economies, and it has pushed private companies in the U.S. toward bankruptcy.
Analysts warn even these proposed cuts may not be enough to offset the loss in demand over the longer term, as the coronavirus pandemic has decimated demand for energy around the world.
"COVID-19 is an unseen beast that seems to be impacting everything in its path," OPEC secretary-general Mohammed Barkindo said at the start of the meeting, according to a statement. "There is a grisly shadow hanging over all of us. We do not want this shadow to envelop us. It will have a crushing and long-term impact on the entire industry.
One breakthrough came after Mexico relented in its opposition to the deal, in which it was being asked to cut its output by 400,000 barrels a day. Mexico's president said his country will instead cut its production by 100,000 barrels per day from its current level of 1.7 million barrels a day. The U.S. will add a cut of 250,000 barrels per day to what it has already agreed.
More nations were expected to add to the effort, with Saudi Arabia chairing a G20 virtual meeting of energy ministers on Friday to discuss the oversupply in the market.
The meeting is expected to bring onboard a wider number of countries, including the U.S.
Saudi media quoted energy minister Prince Abdulaziz bin Salman as saying in his opening remarks that the pandemic means it is more vital than ever that reliable and affordable energy supplies are available. The meeting also includes representatives of OPEC.
Trump spoke earlier with King Salman of Saudi Arabia about the negotiations. The U.S. is interested in a deal because the oil price crash has caused thousands of job losses in the oilpatch just as the virus outbreak is causing a record spike in unemployment.
"There's so much production nobody even knows what to do with it, that's how it's working," Trump said at a White House news briefing.
The oil market was already oversupplied when Russia and OPEC failed to agree on output cuts in early March. Analysts say Russia refused to back even a moderate cut because it would have only served to help U.S. energy companies that were pumping at full capacity. Stalling would hurt American shale oil producers and protect market share.
Russia's move enraged Saudi Arabia, which not only said it would not cut production on its own but said it would increase output instead and reduce its selling prices in what became effectively a global pricing war.
In the time since, prices have collapsed as COVID-19 causes have largely halted global travel. International benchmark Brent crude was around $32 US ($44 Cdn) a barrel as of Friday, while the U.S. benchmark West Texas crude closed under $23 ($32 Cdn).
Russia relies on oil as the main source of income and the price collapse caused the ruble to crash. That boosted the cost of imports and sped up inflation.
Kremlin spokesperson Dmitry Peskov said Friday that Putin views "very positively" the result of the negotiations and added that Russia welcomes Mexico's decision to join the deal.
The agreement is a win for everyone, the world's economy would have "plunged into chaos" if the deal had been broken off, Peskov added.
Analysts nevertheless warn the proposed 10 million barrel per day cut for May and June will not be enough to offset plummeting demand for oil globally, and runs the risk of coming too late as storage capacity for oil nears its maximum. Even if North American producers took five million barrels a day off the market, there could still be an excess supply of five-10 million barrels per day.
Research firm Rystad Energy estimates the imbalance for April is 27.4 million barrels per day. The firm says global storage of crude is already close to being filled to the brim, estimating that on average 79 per cent of the world's oil storage capacity is already full. Around 7.4 billion barrels of crude and products are in storage, including 1.3 billion currently aboard tankers at sea.
Chris Midgley, global head of analytics for S&P Global Platts, said the proposed cuts are unlikely to have any significant impact on April supply, and thus run the risk of getting close to exhausting all available storage in May.
However, a cut of 10-15 million barrels per day is enough to prop up oil prices and helps to reduce strain on crude storage facilities, analysts said.
USO
6 mth daily, 8 ema
playing in a box: $6 - $4.95ish....lots of buy stops at $6..........she needs to reclaim the 8 ema.
posted in an another thread.......
this dude went on a buying spree:
[h=1]Saudi Arabia Is Buying Up European Oil Majors[/h]
[FONT="]The Saudi sovereign wealth fund has bought stakes worth a combined $1 billion in four European oil majors: Shell, Total, Eni, and Equinor, the Wall Street Journal reported citing unnamed people in the know.[/FONT]
[FONT="]The Saudi fund, the sources said, was taking advantage of the oil price collapse that drove down oil companies’ stocks, making them a bargain for those with the money to buy. The fund may well continue to build stakes in large industry players, too.[/FONT]
[FONT="]The Saudi Public Investment Fund manages more than $300 billion in assets, and the primary vehicle of the Kingdom’s economic diversification push spearheaded by Crown Prince Mohammed. Amassing large stakes in oil majors is hardly the diversification one imagines for an oil-dependent economy. Still, European oil players have demonstrated greater resilience to market shocks than most American companies, which makes PIF’s move understandable.[/FONT]
[FONT="]The stock market rout that made the shares of European supermajors a bargain was, in large part, caused by Saudi Arabia, after it threatened to flood the world with oil when Russia refused to deepen production cuts agreed last year. It made good on the threat, according to Bloomberg shipping data, with at least seven supertankers en route to the U.S. Gulf Coast carrying some 14 million barrels since the start of the month. That’s up from just 2 million barrels for the first third of March.[/FONT]
[FONT="][/FONT]
[FONT="]Yet the bargain window for oil stocks may be about to close, again not least because of Saudi Arabia’s efforts, this time in the production control department. The Kingdom is meeting virtually today with its fellow OPEC members and partners led by Russia to discuss oil production cuts, although most note that discussions are already underway, and what we are likely to hear later today is the official announcement of whether there will or won’t be cuts.
[/FONT]
he's all smiles......maybe he likes his entry prices?
this dude went on a buying spree:
[h=1]Saudi Arabia Is Buying Up European Oil Majors[/h]
[FONT="]The Saudi sovereign wealth fund has bought stakes worth a combined $1 billion in four European oil majors: Shell, Total, Eni, and Equinor, the Wall Street Journal reported citing unnamed people in the know.[/FONT]
[FONT="]The Saudi fund, the sources said, was taking advantage of the oil price collapse that drove down oil companies’ stocks, making them a bargain for those with the money to buy. The fund may well continue to build stakes in large industry players, too.[/FONT]
[FONT="]The Saudi Public Investment Fund manages more than $300 billion in assets, and the primary vehicle of the Kingdom’s economic diversification push spearheaded by Crown Prince Mohammed. Amassing large stakes in oil majors is hardly the diversification one imagines for an oil-dependent economy. Still, European oil players have demonstrated greater resilience to market shocks than most American companies, which makes PIF’s move understandable.[/FONT]
[FONT="]The stock market rout that made the shares of European supermajors a bargain was, in large part, caused by Saudi Arabia, after it threatened to flood the world with oil when Russia refused to deepen production cuts agreed last year. It made good on the threat, according to Bloomberg shipping data, with at least seven supertankers en route to the U.S. Gulf Coast carrying some 14 million barrels since the start of the month. That’s up from just 2 million barrels for the first third of March.[/FONT]
[FONT="][/FONT]
[FONT="]Yet the bargain window for oil stocks may be about to close, again not least because of Saudi Arabia’s efforts, this time in the production control department. The Kingdom is meeting virtually today with its fellow OPEC members and partners led by Russia to discuss oil production cuts, although most note that discussions are already underway, and what we are likely to hear later today is the official announcement of whether there will or won’t be cuts.
he's all smiles......maybe he likes his entry prices?
STONE COLD SHIT SHOW as shale is on a ventilator .............
https://www.reuters.com/article/us-...-assets-as-shale-boom-goes-bust-idUSKCN21R3JI
NEW YORK (Reuters) - Major U.S. lenders are preparing to become operators of oil and gas fields across the country for the first time in a generation to avoid losses on loans to energy companies that may go bankrupt, sources aware of the plans told Reuters.
JPMorgan Chase & Co, Wells Fargo & Co, Bank of America Corp and Citigroup Inc are each in the process of setting up independent companies to own oil and gas assets, said three people who were not authorized to discuss the matter publicly. The banks are also looking to hire executives with relevant expertise to manage them, the sources said.
The banks did not provide comment in time for publication.
Energy companies are suffering through a plunge in oil prices caused by the coronavirus pandemic and a supply glut, with crude prices down more than 60% this year.
Although oil prices may gain support from a potential agreement Thursday between Saudi Arabia and Russia to cut production, few believe the curtailment can offset a 30% drop in global fuel demand, as the coronavirus has grounded aircraft, reduced vehicle use and curbed economic activity more broadly.
Oil and gas companies working in shale basins from Texas to Wyoming are saddled with debt.
The industry is estimated to owe more than $200 billion to lenders through loans backed by oil and gas reserves. As revenue has plummeted and assets have declined in value, some companies are saying they may be unable to repay.
Whiting Petroleum Corp became the first producer to file for Chapter 11 bankruptcy on April 1. Others, including Chesapeake Energy Corp, Denbury Resources Inc and Callon Petroleum Co, have also hired debt advisers.
If banks do not retain bankrupt assets, they might be forced to sell them for pennies on the dollar at current prices. The companies they are setting up could manage oil and gas assets until conditions improve enough to sell at a meaningful value.
Big banks will need to get regulatory waivers to execute their plans, because of limitations on their involvement with physical commodities, sources said.
https://oilprice.com/Energy/Crude-Oil/Banks-Could-Start-Seizing-Shale-Assets.html
U.S. shale companies rely heavily on loans, and now that they are facing the perfect storm of slack demand and low oil prices—even after the tentative deal OPEC+ announced yesterday—the chances or survival for many of them are slim to nonexistent.
The situation is aggravated by the fact that new wells are falling short of expectations concerning yields. This made banks wary of extending more loans to the industry a few months ago before the worst hit. Now, with more than $200 billion in debt backed by their assets, many oil and gas companies in the shale patch are on the brink.
Reuters reports that several large players in the shale field have hired debt advisors, including Chesapeake Energy Corp, Denbury Resources, and Callon Petroleum. Meanwhile, Whiting Petroleum became the first oil company to file for bankruptcy protection, citing the “severe downturn.
https://www.reuters.com/article/us-...-assets-as-shale-boom-goes-bust-idUSKCN21R3JI
NEW YORK (Reuters) - Major U.S. lenders are preparing to become operators of oil and gas fields across the country for the first time in a generation to avoid losses on loans to energy companies that may go bankrupt, sources aware of the plans told Reuters.
JPMorgan Chase & Co, Wells Fargo & Co, Bank of America Corp and Citigroup Inc are each in the process of setting up independent companies to own oil and gas assets, said three people who were not authorized to discuss the matter publicly. The banks are also looking to hire executives with relevant expertise to manage them, the sources said.
The banks did not provide comment in time for publication.
Energy companies are suffering through a plunge in oil prices caused by the coronavirus pandemic and a supply glut, with crude prices down more than 60% this year.
Although oil prices may gain support from a potential agreement Thursday between Saudi Arabia and Russia to cut production, few believe the curtailment can offset a 30% drop in global fuel demand, as the coronavirus has grounded aircraft, reduced vehicle use and curbed economic activity more broadly.
Oil and gas companies working in shale basins from Texas to Wyoming are saddled with debt.
The industry is estimated to owe more than $200 billion to lenders through loans backed by oil and gas reserves. As revenue has plummeted and assets have declined in value, some companies are saying they may be unable to repay.
Whiting Petroleum Corp became the first producer to file for Chapter 11 bankruptcy on April 1. Others, including Chesapeake Energy Corp, Denbury Resources Inc and Callon Petroleum Co, have also hired debt advisers.
If banks do not retain bankrupt assets, they might be forced to sell them for pennies on the dollar at current prices. The companies they are setting up could manage oil and gas assets until conditions improve enough to sell at a meaningful value.
Big banks will need to get regulatory waivers to execute their plans, because of limitations on their involvement with physical commodities, sources said.
https://oilprice.com/Energy/Crude-Oil/Banks-Could-Start-Seizing-Shale-Assets.html
U.S. shale companies rely heavily on loans, and now that they are facing the perfect storm of slack demand and low oil prices—even after the tentative deal OPEC+ announced yesterday—the chances or survival for many of them are slim to nonexistent.
The situation is aggravated by the fact that new wells are falling short of expectations concerning yields. This made banks wary of extending more loans to the industry a few months ago before the worst hit. Now, with more than $200 billion in debt backed by their assets, many oil and gas companies in the shale patch are on the brink.
Reuters reports that several large players in the shale field have hired debt advisors, including Chesapeake Energy Corp, Denbury Resources, and Callon Petroleum. Meanwhile, Whiting Petroleum became the first oil company to file for bankruptcy protection, citing the “severe downturn.
The high yield debt fund, which is heavily weighted with oil company debt, was up strongly on
thursday indicating that the article referenced might be wrong. When the high yield fund was
way down, it was mainly due to questions about the drillers ability to meet their
debt obligations. Thursday’s rally indicates some of those fears have been eased.
thursday indicating that the article referenced might be wrong. When the high yield fund was
way down, it was mainly due to questions about the drillers ability to meet their
debt obligations. Thursday’s rally indicates some of those fears have been eased.
banks being proactive, just in case. End of the day, WTI needs to get up. And this stoppage better not be too long.
The Saudi's use a pandemic , global ecomnonic emergency shutdown to their advantage; flood the wolrd with OIL, crushing competitors esp higly leveraged shale. Then sit and watch the carnage. Start buying depressed assets...and when competitors start to plea 'we need oil up!!'. Then come in and say, sure lets do this. LOL. Ruthless, brilliant
The Saudi's use a pandemic , global ecomnonic emergency shutdown to their advantage; flood the wolrd with OIL, crushing competitors esp higly leveraged shale. Then sit and watch the carnage. Start buying depressed assets...and when competitors start to plea 'we need oil up!!'. Then come in and say, sure lets do this. LOL. Ruthless, brilliant
well, let's see how the OIL futures open in 1/2 hour....
[FONT="]The OPEC cartel and other oil producers agreed Sunday to cut crude production by a tenth of global supply, an unprecedented move to stabilize the market, according to several energy officials who participated in the talks.[/FONT]
[FONT="]Russian President Vladimir Putin, U.S. President Donald Trump and Saudi Arabia's King Salman all support the deal, which would see global crude output cut by 9.7 million barrels a day, the Kremlin said Sunday.[/FONT]
<section id="inread-wrapper-id-93042440" style="font-family: "Open Sans", sans-serif; font-size: 16px;"></section>[FONT="]Mexico's energy minister said Sunday on Twitter that the cuts will begin May 1. Energy officials from other countries shared similar information confirming the cut for May and June.[/FONT]
[FONT="]The so-called OPEC+ countries agreed to have Mexico reduce its daily output by 100,000 barrels only for those two months — which had been a sticking point for the accord, which came after a marathon video conference between officials from 23 nations.
popcorn-eatinggif[/FONT]
[FONT="]The OPEC cartel and other oil producers agreed Sunday to cut crude production by a tenth of global supply, an unprecedented move to stabilize the market, according to several energy officials who participated in the talks.[/FONT]
[FONT="]Russian President Vladimir Putin, U.S. President Donald Trump and Saudi Arabia's King Salman all support the deal, which would see global crude output cut by 9.7 million barrels a day, the Kremlin said Sunday.[/FONT]
<section id="inread-wrapper-id-93042440" style="font-family: "Open Sans", sans-serif; font-size: 16px;"></section>[FONT="]Mexico's energy minister said Sunday on Twitter that the cuts will begin May 1. Energy officials from other countries shared similar information confirming the cut for May and June.[/FONT]
[FONT="]The so-called OPEC+ countries agreed to have Mexico reduce its daily output by 100,000 barrels only for those two months — which had been a sticking point for the accord, which came after a marathon video conference between officials from 23 nations.
popcorn-eatinggif[/FONT]
