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                              Crude Oil Aug 19 (CL=F)

                              NY Mercantile - NY Mercantile Delayed Price. Currency in USD
                              60.22+0.02 (+0.03%)
                              As of 2:28PM EDT. Market open.
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                              Pre. SettlementN/A
                              Settlement Date2019-07-22
                              Open60.46
                              Bid60.24
                              Last Price60.20
                              Day's Range59.93 - 60.74
                              Volume416,492
                              Ask60.25
                              • Monument to coal power will fall in Burnsville as Xcel dismantles 600-foot chimney
                                American City Business Journals2 hours ago

                                Monument to coal power will fall in Burnsville as Xcel dismantles 600-foot chimney

                                Xcel Energy Inc. has begun tearing down a 600-foot coal-boiler chimney in a suburb of Minneapolis/St. Paul in what amounts to the most visible sign of the utility's local transition away from coal and to natural gas.

                              • Canada's struggling energy industry takes stock at annual Stampede party
                                Reuters3 hours ago

                                Canada's struggling energy industry takes stock at annual Stampede party

                                Frustration is palpable among Canadian energy executives who have flocked to the annual Calgary Stampede celebrations in Canada's oil capital this week, even though a recent pipeline approval gives them something to celebrate amid the rodeo competitions, corporate parties and pancake breakfasts. The federal government's approval of the Trans Mountain expansion last month was a boost for the battered industry. On top of that, crude oil prices have stabilized, an aggressively pro-energy party has come to power in Alberta and overall production in the country is around 5 million barrels per day - making Canada the world's fourth-largest producer.

                              • Watch: Our conference call about the big oil company going carbon neutral
                                Quartz4 hours ago

                                Watch: Our conference call about the big oil company going carbon neutral

                                Join Quartz reporter Akshat Rathi in a discussion of Occidental Petroleum CEO Vicki Hollub's goal to make the company carbon neutral.

                              • Oilprice.com4 hours ago

                                Is A Crude Glut Looming?

                                Slowing global economic growth is beginning to weigh on oil markets, with the IEA warning that crude supply has exceeded demand in the first half of the year

                              • Fox Business5 hours ago

                                Oil prices climb on tropical storm and geopolitical tensions

                                U.S. oil producers in the Gulf of Mexico have cut more than half their output because of a Tropical Storm Barry,

                              • Russia Has Your Back, OPEC. What Could Go Wrong?
                                Bloomberg6 hours ago

                                Russia Has Your Back, OPEC. What Could Go Wrong?

                                (Bloomberg Opinion) -- The only country that could really make OPEC+ work is the U.S. That’s not an option, so it’s stuck with Russia. OPEC’s own forecasts show just how much sway Moscow has over the group.Next year looks ugly for oil producers. OPEC expects demand to grow by 1.14 million barrels a day, flat with expectations for this year (which have been coming down). But it also expects supply from non-OPEC countries to surge by 2.4 million barrels a day. Hence, the world will need fewer OPEC barrels: 1.34 million a day, equivalent to?almost the entire?production of Angola.And OPEC’s market share has been dropping already. The International Energy Agency piled on Friday morning with its own monthly report, surmising implied demand for crude oil from OPEC could drop to 28 million barrels a day in early 2020, an amount the group last produced in summer 2003.The bugbear, as ever, is U.S. shale production. America accounts for 71% of that extra non-OPEC supply forecast for 2020. Brazil and Norway are also big contributors, albeit way behind. The 10 partner countries that form the “plus” bit of OPEC+, meanwhile, account for 5%.That small increase for?the “plus-ones,” so to speak, is interesting. Virtually all of it stems from an expected uptick in Russian production penciled in beyond the first quarter of 2020. That is when the current phase of the OPEC+ supply cuts are scheduled to end, so OPEC’s forecasters are assuming Russian output, along with some other countries’, ticks up again.It’s a revealing assumption because it also rests on the assumption that Russia’s compliance with cuts –?a relatively recent phenomenon –?will actually intensify this year to levels never achieved before.The IEA’s own projections display a similar faith in Russian restraint, implying compliance of almost 240%. The lingering effects of this year’s problems with contaminated oil have?served to bolster Russian compliance, mathematically at least. And President Vladimir Putin made a big show of cutting (and announcing) his deal with Saudi Arabia to keep supplies curbed.Yet it must be unnerving for Saudi Arabia to depend this much on the discipline of a major rival oil producer not exactly known for such discipline. Indeed, the whole premise of the “plus-ones” is somewhat Potemkinesque when you take a closer look. Six of the 10 countries barely count at all, each tasked with?reducing?supply by 20,000 barrels a day or less –?drops in a vast, oily ocean. Even then, they aren’t expected to collectively meet their obligations anyway. Oman contributes a little more, but the positive aspects of the plus-ones for OPEC really boil down to just three countries.?Kazakhstan’s enormous contribution, particularly in 2019, is a function of maintenance being performed on two giant oil fields rather than a strong sense of commitment (judging by its track record over the past two years, anyway). Similarly, Mexico’s?projected compliance of almost 400% across the period?is mere impotence dressed up as abstinence. Involuntary or not, one less barrel is one less barrel. Still, depending on others’ misfortunes is a defining, and telling, characteristic of OPEC+. At a more extreme level, Venezuela fulfilled a similar function in the first phase of the cuts, and it remains reliably unreliable.Russian discipline is, therefore, crucial to maintaining the illusion of control. Say, instead, the country adhered to its average compliance level since January 2017 of 57%. Relative to OPEC's current projections, this would add back roughly 100 million barrels to the market through the end of 2020. That is a huge amount when you consider Khalid Al-Falih, Saudi Arabia’s energy minister, recently floated the idea of trying to slash global oil inventories by more than 200 million barrels.Above all, these cuts, both real and conjectured, are happening in the context of weakening demand prospects. Growth in oil consumption in the first quarter slumped to its lowest level since 2011, according to the IEA’s latest report. The agency still forecasts a rebound in the second half of 2019, which looks ever more curious in the face of weakening expectations from the likes of OPEC and a steady drip of bad economic data, the latest coming from Singapore and China, the heartland of oil-demand growth. Consider this:?Tropical Storm Barry has forced a million barrels a day of supply offline in the Gulf of Mexico; and, yes, oil prices have?rallied a bit?but remain?below where they were?just two months ago.Cutting oil supply to support prices in a fundamentally weak market is a Sisyphean task, which is why the OPEC+ agreement, originally penciled in for six months, is racing toward its third birthday. Signs of strain are building in the U.S. shale business model, but OPEC has been waiting in vain for a Texan collapse for years (plus, its own actions provide breathing space?for?even the most overextended wildcatter). In the meantime, it relies on actual Saudi discipline, a motley crew of walking wounded, and –?crucially – faith in Moscow’s fidelity. What could possibly go wrong?To contact the author of this story: Liam Denning at [email protected] contact the editor responsible for this story: Mark Gongloff at [email protected] column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion?2019 Bloomberg L.P.

                              • Next Price Movement in Crude Oil Could Be Upward
                                Market Realist7 hours ago

                                Next Price Movement in Crude Oil Could Be Upward

                                US crude oil active futures fell 0.4% and settled at $60.2 per barrel. Since the closing level last week, US crude oil prices have risen?~5.4% as of?3:09?AM ET today.

                              • Reuters7 hours ago

                                Uzbekistan to float state oil and gas firm by 2024

                                Uzbekistan is planning to privatise its oil and gas firm, Uzbekneftegaz (UNG), by 2024 as part of a strategy to boost gas output, the nation's energy ministry said on Friday. "...Measures are to be taken to attract investment in Uzbekneftegaz by primary and secondary public placement of up to 49% of shares no later than 2024," it said in a statement. Uzbekistan produces about 60 billion cubic metres of gas a year and exports it via pipelines to Russia and China.

                              • Investing.com10 hours ago

                                Oil Prices on Track for Weekly Jump as Storm Barry Trumps Glut Concerns

                                Investing.com - Oil prices were on track for a sharp weekly gain as concerns over Tropical Storm Barry hitting supply outweighed worries of a global supply glut in the making.

                              • Oil Surplus Makes Surprise Return Despite OPEC Cuts, IEA Says
                                Bloomberg11 hours ago

                                Oil Surplus Makes Surprise Return Despite OPEC Cuts, IEA Says

                                (Bloomberg) -- Global oil stockpiles swelled surprisingly in the first half of this year as production cuts by OPEC and its partners failed to prevent the return of a surplus, the International Energy Agency said.World supply exceeded demand at a rate of 900,000 barrels a day during the first six months of 2019 as consumption proved far weaker than expected amid a faltering economy, the IEA said. With the outlook for 2020 also deteriorating, the Organization of Petroleum Exporting Countries may need to reduce output to the lowest in 17 years to keep markets in balance, the agency predicted.“This surplus adds to the huge stock-builds seen in the second half of 2018,” the Paris-based IEA said in its monthly report. “Clearly, market tightness is not an issue for the time being and any rebalancing seems to have moved further into the future.”Global oil demand grew at the weakest pace since 2011 in the first quarter, and by a third less than anticipated in the second, amid the first contraction in manufacturing activity in seven years, according to the agency. That thwarted efforts by OPEC and its partners to keep markets in equilibrium by cutting production.Although crude prices have recovered by about 25% in London this year, at about $67 a barrel they remain considerably below last year’s peak. That’s a problem for Saudi Arabia and others in the OPEC cartel, who need higher price levels to cover government spending.Last week the organization and its partners -- a 24-nation coalition known as OPEC+ that includes Russia -- agreed to keep output restrained until early 2020 to check the formation of a new glut. But the report on Friday from the IEA, which advises most of the world’s major economies, is another sign that OPEC’s challenge is getting harder.As recently as last month, the IEA thought that world oil stockpiles grew only slightly in the first half of this year as a surge in the first quarter was tempered by a pullback in the second.But in its latest report, the agency slashed estimates for global demand growth during the second quarter by 450,000 barrels a day to 800,000 a day, while also raising its assessment for new supplies outside OPEC. Non-OPEC supply continues to expand, driven by the boom in U.S. shale oil. As a result, oil inventories accumulated substantially during the first half.While the agency’s forecast for demand growth in 2019 as a whole remained steady, at about 1.2 million barrels a day, it hinges on an assumption that economic recovery will spur a massive rebound in the second half, with consumption expanding roughly three times as much as in the first.Call on OPECThe task faced by OPEC next year is also growing tougher, as the IEA lowered its forecast for demand in 2020 and boosted projections for non-OPEC supply.In consequence, the amount of crude needed from the organization -- which pumps more than a third of the world’s oil -- will slump again next year, to considerably below its current rate of production.The IEA forecasts that an average of 29.1 million barrels a day will be required from the group, whose 14 members pumped 29.9 million a day last month, when their output was already reduced by voluntary cutbacks as well as political crises in Iran and Venezuela.To prevent another surplus in 2020, OPEC would need to cut output on average by a further 800,000 barrels a day, and throttle back in the first quarter to a rate of just 28 million a day, a level it hasn’t produced since 2003. If the group doesn’t take this action, stockpiles may balloon in early 2020 by 136 million barrels, the agency predicted.“Clearly, this presents a major challenge to those who have taken on the task of market management,” the IEA said.OPEC itself acknowledged the predicament on Thursday, when its own first detailed assessment of 2020 fundamentals indicated that oil supplies may pile up next year unless the organization makes deeper cuts. However, Saudi Energy Minister Khalid Al-Falih signaled last week that the kingdom -- which has already slashed production by far more than initially planned -- is reluctant to shrink supplies further.To contact the reporter on this story: Grant Smith in London at [email protected] contact the editors responsible for this story: James Herron at [email protected], Amanda JordanFor more articles like this, please visit us at bloomberg.com?2019 Bloomberg L.P.

                              • Investing.com13 hours ago

                                Top 5 Things to Know in the Market on Friday

                                Investing.com - Here are the top five things you need to know in financial markets on Friday, July 12:

                              • Australian Thermal Coal Leaves Investors Cold
                                Bloomberg13 hours ago

                                Australian Thermal Coal Leaves Investors Cold

                                (Bloomberg Opinion) -- When you’re in the business of buying and selling, timing is everything.That’s the costly lesson facing BHP Group, which is looking at options to divest its thermal coal assets?according to a report Thursday by?Thomas Biesheuvel of Bloomberg News that cited people familiar with the matter.Arch-rival Rio Tinto Group raised $2.7 billion selling mines in the Hunter Valley north of Sydney to Yancoal Australia Ltd., in a process that started in 2016. BHP could get far less:?Macquarie Group Ltd. estimates $1.6 billion. That’s?despite the fact that BHP’s Mount Arthur and Cerrejon mines, in the Hunter Valley and Colombia, post roughly the same Ebitda as as the ones Rio Tinto sold.?BHP has had good reasons to keep operating these mines. They’ve produced several years of good earnings, for one. Mount Arthur has probably been even more profitable than it looks on paper, thanks to its ability to utilize tax losses that will now be running low.Still, it will be galling to sell at a discount?when the long-term price for the high-energy coal mined in the Hunter Valley is now about a third higher than the $63 a metric ton level at the time Rio Tinto’s deal was announced.What’s changed? More or less?everything.Back in 2016, coal was still the lowest-cost way of delivering new generation in most major markets. The slumping price of wind and solar generation since then has changed the game. Thermal coal will fall to 11% of U.S. generation by 2030 from the mid-20s at present, S&P Global Ratings wrote in a report Wednesday; outside of Spain and Germany, most European coal-fired plants will be retired by 2025.North Asian markets supplied by Mount Arthur look like an exception, with Japan, South Korea and China making up about 80%?of Australia’s thermal coal exports. The first two countries are rare cases where falling renewables costs have failed to undercut the black stuff.Even there, though, the picture is dimming: Japan’s coal-fired capacity will go into to decline starting 2023, and actual demand should fall faster since its most recent plants use fuel more efficiently, according to a report this week by the Institute for Energy Economics and Financial Analysis, a research group opposed to fossil fuels. South Korea now has taxes on coal amounting to $60 a ton and imports will fall by half by 2040, according to the International Energy Agency.The group of potential buyers looks thin, too. Anglo American Plc, which has a one-third stake in Cerrejon alongside BHP and Glencore Plc, doesn’t seem in the mood for bulking up. The Japanese trading houses that have historically been major investors in Australia’s mining industry, meanwhile, have been quietly divesting?strategic coal stakes for several years.?What does that leave? Glencore, despite a promise in February to cap?coal output, shouldn't be ignored. In that announcement, the commodities trader noted it may still?buy out some minority stakes, which seems to anticipate a deal on Cerrejon. Glencore?could also, in theory, get rid of its South African operations and replace them with Mount Arthur, keeping total output within limits and swapping in a more profitable mine. That would depend on finding a buyer for those South African mines, though, and there’s enough turmoil in that country’s coal and energy?sector as it is.China is another possible buyer for Mount Arthur. The pit is adjacent to Yancoal’s existing operations, suggesting possible synergies. Still, 2019 isn’t the best year to be doing this.?Since February, the country has been holding up shipments of Australian coal for ill-defined reasons that have a whiff of geopolitics about them. Any Chinese business looking for government approval to buy an Australian coal mine will have to reckon with that.Beyond that, there’s even the possibility that smaller local miners will have a go. In the old days, the idea that a relative minnow like Whitehaven Coal Ltd. could absorb a pit the size of Mount Arthur would have seemed absurd, but at Macquarie’s estimate of a $600 million price tag it’s not impossible. Based on BHP’s?latest results, a buyer could pay off that sum in 18 months or so and run the mine for cash, assuming rehabilitation costs weren’t too high.?Still, how times have changed. Back when Rio Tinto was hawking its coal assets, the company could?plausibly argue that it still saw a bright future for the stuff. Nowadays, BHP is warning that it could be “phased out, potentially sooner than expected,”?even as it’s trying to tempt buyers. Those M&A bankers are going to have their work cut out to get a good price.To contact the author of this story: David Fickling at [email protected] contact the editor responsible for this story: Matthew Brooker at [email protected] column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion?2019 Bloomberg L.P.

                              • TheStreet.com9 hours ago

                                [video]Hurricane Warning Lifts US Oil Prices; IEA Cautions on Global Demand Weakness

                                Global oil prices extended gains for a third consecutive session Friday, lifting U.S. crude prices past $60 a barrel to a fresh six-week high, as Tropical Storm Barry barrels towards the Louisiana coast, shutting down nearly half of the daily production from Gulf of Mexico drillers.

                              • Reuters16 hours ago

                                China's Hengyi starts trial runs at new refinery plant in Brunei

                                China's Hengyi Petrochemical Co Ltd said on Friday it has started trial operations at its new refinery and petrochemical facilities in Brunei, the fourth refinery to commence production in Asia this year. The new plant in Palau Muara Besar consists an 8 million tonne per year (tpy) crude oil refinery (160,000 barrels per day), a 1 million-tpy aromatics plant and a 500,000-tpy benzene facility, the company said in a statement. "All the facilities are entering trial operations and commercial production is expected to start fairly soon," it added.

                              • Oil edges up as storm hampers U.S. supply, glut forecasts weigh
                                Reuters17 hours ago

                                Oil edges up as storm hampers U.S. supply, glut forecasts weigh

                                Oil futures edged up on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global surplus in the months ahead limited gains. Brent crude futures were up 31 cents to $66.83 a barrel by 11:21 a.m. EDT (1521 GMT). U.S. West Texas Intermediate (WTI) crude futures gained 16 cents at $60.36 a barrel.

                              • Oil rises on tropical storm disruptions, glut forecasts weigh
                                Reuters17 hours ago

                                Oil rises on tropical storm disruptions, glut forecasts weigh

                                Oil prices inched up on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains. Brent crude futures were up 31 cents to $66.83 a barrel by 1:21 p.m. EDT (1721 GMT). U.S. West Texas Intermediate (WTI) crude futures gained 18 cents to $60.38 a barrel.

                              • Global Markets: Wall Street stocks climb, dollar drops on rate-cut optimism
                                Reuters17 hours ago

                                Global Markets: Wall Street stocks climb, dollar drops on rate-cut optimism

                                U.S. stocks edged higher and the dollar fell as hopes rose for an imminent interest-rate cut, while oil futures were little changed as supply worries triggered by a tropical storm were offset by signs of a global surplus for several months. Treasury yields rose modestly, largely unmoved by stronger-than-expected producer price data as market expectations of a U.S. interest rate cut in July held firm after two days of testimony from Federal Reserve Chair Jerome Powell. "We're coasting along with the wind at our back right now after Powell's testimony this week which points toward a rate cut in July," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

                              • Wall Street stocks climb, dollar drops on rate-cut optimism
                                Reuters17 hours ago

                                Wall Street stocks climb, dollar drops on rate-cut optimism

                                U.S. stocks edged higher and the dollar fell as hopes rose for an imminent interest-rate cut, while oil futures were little changed as supply worries triggered by a tropical storm were offset by signs of a global surplus for several months. Treasury yields rose modestly, largely unmoved by stronger-than-expected producer price data as market expectations of a U.S. interest rate cut in July held firm after two days of testimony from Federal Reserve Chair Jerome Powell. "We're coasting along with the wind at our back right now after Powell's testimony this week which points toward a rate cut in July," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

                              • Oil’s Rebound Above $60 Increases Focus on Technicals
                                The Wall Street Journal23 hours ago

                                Oil’s Rebound Above $60 Increases Focus on Technicals

                                A recent rebound in U.S. crude-oil prices back above the closely watched psychological level of $60 is increasing focus on gauges of market momentum, the latest swing in a topsy-turvy 2019 for energy markets.

                              • BHP Is Latest Giant Miner to Plan Exit From Thermal Coal
                                Bloombergyesterday

                                BHP Is Latest Giant Miner to Plan Exit From Thermal Coal

                                (Bloomberg) -- BHP Group is moving ahead with plans to exit thermal coal, according to people familiar with the matter, the latest move by the world’s biggest miners to retreat from the dirtiest fuel.BHP is looking at options to divest the business that includes assets in Australia and Colombia, said the people, who asked not to be identified as the development has not been made public. There’s no guarantee the company will go ahead with a sale, the people said.The decision demonstrates how growing climate-change pressure from investors and regulators is reshaping the future of extractive industries. Rival Rio Tinto Group has already removed all exposure to thermal coal and other producers including Anglo American Plc have been cutting output amid growing pressure from investors. Even Glencore Plc, the biggest shipper, has said it will look to limit production.BHP had already signaled cooling interest in thermal coal. Earlier this year, Chief Financial Officer Peter Beaven said the company had no appetite for growth in the commodity.While thermal coal makes up a fraction of BHP’s profits, it’s led to some investors saying they can’t hold the stock.Norway’s $1 trillion sovereign wealth fund last month got the green light to dump more than $13 billion in stocks linked to fossil fuels, including companies that mine more than 20 million tons of thermal coal, pushing Anglo American and BHP out of reach. Climate Action 100+, which has the backing of more than 300 investors managing $32 trillion, has already forced reforms from extractive giants such as BP Plc and Glencore.For BHP, thermal coal has become increasingly hard to justify. The company’s profits are driven by iron ore, oil, copper and coking coal (used to make steel) and thermal coal is likely to contribute just 1% of profit this year, according to Liberum Capital Markets.BHP’s move comes as its biggest rival, Rio, has become increasingly emboldened on climate change after offloading its last coal mines last year. The company has started promoting itself as the only major miner without exposure to fossil fuels.The move is also likely to put further pressure on Anglo, which, despite dramatically cutting its coal output, still mines almost 30 million tons a year.Still, exiting coal is unlikely to be easy for BHP. Its Colombian mine stake, which it owns with Anglo and Glencore, feeds the European market where demand is weak right now. Capacity could be cut in the country to balance an oversupplied market, Liberum estimated.Macquarie Group Ltd. and JPMorgan Chase & Co. are seen as frontrunners to run a sales process for the BHP assets, the people said.Macquarie said earlier this year that BHP’s Australian thermal coal business had a net present value of about $600 million and estimated the figure for its Cerrejon business in Colombia at about $1 billion.(Updates with charts and context.)\--With assistance from Dinesh Nair.To contact the reporter on this story: Thomas Biesheuvel in London at [email protected] contact the editors responsible for this story: Lynn Thomasson at [email protected], Liezel HillFor more articles like this, please visit us at bloomberg.com?2019 Bloomberg L.P.

                              • OPEC sees lower 2020 demand for its oil, points to surplus
                                Reutersyesterday

                                OPEC sees lower 2020 demand for its oil, points to surplus

                                OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies. The drop in demand for OPEC crude highlights the sustained boost that OPEC's policy to support prices by supply cuts is giving to U.S. shale and other rival supply. This potentially gives U.S. President Donald Trump more room to keep up sanctions on OPEC members Iran and Venezuela.

                              • Saudis Pledge to Keep Doing OPEC's Heavy Lifting as Shale Surges
                                Bloombergyesterday

                                Saudis Pledge to Keep Doing OPEC's Heavy Lifting as Shale Surges

                                (Bloomberg) -- Saudi Arabia is fulfilling its pledge to make deeper cuts in oil output than the OPEC+ agreement on output requires, according to the first indication of the kingdom’s production since the supplier group extended curbs earlier this month.The de facto leader of the Organization of Petroleum Exporting Countries will pump less than 10 million barrels a day of crude in both July and August, according to a person familiar with Saudi energy policy. Saudi Arabia will limit exports to fewer than 7 million barrels a day, said the person, who asked not to be identified because the information isn’t public.OPEC and partners including Russia agreed to keep cutting production through the end of March. The alliance is seeking to mop up excess crude in the market and buoy prices. Brent crude has gained about 1% this month to near $67 a barrel, helped by the extended cuts, geopolitical tensions and sanctions that crimped sales from Iran and Venezuela.Even as Saudi Energy Minister Khalid Al-Falih pledged that his country would continue doing more than its share to pare global supply, Middle Eastern oil producers are keeping Asia, their biggest regional market, well supplied. Consumption in Asia is picking up and will help boost demand in the second half, said the person.State oil company Saudi Aramco will supply full contractual amounts of crude to at least six buyers in Asia for August, in line with sales to that region in June and July. Persian Gulf producers are maintaining shipments to buyers that may be lacking crude from Iran, said Edward Bell, director of commodity research at Dubai-based bank Emirates NBD PJSC.The Saudis “need to make sure Asia stays well supplied, while taking away crude from regions that don’t need it as much,” Bell said. “Expect to see Saudi supplies to the U.S. constrained for the rest of the year.”OPEC, which pumps 40% of the world’s oil, said Thursday that it’s producing about 560,000 barrels a day more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Global oil consumption will continue to grow in 2020 at the same pace as this year, OPEC said in its monthly report, with the expansion driven by emerging economies like India and China.Saudi Arabia’s crude exports to the U.S. hovered around 500,000 barrels a day in May and June and at about the same level so far in July, compared with just over a million barrels daily in August of last year, according to data from the U.S. Energy Information Administration.Planned Saudi production for July and August would be little changed from previous months, with June output at 9.73 million barrels a day, according to data compiled by Bloomberg.To contact the reporter on this story: Anthony DiPaola in Dubai at [email protected] contact the editors responsible for this story: Nayla Razzouk at [email protected], Bruce Stanley, Mohammed Aly SergieFor more articles like this, please visit us at bloomberg.com?2019 Bloomberg L.P.

                              • OPEC Sees New Oil Surplus in 2020 as U.S. Shale Surges Again
                                Bloombergyesterday

                                OPEC Sees New Oil Surplus in 2020 as U.S. Shale Surges Again

                                (Bloomberg) -- A week after OPEC agreed to keep oil production restrained until early next year, the group’s first forecasts for 2020 showed it faces an even longer and tougher challenge.The Organization of Petroleum Exporting Countries, which pumps 40% of the world’s oil, estimated that it’s producing about 560,000 barrels a day more than will be needed next year as the ongoing surge in U.S. shale threatens to deliver another surplus. Supplies from producers outside the cartel will grow by more than twice as much as global oil demand, it forecast.OPEC and its partners agreed in Vienna last week to continue their output curbs into the first quarter of 2020, to balance markets against a faltering global economy and record American output. The latest outlook will present the coalition with a dilemma later this year: should they continue, and even double-down on the strategy throughout 2020, or abandon the cuts and risk a price slump.Crude prices, trading near $67 a barrel in London, remain below the levels most OPEC nations need to cover government spending.Global oil consumption will continue to grow in 2020 at the same pace as this year, at about 1.1 million barrels a day, or 1.1%, according to the report from OPEC’s Vienna-based research department. The expansion will be powered by emerging economies like India and China, but tempered by stagnant consumption in developed nations.Supplies from outside OPEC, however, will soar by 2.4 million barrels a day, as new pipelines in the U.S. enable the country’s shale-oil explorers to press on with more drilling. The fresh tide of American oil will be supplemented by other countries such as Brazil and Norway.As new non-OPEC supplies swamp the growth in demand, the amount of crude required from the cartel will slump sharply for a third consecutive year.An average of 29.27 million barrels will be needed from OPEC in 2020, according to the report. That’s significantly below the 29.83 million a day its 14 members produced last month, when their output fell again as the voluntary cutbacks were compounded by crises in Iran and Venezuela.That the organization’s production has fallen far more than intended this year, and may still prove to be too high, only illustrates the scale of its challenge. As of May, OPEC and its partners said they were cutting supply by about 700,000 barrels a day more than the 1.2 million a day pledged at the start of the year as Saudi Arabia reduced supplies more than it pledged.With OPEC pumping in excess of levels needed next year, the organization and its partners would have to trim output further to keep markets in equilibrium. However, Saudi Arabian Energy Minister Khalid Al-Falih signaled last week in Vienna he’s reluctant to go down this path, saying that the kingdom has already cut “deep enough.”Indeed, Thursday’s report may vindicate warnings from Al-Falih’s predecessor, Ali Al-Naimi, that production cuts by OPEC would only back-fire by giving prices enough support to encourage greater investment in U.S. shale.For now, there’s no sign the kingdom intends to reverse its current policy.Saudi output will remain under 10 million barrels a day in August, well below the limit agreed with OPEC, according to a person familiar with Riyadh’s energy policy. At last week’s meeting, OPEC and its partners signed a charter symbolizing their willingness to manage supplies over the long term, and Al-Falih said that intervention will be necessary until American shale output goes into decline.The organization’s latest outlook suggests he will be tested on that commitment.(Updates with over-compliance in the ninth paragraph.)To contact the reporter on this story: Grant Smith in London at [email protected] contact the editors responsible for this story: James Herron at [email protected], Rakteem Katakey, John DeaneFor more articles like this, please visit us at bloomberg.com?2019 Bloomberg L.P.

                              • Fox Businessyesterday

                                Oil at six-week high on Gulf of Mexico storm, supply decline

                                A decline in U.S. inventories also gave a boost to oil prices.

                              湖北十一选五前三值选

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