Saturday, January 28, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

The Relentless Oil Price Rally

8 months ago
in Market
The Relentless Oil Price Rally
Share on FacebookShare on Twitter

The Relentless Oil Price Rally | OilPrice.com

Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com’s Head of Operations

More Info

Premium Content

By Tom Kool – May 15, 2020, 2:00 PM CDT

Oil prices are continuously rising despite the uncertainty surrounding COVID-19, with WTI nearing a two-month high on Friday morning

For further research, analysis and trade recommendations, make sure you read this morning’s Global Energy Alert newsletter. From an analysis on Saudi Arabia’s current economic crisis to the latest updates on COVID-19, it truly is a must-read.

Friday, May 15th, 2020

Oil prices appear to be rising relentlessly, with WTI bouncing above $28 per barrel, nearly at a two-month high. Market sentiment has been gaining steam as supply shut-ins mount and demand begins to come back. Still, the risk of another wave of coronavirus infections presents a major risk to the rally.

OPEC+ could keep cuts beyond June. “The ministers want to keep the same oil production cuts now which are about 10 million bpd, after June. They don’t want to reduce the size of the cuts. This is the basic scenario that’s being discussed now,” one OPEC+ source told Reuters.

Analysts see optimism in data. Oil time spreads have seen a narrowing contango, a sign of tightening in the oil market. “We believe stocks will be reduced gradually over the next 12 months or so,” said Rystad Energy head of oil markets Bjornar Tonhaugen. “Brent stabilizing above $30 gives the market confidence that frightening days of negative prices and record daily declines are behind us.”

Saudi oil “flotilla” delayed at ports. The flotilla of Saudi supertankers heading to U.S. ports have been delayed because there has been a shortage of the smaller ships used to lighten the load near shore.  Related: Are Venezuelan Oil Exports Poised For A Comeback?

Storage fears subside. Due to sharp cuts in oil production, the pace of inventory builds has slowed dramatically, easing fears of an acute shortage in storage capacity.

Iraq cuts 650,000 bpd from southern fields. Iraq cut 650,000 bpd from its massive southern oil fields in order to comply with the OPEC+ cuts. The reductions have been split between state-owned companies and the private international companies.

Exxon CEO under fire. ExxonMobil (NYSE: XOM) CEO Darren Woods is under scrutiny after Legal & General Investment Management, which oversees $1.5 trillion in assets, said it would vote against Woods as CEO and Chairman at the company’s upcoming shareholder meeting. The investment group cited Exxon’s “lack of strategic ambition around climate change,” while its European competitors “step up and reaffirm their sustainability ambitions.” 

WoodMac: oil demand may not recover until 2026. Wood Mackenzie outlined several scenarios in a new report, all of which paint a pessimistic outlook for oil demand. The firm said it could take years for demand to recover, but ultimately, demand will probably peak within the next decade.

Fed warns economic damage will persist. Federal Reserve Chairman Jerome Powell warned of an “extended period” of economic damage. St. Louis Fed Chair James Bullard warned job losses could be permanent and businesses could fail “on a grand scale.”

WHO: Coronavirus may “never go away.” The World Health Organization warned that the world may live with COVID-19 indefinitely. “It is important to put this on the table: this virus may become just another endemic virus in our communities, and this virus may never go away,” WHO emergencies expert Mike Ryan told an online briefing. 

Venezuelan opposition wants “change of direction” from U.S. The Venezuelan opposition is reeling after the government easily thwarted a hapless coup attempt by American contractors. Opposition lawmakers have contacted the U.S. State Department and requested a change of direction, according to Bloomberg.   

Nearly 600,000 clean energy jobs eliminated. The U.S. lost 447,000 clean energy jobs in April, taking the total job losses for the sector close to 600,000 since March. 

Diamond Offshore takes stimulus, pays executives. Diamond Offshore (OTCMKTS: DOFSQ) took advantage of stimulus money passed by Congress, getting a $9.7 million tax refund. Then it asked a bankruptcy judge to reward top executives the same amount. Oil companies are receiving hundreds of millions of dollars in stimulus money. “This is a stealth bailout for the oil and gas industry,” Jesse Coleman, a researcher with Documented, told Bloomberg. 

North Dakota to pay to cleanup orphaned wells. North Dakota wants to use $33.1 million in coronavirus aid to pay for cleaning up oil wells “orphaned” by the industry. 

Alaska oil payout at risk. Alaska sends a check to every citizen every year as a dividend from oil revenues. This year, the check is expected to be about $1,000. But with revenues drying up, that payout is at risk. 

Nigeria to cut oil by a quarter. Nigeria said that it would cut its oil production by 417,000 bpd, or about 23 percent of total output, to bring it in line with the OPEC+ agreement.

Tesla to unveil new low-cost battery. Tesla (NASDAQ: TSLA) is set to introduce a new low-cost battery with a longer range for its Model 3 in China later this year. The improvement will bring the cost of the car in line with gasoline vehicles.  Related: Battery Metal Demand Set To Soar By 500%

BP said governments should press ahead with clean energy. BP (NYSE: BP) said that governments should “press ahead” with climate change policy. “We have got to do the energy transition — this isn’t an option,” BP CFO Brian Gilvary told the FT. 

LNG price war could send gas into negative territory. Gas markets are oversupplied and LNG exporters are scrambling, looking for some combination of fighting for market share and storing excess supply. U.S. inventories of natural gas are expected to continue to rise this year.

By Tom Kool for Oilprice.com 

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today


Back to homepage


Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com’s Head of Operations

More Info

Related posts

Latest Oil News

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023





Published at Fri, 15 May 2020 19:00:00 +0000-The Relentless Oil Price Rally

Previous Post

Canadian Overseas Petroleum CEO details terms of its new £2mln equity funding

Next Post

Fuel Prices Remain Unchanged Across Metros. See Rates

Related Posts

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

by Oil Market News
January 27, 2023
0

Chevron announced record earnings for 2022 but its fourth-quarter profits slipped from previous months in a sign that Big Oil’s...

Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

by Oil Market News
January 26, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

by Oil Market News
January 25, 2023
0

New York City has filed demands for tougher climate change action from US banks on behalf of retirement schemes worth...

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

by Oil Market News
January 24, 2023
0

The “Big Three” international oilfield services groups last year registered their most profitable 12 months since the heyday of the...

EU/diesel: loss of Russian imports supportive for independent refiners

EU/diesel: loss of Russian imports supportive for independent refiners

by Oil Market News
January 23, 2023
0

On the whole, the ban on Russian crude oil has worked well. It has lowered revenues for Russia without causing...

Dutch government aims to close Europe’s largest gasfield this year

Dutch government aims to close Europe’s largest gasfield this year

by Oil Market News
January 22, 2023
0

The Netherlands wants to close Europe’s largest gasfield this year because it is “very dangerous” to keep operating it, according...

Next Post
Fuel Prices Remain Unchanged Across Metros. See Rates

Fuel Prices Remain Unchanged Across Metros. See Rates

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Crude Oil Shielded From Bond and Stock Market Rout

Biden tries to reset relationship with Mexican president | U.S. Politics

9 months ago
Oil Prices Rebound Nearly 90% In May For Best Month On Record

Oil Prices Rebound Nearly 90% In May For Best Month On Record

8 months ago
Court order delays construction at ConocoPhillips’ Alaska project By Reuters

Court order delays construction at ConocoPhillips’ Alaska project By Reuters

8 months ago
Live news: Micron announces $20bn investment in New York plant – Financial Times

Live news: Micron announces $20bn investment in New York plant – Financial Times

4 months ago
Dow soars 229 points as stocks stage biggest rally in 12 weeks

Dow soars 229 points as stocks stage biggest rally in 12 weeks

9 months ago
ADVERTISEMENT
Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

January 27, 2023

Internet of Things-as-a-Service to Enable Improved Opportunities

January 27, 2023

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023

White House blasts Big Oil stock buybacks again as Chevron profits double

January 27, 2023

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023

Trinity To Spud Jacobin Well In Second Quarter Of 2023

January 27, 2023

Crude Oil

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

January 27, 2023
Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

January 26, 2023
Opinion | Should the Strategic Petroleum Reserve Be Used Now?

Opinion | Should the Strategic Petroleum Reserve Be Used Now?

January 25, 2023
Rising Crude, Oil Products Inventories Weigh On Oil Prices

Rising Crude, Oil Products Inventories Weigh On Oil Prices

January 24, 2023

Investing

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

Market

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023

OPEC

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.