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Tuesday, 05 December 17
OIL PRICES HAVE GAINED SOME TRACTION THESE PAST FEW DAYS ON TALKS OF ANOTHER OPEC & RUSSIA PRODUCTION CUT EXTENSION - GERRY LATHROP
 Oil prices have gained some traction these past few days on talks of another OPEC (including non-OPEC Russia) production cut extension.
The current production cut schedule prior to OPECs meeting this past week, was supposed to last until March 2018, however it has come to light that it will now be extended until the end of 2018, in an attempt to prop up prices as many of OPEC’s members continue to feel strain from the low earnings generated by crude oil sales said Gerry Lathrop, Research Analyst at Allied shipping.
Gerry Lathrop further noted, what’s more is that Saudi Arabia, OPEC leading member, has to deal with ARAMCO’s planned IPO in 2018, which could greatly benefit from the higher crude oil prices. At the same time and in order for the Saudi Government to meet their government budget requirements and reduce their reliance on their cash reserves, are looking at a price target of around US$ 60 per barrel. This is contrary to Russia’s stance who would prefer oil prices to remain lower, and apparently would prefer a target of US$ 40 per barrel at the off chance that higher prices cause the US’s shale oil producers to head to the fields again. In addition to this, OPEC members Libya and Nigeria, who were previously exempt from production cuts, have now agreed to also cap production at their 2017 levels.
This of course can have a profound effect on the shipping side, where the mere talks of a production cut has oil traders rushing to their desks to close their next deal. In short, if oil prices start to show a trend of further price gains, oil traders and refiners will rush to book cargoes, so they can price their end products on competitive level and possibly benefit from a better profit margin, increasing demand in the crude market in the very short-term. In the long-term, if the price of oil also goes up, it is likely to dampen overall demand and cause a potential slowdown in trade. This negative effect however tends to be limited given that crude oil has fairly inelastic demand.
According to Gerry Lathrop of Allied, on the non-OPEC side of things, crude oil production in the US has hit a new record production level of 9.7 million barrels per day on average for the week ending November 17th, according to statistics from the US EIA. Similarly, crude oil imports from Venezuela to the Louisiana Offshore Oil Platform (LOOP) for the period of January to November 2017 are around 7 million barrels, which is almost 3 times as much as what we were seeing during the same time frame last year (2.5 million bbls). The main reason for importing so much Venezuelan crude seems to be mainly due to the lack of availability of Saudi Arabian heavy/sour crude resulting from their production cuts. According to US customs data, imports from Saudi are down 45% from 75 million barrels to 42 million barrels for the same 10-month period. This has undoubtedly caused much of the softening in the crude tanker market of late by removing many ton miles from the market.
In any case, it will be interesting to see which direction the market will trend come June of next year, as the tug of war continues between Russia’s stance on lower crude prices and Saudi’s preference for higher prices. We will probably see the price fall somewhere in between these respective price targets during most of 2018, while if prices increases above Saudi’s US$ 60 per barrel, a relatively swift ramp up in US shale oil production should help quickly push things back down. This points to the main risk by both OPEC and Russia, with any further cost efficiencies achieved by US shale producers allowing them to capture a higher market share and even make these production cuts irrelevant to the overall market.
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Friday, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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Showing 31 to 35 news of total 6871 |
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- Intertek Mineral Services - Indonesia
- Simpson Spence & Young - Indonesia
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- Central Java Power - Indonesia
- Maheswari Brothers Coal Limited - India
- Sarangani Energy Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- ICICI Bank Limited - India
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- SMG Consultants - Indonesia
- The University of Queensland
- Samtan Co., Ltd - South Korea
- Baramulti Group, Indonesia
- Mercuria Energy - Indonesia
- Planning Commission, India
- Borneo Indobara - Indonesia
- Indonesian Coal Mining Association
- Uttam Galva Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- The State Trading Corporation of India Ltd
- Manunggal Multi Energi - Indonesia
- London Commodity Brokers - England
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Altura Mining Limited, Indonesia
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- International Coal Ventures Pvt Ltd - India
- White Energy Company Limited
- Coastal Gujarat Power Limited - India
- Vedanta Resources Plc - India
- Power Finance Corporation Ltd., India
- Kumho Petrochemical, South Korea
- Sakthi Sugars Limited - India
- Bhushan Steel Limited - India
- SMC Global Power, Philippines
- Rashtriya Ispat Nigam Limited - India
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Anglo American - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Sree Jayajothi Cements Limited - India
- Kobexindo Tractors - Indoneisa
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Commonwealth Bank - Australia
- Merrill Lynch Commodities Europe
- Price Waterhouse Coopers - Russia
- Eastern Energy - Thailand
- Sical Logistics Limited - India
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Banpu Public Company Limited - Thailand
- AsiaOL BioFuels Corp., Philippines
- Aboitiz Power Corporation - Philippines
- Thai Mozambique Logistica
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Transport, Egypt
- GVK Power & Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- IEA Clean Coal Centre - UK
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- Tata Chemicals Ltd - India
- Port Waratah Coal Services - Australia
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Ceylon Electricity Board - Sri Lanka
- European Bulk Services B.V. - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Coal and Oil Company - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Coal Association
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- PNOC Exploration Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Global Green Power PLC Corporation, Philippines
- Meralco Power Generation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Coalindo Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Indo Tambangraya Megah - Indonesia
- Wood Mackenzie - Singapore
- Global Coal Blending Company Limited - Australia
- Kohat Cement Company Ltd. - Pakistan
- Essar Steel Hazira Ltd - India
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- GMR Energy Limited - India
- Bangladesh Power Developement Board
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Ambuja Cements Ltd - India
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- LBH Netherlands Bv - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Mintek Dendrill Indonesia
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jindal Steel & Power Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Chamber of Mines of South Africa
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Karaikal Port Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- Grasim Industreis Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Singapore Mercantile Exchange
- Petron Corporation, Philippines
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