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Wednesday, 10 June 20
OPEC+ CUTS EXTENSION TO ACCELERATE MARKET REBALANCING - FITCH RATINGS
 Fitch Ratings-London-08 June 2020: The OPEC+ agreement to extend by one month record oil production cuts should accelerate market rebalancing, Fitch Ratings says. This is further supported by a commitment to improve compliance from those countries that were unable to reach full conformity with the cuts.
The OPEC+ countries have made radical production cuts in the stress scenario, but it may be more difficult to reach a consensus when the worst of the crisis is over. And it is unclear whether the recovery in oil prices to date is sustainable. Furthermore, demand and production in non-OPEC+ countries, notably the US, will continue to have a significant impact on the supply-demand balance and prices. We believe that a normalisation of oil inventory built up in 1H20 will take at least several months.
Crude oil prices rose significantly in May and continued to improve in early June, because the surplus has been reduced materially. A price differential between the physical and financial markets has disappeared, pointing to crude oil market tightening. We believe that a stress case scenario with prices falling significantly below USD30/bbl is now less likely. The market is likely to experience a production deficit in 2H20 due to gradually improving demand and reduced supply.
The OPEC+ cuts were the major contributor to market rebalancing. We estimate that the OPEC+ countries reduced production by around 7.5mmbpd in May compared to March. The cumulative OPEC+ cuts should exceed 9mmbpd in June as Saudi Arabia, Kuwait and UAE have committed to cut an additional 1.1mmbpd, while Iraq and Nigeria, which underperformed in May, have promised to improve compliance in June. A resumption of production in Libya, which is not subject to the OPEC+ deal, may increase supply but should be more than offset by additional cuts elsewhere.
Furthermore, production fell in the US as a result both of shut-ins and reduced drilling activity by almost 2mmbpd at end-May compared to March, while Canada cut around 1mmbpd. The number of active drilling rigs in the US declined by 64% compared to the beginning of the year. Production in North America may continue to shrink for a while, but the pace is likely to decelerate due to increased prices. We believe that at USD30/bbl, many producers should be able to stabilise production, while at USD40/bbl or above some would be tempted to increase output, which could limit price recovery.
Estimates suggest crude oil demand increased in May compared to April, and we believe it will improve further from June due to the gradual lifting of lockdown restrictions. Implied oil products consumption in the US improved from a 28% drop in April yoy to a 20% drop in May, driven mainly by increased gasoline consumption (a yoy decline of 25% in May compared to a 44% decline in April), while the consumption of jet fuel remained flat. We believe consumption patterns are similar in Europe, while demand in China bottomed out in February.
Demand recovery is now key in achieving balance in the oil market. It could be undermined in the event of a second coronavirus wave and the re-introduction of lockdowns, although it is not our base case. While consumption of gasoline and diesel could recover by the year-end, jet fuel may lag behind as international travel restrictions may remain in place and demand for business travel may be structurally impaired.
Our ratings are informed by companies’ projected performance at end-2021, rather than in 2020, provided their liquidity is adequate, as we rate “through the cycle”. While we may recalibrate our near-term oil price assumptions to the pace of market rebalancing, our ratings already assume that the market will recover gradually; therefore the most recent improvements will not prompt portfolio-wide rating actions.
Source: Fitch Ratings
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Thursday, 11 June 20
JAN-MAY, INDONESIA SHIPPED 175.15 MILLION TONS OF COAL TO ITS OVERSEAS BUYERS
Indonesia's coal production for the first 5 months of this year have reached 228 million tons. January – May 2020, Indonesia shipped US$ ...
Thursday, 11 June 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Wednesday, 10 June 20
MARKET INSIGHT - INTERMODAL
In contrast to the economic projections of the past two years for the first half of 2020, the oil & gas industry and those involved in it faced ...
Wednesday, 10 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX DOWN 0.19 PCT - XINHUA
China Taiyuan coal transaction price index stood at 123.71 points Monday, down 0.19 percent week on week.
The index, released by Chi ...
Tuesday, 09 June 20
BUNKER SUPPLY CONTRACTS - KEY CONSIDERATIONS FOR THE BUYER - GARD
KNOWLEDGE TO ELEVATE
Regardless of whether a buyer purchases fuel directly from physical suppliers or via brokers or traders and whether sale ...
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Showing 916 to 920 news of total 6871 |
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- Goldman Sachs - Singapore
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Uttam Galva Steels Limited - India
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Kobexindo Tractors - Indoneisa
- SN Aboitiz Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Pendopo Energi Batubara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- The Treasury - Australian Government
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parry Sugars Refinery, India
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Price Waterhouse Coopers - Russia
- Petrochimia International Co. Ltd.- Taiwan
- Karaikal Port Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Georgia Ports Authority, United States
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Kumho Petrochemical, South Korea
- Central Java Power - Indonesia
- Semirara Mining Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Krishnapatnam Port Company Ltd. - India
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Latin American Coal - Colombia
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- Singapore Mercantile Exchange
- Indika Energy - Indonesia
- Siam City Cement - Thailand
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Electricity Authority, New Zealand
- Barasentosa Lestari - Indonesia
- Petron Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Karbindo Abesyapradhi - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Bhushan Steel Limited - India
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Economic Council, Georgia
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Coal and Oil Company - UAE
- Grasim Industreis Ltd - India
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Sakthi Sugars Limited - India
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- London Commodity Brokers - England
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tamil Nadu electricity Board
- Manunggal Multi Energi - Indonesia
- PTC India Limited - India
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- Directorate General of MIneral and Coal - Indonesia
- Eastern Coal Council - USA
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Sindya Power Generating Company Private Ltd
- ASAPP Information Group - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- VISA Power Limited - India
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- White Energy Company Limited
- Vijayanagar Sugar Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- LBH Netherlands Bv - Netherlands
- Orica Australia Pty. Ltd.
- Iligan Light & Power Inc, Philippines
- Malabar Cements Ltd - India
- GMR Energy Limited - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Finance - Indonesia
- Global Business Power Corporation, Philippines
- Anglo American - United Kingdom
- Jaiprakash Power Ventures ltd
- Kideco Jaya Agung - Indonesia
- Marubeni Corporation - India
- Maheswari Brothers Coal Limited - India
- Miang Besar Coal Terminal - Indonesia
- Mjunction Services Limited - India
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ICICI Bank Limited - India
- Minerals Council of Australia
- Formosa Plastics Group - Taiwan
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Chamber of Mines of South Africa
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