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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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- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Bharathi Cement Corporation - India
- Uttam Galva Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Meralco Power Generation, Philippines
- Romanian Commodities Exchange
- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- Economic Council, Georgia
- Chettinad Cement Corporation Ltd - India
- ASAPP Information Group - India
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Minerals Council of Australia
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Binh Thuan Hamico - Vietnam
- Thiess Contractors Indonesia
- Indo Tambangraya Megah - Indonesia
- Chamber of Mines of South Africa
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Malabar Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Posco Energy - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Orica Mining Services - Indonesia
- Deloitte Consulting - India
- PowerSource Philippines DevCo
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- CNBM International Corporation - China
- Australian Coal Association
- Indika Energy - Indonesia
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- European Bulk Services B.V. - Netherlands
- Makarim & Taira - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- Directorate Of Revenue Intelligence - India
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- International Coal Ventures Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- Tamil Nadu electricity Board
- CIMB Investment Bank - Malaysia
- Agrawal Coal Company - India
- Indian Oil Corporation Limited
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Grasim Industreis Ltd - India
- Ambuja Cements Ltd - India
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Power Finance Corporation Ltd., India
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Bhatia International Limited - India
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Therma Luzon, Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Africa Commodities Group - South Africa
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Sarangani Energy Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Bahari Cakrawala Sebuku - Indonesia
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Wood Mackenzie - Singapore
- Jaiprakash Power Ventures ltd
- Sree Jayajothi Cements Limited - India
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Cement Manufacturers Association - India
- Pipit Mutiara Jaya. PT, Indonesia
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Xindia Steels Limited - India
- Wilmar Investment Holdings
- Sinarmas Energy and Mining - Indonesia
- VISA Power Limited - India
- Commonwealth Bank - Australia
- South Luzon Thermal Energy Corporation
- Planning Commission, India
- Oldendorff Carriers - Singapore
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Altura Mining Limited, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
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