We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 09 June 20
INDIA: COAL IMPORT DROPS BY 20% TO NEARLY 19 MILLION TONNES IN MAY, SAYS REPORT - HINDUSTAN TIMES
The country’s coal import dropped by 20 per cent to 18.93 million tonnes (MT) last month, industry data showed.
The government ...
Monday, 08 June 20
WOOD MACKENZIE: THE INDISPENSABLE OPEC+
Rumours of “the death of OPEC” have been circulating for almost as long as the organisation has existed. Just three years after the car ...
Monday, 08 June 20
CHINA'S COAL IMPORTS FALL NEARLY 20% IN MAY EVEN AS DEMAND RISES - REUTERS
China’s coal imports in May fell nearly 20% compared with a year earlier even as demand recovered at power plants and industrial users, custo ...
Monday, 08 June 20
JUNE 2020 INDONESIAN COAL PRICE REFERENCE HIT US$ 52.98 A TON, ITS LOWEST LEVEL SINCE AT LEAST AUGUST 2016
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down again the benchmark price of Indonesian th ...
Sunday, 07 June 20
A SCRUBBER FITTED 61,000 ULTRAMAX WAS FIXED DELIVERY PHILIPPINES TRIP VIA SOUTH AFRICA REDELIVERY VIETNAM AT $9,500 - BALTIC BRIEFING
Capesize
The small flicker of hope at the beginning of this week has kindled a small fire under the Capesize market. At a paltry $3369 from the ...
|
|
|
Showing 921 to 925 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Eastern Energy - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- Jorong Barutama Greston.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Goldman Sachs - Singapore
- Bhushan Steel Limited - India
- MS Steel International - UAE
- Indika Energy - Indonesia
- Uttam Galva Steels Limited - India
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- SMG Consultants - Indonesia
- South Luzon Thermal Energy Corporation
- Chettinad Cement Corporation Ltd - India
- Ministry of Transport, Egypt
- Planning Commission, India
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Posco Energy - South Korea
- Rashtriya Ispat Nigam Limited - India
- IEA Clean Coal Centre - UK
- Interocean Group of Companies - India
- India Bulls Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Manunggal Multi Energi - Indonesia
- Borneo Indobara - Indonesia
- Bhoruka Overseas - Indonesia
- Economic Council, Georgia
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Bukit Makmur.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- TeaM Sual Corporation - Philippines
- White Energy Company Limited
- Neyveli Lignite Corporation Ltd, - India
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Altura Mining Limited, Indonesia
- Parliament of New Zealand
- Ministry of Finance - Indonesia
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PetroVietnam Power Coal Import and Supply Company
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
- Attock Cement Pakistan Limited
- The University of Queensland
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Anglo American - United Kingdom
- VISA Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Carbofer General Trading SA - India
- Kartika Selabumi Mining - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Orica Australia Pty. Ltd.
- McConnell Dowell - Australia
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- Chamber of Mines of South Africa
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Simpson Spence & Young - Indonesia
- Jindal Steel & Power Ltd - India
- Meralco Power Generation, Philippines
- OPG Power Generation Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Ambuja Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Commonwealth Bank - Australia
- Energy Development Corp, Philippines
- Georgia Ports Authority, United States
- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- San Jose City I Power Corp, Philippines
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Indonesian Coal Mining Association
- Toyota Tsusho Corporation, Japan
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bangladesh Power Developement Board
- Port Waratah Coal Services - Australia
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Baramulti Group, Indonesia
- Barasentosa Lestari - Indonesia
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Makarim & Taira - Indonesia
- Renaissance Capital - South Africa
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Sarangani Energy Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Sree Jayajothi Cements Limited - India
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- Global Coal Blending Company Limited - Australia
- GN Power Mariveles Coal Plant, Philippines
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
- ASAPP Information Group - India
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Xindia Steels Limited - India
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Siam City Cement PLC, Thailand
- Cigading International Bulk Terminal - Indonesia
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- Agrawal Coal Company - India
- SMC Global Power, Philippines
- Sical Logistics Limited - India
- Australian Coal Association
|
| |
| |
|
