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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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Saturday, 06 June 20
KOREA SOUTH-EAST POWER CO INVITED COAL BIDS FOR MIN 5600 NCV COAL
COALspot.com: South Korea’s KOREA SOUTH-EAST POWER CO., LTD. (KOEN) has issued an international tender for 270,000 Tons (MT) min. 5600 NCV co ...
Friday, 05 June 20
COAL INDIA ESTIMATES PRODUCTION GROWTH BY OVERBURDEN REMOVAL - FINANCIAL EXPRESS
PSU miner Coal India (CIL) has now limited mining only to Overburden Removal (OBR) with falling demand of coal. The mining behemoth is now keeping ...
Friday, 05 June 20
U.S. SANCTIONS COMPLIANCE GUIDANCE RELEASED FOR THE GLOBAL MARITIME, ENERGY AND METALS SECTORS - AKIN GUMP
Key Points
On May 14, 2020, OFAC, the Department of State and the U.S. Coast Guard jointly released guidance for persons involved in the ma ...
Friday, 05 June 20
IN THE FIRST 5 MONTHS OF 2020 AUSTRALIA SHIPPED 6.8 MLN TONNES TO VIETNAM - BANCHERO COSTA
In the first 5 months of 2020, global seaborne coal trade declined by as much as -8% year-on-year, according to vessel tracking data from Ref ...
Thursday, 04 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 ...
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Showing 926 to 930 news of total 6871 |
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- Deloitte Consulting - India
- Posco Energy - South Korea
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- London Commodity Brokers - England
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Chettinad Cement Corporation Ltd - India
- Riau Bara Harum - Indonesia
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Tata Chemicals Ltd - India
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- ASAPP Information Group - India
- Bayan Resources Tbk. - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Commonwealth Bank - Australia
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Maheswari Brothers Coal Limited - India
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement - Thailand
- Latin American Coal - Colombia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Mintek Dendrill Indonesia
- ICICI Bank Limited - India
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Bhatia International Limited - India
- India Bulls Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Xindia Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ind-Barath Power Infra Limited - India
- Port Waratah Coal Services - Australia
- SMC Global Power, Philippines
- PTC India Limited - India
- TeaM Sual Corporation - Philippines
- Kumho Petrochemical, South Korea
- Toyota Tsusho Corporation, Japan
- Bukit Baiduri Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- Videocon Industries ltd - India
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Antam Resourcindo - Indonesia
- Romanian Commodities Exchange
- Australian Coal Association
- Therma Luzon, Inc, Philippines
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- Star Paper Mills Limited - India
- Energy Link Ltd, New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Metalloyd Limited - United Kingdom
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Electricity Generating Authority of Thailand
- Jorong Barutama Greston.PT - Indonesia
- Energy Development Corp, Philippines
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Orica Australia Pty. Ltd.
- Binh Thuan Hamico - Vietnam
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Billiton Holdings Pty Ltd - Australia
- Eastern Energy - Thailand
- Coal and Oil Company - UAE
- Ministry of Mines - Canada
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Australian Commodity Traders Exchange
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- Electricity Authority, New Zealand
- Global Business Power Corporation, Philippines
- Sical Logistics Limited - India
- Sojitz Corporation - Japan
- Agrawal Coal Company - India
- PowerSource Philippines DevCo
- Anglo American - United Kingdom
- LBH Netherlands Bv - Netherlands
- Bhoruka Overseas - Indonesia
- Larsen & Toubro Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Indogreen Group - Indonesia
- Indian Energy Exchange, India
- Siam City Cement PLC, Thailand
- Ministry of Finance - Indonesia
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- Planning Commission, India
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- TNB Fuel Sdn Bhd - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Economic Council, Georgia
- Lanco Infratech Ltd - India
- Wilmar Investment Holdings
- Africa Commodities Group - South Africa
- Independent Power Producers Association of India
- Standard Chartered Bank - UAE
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- The University of Queensland
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Miang Besar Coal Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Power Finance Corporation Ltd., India
- Sarangani Energy Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- South Luzon Thermal Energy Corporation
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- Malabar Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Sree Jayajothi Cements Limited - India
- Medco Energi Mining Internasional
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Bulk Trading Sa - Switzerland
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