Economics ///

Oil prices continue to slide on growing U.S. stockpiles

The American Petroleum Institute reported that stockpiles expanded by 8.73 million barrels last week, according to people familiar with the data, raising questions about the strength of the market’s return to balance.

Chevron’s cost-reduction measure may eliminate up to 15% of workforce

Chevron’s cuts equate to about 6,000 of its 45,000 non-gas station employees. It’s “streamlining our organizational structures to reflect the efficiencies and match projected activity levels,” the San Ramon, California-based company said Wednesday in a statement.

Exxon’s sharehlders say no to appointing an independent chairman

Pressure for Exxon to appoint an independent chairman, separate to the CEO, has been building for years. Exxon beefed up the powers of its lead director earlier this year in response to some shareholders’ concerns.

Oil prices climb on prediction of swift demand rebalance

Oil has surged more than 80% this month as demand returned following the easing of lockdown restrictions in some countries, while output cuts have started to chip away at the oversupply.

IEA chief says low oil prices will take demand beyond pre-crisis highs

“In the absence of strong government policies, a sustained economic recovery and low oil prices are likely to take global oil demand back to where it was, and beyond,” Fatih Birol said in an interview.

Daily Brief podcast: A look ahead at the coming week in oil and gas, May 25-29

Key trends for the coming week, including how industry groups' response to low oil prices differ dramatically in the U.S. versus other producing nations, China's big plans for its economy, and investment analysts turning their backs on key sectors of the industry.

Putin sets deadline for plan to support Russian oil industry

Russian President Vladimir Putin gave his government until June 15 to come up with a plan to support the country’s oil industry while output is slashed under an agreement among the world’s main producers.

Distressed oil drillers find major analysts dropping stock guidance

The smallest shale oil drillers have endured their fair share of pain in this spring’s energy collapse and, with ailing stock prices, analysts are finding it even tougher to cover the group.

High premiums, price swings driving decline in shale hedges

After oil’s crash below zero, explorers face hefty premiums for the financial instruments they rely upon to insure against price swings. Meanwhile, they’re also unwilling to lock in future supply with forward prices for crude remaining lackluster.

Daily Brief podcast: Strategies for navigating capital markets to outlast the downturn

Arindam Das discusses where energy sector companies must focus to meet capital markets' new expectations, both to survive the downturn and to act advantageously as stabilizing markets present new opportunities.

China’s central planners could jump-start commodity demand in Friday meeting

The policy-setting National People’s Congress beginning in Beijing on Friday is arguably the pivotal stage of a recovery that has seen China’s raw materials output and energy consumption rebound from a virus-induced crash to pre-pandemic levels.

Renewable energy transition to accelerate on drop in power demand

The prolonged slowdown will increase economic pressure on older, uneconomic power plants -- especially those that burn coal -- and help speed the transition toward cleaner and cheaper wind and solar. It will also contribute to the biggest annual decline in greenhouse gasses from energy ever recorded.

Key global markets’ physical oil prices climbing as OPEC+ cuts supply

Demand is recovering in major oil consumers China and India, led by a rebound in gasoline and diesel consumption. Chinese refiners are seeing profits from turning crude into fuels, even as processors across much of the region including Singapore face negative margins.

Daily Brief podcast: How higher oil prices can threaten a recovering market

Oil reaches its highest price since March, which could lead to a new production imbalance in U.S. shale, and Oxy is left holding the bag on a major asset sale.

Total walks on deal for Oxy’s oil assets in Ghana and Algeria

The disposal of the projects in Algeria and Ghana was supposed to raise about $5 billion for Occidental, which is on the hook for larger debt repayments beginning next year resulting from its Anadarko acquisition.

Oil highest since March as Chinese demand reaches 13 MMbpd

Oil rose to close at its highest in two months as demand in China returned to near pre-virus level and output curbs continued in the U.S. and elsewhere.

U.S.-bound Saudi oil could hurt prices and disrupt stabilizing markets

The more than 50 million barrels of Saudi crude on the water threaten to disrupt a positive supply development: U.S. crude stockpiles declined for the first time since January.

Russia, Saudi Arabia see recovering demand after production cuts

Saudi Arabia and Russia see signs that oil demand is recovering as countries around the world start to relax lockdowns imposed to fight the spread of the coronavirus outbreak.

OPEC cuts Q2 demand estimates again while members make deeper cuts

OPEC presented a bleaker assessment of global oil markets for the second quarter as the coronavirus crisis continues to drain demand, days after some of the cartel’s biggest producers pledged to make even deeper production cutbacks.

Chinese gas distributor says prices could turn negative on storage limits

One of China’s biggest natural gas distributors flagged the possibility of sub-zero market prices at its shareholder meeting, a scenario that would echo oil’s record plunge last month that stunned global markets.