Economics ///

Climbing U.S. inventories hold oil prices down

Oil traded near $53/bbl after an industry report showed a sharp jump in U.S. inventories, adding to concern that supply keeps growing while demand ebbs.

U.S. crude exports drying up as tanker rates skyrocket

Soaring oil-tanker costs are drying up activity in the U.S. export market as sellers are slow to lower offers and buyers are skittish, according to market participants.

Canada’s election will determine its role on the global energy stage

Not only will the vote determine the future of carbon taxes, pipeline approvals and environmental regulations, it’s also a referendum on a dispute central to the country’s identity: Is Canada a global oil superpower or is it a leader in fighting climate change?

OPEC+ will have to cut output in December, according to market data

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020.

EU’s lending arm delays vote on limiting fossil-fuel financing

The European Investment Bank stopped short of agreeing a strategy to limit funding for fossil fuels, a plan that would help step up Europe’s ambition to fight climate change.

Geopolitical risks drive unprecedented hike in oil tanker rates

“At current rates, owners could pay back a 10-year-old VLCC, valued at $47m including scrap value of $16m, after only two trips,” Clarksons Platou analysts said in a research note Monday.

Is peak output around the corner for U.S. shale drillers?

“I don’t think the call for the end of shale is stronger this year,” said Ed Morse, global head of commodities research at Citigroup Global Markets Inc. “But it’s more detailed.”

Abu Dhabi seeks to shift oil markets with its own crude benchmark

Abu Dhabi wants to create a benchmark for Middle Eastern crude that competes for customers in Asia with exports from America’s shale boom. If the new contract for Murban crude takes off, it could herald a fundamental shift in the way Gulf producers sell oil.

Nigeria demands $62 billion from oil majors for past profits

Nigeria is seeking to recover as much as $62 billion from international oil companies, using a 2018 Supreme Court ruling the state says enables it to increase its share of income from production-sharing contracts.

Novatek eyes LNG cargo transfers should tanker sanctions last

Russia’s biggest liquefied natural gas producer expects to be able to mitigate any impact should U.S. sanctions on China prevent it from using a third of its fleet.

Oil falls as U.S.-China tensions escalate before trade talks

Oil fell again, erasing earlier gains, as economic tensions between the U.S. and China flared ahead of talks aimed at resolving their long-running trade feud.

Oilpatch jobs are drying up in the Permian basin

Through August, Permian employment has grown at an annualized rate of 0.7%, far less than the 11.4% growth of the same period last year, the Dallas Fed said Wednesday in its latest monthly report.

Acknowledging demand risks, OPEC+ ministers maintain production strategy

“Of course, demand is affected by the status of the global economy, and the economy is slowing down,” Russian Energy Minister Alexander Novak said in Moscow. “There are no crisis events that call for an emergency meeting.”

API president & CEO Mike Sommers touts energy’s $2 billion economic impact on New Mexico communities

American Petroleum Institute president and CEO Mike Sommers today met with New Mexico business leaders, school administrators, and local leaders, who highlighted the transformational role of safe and responsible energy development in the Permian basin on the state’s economy and local communities.

Oil erases all gains made since Saudi attacks as tensions thaw

Futures declined as much as 2.9% in New York, erasing all the gains made since attacks on Saudi Arabia earlier this month. The Saudis have agreed to a limited cease-fire in several areas of Yemen including the capital Sana’a, which is controlled by Iran-backed Houthi rebels, a Yemeni government official said.

Tanker costs surge as Chinese firms face sanctions over Iranian oil

“There’s a lot of panic out there,” said Halvor Ellefsen, a tanker broker at Fearnleys in London. “Modern vessels are available, but just hard to get.”

Aramco’s IPO timeline leaves research analysts scrambling

Saudi Aramco is wasting no time pushing ahead with its initial public offering, leaving legions of analysts scrambling to prepare research that will help investors decide whether to buy into one of the world’s biggest ever share sales.

Targeting a $2 trillion valuation, Aramco readies IPO plan for October

The state-run company plans to announce its intention to float around Oct. 20, according to people with knowledge of the matter. The firm, which is holding analyst meetings from Wednesday, is targeting a valuation of at least $2 trillion -- more than double that of Apple Inc.

Hedge fund renews call for Marathon Petroleum to split; shares jump

Elliott Management renewed its push for Marathon Petroleum to split into three separate businesses, a move the hedge fund said would unlock more than $22 billion in value.

McDermott seeking bridge loan until it can sell assets

McDermott International is seeking a bridge loan to help it cover a working-capital deficit of about $1.7 billion until it can sell an asset such as its Lummus Technology unit, according to a person with knowledge of the matter.