Who Is Really Responsible For The Oil Price War

At the end of March, Urals spot prices in northwestern Europe fell below $15 per barrel, a huge drop from the end of February when Urals spot prices had exceeded $50. Many observers attributed such a strong price collapse to the breakdown of the OPEC+ deal, and they blamed Russia for the suspension of the agreement. The breakdown of the agreement, however, was inevitable from the moment the OPEC+ deal was first signed in 2016. Russia agreed to cooperate with a very weak OPEC in order to salvage the balance of the market as well as to better its…

Russia Decides Not To Boost Oil Output

Russia is not raising its crude oil production because it doesn’t make sense for Russian firms to boost output while the market is oversupplied, a Russian government official told Bloomberg on Wednesday, the day on which the OPEC+ pact expired and Saudi Arabia is gearing up to flood the market with oil. While the Saudis have been pledging record oil exports over the next few months after the OPEC+ deal with Russia collapsed in early March, Russia has hinted that the current market situation with oil prices so low and the…

Trump May Join Oil Talks Between Russia And Saudi Arabia

President Donald Trump said he might join a discussion about oil production and prices with Saudi Arabia and Russia that, according to him, is ongoing. “The two countries are discussing it and I am joining at the appropriate time if need be,” Trump told reporters as quoted by Reuters. He also said he had talked separately with Russia’s President Vladimir Putin and Saudi Arabia’s Crown Prince Mohammed and that these talks had been “great”. Oil has plummeted to $25 for Brent and $20 for West Texas Intermediate,…

Oil And Fuel Demand Set To Plummet In April

Global oil demand: In another consecutive revision of our weekly estimates, our newest forecast for oil demand now projects a decrease of 6.4 percent for 2020, or 6.4 million barrels per day (bpd) year-on-year. Our estimates show that total oil demand in 2019 was approximately 99.9 million bpd, which is now projected to decline to 93.5 million bpd in 2020. To put the number into context, last week we projected a decrease of 4.9 million bpd. At the moment we expect the month of April to take the biggest hit, with demand for oil estimated at 77.6…

Oil And Fuel Demand Set To Plummet In April

Global oil demand: In another consecutive revision of our weekly estimates, our newest forecast for oil demand now projects a decrease of 6.4 percent for 2020, or 6.4 million barrels per day (bpd) year-on-year. Our estimates show that total oil demand in 2019 was approximately 99.9 million bpd, which is now projected to decline to 93.5 million bpd in 2020. To put the number into context, last week we projected a decrease of 4.9 million bpd. At the moment we expect the month of April to take the biggest hit, with demand for oil estimated at 77.6…

$1 Oil: Saudi Arabia’s Attempt To Crush U.S. Shale

After having crashed nearly 70 percent in the first three months of 2020, benchmark WTI prices are trying to form a bottom around $20 per barrel. But this psychological threshold is looking increasingly shaky as global crude storage facilities are filling up at an unprecedented pace. OPEC and its partners officially ended their output cut deal today, following the words of Russian Energy Minister Novak that every producer is ‘’free to pump at will’’. With a flood of physical crude set to hit the market, it will take weeks,…

Supermajor Bails On Shale As Oil Price War Weighs

UK supermajor BP joined on Wednesday its rivals in slashing capital expenditures and reducing U.S. shale production guidance in “the most brutal environment for oil and gas businesses in decades,’’ with the double supply-demand market shock. Other majors, including Shell, Total, Exxon, and Chevron, have already announced cuts in their capital expenditure (capex) for this year. BP is taking actions to protect the health of the company by cutting this year’s capex to US$12 billion, which would be 25 percent…

Shale Giant Files For Bankruptcy As Oil Price War Rages On

U.S. shale producer Whiting Petroleum Corporation, once one of the top producers in the Bakken, said on Wednesday that it had filed for bankruptcy protection, becoming the first major victim of the oil price war and the coronavirus pandemic that sent oil prices to $20.   Whiting Petroleum Corporation, whose largest projects are in the Bakken and Three Forks plays in North Dakota and the Niobrara play in northeast Colorado, said in a statement that it had started voluntary Chapter 11 cases under the United States Bankruptcy Code in…