Oil

LONDON: Oil prices dropped on Monday on big spikes in COVID-19 infections over the weekend in the United States and elsewhere while traders await an OPEC technical meeting expected to recommend an easing of supply cuts.Brent crude fell 65 cents, or 1.5 per cent, to $42.59 a barrel by 0848 GMT, though prices have been hovering around $42 for a couple of weeks. US crude was down 75 cents, or 1.9 per cent, at $39.80."Pricing pressures are locked in a holding pattern and will remain so until the coronavirus pandemic is brought under control. Until then, there will continue to be a lack of conviction in upside potential," said Stephen Brennock of oil broker PVM.US COVID-19 infections surged over the weekend as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state.Oil traders also remained on edge as the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) prepares to meet on Tuesday and … [Read more...] about Crude oil prices dip on surge in Covid-19 infections

Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are expected to more than triple their earnings per share, while Indian Oil may see a 37% increase from a year earlier, according to estimates by ICICI Securities.A record net auto fuel marketing margin of Rs 6.11 per litre in the April-June quarter, up 3.3 times from the year-ago period, will drive the earnings surge, the brokerage said. The gross refining margin for BPCL and HPCL is estimated to rise 2.1-9.3 times to $5.9-6.9 per barrel, while it may decline 9% to $ 4.3 a barrel for Indian Oil.HPCL and BPCL would make a product inventory gains of Rs 550-850 crore during the quarter against a loss of Rs 20-130 crore in the year-ago period, according to the brokerage. Indian Oil may make a smaller product inventory gain of Rs 256 crore.HPCL and BPCL are likely to have a crude inventory gain of $0.6 per barrel while Indian Oil will have a loss of $0.1 per barrel during the quarter. Indian Oil, with a larger refining capacity than … [Read more...] about State oil refiners’ earnings expected to surge in Q1

RIO DE JANEIRO: On Friday, May 1, two workers on the PXA-1 offshore platform owned by Brazil's state-run oil company Petrobras checked into the facility's infirmary complaining of headaches and fever-like symptoms.Another Petrobras employee fell visibly ill the following day, three workers from the platform told Reuters.The sickness spread further in the subsequent days, stoking anxiety among the 45 workers onboard, all but one of whom later tested positive for the novel coronavirus, according to the local union.While all have since recovered, the three workers, who spoke on the condition of anonymity because they were not authorized to talk to the media, said they are deeply embittered because they believe Petrobras failed to take now-standard precautions to prevent the spread of the virus, like testing workers before they went onboard rigs or providing them high-quality masks.The three workers and Paolo Valterson, the local union's health director, questioned why the workers were not … [Read more...] about Brazil’s offshore oil workers chilled by coronavirus outbreaks

DUBAI: Saudi Arabia's oil exports in August will remain the same as in July as the extra barrels the kingdom is set to pump next month under an OPEC+ deal will be consumed domestically to meet rising power generation demand, industry sources told Reuters.Saudi Arabia often burns more oil - estimated at about 550,000 barrels per day (bpd) - during the hot summer months for power generation.This summer the demand for oil burning is set to rise more than last year due to COVID-19 movement restrictions which have forced millions of people to stay home.The Organization of the Petroleum Exporting Countries and others led by Russia, known as OPEC+, have been cutting oil output since May by a record 9.7 million bpd. Under their agreement, after July the cuts are due to taper to 7.7 million bpd until December.Key OPEC+ ministers, including Saudi Arabia and Russia as members of the Joint Ministerial Monitoring Committee (JMMC), will hold talks on Wednesday to review the oil market and compliance … [Read more...] about Saudi oil exports in Aug to stay at July level -sources

LONDON: Hedge funds have stopped buying oil in recent weeks as the rally that carried prices higher during May and June has run out of momentum, amid concerns about the faltering economic recovery.Hedge funds and other money managers sold the equivalent of 21 million barrels in the six most important petroleum futures and options contracts in the week ending July 7.Funds have purchased just 2 million barrels over the most recent four weeks, compared with 72 million barrels over the previous four and 179 million barrels over the four before that.Last week's sales were concentrated in Brent (-15 million barrels) and NYMEX and ICE WTI (-10 million), offset by small purchases in US gasoline (+1 million), US diesel (+2 million) and European gasoil (+1 million).The deceleration in hedge fund buying has coincided with a loss of upward price momentum in the crude market over the same four-week period.Front-month Brent futures prices rose less than $2 per barrel compared over the last four … [Read more...] about OPINION: Hedge funds pause oil buying as rally stalls: Kemp