Bloomberg: Saudis Pledge Deeper Oil Cuts in February Under OPEC+ Deal
Saudi Arabia expects to reduce oil output once again in February and pump for six months at levels “well below” the production limit it accepted under OPEC’s oil-cuts accord, Energy Minister Khalid Al-Falih said.
The world’s biggest exporter targeted production of 10.2 million barrels a day in January and is aiming to pump about 10.1 million in February, he said. Saudi Arabia’s voluntary limit under the December cuts deal with Russia and other producers was 10.33 million barrels a day.
“Saudi Arabia will be well below the voluntary cap that we agreed to” and will pump beneath its ceiling “for the full six months” of the December cuts accord, he said in a Bloomberg Television interview in Riyadh.
Read full article: https://www.bloomberg.com/news/articles ... -opec-deal
Oil Price - Jan 29
Oil Price - Jan 29
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Jan 29
New York Times: U.S. Targets Venezuela With Tough Oil Sanctions During Crisis of Power
The Trump administration imposed sanctions against Venezuela’s state-owned oil company on Monday, seeking to cripple the government of embattled President Nicolás Maduro by cutting off its main source of cash. The move marked the first punitive step by the United States to force Mr. Maduro to give up power since the opposition leader, Juan Guaidó, declared himself interim president last week after years of accusations of corruption in Venezuela at the expense of its people. The sanctions prohibit most American businesses from engaging in transactions with the oil company, Petróleos de Venezuela, S.A., or Pdvsa. Administration officials said the financial penalties are expected to block $7 billion in assets and result in $11 billion in export losses over the next year for Venezuela’s government, starving it from its most important source of revenue and foreign currency. Last week, the Trump administration recognized Mr. Guaidó, the 35-year-old leader of the National Assembly, as his supporters took to the streets to demand new elections. Mr. Maduro has cut ties to the United States and has demanded that all American diplomats leave the country.
The Trump administration imposed sanctions against Venezuela’s state-owned oil company on Monday, seeking to cripple the government of embattled President Nicolás Maduro by cutting off its main source of cash. The move marked the first punitive step by the United States to force Mr. Maduro to give up power since the opposition leader, Juan Guaidó, declared himself interim president last week after years of accusations of corruption in Venezuela at the expense of its people. The sanctions prohibit most American businesses from engaging in transactions with the oil company, Petróleos de Venezuela, S.A., or Pdvsa. Administration officials said the financial penalties are expected to block $7 billion in assets and result in $11 billion in export losses over the next year for Venezuela’s government, starving it from its most important source of revenue and foreign currency. Last week, the Trump administration recognized Mr. Guaidó, the 35-year-old leader of the National Assembly, as his supporters took to the streets to demand new elections. Mr. Maduro has cut ties to the United States and has demanded that all American diplomats leave the country.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Jan 29
Raymond James: "...we believe that a robust back-end-loaded 2019 oil price rally is on deck, hence our full-year 2019 oil price forecast of $62 WTI and $72 Brent. Furthermore, we expect this oil price momentum to carry into 2020, driving Brent prices to average $100 (or better) in 2020."
RJ is forecasting $75/bbl WTI by year-end 2019. If so, the 12 "non-gassers" in the Sweet 16 should all at least double this year. Note the words "at least".
RJ is bearish on natural gas, but I am in the camp that believes Mother Nature has another idea. However, RJ does forecast HH gas averaging $2.80 this year which is slightly higher than what I am assuming for my forecast models. All of our "gassers" do sell a lot of NGLs and NGL prices have a tighter relationship with crude oil than they do with dry gas.
RJ is forecasting $75/bbl WTI by year-end 2019. If so, the 12 "non-gassers" in the Sweet 16 should all at least double this year. Note the words "at least".
RJ is bearish on natural gas, but I am in the camp that believes Mother Nature has another idea. However, RJ does forecast HH gas averaging $2.80 this year which is slightly higher than what I am assuming for my forecast models. All of our "gassers" do sell a lot of NGLs and NGL prices have a tighter relationship with crude oil than they do with dry gas.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group