Category Archives: News

Saudis urge OPEC+ to stick with oil cuts as job not yet done

Category : News

By Grant Smith, Salma El Wardany and Dina Khrennikova on 3/17/2019

LONDON, CAIRO and MOSCOW (Bloomberg) — OPEC and its allies have much work ahead to balance global oil markets and are prepared to do what’s necessary in the second half, Saudi Energy Minister Khalid Al-Falih said.

The 24-nation coalition known as OPEC+ needs to “stay the course” until June as its job is “nowhere near complete” in terms of restoring oil-market fundamentals, Al-Falih said late Sunday at a news conference in Baku, Azerbaijan. U.S. inventories remain significantly above normal levels, and there is a risk of oversupply in the short term, he said.

But there was less full-throated support for extending the OPEC+ output-cuts agreement from Russia and Iraq — the pact’s other two biggest producers. Russian Energy Minister Alexander Novak said at the same briefing that uncertainties arising from production in Venezuela and Iran make it difficult for the coalition to determine its next step before May or June.

The ministers spoke ahead of a planned meeting in Baku on Monday of a committee of OPEC+ members responsible for monitoring output. The Organization of Petroleum Exporting Countries and its allies have entered its third year of curbing supply in order to defend crude prices. While they’ve helped engineer a 25% recovery in Brent this year, current prices of about $67/bbl remain well below the levels that most of the producers need to cover government spending.

Job still remains

“My assessment is that the job still remains ahead of us,” Al-Falih said. “We’re still seeing inventory builds.” At the same time, many investors are skittish about investing in oil exploration and production due to uncertainty, and OPEC+ doesn’t want a situation where crude prices are too high, he said.

“We remain ready to continue monitoring supply and demand and doing what we have to do in the second half of 2019 to keep the markets balanced,’’ Al-Falih said.

OPEC has faced pressure from U.S. President Donald Trump to “relax” its stance on curbing supply, as severe strains on output from two members — Iran and Venezuela — threaten to trigger a shortage.

Al-Falih said the crises haven’t changed his view on the need to persevere with output restraints, as losses in both those countries haven’t been severe enough to prevent a renewed accumulation of oil inventories. If the slump in Iranian and Venezuelan supplies intensifies, OPEC is prepared to respond as it has in the past, he said.

Better compliance

Producers are conforming well with output cuts they agreed to make starting in January, and their compliance is improving and will easily exceed 100% in March, Al-Falih said. Saudi Arabia will pump about 9.8 MMbopd in March and April and export less than 7 MMbopd in both months, he said. The kingdom has a production target of 10.3 MMbopd.

“We agreed today we need to keep monitoring the situation and by May or June to discuss decisions for the second half of the year,” Novak said at the conference. Russia has trimmed its output by an average of 140,000 to 150,000 bopd in March compared with October, the reference month for Russia’s cuts, Interfax reported.

Iraq is doing its best to adhere to its pledged reduction and will pump less in March than in either January or February, Ghadhban, the Iraqi minister, said. While welcoming the price boost from the current accord, he said he hopes that producers continue to put into effect the cuts they’ve promised.

“We should continue till June and then decide, but we are continuously observing and analyzing the market,” Ghadhban said.


OPEC+ affirms commitment to oil cuts, defers decision to extend

Category : News

By Dina Khrennikova, Zulfugar Agayev and Annmarie Hordern on 3/18/2019

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Photo: Rusiian Energy Minister Alexander Novak.

BAKU (Bloomberg) — Saudi Arabia led fellow members of the OPEC+ coalition to reaffirm their commitment to output cuts, but conceded they should defer until June the decision on whether to extend the curbs.

A committee of the most influential members in the 24-nation alliance, which includes Russia, Iraq and the United Arab Emirates, agreed to go beyond their pledged supply curbs in the coming months. They also recommended canceling a planned April meeting, saying it would be too soon to determine whether the cuts should continue into the second half.

The change in timing, which still needs to be agreed by the wider coalition, reflects what the committee described as “critical uncertainties” in the oil market, with U.S. sanctions threatening to remove significant supplies from Iran and Venezuela. It’s also the latest sign that Russia, not Saudi Arabia, is setting the agenda for a group that controls more than half of global crude production.

When OPEC and its allies agreed their production cuts in December, Saudi Energy Minister Khalid Al-Falih was initially in favor of a decision to extend them into the second half of 2019 at the planned April meeting. Speaking before talks in Baku, Azerbaijan on Monday, he acknowledged that “April will be premature to make any decisions.”

Russia and Iraq, the pact’s two other major producers, had pushed back against committing to rolling over the OPEC+ cuts agreement so soon. Russian Energy Minister Alexander Novak said on Sunday that uncertainties arising from production in Venezuela and Iran make it difficult for the coalition to determine its next step before May or June.

New members

The Saudi minister spoke ahead of a meeting in Azerbaijan’s capital of the Joint Ministerial Monitoring Committee, which oversees the production cuts. It was formed when the Organization of Petroleum Exporting Countries first formed its alliance with non-members in late 2016, initially consisting of Saudi Arabia, Algeria, Kuwait, Venezuela, Russia and Oman.

They agreed on Monday to add Iraq, Kazakhstan, Nigeria and the United Arab Emirates to the committee, while Oman gave up its place.

The group’s cuts have helped engineer a 25% recovery in Brent crude this year. Prices were little changed near $67/bbl on Monday, well below the levels that most of the producers need to cover government spending.

Market fundamentals have “significantly improved but more needs to be done,” Al-Falih said on Monday. “We’re seeing inventories building, and even if they stop building we still have a long way to go” to bring the market back into balance.

OPEC has faced pressure from U.S. President Donald Trump to “relax” its stance on curbing supply, as severe strains on output from Iran and Venezuela threaten to trigger a shortage.

Al-Falih said the crises haven’t changed his view on the need to continue output restraints, as losses in both those countries haven’t been severe enough to prevent a renewed accumulation of oil inventories. The oil market is getting tighter, but not enough to reverse the cuts, he said.

If the slump in Iranian and Venezuelan supplies intensifies, OPEC is prepared to respond as it has in the past, Al-Falih said.

Better Compliance

Producers are conforming well with output cuts they agreed to make starting in January, and their compliance is improving and will easily exceed 100 percent in March, Al-Falih said. Saudi Arabia will pump about 9.8 million barrels a day in March and April and export less than 7 million barrels daily in both months, he said. The kingdom has a production target of 10.3 MMbopd.

“We agreed today we need to keep monitoring the situation and by May or June to discuss decisions for the second half of the year,” Novak said on Sunday. Russia has trimmed its output by an average of 140,000 to 150,000 bopd in March compared with October, the reference month for Russia’s cuts, Interfax reported.

“Currently, the price is acceptable to all the parties, both to consumers and producers, and you can see that the level of volatility is extremely low,” Novak said in an interview with Bloomberg. “We may be balanced today but we don’t know what’s going to happen.”

Iraq is doing its best to adhere to its pledged reduction and will pump less in March than in either January or February, Thamir Ghadhban, the Iraqi minister, said. While welcoming the price boost from the current accord, he said he hopes that producers continue to put into effect the cuts they’ve promised.

“We should continue till June and then decide, but we are continuously observing and analyzing the market,” Ghadhban said.


CWT Energy, Resources and Marine has launched ERM mobility

Category : News

3/17/2019

LONDON — CWT Energy, Resources and Marine, a unit of global travel management company CWT, has launched a brand new version of ERM mobility, a powerful workflow management platform that allows companies to manage complex travel needs through one single interface, reducing complexity, speeding up processes, boosting safety, and saving money.

“Travel in the ERM industry can be a hugely complicated business, involving crew rotations to the world’s most difficult places via commercial flights, chartered planes, helicopters, or speedboats, fleets of buses, camp and site accommodation, and dozens of different service providers. ERM mobility

ties it all together, making travel simple,” said Raphaël Pasdeloup, Senior VP and Global Head of CWT Energy, Resources & Marine. “The upshot is that our clients save around 15%, spend up to 75% less time on booking – and get much more control over their travel program.”

ERM mobility consolidates all the myriad data sources and processes into a single seamless workflow, with all the complexity hidden away behind an easy-to-use interface. CWT ERM can thus provide travelers with a fully-integrated booking solution, which looks and handles like a consumer-grade product. Logistics coordinators use a single touchpoint to access all aspects of commercial and remote site travel management.

Meanwhile, travel managers get accurate, real-time information on each traveler, enabling them to react quickly and effectively in emergencies like extreme weather events, industrial accidents, or security incidents.

Since the energy, resources and marine industries operate in extreme, dangerous and remote locations, that can mean the difference between life and death.

By combining and consolidating all the data flows involved in travel – commercial and specialist, global and local – the ERM mobility platform also delivers clean, consistent data for financial reporting,

efficient workforce management and optimization of travel spend.

ERM mobility is available globally.