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Wednesday, 10 June 20
OPEC+ CUTS EXTENSION TO ACCELERATE MARKET REBALANCING - FITCH RATINGS
 Fitch Ratings-London-08 June 2020: The OPEC+ agreement to extend by one month record oil production cuts should accelerate market rebalancing, Fitch Ratings says. This is further supported by a commitment to improve compliance from those countries that were unable to reach full conformity with the cuts.
The OPEC+ countries have made radical production cuts in the stress scenario, but it may be more difficult to reach a consensus when the worst of the crisis is over. And it is unclear whether the recovery in oil prices to date is sustainable. Furthermore, demand and production in non-OPEC+ countries, notably the US, will continue to have a significant impact on the supply-demand balance and prices. We believe that a normalisation of oil inventory built up in 1H20 will take at least several months.
Crude oil prices rose significantly in May and continued to improve in early June, because the surplus has been reduced materially. A price differential between the physical and financial markets has disappeared, pointing to crude oil market tightening. We believe that a stress case scenario with prices falling significantly below USD30/bbl is now less likely. The market is likely to experience a production deficit in 2H20 due to gradually improving demand and reduced supply.
The OPEC+ cuts were the major contributor to market rebalancing. We estimate that the OPEC+ countries reduced production by around 7.5mmbpd in May compared to March. The cumulative OPEC+ cuts should exceed 9mmbpd in June as Saudi Arabia, Kuwait and UAE have committed to cut an additional 1.1mmbpd, while Iraq and Nigeria, which underperformed in May, have promised to improve compliance in June. A resumption of production in Libya, which is not subject to the OPEC+ deal, may increase supply but should be more than offset by additional cuts elsewhere.
Furthermore, production fell in the US as a result both of shut-ins and reduced drilling activity by almost 2mmbpd at end-May compared to March, while Canada cut around 1mmbpd. The number of active drilling rigs in the US declined by 64% compared to the beginning of the year. Production in North America may continue to shrink for a while, but the pace is likely to decelerate due to increased prices. We believe that at USD30/bbl, many producers should be able to stabilise production, while at USD40/bbl or above some would be tempted to increase output, which could limit price recovery.
Estimates suggest crude oil demand increased in May compared to April, and we believe it will improve further from June due to the gradual lifting of lockdown restrictions. Implied oil products consumption in the US improved from a 28% drop in April yoy to a 20% drop in May, driven mainly by increased gasoline consumption (a yoy decline of 25% in May compared to a 44% decline in April), while the consumption of jet fuel remained flat. We believe consumption patterns are similar in Europe, while demand in China bottomed out in February.
Demand recovery is now key in achieving balance in the oil market. It could be undermined in the event of a second coronavirus wave and the re-introduction of lockdowns, although it is not our base case. While consumption of gasoline and diesel could recover by the year-end, jet fuel may lag behind as international travel restrictions may remain in place and demand for business travel may be structurally impaired.
Our ratings are informed by companies’ projected performance at end-2021, rather than in 2020, provided their liquidity is adequate, as we rate “through the cycle”. While we may recalibrate our near-term oil price assumptions to the pace of market rebalancing, our ratings already assume that the market will recover gradually; therefore the most recent improvements will not prompt portfolio-wide rating actions.
Source: Fitch Ratings
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Thursday, 11 June 20
JAN-MAY, INDONESIA SHIPPED 175.15 MILLION TONS OF COAL TO ITS OVERSEAS BUYERS
Indonesia's coal production for the first 5 months of this year have reached 228 million tons. January – May 2020, Indonesia shipped US$ ...
Thursday, 11 June 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Wednesday, 10 June 20
MARKET INSIGHT - INTERMODAL
In contrast to the economic projections of the past two years for the first half of 2020, the oil & gas industry and those involved in it faced ...
Wednesday, 10 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX DOWN 0.19 PCT - XINHUA
China Taiyuan coal transaction price index stood at 123.71 points Monday, down 0.19 percent week on week.
The index, released by Chi ...
Tuesday, 09 June 20
BUNKER SUPPLY CONTRACTS - KEY CONSIDERATIONS FOR THE BUYER - GARD
KNOWLEDGE TO ELEVATE
Regardless of whether a buyer purchases fuel directly from physical suppliers or via brokers or traders and whether sale ...
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Showing 916 to 920 news of total 6871 |
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- Latin American Coal - Colombia
- Kohat Cement Company Ltd. - Pakistan
- Australian Coal Association
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Bukit Asam (Persero) Tbk - Indonesia
- Africa Commodities Group - South Africa
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Formosa Plastics Group - Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Savvy Resources Ltd - HongKong
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Bangladesh Power Developement Board
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- Indika Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Commonwealth Bank - Australia
- Rio Tinto Coal - Australia
- Borneo Indobara - Indonesia
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Parliament of New Zealand
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Coalindo Energy - Indonesia
- Thai Mozambique Logistica
- Bharathi Cement Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- Cement Manufacturers Association - India
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Chettinad Cement Corporation Ltd - India
- Sical Logistics Limited - India
- Edison Trading Spa - Italy
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Sojitz Corporation - Japan
- Essar Steel Hazira Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kalimantan Lumbung Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- CIMB Investment Bank - Malaysia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining and Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Heidelberg Cement - Germany
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- GMR Energy Limited - India
- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Oldendorff Carriers - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Toyota Tsusho Corporation, Japan
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercator Lines Limited - India
- Kepco SPC Power Corporation, Philippines
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Port Waratah Coal Services - Australia
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Intertek Mineral Services - Indonesia
- Star Paper Mills Limited - India
- McConnell Dowell - Australia
- Mjunction Services Limited - India
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- London Commodity Brokers - England
- White Energy Company Limited
- Antam Resourcindo - Indonesia
- Wood Mackenzie - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Goldman Sachs - Singapore
- Meralco Power Generation, Philippines
- Marubeni Corporation - India
- LBH Netherlands Bv - Netherlands
- Aboitiz Power Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Posco Energy - South Korea
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- The University of Queensland
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- Indogreen Group - Indonesia
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- Global Green Power PLC Corporation, Philippines
- Siam City Cement PLC, Thailand
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- PNOC Exploration Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Australian Commodity Traders Exchange
- GAC Shipping (India) Pvt Ltd
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Baramulti Group, Indonesia
- South Luzon Thermal Energy Corporation
- Malabar Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Electricity Authority - India
- CNBM International Corporation - China
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
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