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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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- Singapore Mercantile Exchange
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- Power Finance Corporation Ltd., India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Meralco Power Generation, Philippines
- Iligan Light & Power Inc, Philippines
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Bukit Makmur.PT - Indonesia
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Parliament of New Zealand
- Deloitte Consulting - India
- Banpu Public Company Limited - Thailand
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Tamil Nadu electricity Board
- Antam Resourcindo - Indonesia
- Essar Steel Hazira Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Independent Power Producers Association of India
- Sakthi Sugars Limited - India
- Uttam Galva Steels Limited - India
- Port Waratah Coal Services - Australia
- Central Electricity Authority - India
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Minerals Council of Australia
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Renaissance Capital - South Africa
- Eastern Coal Council - USA
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- The University of Queensland
- Altura Mining Limited, Indonesia
- Kumho Petrochemical, South Korea
- Australian Coal Association
- Mercuria Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Maheswari Brothers Coal Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sindya Power Generating Company Private Ltd
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- Bangladesh Power Developement Board
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Krishnapatnam Port Company Ltd. - India
- Energy Development Corp, Philippines
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Indian Oil Corporation Limited
- Heidelberg Cement - Germany
- Sarangani Energy Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Vizag Seaport Private Limited - India
- Thiess Contractors Indonesia
- Salva Resources Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Larsen & Toubro Limited - India
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- ICICI Bank Limited - India
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Merrill Lynch Commodities Europe
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- Carbofer General Trading SA - India
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- European Bulk Services B.V. - Netherlands
- Electricity Generating Authority of Thailand
- Barasentosa Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- MS Steel International - UAE
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Economic Council, Georgia
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
- Tata Chemicals Ltd - India
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- Anglo American - United Kingdom
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Jorong Barutama Greston.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Bank of Tokyo Mitsubishi UFJ Ltd
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Eastern Energy - Thailand
- VISA Power Limited - India
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Mjunction Services Limited - India
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- CIMB Investment Bank - Malaysia
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement PLC, Thailand
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Grasim Industreis Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Mines - Canada
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- South Luzon Thermal Energy Corporation
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