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