Tag Archives: oil

Trump Signs Permits to Export Texas Oil to Mexico Through New Infrastructure

oil

US President Donald Trump has signed orders green-lighting the added export of Texas crude oil to Mexico through new infrastructure.

“In a few moments, I will sign four critical permits granting approval to vital pipeline and railway infrastructure on our nation’s border,” Trump said before signing the documents on Wednesday. “This will include two permits allowing the export of Texas crude [oil] to Mexico.”

The White House said the two pipelines belong to Nustar Logistics, L.P.

One of the permits said it allows NuStar Energy to construct, connect, operate, and maintain pipeline at the US-Mexico border for the purposes of transporting crude oil, liquified natural gas and other energy products.

A second presidential decree renews the NuStar’s permit to maintain and operate existing pipeline infrastructure in Hidalgo County, Texas.

Sputnik

Public Conditioned to Live in ‘Bubbles,’ Use Big Tech Hitting Oil Demand

zoom

The coronavirus pandemic will take a lasting chunk out of business travel and hit demand for oil as companies adapt to Zoom ZM, -1.52% and other video-conferencing tools, a Goldman Sachs GS, +1.68% official said Thursday.

“I think you’re going to lose a good chunk of the jet demand that would have been associated with business travel. Our base case is you lose somewhere around 2 to 3 million barrels per day,” said Jeff Currie, Goldman’s global head of commodities research, at a media briefing.

Global oil demand is expected to fall by 9.3 million barrels per day in 2020, according to the International Energy Agency.

Demand for oil has been hurt significantly by the pandemic as countries impose lockdowns to control its spread, and countries have cut supplies. In April, futures for West Texas Intermediate crude traded below zero for the first time ever.

Market Watch

Zoom Does About-Face After Being Caught Routing User Data Through China

Oil Price Collapse is Another Sign That Economic Activity is Crashing Globally

oil2

The insanity that we are currently witnessing in the financial markets is difficult to believe.

Personally, even though I operate a website called “The Economic Collapse Blog” and I write about these things every day, when someone told me that the price of oil had fallen below minus 30 dollars a barrel on Monday I initially didn’t think that it could possibly be true.

Yes, I always knew that it was theoretically possible that the price of oil could go into negative territory, but we had never seen such a thing actually happen before.

Economic Collapse

AOC deletes tweet celebrating oil crash, record low interest rates

Trump Tasks Top Officials to Devise Plan to Fund Oil & Gas Industry

OPEC, Allies Agree to Massive Cut In Global Oil Production

oil

The Organization of the Petroleum Exporting Countries and allied oil producers will decide on Friday whether Mexico’s proposal to reduce its daily output is enough to secure a deal to cut global oil production.

Mexican President Andres Manuel Lopez Obrador announced the cuts after he spoke with US President Donald Trump.

“When I told him [US President] that it was 100,000 (barrels) and we couldn’t do any more, he very generously said to me that they were going to help us with the additional 250,000 to what they are going to contribute,” Obrador said at a news conference on Friday as cited by Reuters.

RT

Oil Majors Are Preparing For $10 Oil

oil

The wave of oil industry spending cuts continues, with the majors now announcing significant reductions to spending as oil remains stuck in the $20s.  Royal Dutch Shell said on Monday that it would cut spending by 20 percent, or about $5 billion, and also suspend its share buyback plan. French oil giant Total SA and Norway’s Equinor announced similar moves.

ExxonMobil and Chevron have suggested they too would be axing their budgets, with Exxon under particular pressure. Goldman Sachs estimates that Chevron needs $50 per barrel in order to cover spending and its dividend. ExxonMobil, on the other hand, needs something like $70.

The majors are relatively more insulated from the downturn than small and medium-sized shale drillers because they have downstream refining and petrochemical assets that have typically performed somewhat better than upstream units when prices fall. Refineries, for instance, spend less on oil during the downturn, and low prices also translate into a boost in sales of refined products.

Oil Price

Pompeo Blames Iran For Drone Attack That Crippled Largest Saudi Oil Facility

oil

Update 2: In a sharp, if perhaps not unexpected, escalation, US Secretary of State – now without John Bolton by his side – tweeted at 4pm on Saturday, that contrary to earlier reports, “there is no evidence the attacks came from Yemen” and instead accused Iran of launching today’s “unprecedented attack on the world’s energy supply” which has now indefinitely taken offline as much as 5mmb/d in Saudi crude production.

In a follow up tweet, Pompeo said that he calls “on all nations to publicly and unequivocally condemn Iran’s attacks” which is odd as not even Saudi Arabia accused Iran of today’s aggression (which many speculated could have been a Saudi false flag in hopes of sending the price of oil soaring ahead of the Aramco IPO). Pompeo concluded that “the United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”

Zero Hedge

Saudi King Increases Oil Production at Trump’s Request to Lower Gas Prices

sauditrump

Donald Trump said on Saturday that he spoke to the Saudi king about the need to increase Saudi Arabia’s oil production to two million barrels due to an unstable situation in Iran and Venezuela, stressing that King Salman bin Abdulaziz Al Saud agreed with the proposal.

The US President posted the information about the talks on his Twitter account.

Saudi King Salman and the US president in a phone call emphasized the need to preserve stability in oil markets and efforts of oil-producing countries to compensate for any potential shortages.

Oil prices raised this week after Washington said it would offer no extensions or waivers to Iran’s oil buyers.

Sputnik