OilPrice.com Daily News Update
All the latest in Oil, Gas, Commodity news and analysis
Will OPEC+ Extend Its Historic Production Cut Agreement?
by Nick Cunningham
1 Jun 2020 at 5:00pm
OPEC+ is set to bring forward its meeting to Thursday, with a short extension of the current production cuts as the most likely outcome. Originally scheduled to take place on June 9, OPEC is now looking at moving it up to June 4. The latest reports suggest that the idea would be to extend the current output restrictions for one to three months. As it stands, without an extension the extraordinary cuts agreed upon in April ? 9.7 million barrels per day (mb/d) ? will expire at the end of June. But nothing has been decided yet and?
Trump And Putin Discuss The Future Of The Oil Market
by Julianne Geiger
1 Jun 2020 at 4:30pm
U.S. President Donald Trump and Russian President Vladimir Putin discussed via phone the OPEC+ production cut agreements on Monday, according the Kremlin. The discussions included acknowledgement that the current OPEC+ production cuts, of which Russia is a part, would ?lead to a gradual restoration of oil demand and price stabilization,? the Kremlin said. Further details of what was discussed with regards to the oil markets was not disclosed. Other topics of conversation between the two presidents were the launch of the?
Offshore Oil Is On The Brink Of Collapse
by Irina Slav
1 Jun 2020 at 4:00pm
Project cancellations, spending cuts, well shut-ins: the problems and dilemmas plaguing onshore oil producers have also spread to offshore. And while the effects of the Covid-19 pandemic on onshore drilling may already be wearing off here and there where drilling is cheap, they may linger for longer offshore. Despite major progress made by oil companies in the cost department, offshore drilling often remains more expensive than onshore drilling, not least because the process of extraction is more complex. These are costs that one can?t?
Why Has Tesla Halved The Model Y Delivery Timeline?
by Tsvetana Paraskova
1 Jun 2020 at 3:30pm
Two weeks after Tesla reopened its factory in Fremont, California, the electric vehicle (EV) maker halved the estimated delivery timeline for its Model Y to 4-8 weeks compared to 8-12 weeks just after reopening, leaving aficionados and analysts wondering why the sudden change. According to Electrek?s Fred Lambert, one company-specific reason could be that the EV manufacturer has used the shutdown to smoothen Model Y production lines to a quicker-than-usual ramp-up. Tesla started delivering Model Y in the United States in the middle of?
Will America Win The Race For Nuclear Fusion?
by Anes Alic
1 Jun 2020 at 3:00pm
An MIT spin-out company is planning to cross the commercial nuclear fusion finish line before anyone else, and big money is backing this game-changing tech that will dictate our energy future by promising unlimited zero-carbon energy--the holy grail. By 2025, Commonwealth Fusion Systems (CFS)--an MIT spin-out--plans to see is SPARC project become the first fusion reactor to show "net energy gain" by 2025. By 2030, it intends to make nuclear fusion a commercial reality, disrupting all those nuclear fusion experiments elsewhere in the world?
Britain's Largest Solar Farm Gets The Green Light
1 Jun 2020 at 2:30pm
Business secretary Alok Sharma has today given the go-ahead to Britain?s largest solar energy park on the north Kent coast. The Cleve Hill park, which is being built by a joint venture of specialist solar firms Hive Energy and Wirsol Energy, will consist of 800,000 panels built on 890 hectares of land in Graveney. The site will generate 50 megawatts of electricity, which is enough to power more than 90,000 homes. Due to the size of the plant, the development is designated a nationally significant infrastructure project. Chris Hewitt,?
The Future Of Wind Energy
by Tsvetana Paraskova
1 Jun 2020 at 2:00pm
Proponents of renewable energy have faced criticism for years that while wind and solar power generate clean energy, the supply chain behind the technologies used in wind tower turbines and solar panels is far from environmentally friendly and sustainable. Most wind towers on which blades are installed are made of steel - one of the most carbon-intensive industries in the world and one that has not yet found a viable large-scale solution to cut emissions. The higher the tower, the more wind it can potentially capture, but it would also cost more?
Israel Is Betting Big On Solar Power
by Tsvetana Paraskova
1 Jun 2020 at 1:30pm
Israel, which hopes to become energy-independent with its huge natural gas fields, is aiming to significantly boost its solar power generation over the next decade under a new US$22.8 billion (80 billion Israeli shekel) plan, the country?s energy ministry said, as carried by Reuters. The huge Leviathan natural gas field - discovered in 2010 - together with other fields discovered offshore Israel in the past decade such as Tamar, Karish, and Tanin, is expected to help Israel become energy independent. Natural gas currently accounts for?
The Big Tech Company Backing Canada's Oil Sands
by Michael Kern
1 Jun 2020 at 1:00pm
As uncertainty continues to wreak havoc on the global crude market, a surprising partnership between Amazon and one of Canada?s most controversial oil companies may be forming. On May 13th, Amazon and TC Energy announced a deal that could end up being key in the completion of the embroiled Keystone XL pipeline. In a statement, Amazon noted that TC Energy was going ?all-in? on Amazon Web Services, and that the company has ?migrated almost 90 percent of its corporate and commercial applications.? And the timing couldn?t?
Commodities In Crisis As Geopolitical Turmoil Hits Key Markets
1 Jun 2020 at 12:30pm
U.S.-China tensions have bubbled up again, and commodity markets could be caught up in the turmoil, not least LNG. Aviation activity and jet fuel are also in the mix this week, along with corn fundamentals in North and South America, and UK solar power. 1. U.S. LNG exporters face new test as China tensions resurface (Click to enlarge) (Click to enlarge) What?s happening? The U.S. move to no longer recognize Hong Kong?s independence from mainland China could lead to new tariffs and a potential collapse of the Phase 1 trade deal that?
Russia Is Quickly Becoming The Most Dominant Force In Energy
by Defense and Foreign Affairs
1 Jun 2020 at 12:00pm
Moscow?s oil pricing dispute with the Government of Saudi Arabia, a domestic U.S. oil boom, and a fall in global oil demand since the COVID19 outbreak have damaged Russia?s oil industry. But its influence over the global oil market seems only set to increase, just one of the resource sectors Russia is seeking to dominate in the 21st Century. Oil: As the worldwide response to the pandemic was heating up in early March 2020, Saudi Arabia and Russia, the world?s two leading oil exporters, launched a pricing war for their oil on international?
The Last 6 Oil Rigs In The Centennial State
by Tsvetana Paraskova
1 Jun 2020 at 11:30am
The oil price crash has forced producers in Colorado to slash their capital expenditure, suspend completion activities, and release rig crews, leaving just six operating rigs in the state as of May 29 - the lowest number of rigs in at least 28 years. Lower liquidity and constrained access capital could make life for the companies operating in Colorado?s oil patch much more difficult, analysts and industry executives told Mark Jaffe of The Colorado Sun. Due to the price collapse in early March, oil producers in the state - from Occidental?
Oil Majors Face Another Impossible Decision
by Tsvetana Paraskova
1 Jun 2020 at 11:00am
The oil industry only has two choices as it reshapes itself after the oil price crash ? either become broader energy firms or pursue a narrower specialization in oil and gas, Energy Voice reported, citing a new report from PwC. The coronavirus pandemic brought a collapse in oil prices and demand which makes the choice for oil firms more urgent than before the crisis. Oil companies have ?years, not decades? to decide which strategy to pursue and they should start choosing now, according to PwC as quoted by Energy Voice. In a recent?
Iran Ready To Send More Fuel To Crisis-Stricken Venezuela
by RFE/RL staff
1 Jun 2020 at 10:30am
Iranian Foreign Ministry spokesman Abbas Musavi says Tehran will continue to export fuel to Venezuela if the South American country requests more supplies. Both Iran and Venezuela are under U.S. sanctions and Washington has sought to deter such shipments. "Iran practices its free trade rights with Venezuela and we are ready to send more ships if Caracas demands more supplies from Iran," Musavi told a weekly news conference on June 1 that was broadcast live on state television. Iran has sent five tankers of fuel to Venezuela, once South America's?
Three Reasons Oil Prices Are Bouncing Back
by Robert Rapier
1 Jun 2020 at 10:00am
Oil prices have come a long way since the deep dive into negative territory a month ago. One could argue that the price of West Texas Intermediate (WTI) is now $70/bbl higher than it was a month ago, when it settled at -$37.63 on April 20. Although the negative price seen near the expiration of the May contract was a brief anomaly, the June contract also dipped down to near $10/bbl. But instead of diving back into negative territory, the June contract steadily gained strength throughout the month of May, expiring above $30. So, what has changed?