Medical and Hospital News  
OIL AND GAS
Ravaged oil rebounds on China move, price war hopes
by Staff Writers
London (AFP) April 2, 2020

Crude futures, ravaged by crushed global demand due to the coronavirus pandemic, surged Thursday on hopes of US help to end a Saudi-Russia price war that contributed to the slump.

Benchmark contracts Brent North Sea and West Texas Intermediate soared more than 10 percent before paring gains somewhat.

Around 1415 GMT, WTI was up 8.6 percent at $22.05 per barrel and Brent showed a gain of 6.3 percent to $26.29.

Both benchmarks fell to their lowest levels in 18 years this week. WTI slumped below $20, having lost around 65 percent of its value in the first quarter.

Prices bounced back Thursday on "news that China is beginning its state stockpiling purchases", said Commerzbank analysts in a client note.

"What is more, US President Donald Trump made optimistic remarks..., claiming that Russia and Saudi Arabia would soon approve a new production cut agreement."

Analysts said however that the market remained hobbled by sliding demand because of business shutdowns, the grounding of air travel and other social distancing measures put in place to contain the deadly COVID-19 outbreak.

Helping to ease the supply glut, Beijing has called on authorities to buy up the commodity to fill its reserves.

China's move has helped to boost prices at a time when the oil market experiences an extremely rare situation.

Some crudes are in fact being priced negatively, meaning producers are paying customers to take it off their hands.

Despite evaporating demand, production has continued apace as Russia and Saudi Arabia vie for market share, with the excess oil struggling to find space in overstretched storage facilities around the world.

This has resulted in some oils, including Wyoming Asphalt Sour, turning negative on price.

Western Canadian Select had earlier this week traded at "four to five dollars. With the transport cost it means that the price is negative", Per Magnus, head of analysis at Rystad Energy, told AFP.

- Price war -

Hopes of a sustained rebound for all oil contracts have meanwhile materialised after Trump on Wednesday said he would meet US energy executives this week to discuss plummeting oil values.

Regarding the price war, Trump said he had spoken to Moscow and Riyadh, adding:

"I think that they will work it out over the next few days."

It came despite Saudi Arabia, the world's biggest crude exporter, on Wednesday ramping up its price war with Russia, boosting crude oil supply to record levels.

State giant Aramco offered 18.8 million barrels on a single day.

Saudi Arabia last month launched a vicious price war, after OPEC and non-member Russia failed to clinch an output-cutting deal to adapt to lower oil demand due to measures to slow the spread of the deadly coronavirus.

"This shock is extremely negative for oil prices and is sending landlocked crude prices into negative territory," Goldman Sachs said on Monday.

US shale oil producers, which had made the country self-sufficient, have been particularly hard hit by diving prices.

ANZ Bank however said that US prices were being bolstered also by reports that the US energy department may rent space in the country's emergency oil reserves to local producers.

"This would help drillers store excess crude," it said.

mba-bp/bcp/rfj/rl

COMMERZBANK

Saudi Aramco

GOLDMAN SACHS GROUP


Related Links
All About Oil and Gas News at OilGasDaily.com


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


OIL AND GAS
Delays and shattered hopes: Uganda still waiting for oil riches
Buliisa, Uganda (AFP) March 27, 2020
It was the promise of oil - billions of barrels of black gold, discovered locked beneath Lake Albert - and the riches to follow that brought electricity to Buliisa. Roads, piped water, and other unthinkable luxuries came next, as the poor farming village on the great lake's northern shores transformed into a booming frontier town, and Uganda braced for newfound prosperity as an African oil giant. But those fortunes never transpired. The wells were never dug at Buliisa, the refineries nev ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

OIL AND GAS
Hong Kong starts standing down riot police after budget hike

Under-fire Trump defends coronavirus response

Hong Kong to give big cash handouts as economy reels from virus

Coronavirus outbreak fuels China black market for supplies

OIL AND GAS
Small, precise and affordable gyroscope for navigating without GPS

Chinese smartphone-maker debuts device with embedded ISRO navigation system

China launches new BeiDou navigation satellite

Beijing to beef up support for Beidou-related industry

OIL AND GAS
Nextdoor, the network for neighbors, grows in age of social distancing

Long-overlooked arch is key to fuction, evolution of human foot

Analysis reveals prehistoric migration from Africa, Asia, Europe to Mediterranean

Scientists classify neurons by measuring their jiggle during a heartbeat

OIL AND GAS
Bushfire smoke killed endangered Aussie mice far from blazes

Nearly 50 rhinos killed in Botswana in 10 months as poaching surges

Study: To curb biodiversity declines, protect land in the tropics

Why coronavirus could help save China's endangered species

OIL AND GAS
Northern Ireland sportswear factory scrubs up in virus fight

China virus city in transport shutdown as WHO delays decision

Europe boosts China flight checks as killer virus spreads

Global health emergencies: A rarely used call to action

OIL AND GAS
China sentences Swedish bookseller Gui Minhai to 10 years' jail

Virus puts Hong Kong's 'McRefugees' back on streets

Beijing says Chinese professor confessed to spying

Hong Kong politican arrested for 'sedition' over Facebook post

OIL AND GAS
In Colombia, fleet of cartel narco-subs poses challenge for navy

Four Chinese sailors kidnapped in Gabon are free

OIL AND GAS








The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.