UAE energy minister hopes global oil supplies will begin tightening in second half

UAE Energy Minister Suhail Al-Mazrouei speaks to journalists in Singapore on Friday. (Reuters)
Updated 22 July 2017
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UAE energy minister hopes global oil supplies will begin tightening in second half

SINGAPORE: The UAE Energy Minister Suhail Al-Mazrouei said on Friday he hopes that global supplies will start tightening in the second half of the year when demand picks up.
“We have seen healthy demand and a flattening of rig counts in the United States,” Al-Mazrouei told reporters.
“This is the beginning of the third quarter and demand picks up in the third quarter and I hope the agreement will have a significant impact in the third and fourth quarter.”
Brent crude oil prices remain just under the key $50 per barrel mark on concerns about high supplies from the Organization of the Petroleum Exporting Countries (OPEC) despite a pledge to cut output in a bid to tighten the market.
OPEC, together with some non-members like Russia, has extended a deal to cut production by 1.8 million barrels per day (bpd) to March 2018.
However, OPEC’s compliance slumped to 78 percent in June as higher-than-allowed output from Algeria, Ecuador, Gabon, Iraq, the UAE and Venezuela offset strong compliance from Saudi Arabia, Kuwait, Qatar and Angola, the International Energy Agency said last week.
“The UAE is committed to its cut,” Al-Mazrouei said.
“We have seen some increase in production in some of the countries that were not part of the agreement because of their special stance.”
Oil traders are looking ahead to Monday’s meeting between OPEC and non-OPEC members to see if it will address rising production from Nigeria and Libya, which have been exempted from the cuts.
OPEC’s Joint Ministerial Committee monitors compliance with the supply pact and will meet in St. Petersburg, Russia.
OPEC’s supply cuts have also been countered by rising US production, which has increased almost 12 percent since mid-2016 to 9.4 million bpd.
The number of rigs drilling for new US oil supply has also climbed since last year though the pace has slowed in recent weeks.


Boeing abandons 2019 outlook after 737 MAX aircraft groundings

Updated 24 April 2019
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Boeing abandons 2019 outlook after 737 MAX aircraft groundings

  • Boeing’s core earnings fell to $1.99 billion, or $3.16 per share
  • The planemaker said it faced $1 billion in increased costs in the first-quarter ended March 31

Boeing missed sharply-lowered Wall Street estimates for revenue and cashflow in the first quarter and suspended its 2019 outlook, as the world’s largest planemaker continued to suffer from the grounding of its 737 MAX jets.

The company said it faced $1 billion in increased costs in the first-quarter ended March 31, related to the 737 aircraft as it halted deliveries of the grounded planes to customers around the globe.

The company also said it was halting share buybacks.

The fallout of a second deadly crash within months in March has seen Boeing cut production of the jets to 42 aircraft per month, down from 52, and its operating cash flow in the first quarter was around $350 million lower than a year earlier.

Boeing is also spending on developing a fix for an anti-stall software known by the acronym MCAS, which has been a common link in the separate chains of events leading to the two crashes within a span of five months.

The company said it would be issuing a new forecast in the future when it has more clarity around the issues surrounding the 737 MAX.

First-quarter operating cash flow declined to $2.79 billion, from $3.14 billion, missing the Wall Street’s average estimate of $2.82 billion.

Revenue fell 2 percent to $22.92 billion, below analysts’ average estimate of $22.98 billion.

Excluding certain items, Boeing said its core earnings fell to $3.16 per share, in the quarter from $3.64 per share, a year earlier. Analysts had expected Boeing to earn $3.16 per share.