Oil Updates — Crude extends losses; Petroecuador seeks investor boost; Oil output in Permian to reach record high in September

Oil Updates — Crude extends losses; Petroecuador seeks investor boost; Oil output in Permian to reach record high in September
Ecuador’s state oil company, Petroecuador seeks investor boost in 23 oil fields. (Shutterstock)
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Updated 16 August 2022

Oil Updates — Crude extends losses; Petroecuador seeks investor boost; Oil output in Permian to reach record high in September

Oil Updates — Crude extends losses; Petroecuador seeks investor boost; Oil output in Permian to reach record high in September

RIYADH: Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession.

Brent crude futures fell 73 cents, or 0.8 percent, to $94.37 a barrel by 0313 GMT.

WTI crude futures dipped 44 cents, or 0.5 percent, to $88.97 a barrel.

Oil futures fell about 3 percent during the previous session.

Petroecuador seeks investor boost in 23 oil fields

Ecuador’s state oil company, Petroecuador, announced on Monday two separate bidding processes to seek partners to invest in one of its largest oil blocks and almost two dozen other, smaller, fields in a quest to boost the Andean nation’s production.

Ecuador President Guillermo Lasso has said that he hopes to double Ecuador’s crude production, which currently stands at 495,000 barrels per day, with strong private investment in the strategic sector.

The first tender will be for the Sacha field, considered one of Ecuador’s most productive, pulling in 70,000 bpd. The private partner must provide financing to increase reserves and improve extraction levels in the area, Petroecuador said in a statement.

The state-run company said it will continue to operate the Sacha block jointly with the selected partner through a contract for specific integrated services, with financing from the other party.

Petroecuador did not disclose the amount of investment required or the goals for increasing production in the block.

With the second bidding process, Petroecuador is seeking financing from a contractor to increase the output of 22 oil fields located throughout the country’s Amazon region. The fields are operational but require further investment to reach their potential.

Oil output in Permian to rise to a record high in September: EIA

Oil output in the Permian in Texas and New Mexico, the biggest US shale oil basin, is due to rise 79,000 bpd to a record 5.408 million bpd in September, the US Energy Information Administration, also known as EIA, said in its productivity report on Monday.

Total output in the major US shale oil basins will rise 141,000 bpd to 9.049 million bpd in September, the highest since March 2020, the statistical arm of the Department of Energy projected.

In the Bakken in North Dakota and Montana, the EIA forecast oil output will rise 21,000 bpd to 1.157 million bpd in September, the most since November 2021.

In the Eagle Ford in South Texas, the output will rise 26,000 bpd to 1.230 million bpd in September, its highest since April 2020.

(With input from Reuters)


Suez Canal revenues hit $2.1bn in Q3, highest quarter in history: Egypt Cabinet

Suez Canal revenues hit $2.1bn in Q3, highest quarter in history: Egypt Cabinet
Updated 16 sec ago

Suez Canal revenues hit $2.1bn in Q3, highest quarter in history: Egypt Cabinet

Suez Canal revenues hit $2.1bn in Q3, highest quarter in history: Egypt Cabinet

RIYADH: Suez Canal revenues increased in the third quarter of this year by 23.5 percent year-on-year to hit $2.1 billion — the highest figure ever recorded, official data has revealed.

This increase is supported by the unprecedented jump in revenues during the month of August that hit a historical record at $744.8 million, according to a release from the Egyptian Prime Minister's Information Center on Friday.

As many as 6,252 ships crossed the canal from July to September, with a total net payload of 372.7 million tons.

Revenues during September rose by about 22 percent to $683.2 million. 

Over 2,000 vessels crossed the canal during that period from both directions compared to 1,856 vessels during the same period of last year — an increase of 9.1 percent.

The total net payload reached 120 million tons, compared to 112 million tons during September of last year, reflecting a 7.1 percent increase.

 


Binance-linked blockchain hit by $570m crypto hack, Binance says

Binance-linked blockchain hit by $570m crypto hack, Binance says
Updated 48 min 3 sec ago

Binance-linked blockchain hit by $570m crypto hack, Binance says

Binance-linked blockchain hit by $570m crypto hack, Binance says

LONDON: A blockchain linked to Binance, the world’s largest crypto exchange, has been hit by a $570 million hack, a Binance spokesperson said on Friday, the latest in a series of hacks to hit the crypto sector this year, according to Reuters.

Binance CEO Changpeng Zhao said in a tweet that tokens were stolen from a blockchain “bridge” used in the BNB Chain, which was known as Binance Smart Chain until February. Blockchain bridges are tools used to transfer cryptocurrencies between different applications.

Zhao said the hackers stole around $100 million worth of crypto. BNB Chain later said in a blog post that a total of 2 million of the cryptocurrency BNB — worth around $570 million — was withdrawn by the hacker.

The Binance spokesperson said in emailed comments that “the majority” of the BNB remained in the hacker’s digital wallet address, while about $100 million worth was “unrecovered.”

Blockchain bridges have increasingly become the target of thefts, which have long plagued the crypto sector.

BNB Chain supports the BNB cryptocurrency, formerly known as Binance Coin, which is the world’s fifth-largest token with a market value of some $46 billion, according to CoinGecko data.

Some $2 billion worth of cryptocurrency has been stolen in 13 different bridge hacks, mostly this year, crypto analytics firm Chainalysis said in August.

In March, hackers stole around $615 million from Ronin Bridge, used to transfer crypto in and out of the game Axie Infinity, in one of the largest crypto heists on record. The United States linked North Korean hackers to the theft.

BNB Chain suspended its blockchain for several hours before resuming at around 0630 GMT, it said in a tweet.

It said in its blog post that BNB Chain was “able to stop the incident from spreading” by contacting the blockchain’s “validators,” — entities or individuals who verify blockchain transactions. BNB Chain said there are 44 validators across several different time zones, without giving further details.

BNB Chain said it would introduce a new “governance mechanism” to counter future hacks, as well as to expand the number of validators.

On the Binance website, BNB Chain is described as a “community-driven, open-sourced and decentralized ecosystem.” 


Abdul Latif Jameel Energy-owned firm to develop $1bn battery energy storage platform in the UK

Abdul Latif Jameel Energy-owned firm to develop $1bn battery energy storage platform in the UK
Updated 07 October 2022

Abdul Latif Jameel Energy-owned firm to develop $1bn battery energy storage platform in the UK

Abdul Latif Jameel Energy-owned firm to develop $1bn battery energy storage platform in the UK

RIYADH: A division of Abdul Latif Jameel Energy has partnered with UK-based firm Tyler Hill Partners to develop a $1 billion battery energy storage platform in Britain, MEED reported.

Fotowatio has put forward the platform, known as FRV TH Powertek, which will be focused on designing, constructing and operating a portfolio of battery energy storage-system projects in the UK. 

It is expected to reach up to 1GW over the next five years with an estimated aggregate investment of £1 billion.

“A significant growth is expected in installed capacity of battery storage projects to keep the UK on track to meet its net zero targets for 2050,” MEED reported citing Abdul Latif Jameel Energy.

FRV expects to invest more than $1.5 billion to double its total installed capacity from 2GW in 2021 to 4GW in 2024.

BESS platforms are expected to play a crucial role in the global expansion of variable renewable energy capacity using solar and wind sources, according to MEED.


Oil target cuts free up capacity in case of crises, OPEC head says

Oil target cuts free up capacity in case of crises, OPEC head says
Updated 07 October 2022

Oil target cuts free up capacity in case of crises, OPEC head says

Oil target cuts free up capacity in case of crises, OPEC head says

DUBAI: Oil output target cuts agreed by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will leave producers more supply to tap in the event of any crises, OPEC Secretary General Haitham Al-Ghais told Al Arabiya TV on Friday, according to Reuters.

OPEC+, which includes the 13 members of OPEC and 10 allies led by Russia, agreed on Wednesday to lower their output target by 2 million barrels per day.

OPEC’s de facto leader Saudi Arabia said the move was necessary to respond to rising interest rates in the West and a weaker global economy.

The decision was criticized by the US where the White House said it was a sign the group was aligning itself with Russia.

US President Joe Biden also faces mid-term elections next month in which high energy prices are a hot topic.

“This was not a decision from one country against another, and I want to be clear in saying this, and it’s not a decision from two or three countries against a group of other countries,” said Ghais.

“There are strong indicators that there is a high possibility that recession will happen, we decided in this meeting to be pre-emptive.”

Western nations worry higher energy prices will hurt the fragile global economy and hinder efforts to deprive Moscow of oil revenue following its invasion of Ukraine.

EU sanctions on Russian crude and oil products are also set to take effect, in December and February, respectively.

Asked about the sanctions and a EU proposal to cap the price of Russian oil, OPEC’s Ghais said he could not comment.

“The truth is, the shape of these proposed sanctions is not quite clear, and how they will be implemented is also unclear, so we cannot comment.”

Ghais also said OPEC+ does not target prices: “We are not targeting a price, we are targeting a balance in supply and demand.”

 

 


OPEC+ output cut decision to sustain markets, not raise prices: Saudi Energy Minister

OPEC+ output cut decision to sustain markets, not raise prices: Saudi Energy Minister
Updated 07 October 2022

OPEC+ output cut decision to sustain markets, not raise prices: Saudi Energy Minister

OPEC+ output cut decision to sustain markets, not raise prices: Saudi Energy Minister

RIYADH: Saudi Arabia’s Minister of Energy has insisted an agreement to cut oil production by two million barrels per day was made to sustain markets, not to raise prices.

Prince Abdulaziz bin Salman made the comments after the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, faced criticism for agreeing to reduce its output from November, with US President Joe Biden calling it “a disappointment”. 

The minister said in a press conference after the OPEC+ meeting on Wednesday that “our current priority is stability in the market in terms of demand and investment.”

In an interview with Bloomberg, he went further, responding to suggestions of prioritizing profit directly.

“That mantra maybe could be acceptable if it is meant to be that we are deliberately doing this to jack up prices and that is not on our radar, our radar is to make sure we sustain markets,” he told Bloomberg.

Oil prices have not surged compared to coal and gas thanks to the OPEC+ and the effectiveness of its decisions, Prince Abdulaziz added.

The group's goal is to create a disciplined market that serves its real objective, as liquidity in the markets was affected by sharp fluctuations that caused prices to surge, according to the minister.

Prince Abdulaziz also indicated that there is currently no need for an additional cut in oil production by Saudi Arabia, as the agreement is considered good and appropriate for the current time.

“I said it in the press conference that in order for us to be attentive we have to be certainly assertive, preemptive and we have to be proactive,” he said.

The minister moved to quell suggestions that Saudi Arabia was the driving force behind the production cuts, insisting that the decisions taken in the group are unanimous and taken with the participation of all members.

Prince Abdulaziz said that the risks to the market come from strength of the dollar and higher interest rates.

He also indicated that it is not possible currently to judge the impact of the decision to set a price cap on Russian oil, until the passing of the next two months, given the state of uncertainty and lack of details and until the situation becomes clearer. 

He added that it will then be possible to clarify the reaction of players and producers and accordingly make better decisions.

Lack of clarity on price cap adds uncertainty, he said, adding that uncertainty could go either way.

“Our hope that people can bring more certainty in many aspects, certainty in terms of interest rates, in terms of growth, in terms of foreign exchange, in terms of what this issue from Bargo caps and the rest of it including the zero covid policies,” he said. 

The situation is now incomparable to any other throughout his 35-year career in the sector, according to the minister.

Prince Abdulaziz noted that even during the pandemic period, the market faced one variable which is COVID while currently, the market is facing a number of issues whose impact on the market may be positive or negative or a combination of both.

“It is a variety of convoluting uncertainties and they could go astray altogether, and to the positive side, or the negative side, or it could be a combination,” he said.