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Bank of Scotland warns of further North Sea pain after ‘severe’ oil slump
North Sea oil companies are poised to make even deeper cuts to the embattled workforce this year as almost half say that costs need to fall further to manage the aftermath of the oil market crash. The Bank of Scotland has warned that nearly a third of companies are planning further job cuts to survive the slow recovery from sub-$30 a barrel oil prices seen earlier this year. The bank’s annual oil sector survey shows that 43pc of companies are planning cost cutting even after sweeping job losses and a dramatic pullback in investment last year. The Bank of Scotland’s Stuart White said “there are still choppy water to navigate”. “With oil prices currently hovering around the $50 mark there is hope that prices have bottomed out and have begun to slowly and modestly recover. Many businesses however, undoubtedly face more difficult decisions on cost savings, jobs and investment,” […]
Asian shares rise, dollar nurses losses after jobs shock
Asian shares rose on Monday and the dollar wallowed close to its lowest in nearly a month after U.S. nonfarm payrolls showed the slowest job growth in more than five years, quashing expectations for a near-term U.S. interest rate hike. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.4 percent in early trade. Wall Street ended down on Friday, though off session lows, with the S&P 500 .SPX finishing within just 1.5 percent of its record closing high. Japan’s Nikkei stock index .N225 slipped 1.6 percent, after the dollar skidded 2 percent against the yen on Friday. U.S. nonfarm payrolls rose by just 38,000 last month, the smallest increase since September 2010 and well shy of expectations for a rise of 164,000. All 105 economists polled by Reuters had […]
Saudi Arabia Cuts Oil Prices in Europe as Iran Ramps Up Exports
Saudi Arabia on Sunday cut its oil prices to Europe, signaling mounting competition after OPEC failed to cap its output amid Iran’s exports ramp up. In an email sent to customers, state oil company Saudi Aramco said it had cut its light crude prices by 35 cents a barrel to northwest Europe and by 10 cents a barrel to the Mediterranean for July deliveries. The price reduction is surprising, as demand typically grows in the second half of the year as refineries return from maintenance. In addition, markets have recently been buoyed by outages in countries like Nigeria. But Saudi Arabia’s move comes after the Organization of the Petroleum Exporting Countries last Thursday failed to agree on a production ceiling. The absence of output limits effectively gives a blank check for the group’s two […]
Exclusive: As Iran’s oil exports surge, international tankers help ship its fuel
An Iranian military fighter plane flies past an oil tanker during naval manoeuvres in the Gulf and Sea of Oman April 5, 2006. More than 25 European and Asian-owned supertankers are shipping Iranian oil, data seen by Reuters shows, allowing Tehran to ramp up exports much faster than analysts had expected following the lifting of sanctions in January. Iran was struggling as recently as April to find partners to ship its oil, but after an agreement on a temporary insurance fix more than a third of Iran’s crude shipments are now being handled by foreign vessels. “Charterers are buying cargo from Iran and the rest of the world is OK with that,” said Odysseus Valatsas, chartering manager at Dynacom Tankers Management. Greek owner Dynacom has fixed three of its supertankers to carry Iranian crude. Some international shipowners remain reluctant to handle Iranian oil, however, due mainly to some U.S. […]
Oil Drillers Have a Few Sweet Spots Left
A Continental Resources production site in Oklahoma’s so-called Stack oil region. America’s oil and gas producers are still finding places where they can prosper even at today’s lower prices. Companies are refocusing their drilling efforts on the Permian Basin in Texas and New Mexico and rushing into a part of Oklahoma known as the Stack where they can claim solid returns. While small in terms of overall production, the move is gathering steam, even as drilling in places like North Dakota and Pennsylvania remains sluggish. Wells in the Permian and the Stack—which stands for Sooner Trend, Anadarko basin, and Canadian and Kingfisher counties—are racking up between 10% and 30% returns based on oil priced at $45 a barrel, operators say; premium wells are generating greater profit. In part, returns benefit from access to established pipeline, storage and other infrastructure. Drillers in both areas have been able to find energy […]
