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‘Fragile five’: These OPEC producers are
on the verge of collapse if oil prices don’t
stabilize soon
The global oil price rout has left many oil producers reeling across the world. From Canada to Norway, Saudi Arabia to Russia, none of the world’s largest oil exporters have been spared from oil prices that declined 45 per cent last year alone. While some of the biggest producers will stumble along, five oil-producing economies are on the verge of collapse if oil prices do not stabilize soon, according to RBC Capital Markets. “There are five sovereign producers that are on the precipice of a major crisis amid the current low oil price environment,” Helima Croft, global head of commodity strategy, said in a report. These countries face a mix of social, political and terrorism-related upheavals that could either lead to a regime change or create great instability that could knock out their oil production, leading to an oil-supply shock. “Our ‘fragile five’ states…were already facing severe political and […]
Saudi Arabia Plans $2 Trillion Megafund for Post-Oil Era: Deputy Crown Prince
Saudi Arabia is getting ready for the twilight of the oil age by creating the world’s largest sovereign wealth fund for the kingdom’s most prized assets. Over a five-hour conversation, Deputy Crown Prince Mohammed bin Salman laid out his vision for the Public Investment Fund, which will eventually control more than $2 trillion and help wean the kingdom off oil. As part of that strategy, the prince said Saudi will sell shares in Aramco’s parent company and transform the oil giant into an industrial […]
Mexico’s Proven Hydrocarbon Reserves Fell 21% in 2015
An employee walks at Pemex refinery in Salamanca, Guanajuato state. Mexico’s proven oil reserves fell… MEXICO CITY–Mexico’s proven oil and gas reserves fell sharply last year as oil prices dropped and discoveries were modest. The National Hydrocarbons Commission reported on its website that proven reserves as of Jan. 1 stood at 10.24 billion barrels of oil equivalent, down 21% from 13.02 billion barrels a year before. Proven oil reserves fell to 7.64 billion barrels from 9.71 billion barrels, and natural gas reserves fell to 12.651 trillion cubic feet from 15.291 trillion cubic feet. Discoveries in 2015 of proven reserves amounted to 104 million barrels of mostly light crude and 80.7 billion cubic feet of gas, according to the report. The report doesn’t explain the decline or give data for broader estimates such as probable and possible reserves. Proven reserves comprise deposits of which most can be recovered profitably under […]
Brazil’s Petrobras Aims to Cut Up to 12,000 Jobs
Brazil’s troubled state-run oil company Petróleo Brasileiro SA on Friday announced a beefed-up voluntary layoff program that could affect up to 12,000 jobs amid intense efforts to cut costs. Petrobras said the program, which is being offered to all employees regardless of age or level of seniority, is likely to cost 4.4 billion reais ($1.2 billion) and could save up to 33 billion reais through 2020. The program is wider in scope than a similar layoff program offered last year, and the cost and savings could fluctuate depending on how many employees take the offer, the company said. Petrobras has been making cuts across the board, reducing its once-ambitious investment plan and listing assets for sale as it tries to cope with low oil prices and a massive corruption scandal. Earlier this […]
Auto Makers Post Mixed U.S. Sales in March
U.S. auto sales rose 3% in March over a year earlier, but new warning signs emerged that car companies are stretching to keep demand humming after record results last year. March’s selling pace came in at a disappointing adjusted annual rate of 16.57 million light vehicles, well below analyst expectations and the 17.5 million clip the industry reported in February. Detroit’s three auto makers each reported sales gains, but their results missed expectations, sending shares lower. Auto makers overall sold 1.6 million light vehicles in March. Discount spending is on the rise and new evidence emerged in March that sales to fleet customers such as rental agencies in some key cases boosted new-car tallies. Car loans stretching 84 months or longer and the share of vehicles leased both increased, according to researcher J.D. Power. […]
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