|Day's range||22.57 - 28.36|
Oil producers in the OPEC+ group, led by Saudi Arabia and Russia, were expected to pressure Mexico on Friday to seal an accord for a collective cut in output of 10 million barrels per day, before asking other nations for a further 5 million bpd of cuts. The United States has encouraged global cooperation to bolster an oil market that collapsed as the coronavirus pandemic accelerated in March and producers resorted to a price war after failing to agree on how to prop up prices. Oil prices tumbled on Thursday despite OPEC+ nearing agreement as the lockdowns ordered across the world sucked life out of the global economy, and traders reckoned that even a combined reduction of 15 million bpd would be too little to stabilise the market.
A Rystad Energy analysis shows that Canada is the oil producer most affected so far, with the damage estimated to reach above 1.1 million barrels per day (bpd) in shut-in production in the second quarter of 2020
HollyFrontier's (HFC) Lubricants and Specialty Products segment is scrapping 2020 outlook for Rack Forward due to flagging global market demand.
OPEC and other oil producers will debate on Thursday oil cuts as big as 20 million barrels per day, equivalent to about 20% of global supplies, one OPEC source and a Russian source told Reuters. "That is a global deal," the OPEC source said. Another OPEC source and a separate Russian source told Reuters that Russia and Saudi Arabia had managed to remove their main obstacles to agreeing a new deal on oil cuts.
Oil importing countries may announce crude oil purchases to support crude demand which has tumbled as a result of the coronavirus crisis, International Energy Agency Executive Director Fatih Birol told al-Arabiya TV on Thursday. "We may hear tomorrow (Friday) countries purchasing crude to build up their strategic (reserves) and support demand," Birol said, according to the al-Arabiya television channel. "We will see a recovery of demand in line with the resolution of this problem and the return of the global economy, but I don't expect a very quick recovery of oil prices," he said.
Palm oil producers must brace for crude palm oil prices to fall sharply as coronavirus-led lockdowns around the world curb consumption and boost stocks, said leading industry analyst James Fry. As the lockdowns shuttered restaurants, many industry players had expected that demand for palm oil, used in everything from instant noodles to shampoo, would remain relatively well supported.
OPEC and it allies held talks on Thursday on record oil output curbs of 15 million to 20 million barrels per day (bpd), or 15% to 20% of global supplies, to support prices hammered by the coronavirus crisis, OPEC and Russian sources said. Talks have been complicated by friction between OPEC leader Saudi Arabia and non-OPEC Russia, two of the world's biggest oil producers.
Spot gold jumped 2% at $1,678.53 per ounce by 11:19 a.m. EDT (1519 GMT), having earlier hit its highest since March 9 at $1,684.84. U.S. gold futures soared 3% to $1,734.20. "The Fed unveiled yet another howitzer from its arsenal offering substantial relief to small and medium sized businesses as well as municipalities," said Tai Wong, head of base and precious metals derivatives trading at BMO.
While both Saudi Arabia and Russia have succeeded in crashing oil prices and bringing U.S. representative to the negotiating table, they are both running out of time
Arab Gulf oil producers began to tap the debt markets this week amid growing fiscal pressures on their economies and wealth funds in the oil price crash and the coronavirus pandemic
The oil markets have crashed as the pandemic has sapped fuel demand, virtually shutting down commercial aviation worldwide and cutting off gasoline demand as people stay home and businesses remain shuttered. U.S. fuel demand has dropped by about one-third in the last three weeks, according to the U.S. Energy Information Administration, with last week's fall of 3.4 million barrels per day (bpd) the most ever. The weekly figures on refining activity and oil production show the industry making the painful adjustments to throttle back activities as worldwide demand is expected to drop by roughly 30%.
Crude oil production in the United States could fall by about 2 million bpd from current estimates of daily averages, according to the Energy Information Administration
Halliburton (HAL) is planning to freeze certain benefits dispensed for employee retirement accounts as the company continues to struggle with lower oil prices.
The world's top oil producers Saudi Arabia, Russia and the United States still seemed at odds on Wednesday, before this week's meetings on potentially big output cuts to shore up crude prices that have been hammered by the coronavirus crisis. Saudi Arabia and Russia, which fell out when a previous pact on curbing supplies collapsed in March, have signalled they could agree deep cuts to crude output but only if the United States and others outside a group known as OPEC+ joined in.
Crude prices edged up on Wednesday, buoyed by hopes that OPEC and its allies will strike a production cut agreement, but surging U.S. crude inventories muted the gains. Thursday's videoconference meeting between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia was expected to be more successful than their gathering in March, which ended in a failure to extend supply cuts and a price war between Saudi Arabia and Russia. Brent crude was up 32 cents, or 1%, at $32.19 by 12:46 p.m. EDT (1646 GMT).
Saudi Arabia, Russia and allied oil producers will agree to deep cuts to their crude output at talks this week only if the United States and several others join in with curbs to help prop up prices that have been hammered by the coronavirus crisis. Global oil demand has dropped by as much as 30%, or about 30 million barrels per day (bpd), as measures to reduce the virus' spread have caused demand for jet fuel, gasoline and diesel to crash. While Saudi Arabia, Russia and other members of the group known as OPEC+ have expressed willingness to return to the bargaining table, they have made their response conditional upon actions by the United States and other countries that are not members of OPEC.
World equity markets moved higher and oil prices stabilized on Wednesday on hopes the coronavirus pandemic is peaking and that more government stimulus measures could be on the way. After U.S. stock markets closed on Wednesday, President Donald Trump said the United States may be getting to the top of the coronavirus curve, suggesting the number of cases and fatalities may have peaked. The Trump administration asked Congress for an additional $250 billion in emergency economic aid for small U.S. businesses reeling from the impact of the outbreak.
Oil futures strengthened late in the session on Wednesday, buoyed by hopes that OPEC and its allies will strike a production cut agreement on Thursday. Brent dropped to $21.65, its lowest since 2002, on March 30. Thursday's video conference meeting between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a group known as OPEC+ - was expected to be more successful than their gathering in March, which ended in a failure to extend supply cuts and a price war between Saudi Arabia and Russia.
The ongoing price crash triggered by the coronavirus and the oil war has in many ways hammered investments into upcoming African, Latin American and Asian plays
Bargain-hunting Chinese buyers have snapped up very cheap and sometimes obscure crude oil grades, mostly from Europe, where the impact of lockdowns to halt the new coronavirus has devastated demand. "If there is a buyer in Europe now, it is China," a Mediterranean oil trader said on condition of anonymity.