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COVID-19 - News digest as of 05.06.2020

June 05/2020

1. BP slashes capital spending in 2020 due to COVID-19, expects outbreak to hurt downstream results

MOSCOW (MRC) -- BP says it will reduce its planned organic capital spending in 2020 to about USD12 billion as part of its response to the coronavirus disease 2019 (COVID-19) pandemic, down 25% compared with the company's prior full-year guidance, with an expected spending cut of about USD1 billion in its downstream business segment, which includes petrochemicals, reported Chemweek. No further details on the cut in downstream expenditure have been given by BPs CEO, Bernard Looney, who says that despite the company's actions to reduce spending and costs, "the challenging environment is expected to have an impact on our first-quarter results and there is uncertainty around how long current depressed commodity pricing and weakness in product demand will continue." Market conditions are "currently volatile and extremely challenging," says Looney.

2. OPEC, OPEC+ set meetings for June 6 to finalize oil cut extension

MOSCOW (MRC) -- OPEC and its allies will meet June 6 via webinar to finalize the terms of extending a 9.7 million b/d production cord, indicating a standoff with Iraq over its quota compliance has been resolved, reported S&P Global. OPEC will meet at 2 pm CET (1200 GMT), and Russia and nine other allies will join the talks at 4 pm (1400 GMT), OPEC announced June 5. A delegate-level OPEC+ technical committee, co-chaired by Saudi Arabia and Russia, is scheduled to meet June 5 to discuss market conditions and review compliance. The OPEC+ alliance is expected to extend the cuts through July. Without an extension, the 9.7 million b/d in cuts - the largest coordinated supply accord in the market's history -- are set to roll back to 7.7 million b/d starting July 1 through the end of 2020. But the uncertainty of the global economy as it takes its first tentative steps towards a recovery from the COVID-19 pandemic has brought members into agreement that continuing the deeper cuts is prudent, sources in the organization told S&P Global Platts.

3. Chemicals firm BASF biggest beneficiary of UK coronavirus loan scheme

MOSCOW (MRC) -- The German chemicals company BASF has emerged as the biggest beneficiary of the Bank of Englands emergency coronavirus loan scheme, borrowing GBP1bn in cheap government-backed funding, reported The Guardian. Threadneedle Street revealed for the first time the names of 53 big companies that have borrowed GBP16.2bn between them, amid rising pressure on the government to place tougher conditions on firms that receive state-backed support. The list of businesses benefiting from the cheap funding, which is designed to help businesses weather the economic storm caused by the coronavirus pandemic, included many with a sizeable carbon footprint.
Author:Margaret Volkova
Tags:Europe, crude and gaz condensate, petrochemistry, BASF, BP Plc, COVID-19, UK, Rossiya, Saudi Arabia.
Category:General News
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