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1. OPEC crude output cuts should help US shale profits in 2021
MOSCOW
(MRC) -- A decision by OPEC and allied countries to cut crude production through
March delivered a late Christmas present for US shale firms that have slashed
costs, but any rise in prices spurred by the unexpected move may be just a
modest stocking stuffer, reported Reuters. US crude oil production has fallen 2
million barrels per day in the last year as low prices and demand forced shale
producers to cut their losses. Investors had already been pressuring the
industry to curb spending and boost returns before the pandemic hit. Shale
output was quickly cut, but might return quickly if prices keep rising. Last
Tuesday, Saudi Arabia, the world’s biggest oil exporter, said it would
voluntarily reduce its production by 1 million barrels per day (bpd) in February
and March, after Russia pushed to increase output, worried about US shale
capitalizing on the group’s cuts. Russia and Kazakhstan will increase their
output, reluctant to cede market share to the United States. Overall, OPEC+ had
been due to restore 500,000 bpd in each of the two months. Saudi officials were
concerned new increases would outpace demand during new coronavirus
lockdowns.
http://www.mrcplast.com/news-news_open-382018.html
2.
Crude rally stalls amid fresh lockdowns, stronger dollar
MOSCOW (MRC) --
The crude price rally stumbled Jan. 11, with futures settling mostly lower amid
fresh pandemic demand growth concerns following the imposition of new lockdowns
in Asia, reported S&P Global. NYMEX February WTI settled up 1 cent at
USD52.25/b, while ICE March Brent finished down 33 cents at USD55.66/b. A fresh
outbreak of coronavirus infections in Hebei province, near Beijing, has led to
lockdowns in provincial capital Shijiazhuang and Xingtai, China"s National
Health Commission said Jan. 8, adding the epidemiological origin of the outbreak
has not been identified. Residents have been barred from leaving, and public
transport has been halted. On Jan. 11, the NHC reported 103 new cases of
infections in China, the highest daily rise since late July, with 82 out of the
85 local cases from Hebei.
http://www.mrcplast.com/news-news_open-382120.html
3.
Sika sales declined in 2020 on negative currency effects
MOSCOW (MRC) --
Sika has provided a financial update and says that its sales decreased 2.9% in
2020 to 7.88 billion Swiss francs (USD8.85 billion), mainly due to strong
negative currency effects, said Chemweek. Sales in local currencies increased
3.4% with a strong acquisition effect of 7.2% offsetting a 3.8% organic decline
in sales. Meanwhile, sales in local currencies in the fourth quarter went
up 5.5% year on year, of which 4.1% was organic growth, the company says. "The
2020 fiscal year was overshadowed by the global coronavirus pandemic, which had
a number of serious repercussions for the construction and automotive sectors.
Thanks to the strong motivation of our employees and their pronounced customer
focus, Sika managed to perform successfully in this highly challenging market
environment and achieve above-average results,” says Paul Schuler, CEO of
Sika.
http://www.mrcplast.com/news-news_open-382057.html
4.
Oil hits 11-month high just below USD57 as Saudi cut supports
MOSCOW
(MRC) -- Oil hit an 11-month high just below USD57 a barrel on Tuesday as
tighter supply and expectations of a drop in U.S. inventories offset concerns
over rising coronavirus cases globally, said Reuters. Saudi Arabia plans to cut
output by an extra 1 million barrels per day (bpd) in February and March to stop
inventories from building up. The latest U.S. supply reports are expected to
show crude stocks fell for a fifth straight week. Brent crude was 79 cents, or
1.4%, higher at USD56.45 a barrel by 1304 GMT and earlier hit USD56.75, the
highest since last February. U.S. West Texas Intermediate (WTI) gained 89 cents,
or 1.7%, to USD53.14. "Saudi Arabia in particular is ensuring through its
additional voluntary production cuts that the market is undersupplied if
anything," said Eugen Weinberg of Commerzbank.
http://www.mrcplast.com/news-news_open-382077.html |
