Oil prices burst out of the gates on Monday with strong gains, pushing WTI over $70 and Brent over $80 per barrel. Over the weekend, OPEC+ decided to take no further action to increase production even as Iran continues to lose supply at a torrid pace. Saudi Arabia said it would likely increase output in October but declined to offer specifics. The inaction was met with fears of a supply crunch from the market, pushing Brent up to its highest level in years. A growing number of analysts see higher prices as likely, perhaps even as high as $100 per barrel. 

Europe to establish Iran workaround. The European Union said on Monday that it would set up a special financial vehicle to allow Iran to evade U.S. sanctions. The “special purpose vehicle” would allow European companies to continue to do business with Iran while insulating them from the wrath of the U.S. Treasury. The announcement comes as U.S. President Trump will address the UN General Assembly this week, and the EU decision will put the two sides at odds. Iran’s oil supply losses are mounting, and it is unclear to what extent the EU financial vehicle will stem the tide.

Oil majors agree to reduce methane emissions. A group of the world’s largest oil companies agreed to lower methane emissions from their operations over the coming years. The Oil and Gas Climate Initiative (OGCI) calls for a reduction of methane emissions by a fifth by 2025. ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX)recently joined the initiative and said they would limit methane emissions to 0.25 per cent of total production, compared to 0.32 percent in 2017. The OGCI pledge calls for a reduction to 0.20 per cent. The OGCI consists of companies accounting for a third of global oil and gas production and includes BP (NYSE: BP), Royal Dutch Shell (NYSE: RDS.A), Total (NYSE: TOT) and national oil companies in China, Mexico, Brazil and Saudi Arabia.

Easing of U.S. methane rules boosts marginal wells. The Trump administration is in the midst of rolling back limits on methane emissions from the oil and gas industry, a move that could boost small marginal wells. Stripper wells, which produce less than 15 barrels of oil equivalent per day, could be one of the biggest beneficiaries from the deregulation, according to S&P Global Platts. While minuscule on their own, stripper wells collectively account for around 10 percent of U.S. oil production.

U.S. oil exports to China hit by the trade war. China has declined to put tariffs on U.S. crude, but the trend of escalating purchases could come to an end anyway. Unipec, the trading unit of state-owned Sinopec, has reportedly shelved plans to increase oil imports from the United States due to the trade war. Bloomberg reports that Unipec had planned to increase imports to 500,000 bpd next year, up from an average of 300,000 bpd year-to-date.

Permian natural gas discounts widen. Prices for natural gas from the Permian plunged to new lows last week. Gas prices at the Waha hub in West Texas dropped to a record low $0.61/MMBtu, losing $1.06/MMBtu in a single day, according to Natural Gas Intelligence. Prices rebounded somewhat at the end of last week, but the underlying dynamic that is crushing prices has not changed. Pipeline constraints have meant that takeaway capacity has been essentially fully utilized for the last few months. However, news that Southern California Gas Co., a major buyer of Texas gas, had nearly filled its storage tanks, raised new fears of reduced purchases. The result could be a worsening glut of gas trapped in the Permian.

Offshore oil drilling servicers attract investors. Offshore oil rig suppliers such as asTransocean (NYSE: RIG) and Diamond Offshore Drilling (NYSE: DO) are attracting attention as the sector sees a revival and share prices are relatively cheap. “So here we are in mid-September and the trade beckons again,” Credit Suisse wrote in a note to investors. “This time, however, we are one year closer to a recovery after 4 1/2 years of decline, with the drilling contractors sounding more optimistic than in years, with small, light green shoots being seen.”

S&P Global Platts considers the alternative to Brent. S&P Global Platts, which operates the Brent crude benchmark, initiated a consultation on Monday to assess whether the Brent benchmark should give way to other markers as the North Sea loses some relevance. Declining production in the North Sea, particularly from the streams that factor into Brent, has sparked a search for alternatives.

Keystone XL clears hurdle, could begin construction in 2019. The U.S. State Department issued another environmental review in response to a federal judge ruling from this summer, potentially clearing the way for the project to move forward. A spokesman for TransCanada (NYSE: TRP) said that construction could begin next year.

Trump admin weakens oil-by-rail regulations. The Pipeline and Hazardous Materials Safety Administration (PHMSA) finalized a rule change on Monday, no longer requiring rail companies that carry crude oil or other flammable material to install electronically controlled brakes intended to reduce derailments.

WoodMac: Oil market in danger of long-term supply crunch. Wood Mackenzie said in a new report that upstream development is too sparse to satisfy demand in the years ahead. A lack of spending, new FIDs, and new discoveries spell trouble. “A supply gap opens up in the mid-2020s, reaching 3 million b/d by 2030, 7 million b/d by 2035 and a formidable 12 million b/d by 2040. Barring technology breakthrough beyond what we already assume, we’ll need new oil discoveries,” WoodMac said.

Mexico considers the state-owned natural gas company. Mexico is weighing the creation of a state-owned company dedicated to the upstream production of natural gas. The new company would receive all the non-associated gas assets currently under Pemex’s control.


SOURCE: https://brandspurng.com/brent-oil-hits-its-highest-level-since-2014-oilprice-report/

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Op tell that guy to stop working on top those barrels

It is now party time for Nigeria's political class who lack the will power to synergize our battered economy to greatness.

They believe in the philosophy that says "PUMP THE CRUDE OIL AND SELL"

No brain to save for the raining days

No capital project to invest the dollar rains

No short term and long term economic plan


Many Nigerians are living below the poverty lines despite the rise in the price of crude oil.

And Nigerian government will still keep borrowing and blame poor crude oil sales or any other factor for the nation's woes.

This is where I’m coming from agriculture to oil and gas

Good one

And the benchmark for our budget is $51, yet Bubu's government is planning to borrow more and sell government properties to fund the budget. Where is the remaining $30 per barrel going to? Corruption has become a normal thing in this government

See better unsafe act.

Racoon:
And Nigerian government will still keep borrowing and blame poor crude oil sales or any other factor for the nation's woes.

I just hope things turn out for good.

Government will peg its budget on a lower expected price of crude oil, the price will go up and you wonder what happens to the excess that acrues from this periodic rise but they are quick to remind us when it gets low

Good

crude oil is a cursed to Nigerian.... since we discovered and leave other sector that was when we started having problems and only few people stealing the oil money.

Party and more money for BMCs

Paedophile buhari doesn't have excuse anymore

Either the crude oil price increase or not, the best economy system is diversification where manufacturing, farming, mining companies is more lager than relying on only one product for the survival of a country.

Good to hear that but diversification of the economy system is the key to brighter and rewarding future of our country.

We should be in surplus already, because 2018 budget was benchmark bellow 30dpb.

Looking at the rising in the oil price for some time now, APC lead government has no reason not to deliver on campaign promises. Meanwhile, our excess crude account should be overflowing by now.

mysteriousman:
Government will peg its budget on a lower expected price of crude oil, the price will go up and you wonder what happens to the excess that acrues from this periodic rise but they are quick to remind us when it gets low

What's the current ECA balance?..Gez it should be on the rise

As e dae favour this bastard All Propaganda Congress we won't hear any complain. But let it start dwindling. Idiotic elements.

https://chat.whatsapp .com /8YsnUzVGCe1BdzB6WgYq0b

No rejoice yet

The magic number is 140

Also

1. Oil was at $75 in 2015...then $30 in 2016 , now it is at $81. Which means...all the loans we have been taking to keep our heads above water must be paid.

2.Our breakeven price is $140 according to Fitch. So until then, we need to keep on taking loans.(For GEJ haters...that is the reason why GEJ tookloans too because $120 oil price still left us below the breakeven)

3.We also need to start saving again. Bubu and his guys are overspending again,and CBN is getting tetchy. A big part of the reason why we are not Venezuela...is because we have savings.

4.Time to remove subsides....especially fuel subsides...so that we can have more money to save. (And so that we can attract more investors and jobs to the downstream sector)

Even if the price rises to $500pb, Buhari will still blame Jonathan. so how is this a news to us. Good for other countries, mere music to our own ears .

INTEGRITYA1:
We should be in surplus already, because 2018 budget was benchmark bellow 30dpb.

Looking at the rising in the oil price for some time now, APC lead government has no reason not to deliver on campaign promises. Meanwhile, our excess crude account should be overflowing by now.

I expect no surplus until oil goes abve $140 per barrel.

That is the bench mark needed to have a balanced budget.

Even then....APC won't be a good manager of the economy unless they start taking measures to diversify the economy away from oil. That is how we should be measuring economic success.

pentax:
And the benchmark for our budget is $51, yet Bubu's government is planning to borrow more and sell government properties to fund the budget. Where is the remaining $30 per barrel going to? Corruption has become a normal thing in this government

We need to borrow because even at 81 USD it is not enough UNLESS it gets to $139 per barrelThe benchmark is just there to make sure we don't run out of money at an inopportune time. If we want a balanced budget....oil has to go much higher.

More reason the PDP should never be allowed to come back.. We can't afford to be taken back to square one when we are about to get out of what they put us into!

Even though APC is not living to our expectations, but PDP? Never again!

What excuse is there now for the government to under perform?

theoldpretender:


I expect no surplus until oil goes abve $140 per barrel.

That is the bench mark needed to have a balanced budget.

Even then....APC won't be a good manager of the economy unless they start taking measures to diversify the economy away from oil. That is how we should be measuring economic success.

I agreed with you absolutely, I'm just saying base on 2018 budget benchmark.

pentax:
And the benchmark for our budget is $51, yet Bubu's government is planning to borrow more and sell government properties to fund the budget. Where is the remaining $30 per barrel going to? Corruption has become a normal thing in this government

The excess goes into what they call Excess Crude Account

From time to time, the three tiers of government share it

Jonathan opened Sovereign Wealth Fund to save the excess generated from that crude oil sales

But I doubt they have funded it beyond the US$1billion they used to open the account