1. Brent crude oil futures broke the $50 mark for the first time in nine months
On December 10, as of the close of the day, the price of light crude oil futures for January 2021 on the New York Mercantile Exchange rose by $1.26 to $46.78 a barrel, or 2.77%; the price of London Brent crude oil futures for February 2021 rose by $1.39 to $50.25 a barrel, or 2.84%.
International oil prices WTI and Brent both rose sharply on Thursday, and Brent crude oil exceeded $50 / barrel for the first time since March, mainly due to the positive news of the new crown vaccine, and the market expected a rebound in fuel demand.
2. Colombia extends the validity of the preliminary anti-dumping ruling on China’s oil and gas pipelines
On December 3, 2020, the Ministry of trade, industry and tourism of Colombia issued the Resolution No. 243 of December 3, 2020, which stipulates that the oil and natural gas pipelines originating in China will be imported from China.
The validity period of the preliminary anti-dumping determination will be extended for two months, and the specific measures will remain unchanged: for the products involved in the case whose code is 7304.19.00.00, the current tariff will be 10%, and the provisional anti-dumping duty of 35.90% of the declared FOB price will continue to be levied; for the products with the code of 7306.19.00.00, the current tariff will be 0%, and the temporary anti-dumping duty of 33.13% of the declared FOB price will continue to be levied Dumping duty. (source: Official Website of the Ministry of trade, industry and tourism of Colombia)
3. Saudi Aramco will sell equity in subsidiary to raise cash
Saudi Arabia is seeking to fill the budget gap by selling shares in its subsidiaries by its state-owned oil giant, Saudi Aramco. Saudi Aramco has hired Moelis & Co. to develop a plan to sell its stake in the pipeline to raise nearly $10 billion. Saudi Arabia’s budget has been struggling to cope with the burden of low oil prices and oil production cuts caused by the OPEC agreement. Saudi Aramco reported a 44.6% drop in profits in the third quarter of this year to $1.19 billion from $2.29 billion in the third quarter of last year. Saudi Arabia holds 98% of the shares of Saudi Aramco, and the financial situation of Saudi Aramco directly determines the overall situation of Saudi Arabia.
4. Mexico plans further debt relief for Pemex
Mexico is considering additional tax cuts for Pemex, the state-owned energy giant, to help reduce the largest debt burden of the global oil industry, the deputy finance minister said. Currently, Pemex has accumulated more than $100 billion in debt, becoming one of the most indebted companies in the world.
5. Trump opens the door to expanding offshore drilling
The trump administration is ready to issue a package that will open the door to expanding oil exploration in the coastal areas of the United States, including Southern California, Alaska and the mid Atlantic States. Expected to be announced before the end of his term, it represents a second step towards a formal five-year mining rights auction program.
However, the incoming Biden team is expected to significantly curtail this effort as the president-elect vowed to stop oil and gas exploration on public land and waters. But Biden is under pressure to maintain oil development in the Gulf of Mexico, which accounts for 16% of U.S. crude oil production, with federal revenue of $5.3 billion last year.
6. Russia’s LNG exports plummeted 70% in October
According to the General Administration of Customs of the Russian Federation, compared with September, Russia’s LNG exports in October fell by 70% to only 2 million cubic meters. Gas sales revenue fell 85% month on month to $67.2 million. The two main LNG plants in Russia are Yamal LNG and Sakhalin-2 terminal. Operated by novatek and Gazprom, respectively.
7. Eni plans to drill new oil and gas exploration wells in Mexico’s sureste basin
Eni plans to drill two oil and gas exploration wells in its block in the sureste basin in the Gulf of Mexico, where oil was discovered in 2019. The plan will invest nearly $132 million by 2023. Eni group was the biggest winner of Mexico’s round 2.1 tender in 2017, winning three blocks with total reserves of nearly 500 million barrels of oil equivalent.
Post time: Dec-11-2020