Oil companies oil price USD10 barrel

Oil companies oil price

Large oil companies prepare for oil price at USD10 per barrel

Oil companies oil price

MOSCOW  – Large oil companies were hit by a wave of cost reductions, as oil prices ranged from USD20 to USD30 per barrel, Vesti writes.

On Monday, Royal Dutch Shell said it would cut costs by 20%, or USD5 billion, and also suspend its share buyback plan. The French oil giant Total SA and the Norwegian company Equinor are going to take similar steps.Oil companies oil price

ExxonMobil and Chevron have suggested that they also cut budgets, with Exxon experiencing particular pressure. Goldman Sachs estimates that Chevron needs a price of USD50 per barrel to cover costs. Oil companies oil price

ExxonMobil needs a price of about USD70.

Large companies are relatively more protected from recession than small and medium-sized shale drillers. They have oil refining assets, which, during a period of declining prices, are usually more efficient than producing ones.

For example, refineries spend less on oil during a recession, while lower prices contribute to increased sales of petroleum products.Oil companies oil price

However, this time, large companies do not have such an airbag. Now is the height of the supply and demand crisis. Oil consumption could fall by 10 million barrels per day or more. It doesn’t matter how cheap the oil is. Oil companies oil price

If people do not travel, do not fly on airplanes and their consumption level is limited by the most necessary, there will be no growth in demand even against the background of low prices. Oil companies oil price

On Monday, Exxon announced that it was cutting production at the Baton Rouge refinery, because of low demand because the tanks were full. Exxon also cut 1,800 contractors. Another major petrochemical project in the Appalachians will also not be able to develop in the near future, as the market situation worsens.

The first round of oil industry spending cuts is obvious. However, the second round begins, notes Goldman Sachs.Oil companies oil price

“It is worth preparing for a decrease in US oil production by 1.4 million barrels per day for five quarters after the second quarter of 2020 amid a decrease in drilling volumes. At the same time, the company’s capital expenditures decreased by 35% in 2020,” writes Goldman Sachs.

However, the budget review is still ongoing. Decrease in expenses, drilling and production volumes may intensify against the background of a more noticeable reduction in capital expenditures. “US oil activity will collapse, oil prices will be well below USD30,” said Raymond James. Oil companies oil price

According to the bank, the initial round of reduction led to the fact that expenses fell 45% below the level of 2019. “Nevertheless, the decline will be much more severe than these initial reductions …

The total amount of capital investment in the United States may fall by more than 65%, and WTI will remain at the level of USD20,” the investment bank concluded.

Rystad Energy delivered a similar assessment on Monday. Oil exploration and production companies may reduce approved projects to USD131 billion, or about 68% year on year, according to a company based in Oslo.

“Mining companies will need to carefully analyze their cost levels and investment plans to counter the financial impact of lower prices and demand. Companies have already begun to cut annual capital expenditures for 2020,” notes Odun Martinsen of Rystad Energy.

No one knows how low the price of WTI and Brent can be. But several analysts have already noted that overcrowded storages may become the cause of a possible fall in prices. “No one can be sure that production will be quickly reduced without impairing our ability to store oil,” a JBC Energy note said.Oil companies oil price

The firm had in mind reductions in refineries, such as the Exxon Baton Rouge plant, as they ran out of stock. “In such circumstances, Brent could briefly reach $ 10 per barrel, as it was in 1986 or 1998,” concludes JBC.

Earlier it was reported that Russian oil companies, while maintaining current low oil prices, will be forced to overestimate new projects and may reduce investment in the least profitable fields. Against the background of the price war with Saudi Arabia and the influence of coronavirus, the price of the Russian Urals variety fell to the lowest level since 2002, less than USD19 per barrel, and the discount to Brent increased to USD4 per barrel.

mrcplast.ru

Author:Anna Larionova

Oil companies oil price

Petrochemicals Synthetic Fabrics Polyamide 28-03-2020

Oil Prices Face Shaky Outlook

 

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Petrochemicals Synthetic Fabrics Polyamide 28-03-2020

Petrochemicals Synthetic Fabrics Polyamide

-France shortage of recyclates likely as more waste plastic goes to landfill, incineration

France is diverting more of its mixed plastic waste to landfill or incineration because of a drop in man-power at separation and sorting facilities due to coronavirus, sources in the recycled polyethylene terephthalate (R-PET) market said this week.

Regardless of what material is being removed from the recycling stream, the move to incineration or landfill will reduce the amount of post-consumer PET bottles in France.

The majority of sources also agreed that the problem was impacting mixed plastic waste and not just post-consumer PET bottles.

Petrochemicals Synthetic Fabrics Polyamide

-Large oil companies prepare for oil price at USD10 per barrel

Large oil companies were hit by a wave of cost reductions, as oil prices ranged from USD20 to USD30 per barrel, Vesti writes.

On Monday, Royal Dutch Shell said it would cut costs by 20%, or USD5 billion, and also suspend its share buyback plan. The French oil giant Total SA and the Norwegian company Equinor are going to take similar steps.

ExxonMobil and Chevron have suggested that they also cut budgets, with Exxon experiencing particular pressure. Goldman Sachs estimates that Chevron needs a price of USD50 per barrel to cover costs. ExxonMobil needs a price of about USD70.

Large oil companies prepare for oil price at USD10 per barrel

-Germany’s economic sentiment at lowest since reunification

Business sentiment among Germany’s corporates continues to plummet in the wake of the coronavirus pandemic, according to economic research institute Ifo on Wednesday.

The Ifo business climate index tumbled to 86.1 points in March from 96.0 points in February, marking both the steepest since German reunification in 1990 and the lowest value since July 2009.  Petrochemicals Synthetic Fabrics Polyamide

MANUFACTURING TUMBLES

Ifo’s business climate index for the manufacturing sectors has dropped to the lowest level since August 2009 as companies across Germany have reported production curtailments, including in the chemicals-intensive automobile industry.

Petrochemicals Synthetic Fabrics Polyamide

-Transforming Recycled Plastic into Additives for Industrial and Consumer Products

GreenMantra out of Canada is a rapidly growing clean technology company that produces specialty polymer additives from recycled plastics.

With a more increased focus on adding more recycled content to products, it’s becoming very apparent that innovation is required in order to meet these demands.

During the Plastics Recycling Conference, Canadian cleantech company GreenMantra Technologies accepted the Association of Plastics Recyclers (APR) Showcase Award, which is given to companies who have a innovative and potentially game-changing idea to advance the recycling of plastics. Petrochemicals Synthetic Fabrics Polyamide

Petrochemicals Synthetic Fabrics Polyamide

-Plastics recycling challenges could create new openings for aluminium players

The ‘circular economy’ approach has received ever-greater attention amid rising concerns about impacts of carbon emissions and demands from investors and consumers for environmentally sustainable products and business practices. The circular economy approach rethinks the traditional linear ‘take-make-dispose’ economic model and envisions a new model aimed at eliminating waste and minimising use of natural resources—through practices such as reuse, remanufacturing and recycling of materials and products.

We maintain that circular business models can prove just as profitable as linear models for companies in a diverse array of industries. Mining is no exception. To be sure, metals and minerals have been circular for a long time, including being supported by separated-waste collection for many materials. Much packaging, though, is still intended for single-use only—which misses the circular-economy mark. Petrochemicals Synthetic Fabrics Polyamide

Petrochemicals Synthetic Fabrics Polyamide

-Sustainability Push Driving M&A For Plastic Recyclers

Consumer demand and government regulations are prompting global plastic producers to acquire in the space.

A combination of government regulations and consumer pushback against single-use plastic, could bring investors off the sidelines into plastics recycling, sources say.

“We are in the middle of a shift right now,” said Martin Aares, who co-heads the private equity platform of sustainability-focused New York private equity and venture house Closed Loop Partners. Petrochemicals Synthetic Fabrics Polyamide

Sustainability Push Driving M&A For Plastic Recyclers

-Coronavirus is not yet impacting Avantium’s business, but firm is monitoring the situation closely

“In line with Dutch government advice, Avantium has taken the decision to ask its employees, where possible, to work from home until at least 6th April 2020.”

Dutch renewable chemicals company Avantium has not yet seen an impact on its business operations from the global coronavirus outbreak, but has stated that it is closely monitoring the situation. Petrochemicals Synthetic Fabrics Polyamide

It announced the statement in its 2019 financial results.

In its financial statement, Avantium said: “We are closely monitoring the impact of the Covid-19 virus and the consequences of the recent turmoil in the petroleum industry on our business. At present, we have not experienced material negative changes to our business prospects but it is still too early to predict how the next weeks and months will unfold.”

Coronavirus is not yet impacting Avantium’s business, but firm is monitoring the situation closely

-Asian petchems end mixed, oil lower as investors await US jobless claims data

Asian petrochemical shares ended mixed on Thursday while crude oil prices fell as investors await key data on initial jobless claims in the US later in the day.

The widely-watched initial jobless claims data would give a clearer picture on the state of the world’s largest economy following the coronavirus outbreak, which has now infected close to 500,00 people globally, with the number of deaths exceeding 20,000.

News that US Senate and White House leaders finally reaching an agreement on a $2 trillion stimulus package on Thursday failed to sway investors as fears of the global coronavirus pandemic continued to weigh on sentiment. Petrochemicals Synthetic Fabrics Polyamide

Asian petchems end mixed, oil lower as investors await US jobless claims data

-European plasticizers market starts to see some companies fall victim to the coronavirus

Both sellers and buyers of plasticizers are starting to feel the ramifications of the coronavirus, as the spread across Europe is impacting both those producing and those downstream, and this is starting to dent the chain.

Further plant closures makes April demand uncertain

Day-by-day decisions

Logistical constraints a concern

Restrictions on both personal and professional lives are wide and varied depending on the location of offices and plants. Petrochemicals Synthetic Fabrics Polyamide

-European plasticizers market starts to see some companies fall victim to the coronavirus

-Coronavirus and oil price war

European chemical producers are now coming under increasing pressure, with manpower shortages linked to the coronavirus impacting operations.

Both sellers and buyers of plasticizers are starting to feel the ramifications of the coronavirus, as the spread across Europe is impacting both those producing and those downstream, and this is starting to dent the chain.

With integrated chemical producers tied into refinery feedstocks, there are fears that lower refinery rates could impact feedstock availability.

On a brighter note, among the current collapse in most chemical markets, there are some spots of stronger demand for chemicals which create products helping to combat the spread of coronavirus. Petrochemicals Synthetic Fabrics Polyamide

Coronavirus and oil price war

-Meraxis expands regranulate portfolio for film applications

The global polymer trading group Meraxis has expanded its recycling division to include regranulates from post-industrial sources (PIR) and post-consumer sources (PCI).

The products are used for film applications in the packaging industry, for sacks and bags, and for construction and agricultural films, among other things.

Elmar Schröter, Executive Director Recycling Materials, Compounds and New Business Development, said: “With our PIR- and PCR-based regranulate solutions, we offer first-class recycling alternatives for films. The demand for recyclates for film applications is on the rise, especially in the packaging industry. Here, we sense great interest in premium qualities for use in non-food applications.”  Petrochemicals Synthetic Fabrics Polyamide

Meraxis expands regranulate portfolio for film applications

Petrochemicals Synthetic Fabrics Polyamide

Petrochemicals Synthetic Fabrics Polymers 27-03-2020

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