Trump’s contagion of COVID-19 illuminates the recovery of oil prices that earn an average 5%

Crude oil operated all day on the rise, very aware of the evolution of Trump, who announced after the close of the session that he would leave the Walter Reed military hospital, where he entered last Friday, and added that “there is no need to fear” COVID -19.

“Crude prices have risen progressively along with those of stocks as an improvement in President Trump’s health would raise the chances that a fiscal stimulus agreement will be reached before the presidential elections” on November 3, he said in a note. analyst Edward Moya, from the Oanda firm.

Mexico City, October 5 (SinEmbargo / EFE) .- The start of the week of quotes of the Petroleum internationally, it took an upward trajectory that contrasted with the impact of its price last week, when you feared a new contraction from economy as a result of new restrictions by the pandemic and aggravated by the positive President of the United States, Donald Trump.

As it could happen with the intermediate oil of Texas, the Brent could also move based on the health condition of the North American president, who has improved since last Friday, although concern about the global demand and a potential excess supply, according to analysts.

The mixture mexican Export exports also started higher, like its international peers, selling at $ 36.02 per barrel, a daily gain of 5.44 percent. Mexican crude has appreciated 1.86 dollars from its previous closing, when it traded at 34.16 dollars, a result with which it posted a loss of 9.77 percent weekly.

The price of a barrel of oil Brent for delivery in December it rose 5.67 percent on Monday in the London futures market, thus tracing the downward trend that marked the last negotiation. North Sea crude, a benchmark in Europe, was trading at $ 41.50 in the mid-afternoon on the International Exchange Futures compared to $ 39.27 at the last close.

The price of Texas intermediate oil (WTI) closed this Monday with a strong rise of 5.9 percent, up to 39.22 dollars a barrel. At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for November delivery totaled $ 2.17 compared to the previous session on Friday, which ended with a drop of 4.3 percent after the diagnosis was known. positive of the agent.

The market remains hopeful that Republican and Democratic lawmakers will reach an agreement on the new aid plan to mitigate the impact of the pandemic, which has been stalled for months in Washington, and negotiations are expected to continue tomorrow.

On the supply side, the reduction in Norwegian supply has had a positive influence due to a workers’ strike that has forced the closure of six extraction fields and will cut some 330 thousand barrels of oil equivalent, 8 percent of national production.

However, this reduction has been offset by the increase in Libyan production, which stands at about 290 thousand barrels a day, according to press reports.

On the other hand, gasoline contracts due in November totaled 7 cents, to $ 1.19 a gallon, and natural gas contracts for delivery in the same month rose almost 18 cents, to $ 2.62 per thousand cubic feet.


Projects on the road to self-sufficiency “Gasoline and Solar” 2023 … MIDOR Expansions

The strategy of the Ministry of Petroleum and Mineral Resources aims to develop and increase the capacities of the refineries in order to increase the quantities produced from petroleum products, within the framework of the petroleum sector plan led by Engineer Tariq Al-Mulla, to achieve self-sufficiency in petroleum products during the year 2023, as well as the contribution of these projects to the state’s national project by transforming Egypt has a regional center for oil and gas trading and trading, as well as producing high-quality petroleum products in line with international standards, which opens the way more for export and bringing in hard currency, and one of the most important refining projects currently being implemented is the MIDOR refinery expansion project, and the following is the most important information about that project, which is It was as follows:

1- It aims to increase the refining capacity of the plant by 60%%.

2- Investments amounting to 2.3 billion dollars.

3- Producing petroleum products in line with the updated European specifications, thus contributing to providing dollar liquidity as a result of exporting some products with international standard specifications.

4- The size of the local component in the expansion project increased, especially after assigning some manufacturing and supply works to Petrojet, the executive arm of the petroleum sector, with a value of $ 8.2 million..

5- The project aims to increase the refining capacity from about 115 thousand barrels per day to about 175 thousand barrels.

6- The development process will contribute to Egypt’s national project by transforming it into a focal point for trade and commerce in oil and natural gas.

7- The quantities produced from the Midor refinery of butane, high-octane gasoline, jet fuel, diesel, coal and sulfur increase from about 4.6 million tons currently to about 7.6 million tons after the end of the expansion project..

8- The project will lead to an increase in the quantities of butane production by about 145 thousand tons per year, gasoline (95) by about 600 thousand tons per year, diesel by about one million tons per year, and jet fuel by about 1.3 million tons per year, in addition to the coal and sulfur producers..

Engineer Tariq Al-Mulla, Minister of Petroleum and Mineral Resources, confirmed during the inauguration of the hydrocracking project in Mostorod, that the strategy for modernizing the refining sector, which began in 2018, is part of the project to develop and modernize the sector and that its objectives are to keep pace with local and global changes in the refining industry and global trends towards clean energy. And applying the latest technologies in the field of digital transformation in the refining industry to achieve the best operational efficiency, create an attractive environment for investment, improve governance systems and develop an optimal model for the contractual relationship between the parties to the refining and petroleum processing activities, in addition to achieving integration between the refining and petrochemical strategy and the petroleum sector strategy to transform Egypt into a regional center for trade. And trading of oil and gas.


New wave of Covid-19 and bank data leak caused losses of up to 8% in world markets

In this context, the shares of the “old continent” registered their worst fall in three months on Monday. The Frankfurt Stock Exchange fell 4.4%; Milan and Paris fell 3.7%, while Madrid sank 3.4%, as did London. The pan-European STOXX 600 index fell 3.2%, a decline not seen since the beginning of June.

On concerns about new infections, the travel and leisure index collapsed 5.2%, accumulating its worst two-day decline since April, with airlines such as IAG – which owns British Airway – plummeting 12.1%. In addition, Lufthansa plunged 9.5% after further cutting its fleet and workforce due to the coronavirus crisis.

Parallel, European banks fell 5.7% to hover around record lows after a joint report by 108 media outlets warned of a possible link between entities such as HSBC and Deutsche Bank with astronomical amounts of “dirty money.”

These documents refer to some 2 trillion dollars (1.7 trillion euros) of transactions between 1999 and 2017 originating from drugs and criminal acts, and even from embezzled fortunes in developing countries.

For its part, on Wall Street, the Dow Jones Industrial Average fell 1.8%, to 27,147.7 units; the S&P 500 lost 1.2% to 3,281.06 units and the Nasdaq Composite was down 0.1% to 10,778.80 units.

Against this backdrop, the CBOE Market Volatility Index (VIX), a measure of investor anxiety, soared to its highest level in nearly two weeks.

The death of US Supreme Court Justice Ruth Bader Ginsburg also made it less likely that another stimulus package will pass in Congress before the November 3 presidential election, aid that remains “stalemate.” for three months.

This caused large falls in the health sector. Healthcare providers came under pressure from uncertainty about the fate of the Affordable Care Act (ACA), better known as Obamacare, with Universal Health Services shares falling sharply.


Faced with uncertainty, the dollar rose after two weeks of declines. “What we are seeing with the dollar is a bet on a safe haven without risk,” said Erik Bregar, head of foreign exchange strategy at the Exchange Bank of Canada in Toronto, adding that the trigger was fear in European morning trading of a new Confinement in the United Kingdom due to the coronavirus.

The dollar index, which compares the greenback with six prominent currencies, was up 0.85% to 93.297 units, while the euro lost 0.9% to $ 1.1734, the yen weakened 0.1 %, to 104.70 units per dollar, and the pound sterling lost 0.9%, to 1.2797 dollars.


Gold and the rest of the metals suffered sharp declines, affected by an appreciation of the dollar, in a week in which investors will be watching the speeches of the Federal Reserve authorities in search of clues on more stimulus measures to revive a economy hit by coronavirus.

Gold lost 2.1% to $ 1,909.05 an ounce, after hitting its lowest value since Aug. 12 earlier. Prices fell almost 10% from an all-time high reached at the beginning of last month, due to a drop in hopes for new stimuli.

“Gold should be trading higher with safe haven demand, but it’s kind of a repeat as in the spring when the market sell-off, participants have been selling assets across the board,” said Bob Haberkorn, strategist Market Senior at RJO Futures

More strongly, spot silver collapsed 8.3% to $ 24.53, its lowest level in more than a month.


Oil prices fell sharply due to the return of Libyan exports and the fear of a new confinement due to the outbreaks of coronavirus, which would be disastrous for demand.

WTI’s barrel for October delivery lost 4.4% compared to the close on Friday and closed at $ 39.31. For its part, that of Brent from the North Sea for delivery in November fell 4% in London and ended the day at US $ 41.44.

The Libyan National Oil Company (NOC) announced on Saturday the resumption of crude oil production and exports in Libya at the “safe” sites.

This news came the day after the Marshal who controls the east of the country, Khalifa Haftar, announced the lifting, under conditions, of the eight-month blockade imposed by his forces.


The futures of soybeans, wheat and corn collapsed this Monday in the Chicago Market, due to sales of investment funds in this context of risk aversion by the new wave of infections.

Despite sustained demand from China, soybeans suffered a loss of more than 2%, their biggest daily decline since April 1. It should be remembered that the strong demand from the Asian giant took the oilseed to its highest level in more than two years last week.

In the meantime, Wheat decreased 3.5% (US $ 7.44) and closed at US $ 203.84 per ton, in what was its largest daily percentage drop since August 2019.

Argentine assets

Amid this scenario, the S&P stock index Merval de Bolsas y Mercados Argentinos (BYMA) began on Monday with a drop of 4% but then attenuated falls to 1.8% due to the rise of the CCL dollar, which touched $ 140 and brought the exchange gap with the official dollar to 85 %, which reflects that the expectations of devaluation of the peso are still latent.

In the fixed income segment, the new bonds they closed with losses of up to 3.3%, as reflected by the decline in Bonar 2035. Sovereign bonds accumulated a loss of up to 13% last week.

In New York, the falls were more pronounced, something that was reflected in Argentine country risk, which rose 6.4% to 1,348 basis points, compared to the 1,083 basis points recorded on September 10 after reconfiguring with the new bonds.


Petroleum closes the door to participate in the global auction of gold today

Today, at twelve o’clock, the Ministry of Petroleum and Mineral Resources closes the door to apply to participate in the global auction of gold No. 1 of 2020 presented by the Egyptian General Authority for Mineral Resources in front of companies working in the search for gold and minerals for specific sectors in the Eastern Desert, in preparation for studying companies ’requests The company is keen to participate in this auction and then announce the winning companies according to the conditions announced for the auction.

Official sources in the petroleum and mineral resources sector confirmed, in exclusive statements to Al-Youm Al-Sabea, that more than 10 companies have purchased data packages related to the global gold auction 2020, which was put forward during last February.

It is noteworthy that the Ministry of Petroleum and Mineral Resources announced during last June the extension of the closing date for the global gold auction No. 1 of 2020 for a period of two months, in view of the conditions that the world is going through due to the Corona pandemic, so that the opportunity is more available to submit the bid so that the closing date will be Tuesday. September 15, 2020 at 12 pm Cairo time.

Engineer Tariq Al-Mulla, Minister of Petroleum and Mineral Resources, announced last February that the first global bid would be launched to search for gold and associated minerals for the year 2020, with a total of 320 sectors on an area of ​​about 56 thousand square kilometers in the area between latitudes 23-28 degrees In the eastern desert and the Red Sea, which was divided into ⅛ × per sector, to reach the area of ​​the sector to about 170 square kilometers.

It is noteworthy that the Ministry of Petroleum and Mineral Resources adopts a strategy to create an attractive environment for foreign investment in the field of exploration for mineral resources, to maximize the benefit from them and work to maximize the added value and return from mineral resources, as it aims to encourage investment in establishing projects for manufacturing mineral resources and converting them into final products to increase the value. Added in accordance with the strategy of optimal economic exploitation of mineral resources.


Oil prices collapse after Saudi Arabia sends ominous signal

New York (CNN Business) – Once again, demand fears are spreading through the oil zone.

US oil prices tumbled 7% Tuesday to $ 36.76 a barrel. It was the worst day for crude and the lowest closing price in almost three months. At one point, oil was down as much as 9%. Brent crude, the global benchmark, fell below $ 40 a barrel for the first time since late June.

The fierce selling in the energy market is due in large part to growing concern about the amount of crude needed by the fragile world economy. With Labor Day in the rearview mirror, America’s summer overland travel season is over. The demand for jet fuel remains extremely weak because many people do not want to fly during the pandemic. And no one knows for sure how long it will take to recover.

“The demand has dropped. The offer has increased, “said Robert Yawger, director of energy futures at Mizuho Securities. “The economic laws of survival are being violated at both ends of the spectrum.”

The sell-off comes after Saudi Arabia, the de facto leader of OPEC, cut its official sales price to Asia and the United States, Bloomberg News reported. It is never a good sign that the world’s leading oil exporter feels compelled to cut prices to attract buyers.

“That’s a double wink warning sign,” Yawger said. “OPEC panicked today by sending a bad signal to the energy community.”

‘Avalanche of sell orders’

The latest oil market turmoil comes during major stock market turmoil.

The Nasdaq tumbled on Tuesday for the third day in a row and is flirting with a 10% correction from all-time highs. The major winners during the pandemic, such as Tesla, Apple and Zoom, have fallen much more.

“Oil is caught up in the risk reduction trade,” said Jeff Wyll, an energy analyst at Neuberger Berman. He added that “nothing changed” in the fundamental oil supply / demand landscape to “justify this kind of decline.”

Just when investors are exiting tech stocks, they are undoing the speculative bets on crude oil.

They are all trying to get out at the same time. There is a flood of sell orders, ”Mizuho’s Yawger said.

Investors are also abandoning oil reserves.

Apache, Occidental Petroleum and Diamondback Energy fell more than 6% on Tuesday. ExxonMobil, which was expelled from the Dow last month, fell another 3%.

Air travel shortage depresses demand

The pandemic, coupled with a price war between Russia and Saudi Arabia, caused oil prices to implode this spring. US oil prices even briefly fell negative for the first time in history, bottoming out at -40 a barrel.

But unprecedented production cuts from OPEC and Russia helped trigger a V-shaped recovery in the energy market. Just seven weeks after bottoming out, US crude returned to $ 40 a barrel. That led OPEC and Russia to agree to slowly increase production from very low levels.

The good news for the oil bulls is that demand for gasoline has recovered abruptly.

Road traffic has almost recovered and Bank of America expects global demand for oil from road use to be positive year-over-year in the coming months. That has helped drive the national average price of gasoline in the United States to $ 2.22 a gallon, from a low of $ 1.77 in late April.

The bad news is that air travel is nowhere near pre-covid-19 levels and that keeps demand for jet fuel very depressed. As CNN’s Business Recovery Tracker shows, only 940,000 people were processed through TSA security lines on Monday, down 59% from a year ago.

Business travel is likely not to pick up until there is widespread access to a coronavirus vaccine, United Airlines President Oscar Muñoz recently told CNN Business.

That’s why Bank of America warned in a report late last week that it will take three years for global oil demand to “normalize.”

“The demand for oil worldwide is really slow. All the fruits of the global oil recovery have already happened, ”said Michael Tran, managing director of global energy strategy at RBC Capital Markets.

When will crude bottom out?

Tran cautioned that the fundamentals of the oil market are likely to “remain weak through the fall.”

So how much lower can oil go?

Even at Tuesday’s lows, U.S. oil prices are still trading around $ 75 above the negative prices reached on April 20. But energy analysts don’t expect that subzero trip to repeat itself, perhaps ever again.

Yawger anticipates that crude will not drop much more than US $ 30 a barrel because at that point OPEC would be forced to come to the rescue again.

“I don’t think we will go to the abyss again like in the spring,” he said.


Twenty arrested for stealing oil from a YPF pipeline | Chronicle

After 39 raids, 21 people were arrested in the framework of a case investigating a criminal organization that stole oil from a pipeline of the state company YPF, it was refined in clandestine distilleries and then sold as fuel to service stations.

The procedures, carried out simultaneously, were ordered by federal judge 2 of Lomas de Zamora, Juan Pablo Auge, at the request of the prosecutor Cecilia Incardona, who is in charge of the investigation. The operations were carried out in different areas of the Buenos Aires suburbs and in Olavarría, Azul and Villa Ramallo in the province of Buenos Aires, in the city of San Lorenzo in the province of Santa Fe, in the Rio Negro town of General Roca and in Neuquén.

The case, initiated in October last year, investigates the actions of a criminal organization that illegally seized oil owned by the national State and had a complex commercial structure to distill and refining crude, and finally inserting derived products in the formal and informal market.

The evidence collected made it possible to determine that last February the gang extracted oil through punctures to an oil pipeline of the state company YPF in the Buenos Aires town of Coronel Dorrego, for which the members had previously stayed in the city of Bahía Blanca.

To extract the crude from the pipeline -which transports oil from Puerto Rosales, in Bahía Blanca, to the refinery located in the Buenos Aires district of Ensenada-, the members of the organization drilled holes and, using a bypass system, poured it into pools made in the ground.

Later, oil was loaded with hoses in tanker trucks that, in some cases, later transferred it to a clandestine plant located in the Buenos Aires town of Valentín Alsina -which discharges its waste into the Matanza-Riachuelo basin-, where it was distilled and refined, forto then sell it to service stations without flag.

In addition, according to the wiretaps carried out by the researchers, it was established that For this maneuver, they used three tanker trucks and four drivers, and made a circuit that allowed two loads of oil to be carried out to two vehicles per night.

The third truck was returning to unload the oil at the investigated refining plants, while all operations began during the evening and ended around 6 a.m. the next day, so that the members would avoid being seen.


Gasoline price will return to the beginning of 2020: Profeco

Ricardo Sheffield anticipated the return of stability in fuel prices

Last monday, Ricardo Sheffield -Head of the Federal Consumer Prosecutor’s Office (Profeco) – indicated that stability will return in prices from gasoline, in addition to estimating that the figures we had in February 2020 will also return, according to the current price of the Petroleum.

Until last week, the price of the Mexican oil mix was $ 40.60 per barrel, which would be equivalent to gasoline in the country returning to the levels it had in February of this year, where the diesel was located at 21.34 pesos per liter, the gasolina premium at 20.98 pesos and the magna at 19.86 pesos per liter.

Sheffield highlighted that the stability in fuel prices has been met and announced that the average sale of regular gasoline will remain at 19.04 pesos per liter.

Cheaper brands

Another issue that was made known was the trademarks that keep the prices plus economic made out of fuel.

In this list they stood out in the first place Total and G500. For their part, the brands that sell gasoline at higher prices are Chevron, Arco, RedCo and Exxon Car.

It was that same Monday that the president Andrés Manuel López Obrador launched a new spot where it ratified its commitment not to raise gasoline prices, this with respect to its Second Government Report.

Photo: Focus Agency


Oil reaches highs after Covid due to the closure of refineries in the US

Related news

The price of oil continues to rise for the fourth consecutive week but this week it has risen by 1.6% reaching 46 dollars / barrel, in the case of Brent, and 1.5% of WTI ($ 43.48), for various reasons located at very distant points from each other: USA, United Arab Emirates and China.

In the American continent, refineries on the US Gulf Coast they have suffered the consequences of Hurricane Laura, having to paralyze their production and causing a closure of more than 80% and almost 3 million barrels per day less.

Once calm has arrived, it has been possible to count the damages and, for the moment, they are not serious enough not to begin to restart their activity, although it is expected that it will take a few weeks. While Laura was one of the most powerful hurricanes to ever hit Louisiana, facilities in southeast Texas avoided the worst of the storm, allowing infrastructure there to begin the recovery process.

Among those facing more extensive repairs, Citgo Petroleum Corp. has said its refinery in Lake Charles, Louisiana, was damaged by high winds and will likely not see an immediate restart. Despite the production setback, US gasoline reserves remain at their highest seasonal level in decades.

“The demand for gasoline remains low, inventories are high” while the pandemic persists, he assured Michael Hiley, Head of OTC Energy Trading at LPS Futures, to Reuters. “If ever there was a time when we could tolerate losing some refining capacity, it is now.”

China cuts oil imports

The most worrying data comes from the demand side. For the first time in five months, China will cut oil imports in September. According to Bloomberg, the number of supertankers transporting crude into the country has fallen to its lowest level since late March.

The number of very large and oversized oil carriers targeting China in the next three months fell from two to 79 last week, compared with a seasonal average of about 88 tankers.

Meanwhile, the slowdown in demand is resulting in weaker margins for fuel production, which reduces the incentive for refineries to buy more crude.

In Europe, the profit from converting crude to diesel weakened to its lowest level since June on Thursday, while that of gasoline in the United States was the lowest since April.

UAE cuts production

The rise in oil has also had to do with the announcement by the Abu Dhabi National Oil Company, ADNOC, one of the world’s leading energy producers, of cut by 30% in crude supplies from October.

It is a decision that has caused a greater tension in prices, especially when compared to the 5% cut in September. The decision has been made following the instructions of the Government of the United Arab Emirates to fulfill its commitment on the recent OPEC + agreement.

“With demand gradually recovering, this will allow the market to better absorb excess inventory from earlier this year,” said the economist of OCBC Howie Lee.

“Oil is likely to rise slowly in modest steps and not shoot out of the wellhead,” said the Asia-Pacific analyst from OANDAJeffrey Halley, “Abundant short-term supplies and the fragility of the global recovery dampened price gains,” but have not stopped the price from continuing to rise.

Survival difficulties of oil companies

Despite the slight rise in the price of oil, it is not enough for US oil companies (although it is extensible to the rest) to stop cutting their budgets to conserve cash and survive. This is not the time to spend it buying more companies.

In recent years (2016-2019), oil and gas companies invested more than $ 156 billion in corporate acquisitions and deals during America’s second shale boom, in a massive bet that the good times would continue and crude oil prices would rise. Many of those deals have turned into a financial albatross.

That leaves few companies with the money or appetite to buy distressed assets. Some 150 North American oil and gas producers could face bankruptcy by the end of 2022, according to Rystad Energy, if crude prices remain near current levels.

Many of them could survive if Brent crude were above $ 50 a barrel, according to Wood MacKenzie. Fuel storage is overflowing around the world, and demand for fuel has been slow to recover even as global lockdowns ease.

Investors are wary of oil companies’ stocks, as the US energy stock market S & P500 is down 40% this year, even when new highs were touched in August.

Oil companies like BP, Occidental Petroleum Corp and Exxon Mobil Corp, who made highly publicized purchases, have lost substantial value.

In May 2019, Occidental purchased Anadarko Petroleum for 38,000 million dollars, assuming a debt to exceed the offer of the oil company Chevron Corp. The combined company was worth around $ 80 billion when the deal was announced, but is now worth just $ 12.1 billion, Reuters reports.

There are few exit strategies for companies with unwanted assets and acreage. Some, like Occidental, seek to sell assets to pay off debts even though buyers are scarce. Others are likely to be forced to ditch the losing bets.


BP sells its petrochemical activities for $ 5 billion

This transaction, which BP wants to complete by the end of the year, bring forward the end of its $ 15 billion divestment program by one year, initially planned until mid-2021, the group said in a statement.

The petrochemical activities of the oil company, used mainly for plastics, are located throughout the world, with a strong presence in Asia.

They have 1,700 employees and comprise a total of 14 plants that produce 9.7 million tons of products per year.

“I am aware that this decision is a surprise and we will do everything possible to reduce the uncertainty. However, I am confident that the business will prosper within Ineos,” said Bernard Looney, the group’s executive director.

BP assured that maintaining these activities would have consumed too much capital for a group that wants to reduce its size and contribute to the energy transition.

The group launched shock treatment to adapt to low oil prices due to the pandemic and to achieve carbon neutrality by 2050.

As part of a cut program, it has already announced the abolition of 10,000 jobs worldwide, 15% of its workforce, and massive asset reductions of between $ 13 billion and $ 17.5 billion.

Ineos, founded by billionaire Jim Ratcliffe, is one of the UK’s largest industrial groups, with some 22,000 employees in 26 countries.

Ratcliffe, one of the wealthiest people in the UK, has long been in the shadows and now wants to make his group known to as many people as possible by investing in the sport.

He bought the French soccer club of Nice and Ineos is at the head of the most powerful cycling team in the world. Ratcliffe also wants to enter the automobile business with the planned production of a 4×4 named “Grenadier”.


Oil falls in market worried about demand

The prices of Petroleum They fell slightly on Friday after gaining ground earlier in the day, in a market affected by the effects of the coronavirus pandemic on demand.

The North Sea Brent barrel for delivery in August ended at $ 41.02 in London, down 0.1% from Thursday’s close.

In New York, meanwhile, the barrel of WTI For August delivery it lost 0.6% at $ 38.49.

In the week, Brent lost 2.8%, and WTI, 3.2 percent.

“The high rates of contamination by COVID-19 they can provoke further confinements and therefore reduce the demand “for crude, said Bjornar Tonhaugen, of Rystad Energy.