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United Kingdom

Shadia Nasralla

BP to enter India's fuel retail market with Reliance tie-up

06 Aug 2019

NEW DELHI/LONDON Global oil major BP is deepening its ties with Indian conglomerate Reliance Industries by forging a fuel retailing joint venture to capitalise on rising demand in Asia's third-biggest economy.

CORRECTED-UPDATE 4-Oil hovers around $60 as U.S.-China trade tensions weigh

06 Aug 2019

LONDON, Aug 6 Oil prices rebounded slightly on Tuesday from big falls in recent sessions, but Brent crude remained near seven-month lows around $60 a barrel due to escalating trade tensions between China and the United States.

Genel Energy confident on Bina Bawi, pays $14 million dividend

06 Aug 2019

LONDON Iraqi Kurdistan-focused Genel Energy said on Tuesday it was confident that construction on its Bina Bawi gas project would begin next year as it discusses exact terms with the Kurdistan Regional Government (KRG).

Korea's KNOC switches tactics in bid to sell stake in UK oil producer - sources

30 Jul 2019

LONDON State-run Korea National Oil Corp (KNOC) is considering upping the stake it is planning to sell in its British unit Dana Petroleum after failing to lure a buyer for the 30% previously on offer, banking and industry sources said.

Tullow Oil decides $33 million interim payout, revises output down

24 Jul 2019

LONDON The board of British oil producer Tullow will pay an interim dividend of 2.35 cents per share, representing a payout of about $33 million ( £26.6 million ), the company said on Wednesday, in line with plans to disburse at least $100 million a year.

Oil outlook sours as sanctions, global tensions fail to bring out bulls

22 Jul 2019

LONDON/NEW YORK Sentiment in the oil market has shifted dramatically in recent days, with hedge funds, producers and traders all taking a more bearish tack in response to what they see as weakness in worldwide demand.

Oil outlook sours as sanctions, global tensions fail to bring out bulls

22 Jul 2019

By Shadia Nasralla and Devika Krishna Kumar LONDON/NEW YORK, July 22 Sentiment in the oil market has shifted dramatically in recent days, with hedge funds, producers and traders all taking a more bearish tack in response to what they see as weakness in worldwide demand. The oil market has struggled to sustain a rally despite supply restrictions that generally would be considered bullish. U.S. sanctions on Venezuela and Iran have removed more than 1.5 million barrels of daily supply from the market, OPEC extended a supply-cut deal into 2020 and tensions between the United States and Iran are rising. Yet, Brent futures have struggled to sustain a move above $65 a barrel and slumped about 7 percent last week, while U.S. futures have rarely moved above $60 a barrel. "Given all the bullish news we've had, the flat price has hardly changed," said Janelle Matharoo of InsideOut Advisors, a commodities trading and risk management consultancy. "Fifteen years ago, this kind of news would have shifted the price $20, $30 per barrel." Hedge funds and investors have exited bullish bets on the realization that demand may be weaker than anticipated while U.S. production surges. Producers, meanwhile, have rushed to lock in future prices, betting that this may be their best chance to protect against a selloff, oil traders and brokers said. Front-month, or current, futures contracts have not had a massive selloff - but looking at later-dated contracts, the underlying weakness is apparent. The premium on front-month Brent crude futures compared with oil to be delivered in half a year has fallen from a six-year high in May at more than $4 a barrel to less than $1.50 last week. That is a signal that worries about tight supply have abated. Even rising tensions in the Strait of Hormuz, where the United States and others are moving to protect tankers against Iran, has produced only modest gains. On Friday, news that Iran had seized a British tanker supported prices - but futures rose less than 1 percent. The steady rise in U.S. oil output and demand worries from a protracted Sino-U.S. trade war, however, have weighed on demand forecasts. The International Energy Agency recently cut its expectation for global demand through 2019 and 2020 and said it may cut it again if the global economy - and especially China -show further weakness, while Saudi Arabian exports fell to a 1-1/2-year low in May. Traders said there has been "relentless" selling in bullish Brent call options as far as December 2021 and 2022, a reflection of growing expectations that demand for oil is weakening as supply grows. "There's a feeling on the margin that the current price is potentially unsustainable and the market structure supports that," said Matharoo. Average 2020 Brent oil prices slipped to the weakest in a month at $60.28 a barrel last week. Separately, bullish speculator bets on U.S. crude futures and options on the NYMEX are near the lowest level since 2013. The price weakness presents challenges for oil producers, and many have started to hedge to protect against a damaging future downturn in prices. With the recent weakness in the market, some consultants are warning about waiting too long to protect against future market moves by buying options to sell or buy oil at a certain price in the future. "We're telling producers it's time to lock in," said Thibaut Remoundos of London-based hedging consultancy CTC. "We're less bullish than most of our clients... We believe there is greater downside risk than is priced in." (Reporting by Shadia Nasrallah in London and Devika Kumar Krishna in New York; Editing by David Gaffen and Dan Grebler)

HitecVision, Oman's Petrogas to buy UK oilfields from Total

10 Jul 2019

LONDON Private equity fund HitecVision and Omani oil group Petrogas have teamed up to buy a portfolio of Total's British North Sea oilfields for $635 million, the companies said on Wednesday.

Exclusive: North Sea oil producer Siccar Point eyes sale - sources

05 Jul 2019

LONDON Private equity-backed oil and gas producer Siccar Point is testing the waters for its potential sale later this year, hoping to attract interest for its mostly untapped North Sea resources, industry and banking sources said.

Energean takes lead in race to buy Edison's oil and gas unit - sources

03 Jul 2019

LONDON/PARIS Israel-focused gas driller Energean has emerged as the front-runner in the race to acquire Italian energy group Edison's oil and natural gas unit, two sources directly involved in the deal said.

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