TOP NEWS Boost for Saudi Arabia As Aramco

WEDNESDAY, DECEMBER 11, 2019, U.S. EDITION

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TOP NEWS

Boost for Saudi Arabia as Aramco shares surge 10% on debut Saudi Aramco shares surged the maximum permitted 10% above their initial public offering (IPO) price on their Riyadh stock market debut on Wednesday, closing in on the $2 trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman. The shares leapt to 35.2 riyal ($9.39) each, up from the IPO price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.

U.S. to become net petroleum exporter in 2020 -EIA The United States is on track to become a net exporter of crude and fuel for the first time on record on an annual basis in 2020, the U.S. Energy Information Administration (EIA) said on Tuesday, due to a production surge that has dramatically reduced the dependence on foreign oil. U.S. crude oil production is expected to rise by 930,000 barrels per day (bpd) to a record 13.18 million bpd next year, the EIA said, slightly below its previous forecast for a rise of 1 million bpd.

Trafigura's 2019 'knock-out' trading profits undermined by write-offs Global commodity trader Trafigura Group reported a record year in oil trading and a strong metals and minerals performance, though losses in its asset base eroded gains, pushing its net profit to the lowest since 2010. Trafigura's total earnings before interest, tax, depreciation and amortisation rose by 24% to a record $2.13 billion in 2019 from $1.7 billion in 2018. The firm's financial year ends Sept. 30.

COLUMN-India's economic recovery critical for oil in 2020: Kemp India's economy is suffering its worst cyclical downturn for more than a decade, which is weighing heavily on global oil consumption, and until the economy improves, prices are unlikely to see a sustained increase. If the monetary and fiscal stimulus succeeds in pushing the economy out of its current trough, faster growth would play an important role in rebalancing the oil market in 2020.

European diesel margins sag before new shipping fuel rules European diesel refining profit margins have tumbled as a slowing global economy has hit fuel demand harder than forecast despite expectations of a boost from new fuel shipping rules. Refiners have raced to produce more low-sulphur fuel to meet the new standards set by the International Maritime Organization (IMO), known as IMO 2020, that take effect on Jan. 1. December 11, 2019

Chevron expects $10 bln-$11 bln charge in 4th qtr; plans asset sales U.S. oil major Chevron Corp on Tuesday said it expects to write down the value of its assets $10 billion to $11 billion this quarter and is considering selling some natural gas projects to prepare for long term low prices. The second-largest U.S. oil company, which plans to hold its 2020 spending program flat at $20 billion, said it may sell shale gas properties and its stake in a Canadian liquefied natural gas project.

Exxon, Hess to export first oil from Guyana in early 2020 -sources U.S. producers Exxon Mobil Corp and Hess Corp plan to export the first-ever shipments of crude oil from Guyana between January and February, a milestone for Latin America's newest oil producer, sources with knowledge of the plans said. A consortium including both companies and a unit of China's CNOOC Ltd have so far discovered more than 6 billion barrels of recoverable oil and gas resources off Guyana's coast, which could eventually produce 750,000 barrels per day (bpd) for a country that has no history of crude output.

Russia's Rosneft seeks Japanese investors for giant Vostok oil development Rosneft CEO Igor Sechin is seeking investment in the company's $157 billion Vostok oil project in the Russian Arctic from Japanese trading houses and oil companies, three sources told Reuters. Vostok Oil is a newly established company that was formed to unite Rosneft's projects in northern Russia, including the Lodochnoye, Tagulskoye and Suzunskoye oilfields, and other projects, including the Ermak Neftegaz venture with BP.

Venezuela Nov crude output jumps to highest level since U.S. tightened sanctions -sources Venezuela's crude output in November jumped more than 20% from the prior month to the highest level since the United States tightened sanctions on state oil company PDVSA in August, two people with knowledge of PDVSA data said this week. November output averaged between 926,000 barrels-per-day (bpd) and 965,000 bpd, according to the people, compared with the 761,000 bpd average in October that PDVSA reported to the Organization of Petroleum Exporting Countries (OPEC). That increase came as exports jumped to over 1 million bpd.

Texas on track to complete fewer oil and gas wells in 2019 - regulator Texas is on track to complete fewer oil and gas wells this year, the state regulator said in a statement on Tuesday, as companies tighten spending to adjust to lower oil prices and a push from investors to focus on returns. The state's oil and gas regulator has processed 8,629 well completions so far this year, marking nearly a 16% decline versus the same period last year, the Railroad Commission of Texas said.

Monthly Oil Market Review - Oil prices recover as OPEC+ deepens cuts

The oil market is discounting the threat of trade frictions between China and the US, as OPEC+ opts for deeper cuts. Production quotas no longer account for Russian condensate output, which could water down the impact of the cuts. While key benchmarks are finding traction, medium/heavy sour grades are coming under pressure due to the bunker fuel shift to VLSFO. To read more, click here.

MARKETS TODAY

OIL: Oil prices fell after industry data showed an unexpected build in U.S. crude inventories and as investors waited for news on whether a fresh round of U.S. tariffs on Chinese goods would take effect on Sunday.

FOREX: The U.S. dollar clawed higher as investors awaited the outcome of the Federal Reserve meeting and drew some support from hopes that U.S. President Donald Trump will delay the imposition of tariffs on Chinese goods.

2 December 11, 2019

U.S. EVENTS SCHEDULED FOR THE DAY (ET) 0830 Core CPI mm SA for Nov: Expected 0.2%; Prior 0.2% 0830 Core CPI yy NSA for Nov: Expected 2.3%; Prior 2.3% 0830 CPI Index NSA for Nov: Expected 257.221; Prior 257.346 0830 CPI mm SA for Nov: Expected 0.2%; Prior 0.4% 0830 CPI yy NSA for Nov: Expected 2.0%; Prior 1.8% 1400 Fed funds target rate for 11 Dec: Expected 1.5-1.75%; Prior 1.5-1.75% 1400 Federal budget for Nov: Expected -$196.50 bln; Prior -$134.00 bln

(Inside Oil - Americas Edition is compiled by Rupali Shukla in Bengaluru) Refinitiv 3 Times Square, New York, NY 10036 For questions or comments about this report, contact: [email protected] Please visit: Refinitiv for more information. To subscribe to Americas Oil newsletter, click here. Privacy statement