Newsflash about oil&gas industry on November 16, 2018
Time: 2018-11-16 09:16:57Source: Bloomberg
Oil Trades Near $56. Oil traded near $56 a barrel after snapping a record losing streak as traders assessed signs of rising U.S. crude inventories against the prospect of OPEC and allies cutting output.
OPEC+ Said to Weigh Bigger Production Cut. OPEC and its allies are considering cutting oil output by more than the 1 million barrels a day Saudi Arabia proposed earlier this week as the group is increasingly worried about the potential for oversupply, people familiar with the matter said.
The Market is Overreacting. That’s according to Tamar Essner, energy director at Nasdaq IR Intelligence, who made the statement in a television interview with Bloomberg on Wednesday.
“I think the market is overreacting. Oil markets tend to easily overshoot to both the upside and to the downside,” Essner told Bloomberg in the interview.
“We are indeed in an oversupply situation in the short term but it’s fairly moderate, it’s nowhere near what we had in the 2014 to 2016 period. So, we’re probably oversupplied right now by 500,000 to a million barrels a day in a market that consumes 100 million barrels a day, so it’s really not all that much,” Essner added.
Offshore Mexico Contract Goes to McDermott. McDermott International, Inc. reported Thursday that it has won a contract from Talos Energy, Inc. to perform concept and engineering services for the Zama field development project, which holds the distinction as the first offshore Mexico block awarded to a private operator.
Canadian Oil Patch Loses Patience with Country's Lack of Support. The plunge in global crude prices is being exacerbated in Canada by a lack of pipeline capacity, sending the country’s oil prices to a near record discount to the U.S. and energy stocks reeling. Gas producers can’t even catch a break: while U.S. gas has surged about 19 percent in the past week amid an expected cold stretch, Canadian prices have actually dropped 14 percent.
