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Posts under ‘OPEC’

Oil is going down but Royal Dutch Shell plc is on the up

Harvey Jones | Thursday, 23rd March, 2017

Brent crude is now only a splash above $50. West Texas Intermediate has dripped to around $48. Predictions that oil would hit $60 or $70 on last year’s OPEC and non-OPEC production cuts have been shown to be desperately optimistic, and oil looks a tough play right now.

Straight to Shell

The share price of Anglo-Dutch major Royal Dutch Shell (LSE: RDSB) flew upwards in the wake of the OPEC deal, hitting a 52-week high of 2,390p in early December. After management’s campaign of cost-cutting, non-core disposals and capex slashing, analysts reckoned it could break even at around $55-60, which would help to sustain its proud record of never having cut its dividend since the war.

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Would you bet on a rapid rise in the oil price?

By Holly Black for the Daily Mail: PUBLISHED: 21:51, 17 March 2017 

Oil stocks took a knock this week as the price of the black stuff slipped to its lowest level since November.

Despite an agreement to cut production by 1.2m barrels a day by the oil cartel Opec being widely adhered to, supply is still outpacing demand.

Now some experts are concerned the deal could be derailed by a surge in the US, where a 55 per cent year-on-year jump in active rigs has driven production levels to record highs. 

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Can BP plc and Royal Dutch Shell plc survive the coming oil price crash?

By The Motley Fool  Feb 15, 2017

Last year’s surprise OPEC and non-OPEC oil production cuts were supposed to herald a new area of higher energy prices, but it hasn’t really happened. Oil bulls who predicted oil could hit $60 or $70 a barrel will have been disappointed, with the price stalling around $55. If the price can’t rise now, when will it rise? Or could it even crash?

Oil slip

Any further slippage would spell bad news for FTSE 100 giants (LSE: BP) and Royal Dutch Shell(LSE: RDSB). They are banking on a higher oil price to keep the cash flowing, and ensure their dividends are sustainable in the longer run.

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Shell Splashes $1B On Niger Delta Development

By Irina Slav – Feb 14, 2017, 12:46 PM CST

Shell’s Nigerian subsidiary has committed US$1 billion for the development of the Niger Delta, the Vice President of the federal government, Yemi Osinbajo, said. Osinbajo is on a tour in the Delta, aiming to appease through dialogue the militant groups that have crippled Nigeria’s oil industry over the last couple of years.

The money will be released in US$500-million annual installments, to be used to provide clean drinking water, conduct health impact assessments, and supply “remediation technologies” to local communities, who tried to sue Shell for failure to clean up an oil spill in the area. The case was heard by the London High Court, which ruled that it is outside its jurisdiction: Shell Petroleum Development Company is registered in Nigeria, so a Nigerian court should be the one to hear the case.

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3 big questions hanging over Royal Dutch Shell plc

The Motley Fool: 3 big questions hanging over Royal Dutch Shell plc

By The Motley Fool  Feb 14, 2017

A stagnating oil price has seen investor appetite for Royal Dutch Shell(LSE: RDSB) seep away from recent multi-year highs.

The crude colossus saw its share price strike its highest since November 2014 a month ago, but fresh fundamental fears have seen Shell — like many of its London-quoted peers — retrace more recently.

Shale producers returning

Arguably the biggest driver behind Shell’s decline has been a steady build in the US rig count.

With drillers across the Atlantic becoming ever-more-comfortable with oil prices anchored around the $50 per barrel mark, the number of units in operation has been steadily increasing since the autumn.

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OPEC Output Cuts End Big Oil’s Trading Bonanza

The oil-trading boom that cushioned the profits of Royal Dutch Shell Plc and BP Plc through the price slump of 2015 and early 2016 is over.

BP said on Tuesday it made a “small” loss trading oil in the fourth quarter, while Shell last week said trading profits “flattened” in late 2016. The fall off in trading contributed to worse-than-expected fourth-quarter profits at Europe’s largest oil and gas producers.

Although better known for their oilfields, refineries and gas stations, Shell and BP are the world’s top energy traders, handling about 20 percent of global oil demand between them and dwarfing independent trading houses such as Vitol Group BV, Trafigura Group and Glencore Plc.

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29 MORE reasons to sell BP plc and Royal Dutch Shell plc

By The Motley Fool  Jan 26, 2017

Those hoping that OPEC’s decision to finally curtail production at November’s Doha summit would go some way to balancing the oil market would no doubt have gasped at the latest US rig count data on Friday.

According to drill checkers Baker Hughes, the number of oil rigs up and running in the States rose by 29 during the seven days to January 20, taking the total to 551.

This was the largest one-week jump since April 2013 and means that the rig count has risen during 10 of the last 11 weeks. Meanwhile, the number of US rigs in operation now stands at a 14-month peak.

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Royal Dutch Shell plc: New Condition in Iran Agreement

Published By: Eunice Gettys on January 17, 2017 11:52 am EST

Coming ahead of Western sanctions being uplifted over its nuclear program, Iran is in full zest to boost its production at pre-sanction levels. Not just the oil rich country but even the Big Oil companies are aggressively seeking to pave ways in the lucrative fields of Iran.

With Total SA (ADR) (NYSE:TOT) taking the lead via the South Pars project, followed by Royal Dutch Shell plc (ADR) (NYSE:RDS.A), Eni SpA (ADR) (NYSE:E), and BP plc (ADR) (NYSE:BP), Iranian news agency has reported that the country is aiming to exploit the rivalry between these companies. 

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Opec outflanked

By Ed Crooks of the Finacial Times: January 13, 2017

In the 1930s many newspapers carried impressively detailed diagrams showing France’s defences along the German border, described by Popular Mechanix and Inventions magazine as the “world’s greatest underground fortifications”. By the end of May 1940, Hitler had demonstrated that while the Maginot Line might indeed be an engineering marvel, it was also irrelevant, as his panzer divisions swept past it through Belgium and into France. Last year’s agreement between leading oil-producing countries to curb their output had something of the same feel about it this week.

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Oil Prices

Extracts from a weekly briefing by Ed Crooks: January 6, 2017

In our predictions for 2016, we were right that oil would end the year over $50 – modesty forbids me from mentioning which writer made that forecast – but missed that an agreement between Opec and non-Opec producers would be one of the factors underpinning the price. For 2017 Anjli Raval made the call, arguing that crude was again likely to end the year above $50, on the grounds that a lower price would still be too low to enable sufficient investment in production to meet demand.

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Royal Dutch Shell Better Positioned as Oil-Producing Countries Begin to Reduce Output

January 04, 2017, 10:32:39 AM EDT By MT Newswires

Royal Dutch Shell (RDS.A, RDS.B) is in a better position as members of the Organization of the Petroleum Exporting Countries and other producers begin curbing production in a bid to boost prices, RBC researchers said in a note to clients on Wednesday.

“We believe the recent OPEC/non-OPEC supply deals have put the oil market on much firmer footing, which removes some of our tail-risk concerns for Shell,” the analysts said. “Looking ahead, we see the potential for strongly improving cash flow generation, while in the near term, we believe net debt should begin falling from its peak.”

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Sell Shell?

Royston Wild | Monday, 2nd January, 2017

Sell Shell?

It comes as little surprise that Royal Dutch Shell (LSE: RDSB) has rocketed during the fourth quarter, the stock reaching 13-month peaks just last week on the back of the successful OPEC production accord. Shell gained 18% in total during October-December.

The Doha deal has been heralded as a game-changer in addressing the supply/demand imbalance washing over the oil market. And with no little reason. After all, OPEC is responsible for around 40% of global crude output.

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Royal Dutch Shell plc Good Times Underway

Having brought about production at exceptionally low costs with cash operating costs around $15 per barrel throughout the year, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is expected to post a commendable  cash flow growth in the long cycle. With West Texas Intermediate and Brent crude currently above $50 per barrel, the Anglo Dutch company is likely to benefit. As per the estimates of market watchdogs, the oil and gas major is expected to grow its cash flow position to $25 billion in four years given that oil prices reach $60 per barrel.

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No Harm to Royal Dutch Shell plc (ADR) (RDS.A) Dividends

Published By: Myrna Salomon on December 27, 2016 09:41 am EST

For income savvy investors, a dividend yield of 6.95%, one of the highest in industry is certainly attractive. Having said this, Royal Dutch Shell plc (ADR) (NYSE: RDS.A) not only has such a lucrative yield, but also has history of sustaining it for the longest time.

The payout ratio is also appreciable, with company paying out dividend but retaining one third of its profits for future growth. On average, its reserves have increased by 3% on annual basis. This goes on to reflect that investors’ wealth is also increasing over time, along with company’s ability to grow consistently.

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Oil stocks surge, BP and Shell both climb on back of OPEC pact

Written by Reporter – 12/12/2016 1:20 pm

Oil stocks topped the FTSE 100 on Monday after non-Opec producers agreed to curb production to help buoy floundering crude prices.

The UK’s blue chip index was down 0.1% at around 6946.53 points, but Royal Dutch Shell’s ’B’ shares rose 3% and BP jumped 2.4%.

Away from the top tier, Tullow Oil soared 9.6% and Premier Oil surged 9.9%.

Sterling was flat against the dollar at 1.256, but down 0.3% against the euro at 1.187.

Brent crude prices climbed more than 5% to around 57.03 US dollars per barrel (£45.33) in early trading, marking its highest level since July 2015.

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Oil prices shed early gains amid doubts over OPEC output cut

By Jane Chung and Keith Wallis | SEOUL/SINGAPORE

Oil prices erased early gains to trade almost flat in Asian session on Thursday on mixed U.S. crude stocks data and doubts over OPEC’s implementation of an output cut, although a weaker dollar aided sentiment.

International Brent crude futures were trading up 2 cents at $53.02 a barrel at 0807 GMT. Prices fell to $52.81 a barrel earlier in the session.

U.S. benchmark West Texas Intermediate crude was up 3 cents at $49.80 a barrel after dropping to $49.61 earlier.

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screen-shot-2016-12-05-at-16-34-00 By The Motley Fool  Dec 5, 2016

Today I’m looking at the critical reasons to sell out of Royal Dutch Shell (LSE: RDSB).

A drop in the ocean

The oil sector’s major players breathed a huge sigh of relief last week after OPEC — responsible for four-tenths of the world’s oil supply — confounded the expectations of many and agreed to cut its output.

Saudi Arabia brokered a deal that will see production fall by 1.2m barrels per day, to 32.5m barrels beginning in January. The news prompted Brent oil to top the $55 per barrel marker for the first time since the summer of 2016.

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Opec bends the markets

screen-shot-2016-12-03-at-08-16-41By Ed Crooks, December 2, 2016

In 451 CE, the great Roman general Flavius Aetius rallied a motley army of imperial troops and barbarian allies, and halted the advance of Attila’s Huns at the Catalaunian Plains in Gaul, buying the empire some time and temporarily interrupting its long-term decline. This week’s Opec meeting in Vienna had something of the same feel about it.

Opec’s power peaked in the 1970s, and the US shale oil revolution of the past half-decade has threatened to consign the cartel’s influence to history. But by agreeing a deal to cut production on Wednesday, the Opec ministers showed that if they all acted together they could still bend the oil markets to their will, at least for a while.

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Leaner and meaner: U.S. shale greater threat to OPEC after oil price war

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By Catherine Ngai and Ernest Scheyder

NEW YORK/HOUSTON In a corner of the prolific Bakken shale play in North Dakota, oil companies can now pump crude at a price almost as low as that enjoyed by OPEC giants Iran and Iraq.

Until a few years ago it was unprofitable to produce oil from shale in the United States. The steep slide in costs could encourage more U.S. shale output if OPEC members cut supplies, undermining the producer group’s ability to boost prices. OPEC ministers meet Wednesday to weigh output cuts to end a two-year glut that has pressured global oil prices.

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OPEC agrees first output cut since 2008, Saudis to take ‘big hit’

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By Ahmad Ghaddar, Alex Lawler and Rania El Gamal | VIENNA

OPEC has agreed its first limit on oil output since 2008, sources in the producer group told Reuters, with Saudi Arabia accepting “a big hit” on its production and agreeing to arch-rival Iran freezing output at pre-sanctions levels.

Brent crude futures jumped 8 percent to more than $50 a barrel after Riyadh signaled it had finally reached a compromise with Iran after insisting in recent weeks that Tehran fully participate in any cut.

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Market keeps watching brief on Shell’s Woodside stake

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by Sarah Thompson Anthony Macdonald Joyce Moullakis

With December’s silly season now underway, brokers are left with precious few trading days to launch any significant placements and block trades.

But one stake remains at the top of every firm’s watchlist: Shell’s 13.3 per cent stake in Woodside Petroleum.

Firstly, there’s a motivated seller. The oil giant’s chief financial officer Simon Henry classified the $3.4 billion stake as “available for sale” when he informed investors in August of a change in how Shell classifies its stake in the Australian oil and gas producer.

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Opec cuts neither dead nor alive

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By Ed Crooks November 28, 2016

Opec’s possible production cut is the oil market equivalent of Schrödinger’s cat: neither dead nor alive. When they met in Algiers in late September, Opec ministers agreed the need to reduce output, but left the allocation of the cuts between individual members to be finalised later. If they cannot agree on that, the deal will die. At their meeting in Vienna on Wednesday, the ministers will have to open the box, and we will find out whether or not the agreement is still breathing.

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OPEC makes last-ditch bid to save oil deal as tensions grow

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By Rania El Gamal and Alex Lawler | VIENNA

OPEC was trying on Monday to rescue a deal to limit oil output as tensions grew among the producer group and non-OPEC member Russia, with top exporter Saudi Arabia saying markets would rebalance even without an agreement.

OPEC experts started a meeting in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30.

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Nigeria reaches a deal to pay $5.1 billion in unpaid bills to oil majors – minister

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By Felix Onuah

Nov 17 Nigeria has reached a deal to pay $5.1 billion in unpaid bills to oil majors including Royal Dutch Shell and Exxon Mobil, the minister of state for oil said on Thursday.

The Nigerian National Petroleum Corporation (NNPC), the OPEC member’s state oil firm, has amassed a total of $6.8 billion in unpaid bills up to December 2015, so-called cash calls, that it was obliged to pay under joint ventures with Western oil firms, with which it explores for and produces oil.

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Trump’s victory could hurt Royal Dutch Shell plc’s future

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By The Motley Fool  Nov 14, 2016

Donald Trump’s views on climate change may provide a boost to oil production in the US. He stated in his campaign that the US was being disadvantaged by rules and regulations aimed to prevent (or at least slow down) climate change. This could signal a more positive attitude from the US government towards oil and gas companies over the medium term.

Although there’s no certainty that Trump will follow through on his campaign policies when he becomes President, it seems likely that he’ll be less positive about battling the effects of climate change than Barack Obama. This could be bad news for Shell(LSE: RDSB).

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Trump energised

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By Ed Crooks, November 11, 2016

“Between a battle lost and a battle won, the distance is immense and there stand empires,” said Napoleon. The same is true of elections.

Donald Trump may have come slightly behind Hillary Clinton in the popular vote for the presidency, but his convincing victory in the electoral college will give him the ability to reshape the energy industry in the US and around the world.

His hand will be strengthened by Republican control of Congress. Parts of Mr Trump’s agenda will face resistance in Congress, but his energy policy is unlikely to be one of those areas. His support for oil, gas and coal, his commitment to deregulation and his rejection of climate policy are all well aligned with mainstream Republican thinking.

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This bad news should encourage you to avoid Royal Dutch Shell plc!

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By The Motley Fool  Nov 7, 2016

Deal in danger

My bearish view on Royal Dutch Shell (LSE: RDSB) hasn’t improved over the weekend, either, following news of fresh bickering between OPEC members.

On Monday, OPEC’s Mohammed Barkindo was forced to deny that the wheels are not falling off its much-lauded supply freeze agreement, with the group’s secretary general announcing that all 14 member states remain committed to the deal.

But rumours that Saudi Arabia vowed late last week to raise its own production, should members fail to rubber-stamp the deal this month, negates any suggestion of cross-cartel unity. Some members like Iran have been exempted from cutting, or even holding, their own production, causing other group members to publicly call for similar exemptions. The political and economic ramifications of getting an agreement over the line are clearly colossal.

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Hold the champagne

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screen-shot-2016-11-03-at-14-50-16By Ed Crooks, November 4, 2016

If you are looking forward to the oil industry recovery, you shouldn’t break out the champagne just yet.

Over the past eight days, the world’s largest listed oil companies have released third quarter earnings reports. From all of them, the message was that while the worst might be over, they were still facing a long hard road ahead.

The snap reactions from the stock market were mixed: positive for  ChevronRoyal Dutch ShellTotal and ConocoPhillips; negative for ExxonMobilBPEniStatoilPetrochina and Cnooc.

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Exclusive: Saudis threaten to raise oil output again as sparring with Iran returns

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By Rania El Gamal and Alex Lawler | DUBAI/LONDON

Old disputes between Saudi Arabia and rival Iran resurfaced at a meeting of OPEC experts last week, with Riyadh threatening to raise oil output steeply to bring prices down if Tehran refuses to limit its supply, OPEC sources say.

Clashes between the two OPEC heavyweights, which are fighting proxy wars in Syria and Yemen, have become frequent in recent years.

Tensions subsided, however, in recent months after Saudi Arabia agreed to support a global oil supply limiting pact, thus raising the prospect that OPEC would take steps to boost oil prices.

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Oil stand-off threatens dividends at BP and Shell amid fears that a deal to prop up prices is about to collapse

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By SABAH MEDDINGS FOR THE DAILY MAILPUBLISHED: 23:34, 1 November 2016 | UPDATED: 23:34, 1 November 2016

Dividends at BP and Shell are set to come under threat as fears grow that a deal to prop up oil prices is about to collapse.

The two oil giants yesterday reported better-than-expected results – and gave a boost to their millions of small shareholders by protecting payouts.

But they have only been able to keep their dividends after slashing billions of pounds in costs following a collapse in the oil price from $112 a barrel in 2014 to less than $30.

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BP And Shell Optimistic The Market Is Turning

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screen-shot-2016-11-01-at-16-01-19By Nick Cunningham – Nov 01, 2016, 6:23 PM CDT

BP and Royal Dutch Shell reported their latest financial figures for the third quarter and both companies showed some improvement, a sign that the oil markets are starting to find their footing.

A few days ago, some of the other oil majors released third quarter earnings, revealing the ongoing damage being done to the balance sheets of even the largest oil companies. But BP and Shell offered some reasons for optimism for the industry.

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Shell’s earnings beat Exxon as oil majors adapt to low prices

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By Ron Bousso and Karolin Schaps | LONDON

Royal Dutch/Shell and BP on Tuesday joined peers in reporting higher than expected earnings by making further deep cuts in spending to cope with an oil price downturn now in its third year.

Shell’s stocks rose by over 3 percent as it announced higher quarterly earnings than arch-rival U.S. Exxon Mobil, the world’s largest listed company by output. Anglo-Dutch Shell is hoping to outgrow Exxon over the next few years after acquiring rival BG for $54 billion earlier this year.

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Shell, Vitol boost UAE storage to handle Iraqi crude-sources

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By REUTERSPUBLISHED: 14:40, 31 October 2016

By Rania El Gamal

DUBAI, Oct 31 (Reuters) – Royal Dutch Shell and trading house Vitol are stepping up their operations in the port of Fujairah to store Iraqi crude as production from the OPEC member rises, industry sources said.

Iraq is OPEC’s second largest producer after Saudi Arabia and its output has almost doubled since the start of the decade at 4.7 million barrels per day (bpd).

With a target of 5.5-6 million bpd by 2020, Iraq wants to be exempt from the cartel’s bid to boost oil prices with production cuts to reduce a global surplus.

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The Niger Delta Avengers are back — and they’ve got big oil in their crosshairs

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Tom DiChristopher: 26 Oct 2016

The Niger Delta Avengers resumed their campaign of sabotage on Tuesday, potentially kicking off a return to the serial bombings the militant group carried out earlier this year.

Those attacks sent Nigerian crude output to a more than decade-low and deepened an economic crisis in the Western African nation brought on by persistently low oil prices. Analysts say the government has been slow to advance a coherent response, and in the absence of an effective strategy, the conflict will likely escalate, putting Nigeria’s recovery in question and global oil supply at risk.

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Survival in the harsh conditions of the oil downturn

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By Ed Crooks: October 21, 2016

The mood at the Oil and Money conference in London, the big energy event of the week, was a case of mixed emotions: cheer over signs of a near-term pick-up in the market, and concern over longer-term threats to demand.

The headlines were made on Wednesday by a clash between two of the biggest names in energy: Khalid al-Falih, energy minister of Saudi Arabia, and Rex Tillerson, chief executive of ExxonMobil. In his keynote speech, Mr al-Falih warned of the risk of “a shortage of supply” in future years because of plunging investment in oil production. Speaking minutes later, Mr Tillerson suggested he did not expect a collapse in supplies, because US shale provided “enormous spare capacity” to meet rising demand.

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The global market is still awash with crude

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By Ed Crooks: 14 October 2016

As the new Nobel prize-winner for literature once put it, something is happening here. The successful IPO this week by a US exploration and production company, Extraction Oil & Gas, was the first in the sector since crude prices started to slide in the summer of 2014. Along with the slide in energy junk bond yields, and signs of a corresponding thaw in E&P junk bond issuance, which has been essentially frozen all year, it is clear evidence that investor confidence in the US oil industry is returning.

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Oil From $50 Billion Kashagan Field Starts Flowing to Export

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By Nariman Gizitdinov: 14 October 2016

Kashagan, a vast oil field in the Caspian Sea, sent its first crude for export after about 16 years in development and more than $50 billion of investments.

The venture loaded 26,500 metric tons of crude for export into the country’s pipelines, Kazakhstan’s Energy Ministry said in an e-mailed statement. Of that, 7,700 tons was sent to the Caspian Pipeline Consortium. Reaching stable production will take “some time” as commissioning work continues both offshore and onshore, the ministry said.

The project has been plagued by multiple delays and cost overruns. A 2008 budget estimate of $38 billion jumped to $53 billion by the end of last year as the partners replaced undersea links after sour gas cracked the pipes. The crude from Kashagan is reaching an already saturated market, with prices at less than half the level of 2013 when the project hit a setback. Expectations for the field’s exports even prompted OPEC to flip supply predictions for next year.

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FT Energy Source Weekly Briefing

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By Ed Crooks: October 7, 2016

Two international agreements have dominated the week’s energy news. Both have futures that are still shrouded in uncertainty, but are important landmarks if only because countries with widely diverging interests were able to come together and sign up to a shared course of action.

One was the Paris climate accord, which this week secured support from enough countries to come into force formally next month. The UN said 73 countries and the EU, accounting for more than 55 per cent of global greenhouse gas emissions, had ratified the agreement, crossing the thresholds set when the accord was adopted last December. More of the 195 countries that agreed the deal then are expected to join it formally in the coming weeks, months and years.

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Outlook For Shell Mixed – Caution Ahead

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Gary Bourgeault: October 7, 2016

Summary

  • Debt load associated with BG Group acquisition still weighs heavily on Shell.
  • With a larger percentage of its business gas, it continues to struggle to sustainably break the $3 barrier.
  • EPS will probably drop by over 40 percent for the year.
  • Nigerian asset sales and risks to other holdings in the nation remain a concern.
  • Dividend could remain at current level if the price of oil and gas maintain a higher bottom.

Royal Dutch Shell plc (NYSE:RDS.A) has been taking some good steps to prepare for what it believes will be a strong future for LNG demand, as it puts various pieces of its infrastructure in place around the world. It has the goal of continuing to focus primarily on gas as its major product, looking for a time when it sustainably rebounds in price.

The long term prospects for Shell look fairly solid, but it does face some significant headwinds in the short term, including the debt overhang coming from its acquisition of BG Group, downward pressure on earnings per share (NYSEARCA:EPS), prolonged period of lower natural gas prices, and the loss of revenue from asset sales in Nigeria, along with the risk in the country for other projects it still has there.

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Oil: OPEC Finally Agrees And Investor Takeaways

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Dividend Income: 5 October 2016

Summary

  • OPEC has agreed to put a ceiling on oil production at 32.5 million barrels per day, representing a 900k cut from its current output at 33.4 million.
  • The news supported oil’s rise by nearly 10 percent, and benefits some companies significantly more than others.
  • The author still recommends to stay away from offshore, but upstream producers with lower break even cost could be an attractive investment. Integrated majors’ dividends are also safer than ever.

News Summary

To the surprise of everyone, the Organization of Petroleum Exporting Nations (OPEC) has agreed to put a ceiling on oil production at 32.5 million barrels per day, which is significantly less than its current 33.4 million barrels per day of production. The news has helped oil price rally nearly 10% to almost $51.50 per barrel Brent.

In this article, I will try to dissect the news and its effect on integrated majors, upstream producers and offshore producers. Of course, the news benefit some of these companies significantly more than others, which are actually unaffected or evenly negatively affected by the news. Similarly, I will analyze how it will affect the United State Oil ETF (NYSEARCA:USO) and other oil related ETFs going forward.

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It’s boring, but Shell’s fat yield will reward patience

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Screen Shot 2016-08-29 at 22.18.50There are clear risks: history suggests the Opec deal to cut oil production and support prices won’t stick; the company still has to prove it can make its huge BG acquisition work; and the dividend is not covered by earnings for this year and barely covered for next.

4 OCTOBER 2016 • 8:28AM

Royal Dutch Shell

This tip won’t win many prizes for originality but patient, longterm income seekers may find it hard to overlook the prospect of a soundly financed company that offers a 7pc dividend yield while interest rates and yields on the safest bonds remain at rock bottom.

There are clear risks: history suggests the Opec deal to cut oil production and support prices won’t stick; the company still has to prove it can make its huge BG acquisition work; and the dividend is not covered by earnings for this year and barely covered for next.

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Opinion: OPEC surprises – but will it deliver?

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Opinion: OPEC surprises – but will it deliver?

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Written by Richard Dyson – 03/10/2016 5:00 am

After weeks of speculation, OPEC showed it still has the power to surprise last week with its announcement of an agreement to cut back oil output for the first time in eight years. While short-term celebrations were rife, the question remains: Was the group just calling our bluff that its informal meeting would amount to more of the same, or will something actually be done?

While not expected, the tentative output agreement – to reduce production to between 32.5 million and 33 million barrels per day, down from the current 33.5 million barrels per day – came as welcome news to the oil and gas industry, as many of us presumed that this meeting would follow the usual pattern of producing no tangible results.

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Opec’s unclear resolve

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Opec’s unclear resolve

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By Ed Crooks, September 30, 2016

After two years of inaction as a strategy, Opec this week decided to do… something. Exactly what it will end up doing has yet to be determined.

When Opec ministers met at a beach resort in Algiers, they agreed a statement setting a target for their oil production that is roughly 250,000-750,000 barrels per day lower than the cartel’s current output. The big missing piece from the deal, though, was how the cartel’s members would share out the cuts needed to reach that target. A “high-level committee” of representatives from member states, supported by the Opec secretariat, will work on recommendations for individual countries’ cuts, which could be confirmed at the next ministerial meeting, in Vienna on November 30.

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Oil falls as investors cash in on OPEC deal rally, dollar rises

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Oil falls as investors cash in on OPEC deal rally, dollar rises

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The United States, now the world’s biggest oil producer but not a member of OPEC, said it had little faith in the deal leading to higher prices in the long term. Amos Hochstein, the U.S. energy envoy, said in a Reuters interview the deal will either lead to higher U.S. production and trigger another price fall or allow U.S. producers to expand market share.

By Karolin Schaps | LONDON

Oil prices fell on Friday on a stronger dollar and as investors cashed in on a 6-percent rise in just one day after OPEC members agreed to reduce output for the first time in eight years to stifle a two-year price slide.

Global benchmark Brent crude futures LCOc1 were down $1.03 at $48.21 a barrel by 1006 GMT, but still 4.5 percent higher than before the OPEC agreement on Wednesday.

U.S. crude CLc1 was down 66 cents at $47.17 a barrel, around 5 percent higher than before the OPEC announcement.

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Oil prices continue to fall as doubts over OPEC agreement build

MARKETWATCHOil prices continue to fall as doubts over OPEC agreement build

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By Jenny W. Hsu and Sara McFarlane

Published: Sept 30, 2016 6:49 a.m. ET

Oil futures fell Friday as investors cashed in their recent gains and skepticism grew over a tentative agreement to cut production among members of the Organization of the Petroleum Exporting Countries.

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OPEC decision on daily oil output freeze to have no impact on Shell’s strategy Zoom

OPEC decision on daily oil output freeze to have no impact on Shell’s strategy

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September 29, 2016

Baku-APA. The Organization of the Petroleum Exporting Countries’ (OPEC) agreement to freeze daily oil output will not affect Royal Dutch Shell ‘s current strategy, a spokesman for one of the world’s largest oil companies told Sputnik on Thursday, APA reports quoting Sputnik.

On Wednesday, OPEC oil producing countries agreed a preliminary deal on the sidelines of an international energy forum in Algiers, Algeria. The output ceiling was set at 32.5-33 million barrels a day for the whole cartel. 

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Is OPEC’s Output Deal A Game Changer For Royal Dutch Shell And BP?

Is OPEC’s Output Deal A Game Changer For Royal Dutch Shell And BP?

Royston Wild: Sept 29, 2016

Investors in the fossil fuel sector have finally had cause to celebrate this week after OPEC suggested that an output freeze could finally be in the offing.

The idea had initially been tabled at the start of the year as Saudi Arabia, Qatar, Venezuela and Russia got around the table. But Iran’s determination to get the pumps ramped back up to pre-sanction levels put the plan firmly on the backburner.

However, with Tehran’s reluctance to take part in a deal now apparently thawing, stock pickers have become more optimistic over the growth outlook for many of the oil industry’s major players.

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Iraq’s OPEC revolt shows Saudi-Iran oil deal fragility

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Iraq’s OPEC revolt shows Saudi-Iran oil deal fragility

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By Rania El Gamal and Alex Lawler | ALGIERS

For years, debates in the OPEC conference room were dominated by clashes between top producer Saudi Arabia and arch-rival Iran.

But as the two managed to find a rare compromise on Wednesday – with Riyadh softening its stance towards Tehran – a third OPEC superpower emerged.

Iraq overtook Iran as the group’s second-largest producer several years ago but kept its OPEC agenda fairly low-profile. On Wednesday, Baghdad finally made its presence felt.

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Shares in oil giants BP and Shell surge on production cut deal

Shares in oil giants BP and Shell surge on production cut deal

The agreement by OPEC countries boosts hopes for a sector which has seen mass job cuts, but could push up prices at the pump.

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Thursday 29 September 2016

Shares in Royal Dutch Shell and BP have surged after top oil producing countries agreed to cut production for the first time in eight years.

Shell climbed 6% and BP was up 4% following the decision by OPEC – with other commodity firms also performing strongly.

The stocks helped the FTSE 100 Index turn 1% higher, with improvements also seen in French and German markets, following an upturn for Asian shares overnight.

OPEC’s agreement on Wednesday helped the price of a barrel of Brent crude climb above $49 overnight, before slipping back slightly.

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Oil plumbs depths as Opec hope fades

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All eyes are on Saudi Arabia and other big producers as the oil price hovers around $40 a barrel

Oil prices could be headed back below $40 a barrel, with a deal this week between the world’s top exporters looking increasingly remote.

Opec meets for three-day talks in Algiers tomorrow, with the cartel still divided on its response to oil’s price slump.

Brent crude fell sharply to under $46 a barrel on Friday, as hopes of a production cut faded. Analysts at Citigroup said the price could slide below $40 unless big producers led by Saudi Arabia can hammer out a deal to pump less crude. Forecasters at Macquarie Group, meanwhile, said that even if a production freeze can…

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