MOSCOW/LONDON The commercial start-up of Turkey's new $6.3 billion oil refinery has been delayed until early next year and the plant is not expected to reach full capacity until mid-2019, three sources familiar with the matter said, as tests revealed minor faults.
LONDON Oil prices won't rally and may fall further in 2019 as a slowing global economy and booming U.S. output help offset the loss of Iranian barrels, the world's biggest oil traders told the Reuters Global Commodities Summit.
LONDON The world's biggest oil traders are gearing up to cash in on big disruptions that could hit the shipping fuel market in just over a year due to new U.N.-mandated environmental rules.
LONDON The world's largest oil producers could reverse their strategy of raising output and revert to reduction mode if the price of crude holds near $70 a barrel into next year, Mercuria Chief Executive Marco Dunand said on Thursday.
(Adds background detail, NNPC statement, BP comment)
By Julia Payne and Amanda Cooper
LONDON, Nov 1 Nigeria's state oil firm NNPC said
on Thursday that it had signed a crude-for-product deal with BP
for the next six months to help meet the country's
gasoline needs over the holidays and ahead of its general
election early next year.
Despite being Africa's biggest oil producer and an OPEC
member, Nigeria is almost wholly reliant on fuel imports as its
refineries barely function after years of neglect and
Periodic fuel shortages are common with cars lining up at
the pump sometimes for days, especially during the Christmas
Incumbent President Muhammadu Buhari, whose popularity is
already sagging, cannot afford to be seen as unable to meet the
needs of Nigeria's 190-million population.
It was not immediately clear what volume would be allocated
to BP. NNPC already has 10 similar deals for a total of just
over 300,000 barrels per day of crude out its close to 1.9
million bpd of production as of October.
NNPC initially announced on Twitter late on Wednesday
without providing details. BP declined to comment.
In its statement, NNPC said the arrangement with BP would
account for 20 percent of the west African country's total
NNPC imports about 70 percent of Nigeria's fuel needs,
mainly gasoline, via swap contracts known as Direct Sale Direct
Foreign firms must pair up with a local company to deliver
the products. NNPC said that BP will be partnered with Nigerian
firm AYM Shafa.
BP was not originally among the companies with whom NNPC
"BP's partnership with AYM Shafa...makes it a perfect fit
for our plans to ensure that there is adequate supply of
products throughout the coming Yuletide and even beyond the
election period," NNPC managing director Maikanti Baru said,
adding that AYM Shafa has 150 retail outlets and depots.
The existing contract holders that include trading houses
Vitol, Trafigura, Mercuria and French oil major Total
started in mid-2017.
NNPC extended the existing DSDP contracts to June 2019 but
several trading sources in the consortiums have requested new
price terms, sources with direct knowledge said.
Higher oil prices this year have helped boost Nigeria's
foreign exchange reserves, but the weakness in the country's
currency against the U.S. dollar has forced the central bank to
spend billions to keep the naira stable and prevent an unwelcome
spike in its import bill.
Nigeria has been using swaps for about 10 years. NNPC
launched the DSDP model in 2016 and under it, NNPC sells crude
oil to refiners or trading houses, who in return, supply mainly
gasoline but also other petroleum products such as diesel.
Trader/Refin Local partner(s) Volume (minimum
Trafigura AA Rano 33,000 bpd
Petrocam Rainoil/Falcon Crest 33,000 bpd
Mocoh Heyden 33,000 bpd
Cepsa Oando 33,000 bpd
Sahara SIR 33,000 bpd
Mercuria Matrix/Rahmaniya 33,000 bpd
Socar Hyde 33,000 bpd
Litasco MRS 33,000 bpd
Vitol Varo 33,000 bpd
Total Total 33,000 bpd
10 Groupings 330,000 bpd
(Reporting by Julia Payne, additional reporting by Paul Carsten
in Abuja; Writing by Amanda Cooper; Editing by Alexandra Hudson)
LONDON, Oct 31 Gunvor Group named Muriel Schwab
as its new chief financial officer on Wednesday as part of a
wider leadership shake-up, making her one of the highest ranking
women in oil trading.
LONDON Oil prices will likely stay near current levels of $75 per barrel next year in the absence of any supply disruptions as most producers reckon that higher prices would destroy demand and create a new glut, one of the world's biggest traders said.
LONDON The lack of price clarity for fuels that comply with new global shipping rules to reduce sulfur emissions are complicating preparations before the regulations take effect in 2020, the head of Vitol, the world's largest independent oil trader, said.
LONDON Oil prices will likely fall next year as demand is curbed by trade wars and weakness in emerging market economies, the world's biggest oil trader Vitol predicted on Tuesday.
LONDON The market has underestimated the impact of a change in marine fuel oil rules that will turn diesel into 2019's big winner, while crude prices will cool down to around $65 a barrel, a top hedge fund manager told Reuters.