Category Archives: Commodities

Opec, Russia and other oil producers make draft deal to cut output

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Mexico holds out against scale of reductions which would amount to 10m barrels per day, or 10% of global supply

Opec countries and allies led by Russia have agreed in principle to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered in the coronavirus crisis.

But there was some confusion after Mexico apparently refused to sign up to its share of cuts under the deal, which would have been 400,000 barrels per day. The Mexican energy minister Rocio Nahle Garcia tweeted that her country had suggested a cut of 100,000 barrels.

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Oil rig closures rising as prices hit 18-year lows

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Global producers running out of storage for surplus due to coronavirus crisis

Global oil producers have begun shutting down their oil rigs on the largest scale in 35 years as the coronavirus continues to drive market prices to their lowest level since 2002.

Related: More than 4,000 North Sea oil rig jobs cut amid Covid-19 crisis

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Urgent call to head off new debt crisis in developing world

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Covid-19 crisis is raising borrowing costs for poorer nations just as commodity exports, tourism and remittances sent home fall

Rapid action is needed to head off the risk of a new debt crisis in the world’s poorest countries amid evidence that the Covid-19 pandemic is raising borrowing costs and hitting commodity exports, according to a leading campaign group.

A Jubilee Debt Campaign report said some of the world’s most vulnerable nations were being hit by a double whammy of increasing debt interest bills and the tumbling price of oil and other raw materials.

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FTSE on course for biggest fall since financial crisis

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World markets plunge on back of coronavirus-driven recession fears and threat of oil price war

Global stock markets have suffered their biggest falls since the 2008 financial crisis and trading was temporarily suspended on Wall Street after an oil price crash rattled investors fearing a coronavirus-driven global recession.

Dealing in shares on the main US indices was frozen within minutes of the opening bell, as circuit breakers were triggered by a 7% fall on the S&P 500. Once trading resumed 15 minutes later, the Dow Jones Industrial Average completed a fall of more than 2,000 points for the first time ever – a fall of more than 7%.

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Saudi Arabia price war wipes billions from value of major oil firms

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Royal Dutch Shell and BP lose more than £32bn from their combined market value

Saudi Arabia’s oil price war has wiped billions of pounds from the market value of the industry’s biggest companies after oil markets recorded one of the biggest price slumps in history.

The decision of the world’s largest oil-producing nation to increase its production even as the coronavirus outbreak stalls global oil demand triggered a 30% drop in oil prices on Monday morning.

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Oil price plunges 20% as Saudis vow to step up production

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Move follows Russian refusal to join Opec-led production cut aimed at keeping prices high

The price of crude oil has plunged by more than 20% after Saudi Arabia, the world’s top oil exporter, said it would step up production from next month, flooding global markets and most likely depressing petrol and diesel prices.

Brent crude futures slid 30% to $31.02 a barrel in chaotic trade on Monday morning, before recovering slightly to $36.06, a drop of 20% on Friday night’s close. It was the worst one-day fall for brent since the start of the first Gulf war in 1991. US crude fell 27% to $30.

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World Bank accused over ExxonMobil plans to tap Guyana oil rush

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Washington DC-based bank grants funds to redraft south American state’s oil laws by lawyers linked to oil giant

The World Bank is to pay for Guyana’s oil laws to be rewritten by a legal firm that has regularly worked for ExxonMobil, just as the US producer prepares to extract as much as 8bn barrels of oil off the country’s coast.

The World Bank has pledged not to fund fossil fuel extraction directly, but it is giving Guyana millions of dollars to develop governance in its burgeoning oil sector, as the south American country prepares for an oil rush led by ExxonMobil and its partners.

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New train blockade piles pressure on Trudeau in Wet’suwet’en pipeline fight

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Group of about 20 blocked Canadian National Railway Co rail line near Edmonton, capital of the western province of Alberta

Demonstrators opposed to a Canadian gas pipelinehave blockaded another railway line in the west of the country, adding to pressure on Justin Trudeau to solve a two-week protest.

Freight traffic in eastern Canada has already been stopped for days after campaigners blockaded a main line in Ontario. Protesters across the country have taken up the cause of the Wet’suwet’en indigenous people who are seeking to stop the C$6.6bn (US$4.98bn) Coastal GasLink gas pipeline project in British Columbia.

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Oil and gas firms ‘have had far worse climate impact than thought’

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Study indicates human fossil methane emissions have been underestimated by up to 40%

The oil and gas industry has had a far worse impact on the climate than previously believed, according to a study indicating that human emissions of fossil methane have been underestimated by up to 40%.

Although the research will add to pressure on fossil fuel companies, scientists said there was cause for hope because it showed a big extra benefit could come from tighter regulation of the industry and a faster shift towards renewable energy.

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UK taxpayers funding African fossil fuel projects worth $750m

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Watchdog reveals huge sum ploughed into ‘world’s dirtiest fossil fuels’ despite climate vow

UK taxpayer funds totalling $750m (£577m) have been invested in new fossil fuel projects in developing African countries despite the government’s public commitment to tackling the climate crisis, according to an international watchdog.

Global Witness found that a London-based investment group raised $1bn from the UK government over 16 years and spent three-quarters of this supporting oil and gas projects in some of Africa’s poorest countries.

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Isabel dos Santos responds to Luanda Leaks investigation

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Former Angolan president’s daughter and her husband deny corruption accusations

Isabel dos Santos issued the following statement on Thursday after being formally named as a suspect by the Angolan attorney general in connection with a criminal inquiry into embezzlement at the state oil company Sonangol.

The allegations which have been made against me over the last few days are extremely misleading and untrue.

We will seek to clarify our position in relation to the latest accusations.

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Libya oil production nosedives as Haftar ignores calls to end war

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Increasingly erratic general shows no sign of relenting despite international pressure

Libya’s oil production and exports have almost ground to a halt as the increasingly unpredictable Gen Khalifa Haftar, the military leader in the country’s east, ignores international calls to seek a negotiated political settlement to the civil war.

World leaders had convened in Berlin on Sunday to endorse plans to entrench, monitor and enforce a ceasefire intended as a precursor to the disarming of militias and political talks in Geneva to build a reunified government, and a fair distribution of oil revenues between the east and west of the country.

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What are the Luanda Leaks?

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Leak has shown how Africa’s richest woman built her empire, but how did it happen?

Isabel dos Santos, the billionaire daughter of the former president of Angola, claims to be a self-made businesswoman, but a cache of documents investigated by the Guardian and partners appears to tell a different story.

The Luanda Leaks are a trove of 715,000 emails, charts, contracts, audits, and accounts that help explain how Dos Santos built a business empire worth an estimated $2bn.

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Why Iran crisis is unlikely to hit US consumers hard at the gas pumps

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Rumors of Middle East war used to inevitably lead to soaring gas prices but fracking revolution has changed the market landscape

For many older Americans the thought of war in the Middle East will trigger memories of soaring gas prices and long lines at the pumps. But as US relations with Iran sink to a new low there is, as yet, no sign of panic.

Related: By killing Qassem Suleimani, Trump has achieved the impossible: uniting Iran | Dina Esfandiary

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Oil prices top $70 a barrel amid fears over Suleimani retaliation

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Rise in cost of crude after US attack on Iranian general could affect petrol price

Oil prices have climbed above $70 a barrel for the first time in four months amid fears that the US air strike that killed Iran’s top military commander may trigger a retaliation.

The global oil markets have risen by more than 5% to $70.73 a barrel since the attack that killed Qassem Suleimani in Iraq last week.

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Goldman Sachs to stop financing new drilling for oil in the Arctic

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US bank becomes the first to establish a no-go zone in the oil and gas sector

Goldman Sachs has ruled out future financing of oil drilling or exploration in the Arctic and said it would not invest in new thermal coal mines anywhere in the world.

The new environmental policy, which was released by the US bank on Sunday, was praised by environmentalists, though many warned that it was only a first step.

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Saudi Aramco touches $2tn in value on second day of trading

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World’s biggest listed company briefly reaches valuation sought by Saudi ruler

Saudi Aramco has touched a market value of $2tn a day after the Saudi state-backed oil company made its stock market debut.

The shares rose almost 10% at the open on the second day of trade on Riyadh’s Tadawul stock exchange, lifting the company’s market value briefly to $2tn, before giving up some of their gains.

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Saudi Aramco becomes most valuable listed company in history

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Investor demand pushes oil giant’s market value to $1.9tn on first day of trade in Riyadh

Saudi Aramco has secured its position as the most valuable listed company in history after investor appetite for the world’s biggest fossil fuel producer pushed its market value to $1.9tn (£1.4tn) on its first day of trade.

Shares in the Saudi state-backed oil company defied Aramco’s critics by climbing nearly $200bn above the $1.7tn valuation set before its market debut on Riyadh’s stock exchange.

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Saudi Aramco to be world’s most valuable firm after IPO next week

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Oversubscribed listing in Riyadh of 1.5% stake in state oil company will value it at $1.7tn

Saudi Aramco is poised to achieve the biggest initial public offering in history next week by raising $25.7bn for the Saudi state in its market debut.

The state-owned oil business will emerge as the world’s most valuable listed company after reportedly valuing its shares at 32 riyals ($8.53) apiece before its float on Riyadh’s stock exchange next week.

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Saudi Arabia aims to buoy oil price before Aramco stock market debut

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De facto Opec leader will push other countries to rein in oil output before Aramco’s IPO

Saudi Arabia is planning to use its position at the head of the Opec oil cartel to buoy global oil prices before the $25bn stock market debut of its state-owned oil giant.

The Organization of the Petroleum Exporting Countries is due to meet its oil market allies this week to agree the cartel’s oil production policy for 2020.

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