Oil slides into bear market territory, posting worst day in more than a month on coronavirus fears

Oil slid more than 5% at its session low on Monday, falling into bear market territory as the number of coronavirus cases outside of China surged. Raymond James cut its oil outlook on Monday as the number of coronavirus cases continues to rise. Molchanov said demand in the first quarter will be reduced by an average of 1.5 million barrels per day. A week ago, the firm’s forecast stood at a potential build of over one million barrels per day for the quarter. The firm also raised its first quarter


Oil slid more than 5% at its session low on Monday, falling into bear market territory as the number of coronavirus cases outside of China surged.
Raymond James cut its oil outlook on Monday as the number of coronavirus cases continues to rise.
Molchanov said demand in the first quarter will be reduced by an average of 1.5 million barrels per day.
A week ago, the firm’s forecast stood at a potential build of over one million barrels per day for the quarter.
The firm also raised its first quarter
Oil slides into bear market territory, posting worst day in more than a month on coronavirus fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-24  Authors: pippa stevens
Keywords: news, cnbc, companies, territory, worst, month, day, coronavirus, cases, oil, number, quarter, slides, market, million, demand, fears, posting, barrels, prices


Oil slides into bear market territory, posting worst day in more than a month on coronavirus fears

Prices closed off the lows after Saudi Aramco CEO Amin Nasser reportedly said that the coronavirus impact will be “short term,” according to a report from Reuters.

U.S. West Texas Intermediate crude shed 3.65%, or $1.95, to settle at $51.43 per barrel for its worst day since Jan. 8, while International benchmark Brent crude fell $2.20, or 3.8%, to settle at $56.30 per barrel. At the session low WTI fell to $50.45, while Brent traded as low as $55.13.

Investors are worried that a subsequent slowdown in the global economy could dent the demand for crude.

Oil slid more than 5% at its session low on Monday, falling into bear market territory as the number of coronavirus cases outside of China surged.

A derrick man secures a length of drill pipe during drilling on a natural gas drill rig near Montrose, Pennsylvania, U.S., on Monday, April 5, 2010.

Raymond James cut its oil outlook on Monday as the number of coronavirus cases continues to rise.

“There is no escaping the fact that China — the world’s largest oil importer — will have meaningfully weaker near-term oil demand than we had envisioned as the year began,” analyst Pavel Molchanov wrote in a note to clients.

Molchanov said demand in the first quarter will be reduced by an average of 1.5 million barrels per day. He said that a warmer-than-normal winter across the Northern Hemisphere is also hitting demand.

Total confirmed cases of the coronavirus now stands at more than 79,400, while the death toll is more than 2,621. On Monday Italian news agency ANSA said that a seventh person has died in the country, with the number of confirmed cases exceeding 220.

Citi was among the other firms cutting its oil outlook as cases of the coronavirus accelerate.

“The oil market is confronting new signs of weakness, largely from the coronavirus and its impacts on refinery demand for crude oil and from Russia’s refusal to agree to an emergency OPEC+ meeting to curb oil production,” the firm said in a note to clients.

Citi said that it now believes inventories could grow to 2 million barrels per day in February alone, which will put “even more sustained pressure on prices.” A week ago, the firm’s forecast stood at a potential build of over one million barrels per day for the quarter.

The firm also raised its first quarter build projection from 112 million barrels to 145 million barrels, and lifted its second quarter forecast from 53 million barrels to 94 million barrels. “However, our draws for 3Q are lower vs. last week’s estimates,” the firm added.

Molchanov added that since the virus and weather issues are transitory, “the global oil market will need sustainably higher prices in order to avoid a major undersupply in 2021 and beyond.”

– CNBC’s Michael Bloom contributed reporting.

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Company: cnbc, Activity: cnbc, Date: 2020-02-24  Authors: pippa stevens
Keywords: news, cnbc, companies, territory, worst, month, day, coronavirus, cases, oil, number, quarter, slides, market, million, demand, fears, posting, barrels, prices


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Tech and energy are teaming up, creating a market that could grow 500% in the next 5 years

“They [energy companies] are realizing that they’re not IT companies. Against this backdrop, energy giants are leaning on tech companies to help them make operations cleaner and safer. If tech’s involvement helps to boost energy companies’ ESG ratings, it could come at the expense of the tech companies’ ratings. Some argue that since the world is still dependent on fossil fuels, tech companies should help oil and gas companies be as energy-efficient as possible. But still, the tech companies hav


“They [energy companies] are realizing that they’re not IT companies.
Against this backdrop, energy giants are leaning on tech companies to help them make operations cleaner and safer.
If tech’s involvement helps to boost energy companies’ ESG ratings, it could come at the expense of the tech companies’ ratings.
Some argue that since the world is still dependent on fossil fuels, tech companies should help oil and gas companies be as energy-efficient as possible.
But still, the tech companies hav
Tech and energy are teaming up, creating a market that could grow 500% in the next 5 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-22  Authors: pippa stevens
Keywords: news, cnbc, companies, digital, 500, industry, energy, companies, oil, creating, teaming, gas, services, grow, market, tech, data


Tech and energy are teaming up, creating a market that could grow 500% in the next 5 years

As the energy industry faces a time of reckoning — pressured by consistently low oil prices, high operating costs and a growing sustainable investing movement — oil and gas companies are increasingly turning to Silicon Valley for help streamlining operations and boosting efficiencies. By some estimates, the addressable market for digital oil and gas solutions could grow 500% over the next five to six years, saving oil producers roughly $150 billion, while creating an ever-larger market for tech companies in the highly competitive — and high margin — business of cloud computing.

Opportunities for savings include cutting capital expenditures as well as selling, general and administrative operating costs and transportation operating costs. “The digital age is finally dawning for Oil & Gas … We see a market poised to erupt over the next five years,” Barclays said in January in a note to clients. “The last 12 months has seen a dramatic shift in adoption, with numerous announcements of cloud and digital-platform partnerships that we think are just early signs of things to come,” the firm added. In the last year, Microsoft has announced partnerships with Exxon and Chevron, among others, while in May Google parent company Alphabet renewed and significantly expanded its partnership with Schlumberger. Amazon Web Services offers digital services to the industry through its oil and gas division, and counts BP and Shell among its clients. Energy giants have, of course, been using tech companies’ enterprise software for years, and oil and gas companies’ highly complex operating systems — including precise drilling techniques and rig management operations — have depended on sophisticated data-based decision making for decades. But oil companies were traditionally somewhat reluctant to hand over their treasure troves of valuable data thanks to cyber security concerns and wanting to maintain competitive advantages, among other things. This meant that for the most part software was developed in-house or by companies within the oilfield services sector.

Amazon Web Services at the 2019 CERAWeek in Houston, TX. Mary Catherine Wellons | CNBC

Now, however, driven by lackluster returns in the energy space and rapid advancements in the tech sector, the two sectors are increasingly coming together, creating partnerships between two industries that in other ways are very much at odds with one another. “The magnitude of the capacity for processing and storage makes it possible to do things we didn’t dream of within the industry,” said John Gibson, Flotek chairman and CEO and former chairman of energy technologies for energy investment bank Tudor, Pickering, Holt & Co. “The whole industry needs an uplift in performance, profitability and free cash flow, so working together with the data to improve industry performance has become a mandate … We need the tide to rise for everybody,” he added.

Why now?

A number of factors are driving the transition, including years of lagging returns in the energy sector. As recently as six years ago, when oil fetched more than $100 per barrel, producers’ costs weren’t looked at under a microscope. U.S. West Texas Intermediate began a downward trajectory in 2014 and while prices have rebounded from the extreme lows of 2016, WTI remains far from its prior highs, meaning oil and gas companies have had to adapt.

“The oil business here [North America] has gone from gold rush to austerity in a very short period of time,” Shaia Hosseinzadeh, founder of energy-focused private equity firm OnyxPoint Global Management, said. “In this new world, there are a lot of demands being placed on the oil industry. … The entire ecosystem is being asked to do more with less.” Energy’s continued underperformance — it now accounts for less than 4% of the S&P 500, compared to more than 11% in 2010 — has coincided with major advancements in the tech space, including rapid iterations in areas like machine learning and data processing. At the same time, widescale adoption has led to steep cost declines for things like data storage. Tech companies can harness insights from applications refined and tested across sectors. It’s difficult — if not impossible — for individual companies to fully replicate what they offer. In other words, partnerships where applications and technologies are co-developed can be the only choice. “They [energy companies] are realizing that they’re not IT companies. They’re not software developers, but they are users of it,” IHS Markit director Carolyn Seto said to CNBC. “They are partnering with these [tech] companies to be able to gain access to these new technologies, as opposed to taking the development costs themselves of building out capabilities within their organization.” Reid Morrison, oil and gas advisory leader at PwC, noted that as oil prices rebounded from 2016 lows it also created an opportunity for energy companies to advance these technologies from proof-of-concept to actually moving them into the mainstream where they can hit the companies’ bottom line. Barclays also made this point, noting that “value creation over the next five years hinges on scalability as Digital moves beyond discrete applications to organization-wide implementation.”

Biggest beneficiaries

As big oil looks to data services and cloud computing to help its performance and profitability, companies that provide these services could be in for a big payday. Barclays estimates that the digital services market could grow to $30 billion annually over the next five years, from less than $5 billion today, with the potential market for cloud providers also growing to $30 billion annually. Given the potential size, tech companies are vying for market share. Raymond James analyst Pavel Molchanov said in a 2019 note to clients that while the cost savings might not be all that pronounced for energy companies, “the sale of these products and services – to energy and other verticals, taken in aggregate — can be quite needle-moving for technology providers.”

“There is an enormous opportunity to bring the latest cloud and AI technology to the energy sector and accelerate the industry’s digital transformation,” Microsoft CEO Satya Nadella said in a statement in June while announcing the company’s three-party collaboration with Schlumberger and Chevron. On the energy side, Barclays estimates that greater efficiencies will save producers roughly $150 billion annually, which translates to shaving $3 per barrel from the production price of oil. Besides the oil producers themselves, Barclays said there’s a “golden opportunity” for oilfield services companies like Schlumberger, Halliburton and Baker Hughes to “regain relevancy.” These companies have deep industry experience, and also have their own digital offerings. The firm said that in the near-term Schlumberger is best-positioned, but that Baker Hughes “may have the greatest upside of all.” The firm noted that these numbers are just estimates since it’s difficult to quantify given the secrecy surrounding the field. Longer term, technological advancements will also be a way for energy companies to stand out in a cutthroat industry, said Rebecca Fitz, senior director at BCG’s Center for Energy Impact. “In an unhelpful oil price environment, companies could competitively differentiate themselves by growing their margins more than their peers. And that’s where technology becomes interesting.”

The ESG factor

For obvious reasons, oil and gas companies are particularly vulnerable to the growing ESG movement, which is when environmental, social and governance factors are prioritized when making investing decisions. Against this backdrop, energy giants are leaning on tech companies to help them make operations cleaner and safer.

Remotely monitoring operations can help companies quickly identify leaks and therefore mitigate the environmental impact, for example. This also means that fewer personnel are exposed to dangerous conditions. Additionally, the very act of moving data to the cloud means that oil and gas companies can reduce the number of energy-intensive data centers needed. If tech’s involvement helps to boost energy companies’ ESG ratings, it could come at the expense of the tech companies’ ratings. Some argue that since the world is still dependent on fossil fuels, tech companies should help oil and gas companies be as energy-efficient as possible. Others say that making the industry more cost-effective will delay the widespread adoption of renewable energy. When Exxon and Microsoft announced their partnership last February, the oil giant said it could lead to an additional 50,000 oil-equivalent barrels of production per day in the Permian by 2025, generating “billions of dollars in value over the next decade.” Amazon and Microsoft have recently unveiled ambitious plans to become carbon neutral and carbon negative, respectively, and relying on power generated from renewable sources is just one of the ways in which they’ve sought to make their operations more environmentally friendly. But still, the tech companies have faced backlash — most notably, perhaps, from employees — for their involvement in the oil and gas industry.

What happens next?


Company: cnbc, Activity: cnbc, Date: 2020-02-22  Authors: pippa stevens
Keywords: news, cnbc, companies, digital, 500, industry, energy, companies, oil, creating, teaming, gas, services, grow, market, tech, data


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Cramer’s lightning round: ‘Roku is a great way to play cord-cut’

I’m going to have to say no to you.” I’m talking about the oil and oil services stocks. Roku: “I think Roku is a great way to play cord-cut. I like Trade Desk. Trade Desk is going to report next week.


I’m going to have to say no to you.”
I’m talking about the oil and oil services stocks.
Roku: “I think Roku is a great way to play cord-cut.
I like Trade Desk.
Trade Desk is going to report next week.
Cramer’s lightning round: ‘Roku is a great way to play cord-cut’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-21  Authors: tyler clifford
Keywords: news, cnbc, companies, play, great, think, going, know, round, stocks, oil, ive, lightning, cramers, cordcut, roku, desk, trade, way


Cramer's lightning round: 'Roku is a great way to play cord-cut'

Cree: “I have never, ever, ever been a fan of Cree. I’ve always felt that it was too episodic in this lighting business. I’m going to have to say no to you.”

Aecom: “Everyone — I mean I’ve liked this one, by the way, since it came public — and you know everyone keeps saying it’s going to be acquired. When I hear that everybody says it’s going to be acquired, it probably will be, but I don’t want to overstay my welcome.”

Transocean: “They are not a stock to own. They are old, yesterday kind of stocks. I’m talking about the oil and oil services stocks. As I have said, to many, history. They are history.”

EPR Properties: “You know, it’s not going to set the world on fire, but it’s going to give you that monthly dividend check.”

Roku: “I think Roku is a great way to play cord-cut. I like Trade Desk. Trade Desk is going to report next week. I think they could have a very good quarter.”


Company: cnbc, Activity: cnbc, Date: 2020-02-21  Authors: tyler clifford
Keywords: news, cnbc, companies, play, great, think, going, know, round, stocks, oil, ive, lightning, cramers, cordcut, roku, desk, trade, way


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Oman, Bahrain seen vulnerable to downgrades if the coronavirus outbreak drags on: S&P Global

It’s “fair” to say that countries such as Oman and Bahrain are vulnerable to a potential rating downgrade if the coronavirus outbreak lasts longer than expected, according to the chair of sovereign ratings at a credit rating firm. That’s because the two countries have high fiscal breakeven oil prices, Frank Gill of S&P Global Ratings told CNBC’s “Capital Connection” on Tuesday. Oil prices have been under pressure due to concerns about the economic impact of the coronavirus, with both Brent and U


It’s “fair” to say that countries such as Oman and Bahrain are vulnerable to a potential rating downgrade if the coronavirus outbreak lasts longer than expected, according to the chair of sovereign ratings at a credit rating firm.
That’s because the two countries have high fiscal breakeven oil prices, Frank Gill of S&P Global Ratings told CNBC’s “Capital Connection” on Tuesday.
Oil prices have been under pressure due to concerns about the economic impact of the coronavirus, with both Brent and U
Oman, Bahrain seen vulnerable to downgrades if the coronavirus outbreak drags on: S&P Global Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: abigail ng
Keywords: news, cnbc, companies, outbreak, ratings, prices, countries, global, rating, drags, late, oman, seen, coronavirus, bahrain, oil, china, demand, downgrades, vulnerable


Oman, Bahrain seen vulnerable to downgrades if the coronavirus outbreak drags on: S&P Global

It’s “fair” to say that countries such as Oman and Bahrain are vulnerable to a potential rating downgrade if the coronavirus outbreak lasts longer than expected, according to the chair of sovereign ratings at a credit rating firm.

That’s because the two countries have high fiscal breakeven oil prices, Frank Gill of S&P Global Ratings told CNBC’s “Capital Connection” on Tuesday. Oil prices have been under pressure due to concerns about the economic impact of the coronavirus, with both Brent and U.S. crudes down more than 10% since the beginning of the year.

The Organization of the Petroleum Exporting Countries has slashed global oil demand growth forecasts as the coronavirus continues to spread. For China alone, OPEC revised its demand forecast down by 0.2 million barrels a day for the first half of 2020.

The first coronavirus infections surfaced in late 2019 in the Chinese city Wuhan, and the disease has since killed more than 2,000 people in China. After the Lunar New Year holiday in late January, many businesses in China extended their closures in a bid to control the virus situation.


Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: abigail ng
Keywords: news, cnbc, companies, outbreak, ratings, prices, countries, global, rating, drags, late, oman, seen, coronavirus, bahrain, oil, china, demand, downgrades, vulnerable


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US oil industry expected to cut spending by 10-15% and restructure, Dallas Fed says

The Dallas Federal Reserve, which has the Permian basin in its economic region, expects the oil and gas sector to cut capital spending by 10% to 15% in 2020. Rob Kaplan, president of the Fed district, said in an essay that the decline in oil production growth will have a substantial impact on the energy service companies. U.S. oil production is expected to grow by 700,000 barrels a day from fourth quarter 2019 to fourth quarter 2020. Kaplan also cited International Energy Agency forecasts that g


The Dallas Federal Reserve, which has the Permian basin in its economic region, expects the oil and gas sector to cut capital spending by 10% to 15% in 2020.
Rob Kaplan, president of the Fed district, said in an essay that the decline in oil production growth will have a substantial impact on the energy service companies.
U.S. oil production is expected to grow by 700,000 barrels a day from fourth quarter 2019 to fourth quarter 2020.
Kaplan also cited International Energy Agency forecasts that g
US oil industry expected to cut spending by 10-15% and restructure, Dallas Fed says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: patti domm
Keywords: news, cnbc, companies, prices, fed, spending, industry, quarter, production, decline, 2020, growth, income, restructure, cut, oil, demand, dallas, 1015, expected, energy


US oil industry expected to cut spending by 10-15% and restructure, Dallas Fed says

The Dallas Federal Reserve, which has the Permian basin in its economic region, expects the oil and gas sector to cut capital spending by 10% to 15% in 2020.

Rob Kaplan, president of the Fed district, said in an essay that the decline in oil production growth will have a substantial impact on the energy service companies. Some have already announced restructurings and layoffs, but he expects to see more of that, and 2020 will be a year of consolidation and cost cutting as well.

U.S. oil production is expected to grow by 700,000 barrels a day from fourth quarter 2019 to fourth quarter 2020. The forecast assumes a decline of 700,000 barrels a day in non-OPEC production and a drop of the same level by OPEC.

Kaplan also cited International Energy Agency forecasts that global oil demand will grow by 1 million barrels per day in 2020 to 102.2 million bpd. He points out that the coronavirus could chill demand, presenting a meaningful risk to demand growth since China accounts for about 14% of total global consumption and about 57% of consumption growth in 2019.

The IEA forecasts the virus impact could reduce demand by about 400,000 in the first quarter, the first decline since the Great Recession, Kaplan noted. The decline should reverse in following quarters in 2020, he said.

“In the U.S. more broadly, lower oil prices should benefit U.S. consumers by freeing up more of their disposable income for the consumption of non-oil goods and services,” he wrote. But he added that since the U.S. is no longer a net importer of oil and refined products, the benefit of lower prices to U.S. GDP may be increasingly offset by the hit to energy producers.

“Changes in oil prices will increasingly redistribute income between sectors and states within the U.S., as opposed to impacting the transfer of income between the U.S. and other oil-exporting nations,” he wrote.


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: patti domm
Keywords: news, cnbc, companies, prices, fed, spending, industry, quarter, production, decline, 2020, growth, income, restructure, cut, oil, demand, dallas, 1015, expected, energy


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Iran’s foreign minister blames US and Saudi Arabia for rising tensions in the Gulf

Iran’s Foreign Minister Mohammad Javad Zarif takes part in the panel discussion ‘A conversation with Iran’ during the 56th Munich Security Conference in Munich on February 15, 2020. MUNICH — Iran’s Foreign Minister Mohammad Javad Zarif said that when it comes to the rising tensions in the Gulf, the United States and Saudi Arabia are to blame. “I believe our neighbors, especially Saudi Arabia, do not want to (de-escalate),” Zarif said Saturday when asked about the status of the relationship at th


Iran’s Foreign Minister Mohammad Javad Zarif takes part in the panel discussion ‘A conversation with Iran’ during the 56th Munich Security Conference in Munich on February 15, 2020.
MUNICH — Iran’s Foreign Minister Mohammad Javad Zarif said that when it comes to the rising tensions in the Gulf, the United States and Saudi Arabia are to blame.
“I believe our neighbors, especially Saudi Arabia, do not want to (de-escalate),” Zarif said Saturday when asked about the status of the relationship at th
Iran’s foreign minister blames US and Saudi Arabia for rising tensions in the Gulf Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-17  Authors: amanda macias
Keywords: news, cnbc, companies, saudi, zarif, arabia, foreign, gulf, rising, blames, tehran, security, munich, iran, nuclear, oil, military, irans, minister, tensions


Iran's foreign minister blames US and Saudi Arabia for rising tensions in the Gulf

Iran’s Foreign Minister Mohammad Javad Zarif takes part in the panel discussion ‘A conversation with Iran’ during the 56th Munich Security Conference in Munich on February 15, 2020.

MUNICH — Iran’s Foreign Minister Mohammad Javad Zarif said that when it comes to the rising tensions in the Gulf, the United States and Saudi Arabia are to blame.

“I believe our neighbors, especially Saudi Arabia, do not want to (de-escalate),” Zarif said Saturday when asked about the status of the relationship at the Munich Security Conference. He added that he suspected Riyadh was operating under the influence of the Trump administration’s “maximum pressure campaign” on Iran.

Zarif also accused his Saudi counterpart Prince Faisal bin Farhan Al Saud, who attended the Munich Security Conference as well, of reshuffling the security forum’s agenda so that the two of them wouldn’t have to meet.

Prince Faisal reaffirmed, less than an hour after Zarif spoke, that the Kingdom of Saudi Arabia would not hold meetings with Iran until the regime takes responsibility for its malign activities in the region.

“Our message to Iran is to change its behavior first before anything is to be discussed,” the Saudi prince said during a discussion at the conference. “Until we can talk about the real sources of that instability, talk is going to be unproductive,” he added.

Tensions in the Gulf took an anxious turn last month when the U.S. conducted a deadly strike on Iran’s top military leader. The Jan. 2 strike that killed Gen. Qasem Soleimani, a key military figure of Iranian and Middle East politics, followed a string of attacks on locations that hosted U.S. and coalition forces, including the U.S. Embassy in Baghdad.

On the heels of Soleimani’s death, Iran launched at least a dozen missiles from its territory on Jan. 7 at two military bases in Iraq that house U.S. troops and coalition forces.

A day later from the White House, Trump said that Iran appeared “to be standing down” and warned Tehran to abandon its nuclear ambitions.

“As long as I am president of the United States, Iran will never be allowed to have a nuclear weapon,” Trump said speaking from the grand foyer of the White House.

But he suggested that the U.S. is open to negotiations with Tehran. “We must all work together toward making a deal with Iran that makes the world a safer and more peaceful place,” he said on Jan. 8. He then urged other world powers to break away from the Obama-era nuclear agreement with Iran and work out a new deal.

Read more: Iran’s foreign minister blames Trump’s advisors for ‘very dangerous moment’ in relations with the US

The tit-for-tat strikes follow what the U.S. called an Iranian attack on the world’s largest crude-processing plant and oil field.

Last summer, the U.S. blamed Iran for the predawn strikes in Saudi Arabia that forced the kingdom to shut down half its production operations. The event triggered the largest spike in crude prices in decades and renewed concerns of a budding conflict in the Middle East. Iran maintains that it was not behind the attacks.

In September, Saudi Arabia’s defense ministry said drone and missile debris recovered by investigators shows Iranian culpability. Saudi coalition spokesman Col. Turki al-Maliki said during a press briefing in Riyadh that all military components retrieved from the oil facilities “point to Iran.”

Read more: Attack on Saudi Arabian oil facilities was ‘sophisticated’ and had a ‘dramatic impact on global markets,’ Pentagon says

Tensions between Tehran and Washington have soared following Trump’s withdrawal from the landmark Iran nuclear deal brokered by the Obama administration.

The 2015 nuclear agreement lifted sanctions on Iran that crippled its economy and cut its oil exports roughly in half. In exchange for sanctions relief, Iran accepted limits on its nuclear program and allowed international inspectors into its facilities.

And while Trump’s “maximum pressure” policy has crippled Iran’s economy, slashing its oil exports, Tehran has said it will not negotiate with Washington while sanctions are in place.


Company: cnbc, Activity: cnbc, Date: 2020-02-17  Authors: amanda macias
Keywords: news, cnbc, companies, saudi, zarif, arabia, foreign, gulf, rising, blames, tehran, security, munich, iran, nuclear, oil, military, irans, minister, tensions


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No need to panic about coronavirus impact on oil markets, US energy secretary says

The U.S. energy secretary does not believe the ultimate impact of China’s fast-spreading coronavirus is a cause for concern for markets. His comments come shortly after both OPEC and the International Energy Agency (IEA) dramatically lowered their oil demand growth forecasts this year as a result of the deadly flu-like virus. “So, we are looking to see if the Chinese government will be able to contain or at least help contain the spread of the virus. At this moment, while we are seeing some slig


The U.S. energy secretary does not believe the ultimate impact of China’s fast-spreading coronavirus is a cause for concern for markets.
His comments come shortly after both OPEC and the International Energy Agency (IEA) dramatically lowered their oil demand growth forecasts this year as a result of the deadly flu-like virus.
“So, we are looking to see if the Chinese government will be able to contain or at least help contain the spread of the virus.
At this moment, while we are seeing some slig
No need to panic about coronavirus impact on oil markets, US energy secretary says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: sam meredith
Keywords: news, cnbc, companies, markets, contain, result, crude, energy, ultimate, panic, demand, need, impact, oil, virus, concern, secretary, coronavirus, wti


No need to panic about coronavirus impact on oil markets, US energy secretary says

The U.S. energy secretary does not believe the ultimate impact of China’s fast-spreading coronavirus is a cause for concern for markets.

His comments come shortly after both OPEC and the International Energy Agency (IEA) dramatically lowered their oil demand growth forecasts this year as a result of the deadly flu-like virus.

“I think we are going to pay close attention to what is happening with the virus itself. We are still analyzing, not only the actual virus to learn more about it, but also the response to it,” Dan Brouillette told CNBC’s Hadley Gamble in an exclusive interview on the sidelines of the Munich Security Conference on Friday.

“So, we are looking to see if the Chinese government will be able to contain or at least help contain the spread of the virus. At this moment, while we are seeing some slight reductions in production as a result of the virus, we are not yet concerned about its ultimate impact.”

International benchmark Brent crude traded at $56.40 Friday morning, up around 0.1%, while U.S. West Texas Intermediate (WTI) stood at $51.49, around 0.15% higher.

Both crude benchmarks have fallen nearly 20% since climbing to a peak in early January, dragged lower by concern over demand in China during the coronavirus outbreak.


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: sam meredith
Keywords: news, cnbc, companies, markets, contain, result, crude, energy, ultimate, panic, demand, need, impact, oil, virus, concern, secretary, coronavirus, wti


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Caterpillar is ‘really, really cheap,’ but two traders warn that it may not be a good buy

“Caterpillar has just been an unloved stepchild of this stock market,” Gina Sanchez, founder and CEO of Chantico Global, said Thursday on CNBC’s “Trading Nation.” And I think Goldman was basically saying, ‘Hey, now they’re really, really, really, really cheap,'” Sanchez said. And if you look at the places Caterpillar is particularly exposed to, it’s oil and mining,” she said. “We’re not seeing that in the mining sector, we’re not seeing that in the underlying commodities prices, and we’re certai


“Caterpillar has just been an unloved stepchild of this stock market,” Gina Sanchez, founder and CEO of Chantico Global, said Thursday on CNBC’s “Trading Nation.”
And I think Goldman was basically saying, ‘Hey, now they’re really, really, really, really cheap,'” Sanchez said.
And if you look at the places Caterpillar is particularly exposed to, it’s oil and mining,” she said.
“We’re not seeing that in the mining sector, we’re not seeing that in the underlying commodities prices, and we’re certai
Caterpillar is ‘really, really cheap,’ but two traders warn that it may not be a good buy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lizzy gurdus, ivana freitas
Keywords: news, cnbc, companies, gordon, good, caterpillar, oil, stock, traders, really, mining, cheap, buy, sanchez, goldman, sector, seeing, warn


Caterpillar is 'really, really cheap,' but two traders warn that it may not be a good buy

The bulls are out for Caterpillar, at least at Goldman Sachs.

Analysts at the firm upgraded the stock to “buy” on Thursday, citing an “attractive” risk-reward profile for shares of the industrial equipment giant and calling for as much as 20% upside with their $168 price target over the next 12 months. Caterpillar shares closed up less than one-tenth of 1% at $139.72 on Thursday.

Not everyone is as eager to buy into the bull thesis for this China-tied name, however.

“Caterpillar has just been an unloved stepchild of this stock market,” Gina Sanchez, founder and CEO of Chantico Global, said Thursday on CNBC’s “Trading Nation.”

“Every time you got any bad trade news, any bad oil news, any bad anything, they got beat up. And I think Goldman was basically saying, ‘Hey, now they’re really, really, really, really cheap,'” Sanchez said. “So, you’re really buying this as a value story. But going forward, they still have challenges.”

The strategist pointed to two areas of the market that have been seeing outsized moves to the downside of late: oil and mining.

“It’s been really hard to be energy and materials stocks right now. And if you look at the places Caterpillar is particularly exposed to, it’s oil and mining,” she said.

With the International Energy Agency expecting global oil demand to slow for the first time in a decade in the first quarter, and mining companies putting their equipment orders on hold because of an uncertain outlook, that doesn’t exactly bode well for Caterpillar, Sanchez said.

Add in the questions still surrounding the U.S.-China trade negotiations, and potential tariffs could make things especially difficult, she warned.

“If you were to … buy into this Goldman call, you have to believe that something else is going to catalyze this stock,” she said. “We’re not seeing that in the mining sector, we’re not seeing that in the underlying commodities prices, and we’re certainly not seeing it in energy or oil demand.”

“So, I’m not sure that it’s going to be a fun hold, but I think, in the long term, it’s very cheap,” Sanchez said.

Todd Gordon, managing director at Ascent Wealth Partners, said in the same “Trading Nation” interview that the caution was “absolutely warranted.”

“We’ve fallen into a big period of consolidation,” he said of Caterpillar and the exchange-traded fund tracking China’s largest companies, the iShares China Large-Cap ETF (FXI). “There’s no real progress here on that chart.”

To make matters worse, Caterpillar has also been underperforming its own sector, Gordon said, with the stock’s relative ratio to the Industrial Select Sector SPDR Fund (XLI) also on the decline.

“For now, this is dead money,” Gordon said. “I appreciate Goldman’s call. But from an opportunity cost, there’s other places to put your money right now [where] you’re seeing much better performance. So, until these ranges break, OK, then we’ll talk. But, otherwise, stay away.”

Caterpillar is down about 5% year to date.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lizzy gurdus, ivana freitas
Keywords: news, cnbc, companies, gordon, good, caterpillar, oil, stock, traders, really, mining, cheap, buy, sanchez, goldman, sector, seeing, warn


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Global oil demand set to see first quarterly decline in over 10 years, IEA says

Global oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the new coronavirus and widespread shutdown of China’s economy hits demand for crude. The negative impact on oil demand hit oil prices hard as the virus took hold in January with a barrel of Brent crude falling by around $10 to fetch below $55 a barrel. The consequences of the new coronavirus, known now as “Covid-19,” will be “significant” for global o


Global oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the new coronavirus and widespread shutdown of China’s economy hits demand for crude.
The negative impact on oil demand hit oil prices hard as the virus took hold in January with a barrel of Brent crude falling by around $10 to fetch below $55 a barrel.
The consequences of the new coronavirus, known now as “Covid-19,” will be “significant” for global o
Global oil demand set to see first quarterly decline in over 10 years, IEA says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: holly ellyatt
Keywords: news, cnbc, companies, coronavirus, producers, growth, world, expected, decline, oil, iea, global, opec, demand, quarterly, market, set


Global oil demand set to see first quarterly decline in over 10 years, IEA says

Global oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the new coronavirus and widespread shutdown of China’s economy hits demand for crude.

Demand is now expected to fall by 435,000 barrels a day (b/d) in the first quarter of 2020, down from the same period a year ago, and marking the first quarterly contraction in more than 10 years, the IEA said in its monthly oil market report Thursday.

The expected decline in demand prompted the agency to cut its 2020 growth forecast by 365,000 b/d to 825,000 barrels a day, the lowest since 2011. Lower-than-expected consumption in the OECD countries trimmed 2019 growth to 885,000 b/d, it also said.

The forecast downgrade comes as the coronavirus, which has infected over 59,000 worldwide and killed over 1,300 people, continues to weigh on global market sentiment and China’s economic activity with factories and businesses closing and travel restricted both to and from China and within the country.

The outbreak has also affected business elsewhere with economic forums and business conferences cancelled, the latest being the Mobile World Congress that was set to take place in Barcelona this month.

The World Health Organization has said the outbreak “holds a very great threat for the world” and the International Monetary Fund’s Managing Director Kristalina Georgieva told CNBC Wednesday the new strain of coronavirus was “clearly more impactful” on the world economy than the 2002-2003 SARS epidemic.

The negative impact on oil demand hit oil prices hard as the virus took hold in January with a barrel of Brent crude falling by around $10 to fetch below $55 a barrel.

But prices have risen this week on expectations that major producers OPEC and non-OPEC producers, led by Russia, could cut global oil output further to counteract the slump in demand (a slump that had already been around before the coronavirus due to the trade war between the U.S. and China).

On Thursday, benchmark Brent crude was trading at $55.73 per barrel, while U.S. West Texas Intermediate (WTI) was trading at $51.21 per barrel.

The consequences of the new coronavirus, known now as “Covid-19,” will be “significant” for global oil demand, oil prices and producers, the IEA said Thursday.

“From the point of view of the producers, before the Covid-19 crisis the market was expected to move towards balance in the second half of 2020 due to a combination of the production cuts implemented at the start of the year, stronger demand and a tailing off of non-OPEC supply growth. Now, the risk posed by the Covid-19 crisis has prompted the OPEC+ countries to consider an additional cut to oil production,” it said.

Last week, the technical committee of the 14-member producer group OPEC, led by Saudi Arabia, and its non-member allies led by Russia (an alliance known as OPEC+) recommended an output cut of 600,000 barrels per day, in addition to its current 1.7 million bpd reduction. Crucially, however, Russia has not yet signaled if it will support a deeper cut.

In its own monthly oil market outlook on Wednesday, OPEC also dramatically lowered its forecast for oil demand growth this year, citing the coronavirus outbreak as the “major factor” behind its decision. It revised its outlook for global oil demand growth downwards to 0.99 million barrels per day (bpd) in 2020, down by 0.23 million bpd from the previous month’s estimate.


Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: holly ellyatt
Keywords: news, cnbc, companies, coronavirus, producers, growth, world, expected, decline, oil, iea, global, opec, demand, quarterly, market, set


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OPEC slashes oil demand outlook for 2020 as coronavirus outbreak stifles China

OPEC has dramatically lowered its forecast for oil demand growth this year, citing China’s coronavirus outbreak as the “major factor” behind its decision. In a closely-watched monthly report published Wednesday, the Middle East-dominated producer group downwardly revised its outlook for global oil demand growth to 0.99 million barrels per day (bpd) in 2020. “The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by


OPEC has dramatically lowered its forecast for oil demand growth this year, citing China’s coronavirus outbreak as the “major factor” behind its decision.
In a closely-watched monthly report published Wednesday, the Middle East-dominated producer group downwardly revised its outlook for global oil demand growth to 0.99 million barrels per day (bpd) in 2020.
“The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by
OPEC slashes oil demand outlook for 2020 as coronavirus outbreak stifles China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: sam meredith
Keywords: news, cnbc, companies, growth, outbreak, opec, slashes, 2020, global, oil, forecast, outlook, demand, stifles, china, million, coronavirus


OPEC slashes oil demand outlook for 2020 as coronavirus outbreak stifles China

The logo of the Organization of the Petroleum Exporting Countries (OPEC) at the headquarters.

OPEC has dramatically lowered its forecast for oil demand growth this year, citing China’s coronavirus outbreak as the “major factor” behind its decision.

In a closely-watched monthly report published Wednesday, the Middle East-dominated producer group downwardly revised its outlook for global oil demand growth to 0.99 million barrels per day (bpd) in 2020. That’s down by 0.23 million bpd from the previous month’s estimate.

The amended forecast is likely to reinforce the case for OPEC and allied non-OPEC producers, including Russia, to impose additional output cuts sooner rather than later.

“The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global oil demand growth in 2020,” OPEC said in the report.

“Clearly, the ongoing developments in China require continuous monitoring and assessment to gauge the implications on the oil market in 2020.”

International benchmark Brent crude traded at $55.06 at midday London time on Wednesday, up nearly 2%, while U.S. West Texas Intermediate (WTI) stood at $50.69, around 1.5% higher.

Both crude benchmarks have each fallen around 20% since climbing to a peak in early January, dragged lower by concern over demand in China during the coronavirus outbreak.


Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: sam meredith
Keywords: news, cnbc, companies, growth, outbreak, opec, slashes, 2020, global, oil, forecast, outlook, demand, stifles, china, million, coronavirus


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