NEW YORK: Oil prices jumped on Wednesday, as the European Union, the world's largest trading bloc, spelled out plans to phase out imports of Russian oil, raising concerns about further market tightness as those nations hunt for adequate supply. Crude benchmarks have risen steadily over the past two months following Moscow's invasion of Ukraine. Until now, the European Union has been reluctant to fully cut off imports of Russian oil and gas, and its plans still do not suggest a full ban for all EU members. Europe imports some 3.5 million barrels of Russian oil and oil products daily, and also depends on Moscow's gas supplies. "Inventories are so tight, so against this backdrop, when you're talking about this ban, there are a lot of questions on how (Europe) is going to make up for this," said Phil Flynn, senior analyst at Price Futures Group. Brent crude LCOc1 futures settled up $5.17, or 4.9%, to $110.14 a barrel. West Texas Intermediate crude CLc1 futures settled at $107.81 a barrel, up $5.40, or 5.3%. European Commission President Ursula von der Leyen on Wednesday proposed a phased oil embargo on Russia, as well as sanctioning Russia's top bank. The Commission's measures include phasing out supplies of Russian crude within six months and refined products by the end of 2022, von der Leyen said. She also pledged to minimise the impact of the move on European economies.
Hungary and Slovakia, however, will be able to continue buying Russian crude oil until the end of 2023 under existing contracts, an EU source told Reuters. Russia could offset the loss of one of its primary customers by selling oil to other importers including India and China. Neither country has stopped buying from Moscow. Needs for much greater supplies are not likely to be met at a meeting on Thursday of the Organization of Petroleum Exporting Countries and allied producers. OPEC+ is expected to stick to its plan for a gradual ramp-up of monthly production. In the United States, crude stocks rose modestly last week, according to the U.S. Energy Information Administration. Stocks were up 1.2 million barrels as the United States released more barrels from its strategic reserves. Fuel stocks fell, in part due to stronger exports of products since Russia's invasion as buyers have sought other sources. EIA/S The markets largely shook off the Federal Reserve's announcement that it would raise interest rates by a half percentage point to try to bring down rising inflation. "The market was up so strong before the announcement I think (the Fed) was a foregone conclusion," said Gary Cunningham, director of market research at Tradition Energy.- Reuters
KUALA LUMPUR, May 21 — The Minister of Finance (Incorporated) MoF Inc may provide financial assistance to ailing oil-and-gas giant Sapura Energy Bhd, according to sources.
Sources familiar with developments at the wholly-owned Finance Ministry unit told The Edge that the intervention would be made under MoF (Inc) Act, which empowered the finance minister to enter into business transactions for social and strategic purposes.
"From what I know it is MoF Inc that will step up (lend a helping hand to Sapura Energy. What is discussed at present is some sort of assistance package...it could be a grant of some sort and it could be announced soon," one source was quoted as saying in the latest edition of The Edge.
It also said Finance Minister Tengku Datuk Seri Zafrul Aziz has been working on the proposal for several weeks......
KUALA LUMPUR (June 9): Petroliam Nasional Bhd (Petronas) is allocating about RM60 billion for capital expenditure (capex) in financial year ending Dec 31, 2022 (FY22) compared with RM30.5 billion a year earlier as the Malaysian national oil company prepares for the resumption of business activities, which were earlier disrupted by Covid-19-driven movement restrictions, and as the group sets aside money for clean energy or non-hydrocarbon-related ventures. "This year, we expect to almost double that [capex] amount which is RM60 billion, because of catch-up and the return of [business] activities. This is also the time we have to make inroads in some material steps into the non-hydrocarbon side of things," Petronas chief financial officer Liza Mustapha said on Thursday (June 9) at the MIDF Conversations event, which was held virtually. MIDF group managing director Datuk Charon Mokhzani was the moderator for the event. Liza said that out of Petronas' planned RM60 billion capex allocation for FY22, about RM40 billion has been earmarked for the oil and gas business besides non-hydrocarbon–related operations while the balance of the capex allocation has been earmarked to finance Petronas Chemicals Group Bhd's (PetChem) wholly-owned subsidiary Petronas Chemicals International B.V. (PCIBV) proposed acquisition of the entire stake in Sweden-based specialty chemicals group Perstorp Holding AB for €1.54 billion (about RM7.02 billion) from Financiere Foret S.A.R.L. Petronas owns a 64.35% stake in PetChem, according to PetChem's latest annual report. Looking ahead, Liza said non-hydrocarbon-related income is expected to account for about 30% of Petronas' revenue. "[About] 30% of our revenue should be coming from something which is not related to hydrocarbons. "We have to factor in [business] growth, otherwise, we will not be able to manage the energy transition and we will miss our target of achieving [net] zero [carbon] emissions by 2050," she said. According to her, about 10% of Petronas' RM60 billion capex allocation for FY22 will be earmarked for non-traditional businesses such as specialty chemicals and solar energy. "Previously, I think there was never a plan on what rate it should be [for the clean energy segment] because there was no allocation from the top. So, it didn't really take off. "So, we need to rethink our decision on the capital allocation [for the clean energy segment] and put it aside, because if we leave it at that and let them go with the flow, we are going to be a year behind the target again," she said. Petronas' financials improved in 1QFY22. In a statement on May 31, 2022, Petronas said profit after tax rose to RM23.44 billion in 1QFY22 from RM9.22 billion a year earlier while revenue climbed to RM78.75 billion from RM52.55 billion. "Despite favourable [first quarter] performance, the high oil and gas prices are expected to remain vulnerable with increased volatility due to geopolitical and macro-economic uncertainties. "Petronas will continue to strengthen our operational excellence to maximise value creation whilst intensifying our growth and sustainability agenda in Malaysia and internationally,” the company said.
KUALA LUMPUR: Affin Hwang Capital expects a strong second half of 2022 (2H22) profit turnaround for Velesto Energy Bhd on the back of a higher capacity utilisation. The research house said the drilling market outlook had turned more favourable compared to a quarter ago with demand and charter rates on the rise.
Barring any unforeseen disruptions, it said Velesto should end 2022 with a full-year 59 per cent utilisation. "Management is also sticking to its bullish tone as it expects utilisation to rise close to 80 per cent in 2023 from our existing 65 per cent assumption.
"Velesto has locked in roughly 18 per cent utilisation so far, with most of the potential contracts still under negotiation under Petronas' umbrella package," it said. Meanwhile, the firm said the estimated higher 72 per cent rig utilisation in 2H22, above Velesto's 60 per cent breakeven level should lead to a strong profit turnaround and narrow 2022 losses significantly.
It said 2023 was shaping up to be a strong recovery year driven by a recovery in both rig demand and charter rates. "We reaffirm our Buy rating and target price of 11 sen on Velesto. "We believe market expectation on Velesto has bottomed and downside on its share price appears limited. "We see value emerging and believe that the current share price has not factored in the improving drilling market outlook," it added.
Tommorrow once the Donbast referendum being passed, then Russia will annexed those 4 Donbast regions from Ukraine, then will start war between Russia and Europe, then oil price will spike up to above USD $120 again !
Then all the O & G counters will spike up to sky high especially Alam's price will break above 30 cents !
Kramatorsk, Ukraine(CNN) The chaos of the past week might be incorrectly comforting. Despite Russia's continued disastrous handling of its war of choice in Ukraine, the conflict's most dangerous moment may be nearing. At some point this week, the Kremlin will likely declare that "sham" referendums in four partially occupied areas of Ukraine have delivered a mandate for their swift assimilation into what Moscow calls Russian territory…
Latest news from CNN… A war between Russia & USA/Europe will be ignited anytime from now if the ‘Sham’ referendum results is in favour to russia (of course is a sure guranteed passed results created by Russia), So, since russia will use this results by annexed 4 Ukraine’s regions and as an excuse for them to publicly giving mandate to them to sending millions of troops to based the stations permanently into this 4 regions, then a new World War III cannot be avoid and will happened anytime from now already !
Then the Oil price definitely will immediately shooting up to sky high !
And then all the O & G counters definitely will follow to spike up like mad already !
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....