NEW YORK: Oil prices rose 2% on Tuesday, reaching their highest in 12 months after major producers showed they were reining in output roughly in line with commitments. The global and U.S. crude benchmarks rallied as optimism about more U.S. economic stimulus added to bullishness from OPEC production levels, which rose less than expected in January. Brent crude settled up US$1.11, or 2%, at $57.46 a barrel, its third straight day of gains. During the session, it touched $58.05, the highest since January last year. U.S. oil gained $1.21, or 2.3%, to close at $54.76, after hitting a session high of $55.26, the highest in a year. Both contracts traded higher after the settlement, after the American Petroleum Institute, a trade group, said oil and fuel inventories were lower on the week. Crude output from the Organization of the Petroleum Exporting Countries rose in January for a seventh month but the increase was smaller than expected, a Reuters survey found. Voluntary cuts of 1 million barrels per day by OPEC's de facto leader, Saudi Arabia, are to be implemented from the beginning of February through March. Russian output increased in January, in line with the OPEC+ pact, while in Kazakhstan, oil volumes fell for the month. The rally picked up steam as the U.S. Congress looked ready to adopt an economic stimulus package, and as cold U.S. weather boosted heating oil demand. "You got the U.S. economic stimulus package that no one thought we would get," said Bob Yawger, director of energy futures at Mizuho in New York. The Democratic-led U.S. House of Representatives prepared to take the first step forward on President Joe Biden's $1.9 trillion COVID-19 relief package. A cold snap and heavy snow in the U.S. Northeast drove the margin for heating oil to an 8-month high of $15.84, lending further support to crude. U.S. distillate fuel stockpiles, including heating oil, fell in the latest week, according to the API. The group said gasoline and crude stockpiles also fell. Government figures are due to be released at 10:30 a.m. EST on Wednesday. However, energy giant BP flagged a difficult start to 2021 amid declining product demand, noting that January retail volumes were down about 20% year-on-year, compared with a decline of 11% in the fourth quarter. Oil demand is nevertheless expected to recover in 2021, BP said, with global inventories seen returning to their five-year average by the middle of the year. - Reuters
Global crude prices could soar to $80/bl this year because of severe inventory shortages and rising demand, but US shale producers are unlikely to ramp up production, a panel of experts told the Argus Live Crude Summit today........
Sustainable good oil price may translate to more OSV being chartered by oil companies so less chance of impairment while the FPSO makes money for the Company. Should the qtrt DEC makes more than RM 100 millions NOP, my guesstimate and hope is Armada price may hit 40 Cents . I am holding my breath for now...... come end Feb when quartery results are out ......
Guys, something might be afoot. The FPSO for ONGC 98/2 project has been named Armada Sterling V.
The FPSO under JV with Shapoorji Pallonji is named as following
Armada Sterling I in India Armada Sterling II in India Armada Sterling III in Indonesia Armada Sterling V in India (under construction)
Soooo, the million dollar question is, why name it Armada Sterling V, rather than Armada Sterling IV. Did Bumi Armada and Shapoorji win a contract where the FPSO was named Armada Sterling IV but we don’t know about it? Perhaps a redeployment for Armada Claire? Hmmmm....
I translated the article of valueinves and it is not bad ... ________________________________________________ The full name of FPSO is Floating production storage and offloading. The Chinese explanation is offshore floating production and storage tankers. It is mainly used for the exploitation, processing, storage and transportation of offshore oil, natural gas and other energy sources. The main players in Malaysia are MISC, YINSON and ARMADA.
The history of FPSO offshore structure is very novel for the entire petroleum industry. The history of modern oil began in 1846, when Abraham Disner in Canada invented the method of extracting kerosene from coal. In 1846, Baku established the first modern oil well, and in 1861 the world's first oil refinery was established. At that time Baku produced 90% of the world's oil. Later, the Battle of Stalingrad was launched to capture the Baku oil field.
With the decline of land oil reserves and the increasing development of offshore oil exploration, FPSO has emerged. In 1976, Shell Petroleum Company converted a 59,000-ton old oil tanker into the world's first FPSO, which was used in the Mediterranean Castellon oil field in 1977. Because FPSO has the advantages of large oil storage, low investment, and transferability, it has developed rapidly.
FPSO is one of the industries with the heaviest assets in the offshore industry. The structure and process of FPSO are very complicated and expensive. The world has 70.8% of retrofit FPSOs and the remaining 29.2% are newly built. The cost of the modified FPSO will be relatively low, but it is generally only suitable for oilfield development tasks in shallow sea areas. With the discovery of deep-sea and ultra-deep-sea oil fields, the demand for new FPSOs will gradually increase. It is generally estimated that the cost of a new FPSO is not less than 1 billion US dollars.
Companies that build and modify FPSO hulls are mainly in China, South Korea, Singapore and Brazil. The three major FPSO operators in Malaysia are mainly renting and providing support services.
Malaysia is very competitive in this field. The disadvantage of the FPSO market is its high instability. The ups and downs of oil prices are very painful for operators. This is because the maintenance, depreciation and cost of an FPSO are very high. If the oil price is too low, the company will be severely hit. For example, Armada has repeatedly used debt restructuring to delay debt risk.
I think that after the epidemic is over, the demand for oil will naturally increase. At this time, the oil and gas industry will flourish. Next, I will also analyze the development prospects of Armada, Yinson and Misc. Friends who are interested can follow the Facebook homepage @大朋友投资录本 or Instagram @free_dominvestor to get the latest news.
Need to wait for the investment banks to release a sector update for the oil and gas sector. Once the funds see it, then they will buy the oil and gas counters.
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....
Alexloc04
87 posts
Posted by Alexloc04 > 2021-02-02 21:34 | Report Abuse
Tnrw start jumping up.
Up ip up