Gulf Nations Are Desperate for Higher Oil Prices
Nations in the Gulf, including the Saudi oil powerhouse have said that they are able to withstand any shock in oil prices, but many have forecast that this is simply not the case. Although Saudi has some of the lowest production costs in the world, the current levels of $40/per barrel leave the country in a difficult position, with the IMF predicting that prices need to be at $76.10 to achieve fiscal breakeven in the current year. Oil accounts for 87% of Saudi budget revenues, 90% of export earnings and 42% of GDP. (Oilprice.com)
South Korea data: US crude imports set to fall further amid weak gasoline, jet fuel demand
South Korea’s crude imports from the US tumbled once again in August, with the country due to reduce consumption even further into Q4 to just 13 million barrels. August imports by the Asia country were just 4.45 million barrels from the US, down nearly 60% from the year previous and 15.1% down on July’s levels. (S&P Global Platts)
Crude extends losses on unfavourable demand, supply fundamentals
Market sentiment remains bearish off of fresh lockdowns in Europe amidst climbing infection rates across the globe sparking fears that the virus is far from under control. This is ongoing while US and China tensions are increasing as Trump’s administration has issued new licencing restrictions on US firms exporting certain products to Semiconductor Manufacturing International Corp. in China. (S&P Global Platts)
Trafigura forms new venture for renewables expansion
Trafigura has joined forces with Australian based IFM to form a new renewables business called “Nala Renewables” that will be used to invest in wind, solar and power projects. The scheduled portfolio will have a capacity of 2 Gigawatts within the next five years and will build and operate projects adjacent to Trafigura’s mining, port and smelting infrastructures. (Reuters)