NSTbusiness: “The average cost of production in OPEC is about US$30 per barrel, which is where we expect Brent prices to fall to in the short-term.”
OCBC Treasury Research said although Russia has a higher marginal cost of oil production than Saudi Arabia, it has budgeted a fiscal breakeven of US$42 per barrel – almost half of Saudi Arabia’s US$83 per barrel.
Oil futures suffered their biggest daily loss since 1991 on Sunday after Saudi Arabia slashed its official selling price and announced plans to raise crude production significantly, signalling the start of a price war. This means the reduction of the 2.1 million barrel per day oil supply since 2019 will return to the market almost overnight beginning April 1, 2020, as members all scramble for market share.“Russia and Saudi Arabia flood the market with crude oil while the coronavirus situation takes longer than expected to abate. Prices start to correct as demand-supply forces balance themselves but that will take time, possibly a year or more,” it said.
PublicInvest has downgraded the oil and gas sector to “neutral” with Serba Dinamik Holdings Bhd and Dialog Group Bhd as only preferred picks.It said in the 2014-2016 oil price downturn, Petroliam Nasional Bhd cut its operating costs at the expense of its suppliers and contractors.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
KLCI down 3pct as oil prices crashCrude oil prices take a beating after Opec failed to agree on production cuts.
Read more »
Aramco drops below IPO price in blow to Saudi economic planLooming price war in global crude markets has battered the outlook for kingdom’s flagship oil company. FMTNews Aramco
Read more »
Oil drops 31% in worst loss since Gulf War amid all-out price warGlobal benchmark plummets to as low as US$31.02 a barrel as experts warn prices could fall further. FMTNews Oils
Read more »
Covid-19 affects Brunei’s tourism revenue, says ADBBRUNEI: The Asian Development Bank (ADB) estimates that the Covid-19 (coronavirus) outbreak could cause a decline in tourism revenue for Brunei Darussalam by as much as -0.086% of gross domestic product (GDP) in the best case scenario (US$11.7mil), -0.113% in the moderate case (US$15.3mil) and -0.192 per cent in the worst case (US$26.1mil).
Read more »
Petronas joins Exxon in seeking exit from Chad projectSale deliberations are still preliminary, with plunge in oil prices adding uncertainty to any deal. FMTNews Petronas
Read more »