Recent Oil Market Rarity Resurfaces
Rigzone’s downstream readership made a rare sighting this past week. It wasn’t the Loch Ness Monster or Sasquatch, but it inspires hope given the hardships of recent months. Read on to learn about the rare sighting, along with other recent Rigzone downstream-linked articles that caught readers’ attention.
This Bloomberg article includes two words that have been virtually absent from Rigzone’s coverage of the oil and gas industry in recent months: “bull market.” Quoting a top oil trader at Trafigura, the news agency noted the physical crude market is strong as a result of collaboration on output cuts among the OPEC+ alliance as well as a rebound in economic activity. The report also presented a view among traders that, though $50 Brent this year might be too optimistic, expectations are even lower that the price will return to the sub-$16 level it reached in April.
Another story that garnered attention this week from Rigzone’s downstream audience is this staff-written piece about a deal KBR recently struck with L&T Hydrocarbon Engineering (LTHE). Under their newly signed memorandum of understanding, KBR and LTHE will team up to pursue refinery and petrochemicals projects – with a focus on opportunities in India, Southeast Asia, the Middle East and Africa.
In another development from KBR, the engineering, procurement and construction firm reportedly plans to focus on government contracts and technology businesses and exist most of its liquefied natural gas construction and other energy projects. Citing a Reuters report, this staff-written article notes KBR cited the ongoing COVID-19 pandemic as the primary impetus for the decision.
OPEC+ meets next month, and what the group of major oil producers decides to do – or not do – will weigh heavily on oil prices, according to a top market-watcher with consultancy Rystad Energy. As this staff-written article notes, it is unclear whether OPEC+ is contemplating extending its production cut agreement. It adds, however, that any new lockdown measures tied to COVID-19 could raise the need for such action by OPEC+.
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