OPEC HAS A CRIPPLING PROBLEM: ITS MEMBERS CANT STOP PUMPING
Major oil producers are struggling to keep their promise to rein in production and prop up low crude prices, write Benoit Faucon, Lynn Cook, Summer Said and Georgi Kantchev.
“Eight months after the Organization of the Petroleum Exporting Countries announced a plan for its 14 members and 10 allied countries to withhold almost 2% of the world’s oil every day to boost prices, seven of the 11 OPEC members that pledged to cut appear to be producing more oil than promised,” the Journal reports.
OPEC members nations are facing a fiscal crisis at home and have few choices. “Their strained budgets can be covered only through increasingly high prices per barrel, and if prices are low they need to produce more,” the Journal reports.
SHELL REFINERY IS OFFLINE AFTER A FIRE CAUSED A POWER FAILURE
The largest crude-oil refinery in Europe has been knocked offline by a fire with no timetable for its return, said Royal Dutch Shell PLC, the facility’s operator.
The Pernis refinery in the Netherlands was shut down after a fire in the power supply system caused a power outage on Saturday, said a Shell spokeswoman.
Shell didn’t disclose the cause of the fire and didn’t say when it would come back online.
She said there was flaring, or visible flames, but said the facility was shut down “in a safe and prompt manner.”
The company said the blaze resulted in no injuries. The facility employs about 1,900 workers and about half as many outside contractors.
The Pernis refinery has the capacity to produce 404,000 barrels per day of a variety of fuels and feedstock for chemical plants.
INVESTORS EAGER TO HEAR SHALE COMPANIES’ PLANS FOR REST OF 2017
Investors are watching to see whether the slump in oil prices may cause some American oil producers to lessen the flow of crude, write Lynn Cook and Alison Sider.
“Anadarko Petroleum Corp. and ConocoPhillips already reported and could serve as bellwethers for this earnings season. They lost more than expected in the second quarter as crude languished under $50 a barrel for most of the period, prompting them to announce plans to rein in spending. Together, they shaved a combined $500 million out of their $9.2 billion budgets,” the Journal reports.
Other firms that are set to report on their production plans are Pioneer Natural Resources Co. and EOG Resources Inc.
Oil prices hovered near a two-month high amid further signs that U.S. oil production is slowing down.
Brent crude, the global oil benchmark, rose 0.04% to $52.24 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.02% at $49.73 a barrel.