LONDON (Reuters) – Plunging oil prices look set to trigger another wave of industry consolidation after a decade when mega-deals were scarce, but investors want to see mergers that can squeeze out cost savings and only after a lavish dividend is paid.
Over the last 18 months Big Oil has faced shareholder pressure to prioritize value over volume – to improve their return on capital rather than focus on production growth targets. As a result, oil majors have been in disposal mode.
LONDON, Nov 24 (Reuters) – Some commodity fund managers
believe oil prices could slide to $60 per barrel if OPEC does
not agree a significant output cut when it meets in Vienna this
Brent crude futures have fallen by a third since
June, touching a four-year low of $76.76 a barrel on Nov. 14.
LONDON, Nov 24 (Reuters) – Swiss-based petrochemical and
refining company Ineos is looking to expand into North Sea oil
and gas production by hiring a number of senior and mid-level
staff, its website showed on Monday.
The post of CEO of the new offshore oil and gas business has
a remit “for leading a strategic review to support the INEOS
entry into North Sea production, culminating in investment
recommendations to the main INEOS board,” the website said.
LONDON, Nov 24 (Reuters) – Oil prices could plunge to $60 a
barrel if OPEC does not agree a significant output cut when it
meets in Vienna this week, market players say.
Brent crude futures have fallen 34 percent since
June to touch a four-year low of $76.76 a barrel on Nov. 14, and
could tumble further if OPEC does not agree to cut at least 1
million barrels per day (bpd), commodity fund managers say.
LONDON, Nov 17 (Reuters) – Brent crude fell by more than $1
towards $78 a barrel on Monday after Japan, the world’s
fourth-biggest crude importer, slipped into recession and as
Saudi Arabia reiterated the oil price should be left to supply
The market is waiting to see whether the Organization of
Petroleum Exporting Countries will cut production at its meeting
at the end of November. The Atlantic Basin is still awash with
unsold barrels partly due to the continued growth in U.S. shale
oil production, whilst demand growth remains weak.
LONDON, Nov 13 (Reuters) – North Sea daily oil output
tracked by Reuters is set to jump by 11.5 percent in December
from November, which traders said the market would struggle to
absorb unless there is a pick-up in the number of shipments
heading to Asia.
“With just one VLCC a month going to Asia, North Sea
differentials have been fairly stable, but this increase in
volume is likely to weigh on differentials,” a trader said.
LONDON (Reuters) – Energy exchange traded products (ETPs) attracted a bumper $840.7 million in net inflows in October, according to data from asset manager BlackRock, after a plunge in the oil price triggered interest from bargain hunters.
“The biggest driver was the oil price,” said Ursula Marchioni, head of ETP research EMEA at BlackRock’s iShares. “Some energy ETP investors saw the lower price as an opportunity to extend their long exposures.”
LONDON, Nov 6 (Reuters) – BG Group’s Andy Samuel will
head Britain’s Oil & Gas Authority (OGA), a new regulator
charged with fostering cooperation between government and
industry to get the remaining barrels out of the North Sea.
The OGA, expected to be up and running by April 2015, is
being established following recommendations in Sir Ian Wood’s
strategic industry review published earlier this year.
LONDON (Reuters) – Banks and trading houses will join forces to provide hedging services in commodities in the same way that they have provided joint trade finance in the last two years, Mercuria’s chief executive Marco Dunand said.
Last month Swiss trading house Mercuria completed the purchase of U.S. bank JPMorgan’s physical commodities unit. It now wants to expand its provision of hedging services to external customers.
LONDON (Reuters) – Hermes Investment Management on Friday joined an exodus of financial institutions from commodities, saying it planned to close its business in the sector due to difficulties in making returns and a shift in investor attitudes.
Many fund managers have struggled to make profits in commodities in recent years as prices have slid and volatility has been low, leading to fund closures including Hall Commodities earlier this month, Clive Capital, BlueGold and Higgs Capital Management.