Further, he added that a cut of 1 million barrels should be sufficient enough to stop the fall. With analyst’s expectations of 1.3 million fewer barrels per day from production, the news of only a 1 million product cut hit the market hard.Oil prices dropped 4.7%, renewing fears that the cartel is struggling to respond to a supply glut.

Brazilian state-run oil company, Petroleo Brasileiro SA, commonly known as Petrobras, revealed that it plans to raise around $26.9 billion through asset sales and partnerships by 2023, as part of its new five-year business plan. Under this plan, the company intends to raise $84 billion in investments, while boosting investments on the front edge of anticipated production boom in Brazil. According to the company, it aims to make $84.1 billion in investments from 2019 to 2023, compared to its previous five-year investment plan of $74.5 billion from 2018 to 2022. The Company plans to put its fertilizer plants, liquefied petroleum gas unit and its biodiesel and ethanol businesses under the hammer. With Petrobras trying to stay on course for its effort to reduce one of the heftiest debt loads among oil companies worldwide - $88 billion in gross debt -- this divestment strategy can be highly beneficial for the company. Although this plan doesn’t seem contain any major surprise, i

Qatar has been part of the OPEC council since 1961, but the country just announced its intent to leave on Monday. Should the severance move forward, Qatar would leave the cartel on January 1, 2019. According to Qatar's newly-appointed energy minister, Saad Sherida Al-Kaabi, Qatar’s decision to withdraw from the OPEC council mainly owed to the fact that it wanted to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.Left with just 14 members now, the future of the OPEC is now exposed to systematic risk with the exit of Qatar. Though Qatar's exit was sudden and unexpected, at the end of the day it should not have a significant impact on the oil markets, as Qatar is not a major oil producer when compared to other OPEC members.

Exxon entered a 12-year agreement with Denmark’s Orsted A/S to buy 500 megawatts of wind and solar power in the Permian Basin, in-line with the company’s strategy to use renewable energy to produce oil in West Texas. Although the terms of the contract are yet to be disclosed, according to Bloomberg NEF it is the largest ever renewable power contract signed by an oil company in the fastest growing U.S. oil field. As per the company’s investor presentation, 50% of the power that Exxon will buy would come from the Sage Draw wind farm, which Orsted plans to get operational in 2020.The other 50% would come from the Permian Solar farm, scheduled to be operational in 2021. Exxon, which has for some time now been criticized for downplaying the risks of climate change, has finally turned to clean energy as it also becomes cheaper.

During the U.S. shale oil and gas boom over the past 15 years, one of the major challenges for different U.S. energy sector companies is how to provide for the perennial infusion of cash needed to finance their exploration, production, and investment activities. With rising oil prices during early 2018, many analysts anticipated the challenge subsiding, as several energy companies revealed in third-quarter earnings reports that they were able to cover their capital spending from operating cash flows. Two of the country’s largest oil companies, ExxonMobil (XOM) and Chevron (CVX), reported healthy profits from their US operations after reporting losses in 2017. But these profits were recorded when the benchmark US WTI crude was trading around $73 a barrel.  It follows that the recent plunge in oil prices over the past two months has brought financing concerns/challenges back to the surface again.

U.S.With one of the largest oil reserves in the world, the Permian basin helped Texas emerge as the third-largest oil producing region in the world, only behind Russia and Saudi Arabia. With nearly 114,000 companies drilling in the region and many turning profitable even with crude prices as low as $50 a barrel, OPEC is feeling an oncoming threat to its oil dominance OPEC’s concern is likely to increase in the next year, when bottlenecks related to pipelines eases  with the addition of three new pipelines, thus enabling combined production of nearly 2 million barrels of oil a day.  

Global oil supply will outpace demand throughout 2019, as a relentless rise in output swamps growth in consumption that is at risk from a slowing economy, the International Energy Agency said on Wednesday. READ MORE...

Although R&D expenses for the company didn’t change much  during the quarter, its exploration expenses decreased by ~22%, resulting in higher profitability. In terms of bottom-line, the company precisely met analyst expectations as it reported an EPS of $0.68.  Amongst all the positives, perhaps the icing on the cake was a share buyback program worth $2.5 billion.

Brent crude declined by nearly 4% to $66.65, its lowest level over the last 7 months. OPEC nations and its associate members hinted at a production cut last Sunday, which may have given oil prices a small boost on Monday.But President Trump’s tweet Monday asking OPEC members and Saudi Arabia not to cut supply may have reversed sentiment. Further uncertainty entered the markets as OPEC revised oil demand for 2019 downward, for the fourth straight month.

Oil finally broke its losing streak as U.S. crude futures rose 36 cents to $60.55 on Monday, after Saudi Arabia and its OPEC partners hinted that an output cut could be on the horizon. After a weekend discussion with all OPEC nations, Saudi Arabia on Monday announced that OPEC and its partners are contemplating an output cut of 1 million barrels per day in the next year. Further, Saudi Arabia, the world’s largest oil exporter, added that it would cut its shipments by half a million barrels per day in December due to seasonal lower demand. Oil prices fell by nearly 20% in the last month, amidst concerns over increased supply and the threat of a slowdown in demand, especially from countries whose purchasing power has been eroding owing to their currencies weakening sharply against US dollar.Perhaps the tide is turning.   

U.S.oil production jumped to a record 11.6 million barrels a day last week, and rising U.S. output is a factor that could prompt OPEC members and allies to react when they meet over the weekend. READ MORE...

The American multinational energy company, Chevron Corporation, is still in two minds in terms of whether to leave Venezuela amidst decreasing profit and increasing corruption in the country. Criticized for working in close quarters with the Venezuelan Maduro government, Chevron is the last major U.S.-based oil producing company still operating in Venezuela.However, the top executives of the company in U.S. are yet to confirm anything.  

West Texas Intermediate futures are already down 20% from the near four-year high. U.S.oil production is already up a stunning 2 million barrels a day from the same period last year, and 400,000 barrels from the week earlier, based on weekly U.S. government data.

On Friday, ExxonMobil reported  a +57% jump in its Q3 profit which reached $6.24 billion, on the back of surging production from Permian Basin of Texas coupled with oil price spikes. Its per-share profit came in at $1.46 - versus analysts' estimate of $1.23 a share (according to Refinitiv).What could further boost the outlook on the company is its increased cash flow from operations to $11.1 billion – a four-year high. Its overall oil and gas production, however, reduced by -2% from previous year, mainly due to declining natural gas volume.

The Texas-based energy giant, Exxon Mobil Corp, hasn't been able to garner too much excitement among the investor community ahead of its third-quarter earnings report on Friday.Shaky previous quarterly results are to blame. Analysts have nevertheless given an average price target of $89.63, representing 20% upside over current share prices.

According to the monthly report issued by the U.S. Energy Information Administration (EIA), the U.S.’s total output for the month of August stood at record 11.346 million barrels a day compared to Russia’s 11.21 million.With these figures the U.S. now surpasses Russia to claim the title of world’s top oil producer, with the largest year-on-year output increase in U.S. history. U.S.

British oil giant, British Petroleum, on Tuesday reported that it has more than doubled it’s bottom-line in the third quarter, bolstered by stronger oil prices. With oil prices hitting a four-year high in the last quarter, the company reported a ~300% jump in its revenue from $20 billion to $80.8 billion (£63 billion), compared to the same period in the previous year. The underlying profit of the company for the three month period ending September 30 grew by more than 100%, from $1.86 billion to $3.8 billion, over the three-month period in the previous quarter.The company also declared a dividend of 10.25 cents per share for the third quarter, 2.5% higher than a year earlier. Considering the tensions surrounding the oil markets, owing to the looming U.S. sanctions on Iran (OPEC's third largest oil producer) and the heightened tensions between Washington and Saudi Arabia (the world's biggest oil exporter), BP's estimated outperformance is considered to be a big news

The New York State Attorney General says they will be suing Exxon Mobil alleging the company has misled investors and has understated risks from climate change regulations. NY Attorney General Barbara Underwood, in an announcement, also alleges that former CEO and former Secretary of State Rex Tillerson "keen of the misrepresentations for years." The statement also says, "Exxon built a facade to deceive investors into believing that the company was managing the risks of climate change regulation to its business when, in fact, it was intentionally and systematically underestimating or ignoring them, contrary to its public representations.

Russia’s Rosneft and U.S.'s Exxon Mobil plan to build a liquefied natural gas (LNG) plant in a consortium with Indian and Japanese partners. Rosneft and Exxon unveiled plans in 2013 to build a LNG production site in Russia’s Far East, but the plan failed to materialize owing to a number of reasons, including sanctions against Moscow for its role in the Ukraine conflict. However, recent talks between these two companies has given indication that they are finally ready to go ahead with this estimated $15 billion project.Although nothing to date has been officially confirmed by any of the companies, it is expected that the financing of the LNG plant would be shared between the participants and the project could start in Q1 2019.

Oil giant Exxon Mobil (NYSE: XOM) has been moving higher since hitting a multi-year low in April.This led to a bullish crossover from the stochastic readings. Exxon will announce earnings on November 2, so there is only about 10 days for this bounce to play out before the earnings report will affect the stock. The company’s sales and earnings have been declining over the last three years, but the company did report earnings growth of 18% in its last quarterly report and sales were up 27% from the previous year in that report. The sentiment toward Exxon is interesting, especially the analysts’ ratings.