The sale of its upstream and midstream assets for $146 million will deliver a $1.35-per-share cash dividend to shareholders. “Even assuming that travel restrictions are eased in the second half of the year, we expect that global oil demand. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Follow Gillian Rich on Twitter @IBD_GRich for energy news and more. The IEA report noted that more than 187 countries have implemented some form of containment to slow the spread of COVID-19. Notably, that estimate assumes travel restrictions are eased in the second half of the year. While this figure marks the lowest level seen since 1995, the good news is that it may also represent a peak in the ongoing market imbalance. Oil stocks were mixed Thursday despite the increase in crude oil prices. 5 million bpd. In contrast, OPEC’s latest monthly report projects a year-over-year deficit of just 6.8 million B/D. EOG Resources lost 1.3%, and Occidental added 2.4%. Indian Oil Corporation has said demand for petroleum products is picking up in India, too. Audience ratings certified by ACPM/OJD. The more positive monthly report follows what Birol called "Black April," when U.S. oil prices fell to nearly negative $40. The U.S. Energy Information Administration showed a hint of recovery of Wednesday when it saw the first weekly drop in U.S. crude stockpiles since January. Four nations—China, India, South Korea, and the US—have each announced plans to add unwanted crude to their existing strategic petroleum reserves or build new storage sites. Articles, Analysis and Market Intelligence on the Oil, Gas, Petroleum and Energy Industry. For 2Q20, demand is expected to be 23.1 mb/d below year-ago levels. As oil prices hit record lows, FRANCE 24 spoke to Fatih Birol, Executive Director of the International Energy Agency. Fusion is clean energy and many countries are working on this. Ownership data provided by Refinitiv and Estimates data provided by FactSet. 10/23/2020 He added that this month will likely mark the most severe period of the market imbalance and could be known henceforth as “Black April” for everyone working in the oil and gas business. Is Chevron Stock A Buy Now As Permian Basin Footprint Grows? Petroleum economics/production forecasting. West Texas Intermediate (WTI) briefly broke below $20 for the first time since 2002 before bouncing back up slightly later in the day. That is, this projection won’t necessarily get better even if people are back in the air and back on the road in six months. But Saudi Arabia went deeper and said Monday that it cut another 1 million bpd from its production in June, bringing its total output to 7. Is the recent pickup in oil prices just a bit of temporary upbeat news for the energy sector that won’t change the trajectory of long lasting low prices? >> Oil prices crash through the floor as storage runs short, Daily newsletterReceive essential international news every morning, Take international news everywhere with you! Get top-quality trade ideas at the push of a button with the IBD Stock Screener. Connect with friends faster than ever with the new Facebook app. Crude oil prices extended gains on the more bullish demand data. We have noticed that there is an issue with your subscription billing details. In another all-stock transaction, one of the largest operators in the Permian Basin is set to add nearly 250,000 acres to its portfolio and swell oil production to more than 300,000 B/D. By the end of this year, the company will cease to exist. Demand in April is estimated to be 29 mb/d lower than a year ago, down to a level last seen in 1995. And it gets better (or worse, depending on how you want to look at things). Thanks to the OPEC+ deal, 9.7 million B/D is set to come off the market starting in May—the largest organized cut ever made. The price of US oil plunged below zero for the first time ever on Monday while the price of UK oil fell to an 18-year low on Tuesday. U.S. crude jumped 9% to $27.56 per barrel. Join IBD experts as they analyze actionable stocks in the coronavirus stock market rally on IBD Live. Thank you! On Wednesday, OPEC cut its 2020 crude demand outlook by 2.23 million bpd from its April forecast, and now sees a drop of 9.07 million bpd this year. Source: International Energy Agency. Overall demand this year is expected to average 9.3 million B/D below 2019’s average of about 100 million B/D. While these measures will not be enough on their own to restore market balance in the short term, the IEA said they will help dampen the worst of the crisis. Needless to say, crude wasn’t amused with any of this. Brent popped nearly 7% to $31.13 per barrel. Which financial companies are the most trusted according to investors? The recent photos of Los Angeles and many large cities throughout the world without the haze of carbon based pollution overhead are breathtakingly beautiful. Amid the coronavirus crisis, demand for oil has slumped and oversupply has led to massive storage issues. Either scenario ends almost a decade of solid growth in global demand. “There is no feasible agreement that could cut supply by enough to offset such near-term demand losses,” the report said. As the cuts take full effect in the second half of the year and create a supply deficit, the massive buildup should start to reverse. 10, 2020, 04:24 PM The glut in oil overwhelmed the world’s limited storage facilities, triggering a wave of selling by oil traders in April. Track the latest news, trends and analysis on oil stocks and energy industry news. Andy Langenkamp. Please, Global demand for oil has fallen to levels not seen since 1995. The latest Trump vs. Biden poll from IBD/TIPP finds the president inching closer. As oil prices hit record lows, ... Birol warned of a "black April" for the oil market but expressed hope for a recovery in demand from June as lockdown measures are eased. © 2020 Copyright France 24 - All rights reserved. Trump Vs. Biden Race Inches Closer As President Narrows Gap With Independents, IBD/TIPP Poll Shows, 'Zombie Horde' Of 13 Major Stocks Threaten Unsuspecting Investors, Find out why economists and analysts are considering the longer term possibility of a "K" shaped recovery, Pioneer Inks Father-Son Shale Merger, Adding To Permian Basin Frenzy. In a new report, the International Energy Agency (IEA) estimates that global oil demand this month has dropped by 29 million B/D compared to a year ago. Since every currency tied to a major economy is printing money anyway, this is a great time to print even more money and invest in science for the betterment of mankind — such as increasing funding for the advancement of fusion (not fission) energy. Here is the stunning excerpt from the April OMR: Global oil demand is expected to fall by a record 9.3 mb/d year-on-year in 2020. Fatih Birol, the agency’s director, said that 2020 was likely to go down as the “the worst year in the history of global oil markets”, with “Black April” likely to be the worst month. “The implied stock build-up of 12 million barrels per day in the first half of the year threatens to overwhelm the logistics of the oil industry – ships, pipelines and storage tanks – in the coming weeks”, the IEA cautions, in the same April report, before warning that on their estimates, “available capacity could be saturated in mid-year”. Realtime quote and/or trade prices are not sourced from all markets. The production cuts won’t be in effect for another two weeks at least. Tips, questions or inquiries of any kind, contact: Enter your email address to subscribe and receive notifications of new articles by email. The IEA said this will give markets “extra headroom” as stocks continue to build by millions of barrels each day. By June, the recovery builds momentum as the excess production drops to 15 million B/D. France 24 is not responsible for the content of external websites. Crude Oil Prices Charts. Try it today! Oil prices rose sharply as a key global energy watchdog said it sees 2020 oil demand falling less than it previously expected following the crude market's "Black April" bloodbath.