Finance News

The rates for chartering very large crude carriers (VLCCs) has surged exponentially due to a spike in demand for long-term offshore storage of crude oil following the Organization of Petroleum Exporting Countries’ (OPEC’s) disagreement with Russia over the impact of the coronavirus (COVID-19) and the resulting oil price crash, according to leading data and analytics company GlobalData.

This is an update to the first quarter 2020 outlook provided in the fourth quarter results announcement on January 30, 2020. The impacts presented here may vary from the actual results and are subject to finalisation of the first quarter 2020 results.

With only a week to go before OPEC+ countries start flooding the world’s total oil production with an estimated extra 2.5 million barrels per day (bpd) amid the Covid-19 crisis, building one of the biggest oil supply gluts the world has ever seen, UK operator INEOS has decided to postpone its scheduled maintenance for the North Sea Forties pipeline system (FPS) in a move that Rystad Energy calculates will add several hundred thousands of extra barrels to the market every day.

Aker BP is updating its investment program and financial framework in order to secure additional financial optionality in response to the high uncertainty caused by the COVID-19 crisis. 

The extra oil coming into the global market from April will be as much as 3 million barrels per day (bpd), Rystad Energy estimates.

Saudi Aramco plans to reduce its investment plans after oil prices crashed due to a slump in demand as a result of the coronavirus (COVID-19) pandemic. However, the company’s 21% drop in net income in 2019 is not a cause for undue concern, says GlobalData, a leading data and analytics company.   

Equinor (OSE:EQNR, NYSE:EQNR) presents updated outlook for 2020 and an around USD 3 billion action plan to strengthen the financial resilience in a market impacted by the COVID-19 and low commodity prices.

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