Daily Oil News:Key Headlines
Oil Price Comment.
April Brent is trading at US$56.00, up 26c/bbl vs Friday morning. Crude continues totrade in a narrow range. The basic forces are now well understood (OPEC productioncuts with a reasonably high level of compliance and a vigorous rebound in US activity).
Outside these, there is very little additional newsflow. The oil VIX is now at 25, thelowest level for almost 3 years, indicative of the lack of volatility. To add to thegenerally desultory market tone is that today the US markets are closed for Presidents'Day. On Friday the Baker Hughes rig count showed a +6 rise in US oil rigs although thecount saw a big uptick in the Granite Wash Basin and only +3 in the Big 3 Basins.
Scott Pruitt confirmed as head of EPA.
As reported by various media sources, Scott Pruitt, former Oklahoma Attorney General,was confirmed as head of the EPA by the Senate on Friday, 52-46. He was reportedlyexpected to be confirmed by a narrow margin. (FT, Reuters)Nigeria's Forcados terminal said close to restarting.
As reported by Platts, Nigerian oil minister Emmanuel Kachikwu said last week that theForcados export terminal could restart 'in a matter of weeks' and enable a 200-300kb/dincrease in crude production. The Forcados pipeline has operated intermittently since itwas attacked by militants in February 2016, most recently being attacked in November.
Recent statements from NPDC (the NNPC subsidiary that operates the pipeline) hadindicated a June restart at the earliest. (Platts, UBS)CNPC awarded 8% stake in ADCO concession.
ADNOC announced yesterday it has awarded an 8% stake in the ADCO concession toCNPC. CNPC paid a $1.8bn signature bonus to enter the 40-year onshore oilconcession. The deal follows BP's acquisition of a 10% stake in December. Total is alsoa partner with a 10% stake, having entered the concession in January 2015. The fieldsin the ADCO concession produce 1.6Mboe/d and are expected to reach 1.8Mboe/d in2017. Other partners are INPEX (5%) and GS Energy (3%). (ADNOC)