Qatar transitions to efficiency with its LNG
With increased production from the United States and Australia expected to overtake Qatar as the world’s largest natural gas exporters, Qatar looks to focus more on its efficiency, with low cost production and geographic location to maintain its place. Qatar shipped 76.4 million tons of natural gas in 2014, 32 per cent of global supply, this comes with a cost of producing 1 million British thermal units being a measly $1.60 compared to $7.60 with the US and a whopping $13.50 for Australia. Click here for article.
China’s thirst for crude oil
Increased Chinese demand for crude oil is softening the hit of the lowest oil prices in 11 years. China is predicted to import 8% more oil from overseas as it looks to build its stockpile. China has been taking advantage of the low oil prices to stockpile, in the hope to have enough oil to cover 100 days by 2020, in the middle of 2015 China held enough oil to last 29 days. China overtook the US at points last year as the largest buyer, as the government is providing incentives for greater privatisation and investment into the sector through import quotas on the nations ‘teapot’ refineries, which are the nations independent refineries. Click here for article.
Iran-Saudi split threatens OPEC deal
The recent escalation of tension between Iran and Saudi Arabia over the execution of a Shi’ite cleric in Saudi Arabia has led to a drop in confidence over a potential deal regarding the price of oil. Saudi production is expected to remain high, while Iranian production will increase as sanctions against the country are removed, keeping downward pressure on oil prices. Click here for article.
China Petroleum & Chemical Corporation shares drop 5.75%
The New York Stock Exchange listed company dropped 5.75% in the past week and 2.88% the last 4 weeks and has been performing poorly as of late. The company operates its business in 5 sectors including exploration, production and distribution of gas and oil has a market cap of $70,945 million has left investors keeping cautious. Click here for article.