Oil falls below $30
Oil dropped below $30 a barrel briefly as an absence in output restraint and concerns about China has led to over a 20% slash of value on the year. The current prices are now below cut off value for many producers, particularly the US shale gas and Canadian oil sands producers. Speculation is rife with where the price will go, with speculators worried whether buying will leave them burnt by another false bottom. Click here for article.
Australia Pacific LNG facility comes online
The mammoth Australian LNG facility, has shipped its first delivery from Australia on its way to Asia. ConocoPhillips and Origin Energy each have a 37.5% stake in the venture, with Sinopec contributing 25%, with the largest customer Kansai Electric Power already signed on for shipments. The liquefied coal seam gas looks to fill the gap between cheap US natural gas and more expensive international gas, however the recent drop in oil prices has depressed gas prices considerably and left the project somewhat uncertain. Click here for article.
Brazilian stocks tumble
Brazilian stocks tumbled as they experience their biggest 5 day slump in more than year, state owned oil company Petrobas slumped 9.2%. With oil below $30 a barrel, the outlook for the state owned company have been downgraded. Of late the company has been cutting spending and losing workers in a bid to stabilise. Click here for article.
Aramco for potential IPO
Saudi Arabia’s state petroleum company Aramco has confirmed it is studying options to allow “broad public participation in its equity through the listing in the capital markets”. Aramco holds oil reserves of 260 billion barrels, nearly 10 time more than Exxon Mobil Corp, and produces 10 million barrels more than the domestic output of every US oil company combined. Click here for article.