Bloomberg reported that Goodluck Jonathan, the president of Nigeria, received a report that indicates that over the last ten years the country may have lost $37 billion or more in revenue due to underpayments for oil. Jonathan plans to launch an investigation to get to the bottom of the matter.
Mexico expects its basket of crude oil exports, a key source of government revenue, to fetch around $53 per barrel in 2010. For full story, click here
Crude oil fell on Tuesday, snapping four days of gains, on concern a U.S. government report will show stockpiles climbed from the highest level since September 1990. Crude oil for June delivery declined as much as 77 cents, or 1.4 per cent, to $53.70 a barrel in electronic trading on the New York Mercantile Exchange. Oil is up 21 per cent this year.
Shares of Indian oil & gas producing companies surged this Monday as the higher crude oil prices improved revenue expectations. However, shares of oil marketing companies dipped on concerns higher crude prices may hamper their profitability. For full story, click here
China’s top offshore oil and gas producer CNOOC Ltd. produced 15 percent more oil and gas in the first quarter, but its total revenue dips 42 percent due to the sharp fall in crude prices. For full story, click here
Unbridled Energy (CVE:UNE) today provided updated results for the year ending December, 2008. The company reported a 1,500% gain in revenue over the same period in 2007.
Algeria has projected total oil receipts for 2009 to reach between US$30 and US$40 billion, compared to US$78 billion in 2008, as the prices of crude in international market continues on the downward trend. For full story, click here
Oil and Natural Gas Corp, India’s largest oil and gas producer, lost over Rs 1,570 crore in revenues on sale of natural gas at price lower than its cost of production during 2007-08. For full story, click here
It is obvious that a barrel price below $60 on the NYMEX is bad news for oil companies. Part of the drop reflects a strengthening American dollar, but recent demand forecast revisions are bleak. Governments, companies and investors think a prolonged recession or period of low growth is in the offing, and everyone should take note.
Along with OPEC production cuts and healthy company numbers, (both discussed below) the market is clearly disjointed. The tenor of discussions in the business pages and networks lately suggests that Yeats was right, and the centre cannot hold. Recession or recovery, echo boom or bust, few are predicting prolonged instability somewhere between these extremes.
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