PETROLEUM PRODUCTS – PRICES

Oil, gas jobs on the skids

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Original article by Paul Garvey
The Australian – Page: 20 : 4-Feb-16

A survey of oil and gas industry executives by Norwegian consulting firm DNV GL shows that nearly 75 per cent of respondents expect the crude oil price to remain weak for some time. Meanwhile, 31 per cent indicated that they will shed staff in 2016 to reduce costs, compared with 25 per cent a year ago. The survey also found that 74 per cent of companies with a capitalisation of at least $US5bn intend to reduce their capital expenditure in 2016.

CORPORATES
DNV GL, EXXONMOBIL CORPORATION, BP PLC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, BEACH ENERGY LIMITED – ASX BPT, DRILLSEARCH ENERGY LIMITED – ASX DLS

Blackstone expects oil price to ‘self-correct’

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Original article by Perry Williams
The Australian Financial Review – Page: 33 : 2-Feb-16

The price of Brent crude oil was trading at $US35 a barrel in early February 2016, having reached a low of $US28 in January. Blackstone Group president Hamilton James says the current price of crude oil is unsustainable and he expects it to rebound to around the $US75 level in coming years. James adds that the global oil surplus may not be sustained, as US oil supply is likely to fall if the crude oil price remains low.

CORPORATES
THE BLACKSTONE GROUP LP

Moody’s may cut Woodside, Origin ratings

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Original article by Brian Robins
The Australian Financial Review – Page: 15 : 25-Jan-16

Ratings agency Moody’s Investors Service has scaled back its Brent crude oil price assumptions by $US10 per barrel in both 2016 and 2017, to $US33 and $US38 respectively. The firm notes that there is a risk of a further downturn in the crude oil price. Meanwhile, Moody’s has indicated that it expects to complete a review of the credit ratings of Origin Energy and Woodside Petroleum by the end of March, which could potentially result in downgrades.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, ORIGIN ENERGY LIMITED – ASX ORG, WOODSIDE PETROLEUM LIMITED – ASX WPL, SCHLUMBERGER LIMITED

Woodside takes $1.7bn hit as oil prices slump

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Original article by Matt Chambers
The Australian – Page: 17 : 22-Jan-16

Oil and gas producer Woodside Petroleum has reported revenue of $US1.105bn for the December 2015 quarter, which is 37 per cent lower than the same period in 2014. Revenue for the full year also fell by 37 per cent to $US4.5bn, due to the downturn in the crude oil price. Woodside has advised that its full-year accounts will be marred by asset write-downs of up to $US1bn ($A1.2bn). Its shares closed $A0.39 lower at $A25 on 21 January 2016.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, OIL SEARCH LIMITED – ASX OSH, APACHE CORPORATION, DEUTSCHE BANK AG

Oil price drop to fuel Qantas profit

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 11-Jan-16

Paul Butler of Credit Suisse says the sharp decline in the price of Brent crude oil and jet fuel in recent months should boost the earnings of Qantas over the next two years. Shareholders at the carrier’s 2015 annual meeting were told that its fuel bill for 2015-16 will be around $A3.61bn, but Butler forecasts that this could potentially fall by around $A110m. He adds that hedging could allow Qantas to slash its fuel costs by another $A160m in 2016-17.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CREDIT SUISSE (AUSTRALIA) LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, STANDARD AND POOR’S CORPORATION, MERRILL LYNCH (AUSTRALIA) PTY LTD, DEUTSCHE BANK AG

Low oil prices won’t stop LNG boom: HSBC

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 4-Nov-15

HSBC’s global head of commodities, Jean-Francois Lambert, expects the crude oil price to trade within a range of $US45 to $US55 per barrel over the next several years. However, he is upbeat about the outlook for Australian LNG producers, arguing that they will adapt to the lower oil price, which has in turn put downward pressure on LNG prices. Meanwhile, HSBC expects the iron ore price to fall to $US52 per tonne in 2016.

CORPORATES
HSBC HOLDINGS PLC

Botten unfazed by overtures from Woodside

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 29-Oct-15

Oil Search CEO Peter Botten says the group’s healthy balance sheet and strong growth prospects means it can focus on expanding its business rather than the spurned takeover offer from Woodside Petroleum. Botten adds that Oil Search would be open to a takeover offer that was appropriately priced, and he anticipates further merger activity in the oil and gas sector. He also forecasts that the oil price will remain at around its current level in the near-term.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, MARUBENI CORPORATION

Supply cuts and firmer demand may lift prices

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Original article by Rose Powell
The Australian Financial Review – Page: 31 : 21-Oct-15

The iron ore price has fallen by 25.2 per cent so far in 2015 and 48.3 per cent in the last year. Oversupply has also prompted the price of Brent crude oil to fall by 15.05 per cent in 2015 and 47.1 per cent over the last 12 months. Julian Jessop of Capital Economics expects the crude oil price to rebound more quickly than iron ore. Meanwhile, HSBC forecasts that iron ore will continue to trade within a range of $US50 to $US60 per tonne for the next several years.

CORPORATES
CAPITAL ECONOMICS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, MORGAN STANLEY AND COMPANY INCORPORATED, CITIGROUP PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ROY HILL IRON ORE PTY LTD

Oil sector profits to be dented as early recovery hopes fade

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13/18 : 17-Aug-15

Woodside Petroleum, Santos and Origin Energy will continue to be under pressure to cut costs as the oil price is expected to remain low. The US benchmark crude has fallen to $US42.50 a barrel which is its lowest level since early 2009. The International Energy Agency believes oil markets will remain oversupplied until late 2016 or early 2017.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, MACQUARIE CAPITAL PTY LTD, INTERNATIONAL ENERGY AGENCY, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Goods prices tipped to bottom out

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 23 : 24-Jul-15

The iron ore price is currently trading at around $US51.76 per tonne, while thermal coal is fetching $US60.45 a tonne and crude oil is trading at $US56.11 per barrel. A report from the World Bank forecasts that the prices of all three commodities will remain subdued for the remainder of 2015, although an upturn is expected in 2016. Iron ore is forecast to average $US55 per tonne in 2015, before rising to $US56.70 in 2016.

CORPORATES
WORLD BANK, THE GOLDMAN SACHS GROUP INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, UBS HOLDINGS PTY LTD, BLOOMBERG LP, CITIGROUP PTY LTD, RBC CAPITAL MARKETS