PETROLEUM PRODUCTS – PRICES

Barclays: oil will be lower for longer

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 21-May-15

The price of West Texas Intermediate crude oil was trading at $US58.60 per barrel on 20 May 2015. Grant Porter of Barclays is bearish about crude oil, forecasting that the US price could trade at around the $US65 level until at least 2017. He notes that drilling work at many US oil wells is partially complete, and they will begin production when the oil price becomes more favourable.

CORPORATES
BARCLAYS BANK PLC, THE GOLDMAN SACHS GROUP INCORPORATED, ROYAL DUTCH SHELL PLC, BG GROUP PLC

Oil price will not make a splash before December quarter, says NAB

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 26 : 8-Apr-15

West Texas Intermediate crude oil rallied on 6 April 2015, to $US52.14 per barrel, and Brent crude oil traded at $US58.12. Meanwhile, National Australia Bank has forecast that the price of Brent oil will average $US54 during the June quarter and $US58 in the September quarter. However, the banking major is more upbeat about the longer-term price, forecasting that it will average $US63 per barrel in the December quarter

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WOODSIDE PETROLEUM LIMITED – ASX WPL, UNITED STATES. DEPT OF ENERGY. ENERGY INFORMATION ADMINISTRATION

Oil prices to stay low for years, JPMorgan warns

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Original article by Matt Chambers
The Australian – Page: 17 : 21-Jan-15

JP Morgan has lowered its 2014-15 earnings forecast for Australian-listed resources group BHP Billiton to $US8.3bn ($A10.1bn), or $US1.2bn less than the consensus. A major factor is that JP Morgan also expects the global crude oil price to fall further, and not recover for two years. Brent crude is now tipped to trade at $US49 a barrel in 2015 and $US57 in 2016, compared with previous estimates of $US82 and $US88 respectively. However the Global Energy Fund of Investec Asset Management has taken advantage of the bargain buying opportunity to acquire stock in energy company Santos

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BEACH ENERGY LIMITED – ASX BPT, OIL SEARCH LIMITED – ASX OSH, JP MORGAN AUSTRALIA LIMITED, INVESTEC ASSET MANAGEMENT LIMITED, INVESTEC GLOBAL ENERGY FUND, LUKOIL-NEFTEGAZSTROY, CNOOC LIMITED, CHINA NATIONAL OFFSHORE OIL CORPORATION, PETROBRAS, PETROLEO BRASILEIRO SA

Petrol plunge could hit 85c

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Original article by Andrew Tillett
The West Australian – Page: 1 & 4 : 14-Jan-15

Data from FuelWatch shows that some service stations in Perth are selling unleaded petrol for $A1.06 per litre. The crude oil price has fallen below $US50 a barrel, and Stephen Moir of the Motor Trade Association of Western Australia says it could potentially fall to around $US30 a barrel. He adds that at that price, Perth motorists could be paying between $A0.85 and $A0.90 per litre for petrol

CORPORATES
FUELWATCH PTY LTD, MOTOR TRADE ASSOCIATION OF WESTERN AUSTRALIA INCORPORATED, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ROYAL AUTOMOBILE CLUB OF WESTERN AUSTRALIA (INCORPORATED), PUMA ENERGY (AUSTRALIA) HOLDINGS PTY LTD

Oil plunge will stir M&A when price settles

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 16 : 12-Jan-15

Santos, Senex Energy and Horizon Energy are among the Australian companies whose share prices have fallen sharply in response to the downturn in the crude oil price. Experts say lower valuations in the oil and gas sector is likely to prompt mergers and acquisitions activity, although some suggest that potential suitors will bide their time as the oil price and shares may fall further. The price of Brent oil closed at $US50.11 per barrel on 9 January 2015

CORPORATES
SANTOS LIMITED – ASX STO, SENEX ENERGY LIMITED – ASX SXY, HORIZON OIL LIMITED – ASX HZN, BEACH ENERGY LIMITED – ASX BPT, HERBERT SMITH FREEHILLS PTY LTD, TOTAL SA, INPEX CORPORATION, ROC OIL COMPANY LIMITED – ASX ROC, FOSUN INTERNATIONAL LIMITED, DRILLSEARCH ENERGY LIMITED – ASX DLS, AMBASSADOR OIL AND GAS LIMITED – ASX AQO, MAGNUM HUNTER RESOURCES CORPORATION, NIDO PETROLEUM LIMITED – ASX NDO, BANGCHAK PETROLEUM PCL, METGASCO LIMITED – ASX MEL, ELK PETROLEUM LIMITED – ASX ELK, BP PLC, BP AMOCO PLC, EXXONMOBIL CORPORATION, CHEVRON CORPORATION, TEXACO INCORPORATED, BERNSTEIN AND ASSOCIATES, BRIGHTOIL PETROLEUM, HARBOUR ENERGY LIMITED, TEMASEK HOLDINGS (PTE) LTD, PAVILION ENERGY PTE LTD

AMP strategist says crude likely to hit $US40 before any recovery

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Original article by Matt Chambers
The Australian – Page: 22 : 9-Jan-15

The crude oil price is currently trading at about $US50 a barrel, but AMP Capital’s Shane Oliver says production is unlikely to be reduced until it falls to around $US40. He adds that historical analysis shows that any resulting rebound in the oil price is likely to occur gradually. Meanwhile, Oliver says investors should capitalise on any downturn in share prices as a result of the falling oil price

CORPORATES
AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, KAROON GAS AUSTRALIA LIMITED – ASX KAR, ORIGIN ENERGY LIMITED – ASX ORG, AWE LIMITED – ASX AWE, BEACH ENERGY LIMITED – ASX BPT, CITIGROUP PTY LTD, SENEX ENERGY LIMITED – ASX SXY

Price crash may see BHP pull rigs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 11 & 20 : 8-Jan-15

West Texas Intermediate crude oil was trading at $US48 per barrel on 7 January 2015. Paul Young of Deutsche Bank suggests that BHP Billiton could potentially reduce the number of drilling rigs it operates in the Permian Basin in the US until there is a sustained rebound in the oil price. Young adds that BHP could delay adding additional drilling rigs until the oil price rises to about $US80/barrel, which may not occur until around 2018

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG

Plunge claims its first scalp as Red Fork Energy goes under

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Dec-14

Australian-listed oil and gas producer Red Fork Energy has become the first such business to succumb to the effects of the recent global crude oil price fall. Its stock had declined from $A0.38 in late 2013 to just $A0.006 in early December 2014. In mid-2013 the group sourced over $A47m in fresh capital at a price per share of $A0.43, and among the major stockholders to now suffer losses is Ellerston Capital with a stake of 10.9%. Red Fork, which has shale oil and gas assets in the US, cannot service its liabilities of $A100 with Guggenheim Partners

CORPORATES
RED FORK ENERGY LIMITED – ASX RFE, GUGGENHEIM PARTNERS LLC, ELLERSTON CAPITAL PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ASX LIMITED – ASX ASX

Qantas should keep fuel surcharge despite oil price fall

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Original article by Jamie Freed
The Australian Financial Review – Page: 23 : 4-Dec-14

The crude oil price has fallen from $US109 a barrel to just $US72 since Qantas increased the fuel surcharge on its international airfares in July 2014. Matt Crowe of the Commonwealth Bank believes that the carrier should leave the surcharge unchanged for now, noting that it generates 8-12 per cent of its annual revenue and offsets its overall fuel costs by just 27 per cent. Flight Centre MD Graham Turner recently urged airlines to abolish the surcharge

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, EMIRATES AIRLINES

Oil’s era of $US100 a barrel is over

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 25 : 3-Dec-14

The price of Brent crude oil fell by 0.5 per cent to about $US72 per barrel on 2 December 2014, compared with a year-to-date high of $US112 in June. Citigroup has warned that the oil price is unlikely to rise above the $US100 level in the long-term. The firm suggests that global economic growth would be boosted by an average of 0.08 per cent over the next four years if the oil price falls by a further $US10 per barrel

CORPORATES
CITIGROUP PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES