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Egypt unveils new Suez Canal extension

The first cargo ships passed through Egypt’s New Suez Canal last week in a test-run before it opened on Thursday [Reuters] Egypt has unveiled a major extension of the Suez Canal billed by its President Abdel-Fattah el-Sisi as a historic achievement needed to boost the country’s ailing economy after years of unrest. Sisi, wearing his ceremonial military uniform and trademark dark sunglasses on a sweltering August day, flew to the site on Thursday aboard a military helicopter and immediately boarded a monarchy-era yacht that sailed to the venue of the ceremony. A visibly triumphant Sisi stood on the vessel’s upper deck, waving to well-wishers and dance troupes performing on shore. At one point, a young boy in military uniform and holding an Egyptian red, black and white flag joined him on the deck. Historical facts: the Suez Canal Planning for the Suez Canal officially began in 1854 when a […]

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Saudi tempers oil price hikes in Asia to defend market share

An oil tank is seen at the Saudi Aramco headquarters during a media tour at Damam city November 11, 2007. Saudi Arabia has increased the September prices for crude it sells to Asia by less than forecast, traders said on Thursday, as the world’s biggest oil exporter defends its market share amid slowing demand. Refining profits have fallen to the lowest level of the year in Asia, prompting refiners to cut output even as the Organization of the Petroleum Exporting Countries (OPEC) pumped at historic highs in July, helping to depress global oil prices to multi-month lows. [O/R] OPEC kingpin Saudi Arabia maintained output near record levels in July as the group showed no sign of wavering in its focus on defending market share instead of prices. [OPEC/O] Asia is the only region where Saudi Arabia raised oil prices in September. "The region’s refiners may rue the fact that […]

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Saudi Arabia Might Just Have Blinked In the Oil War

Kenny Rogers is probably not well known in Saudi Arabia but if recent speculation about the kingdom resorting to the international debt market is correct then the words of The Gambler should be called, loudly, from every minaret in Riyadh. If you don’t know Kenny’s signature song it’s the one which includes the refrain: “You’ve got to know when to hold em, know when to fold ‘em, know when to walk away, know when to run.” In the case of Saudi Arabia, and the unconfirmed reports of it seeking $27 billion in debt via an issue of bonds, it appears to be adopting the gamblers strategy of seeing off its opponents in the increasingly competitive oil world by calling “raise ‘em”. Betting The House (Of Saud) What the debt raising signals is that the kingdom is prepared to bet the house of Saud on a high-risk gamble based on […]

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IHS: Energy explorers face strong headwinds

Analysis finds some energy companies focused on exploration and production might not survive the downturn. UPI/Gary C. Caskey HOUSTON, Aug. 6 (UPI) — The depressed crude oil market could limit the borrowing options for North American exploration and production companies, analysis finds. The price for West Texas Intermediate crude oil, the U.S. benchmark, has struggled in recent trading days to break the $50 mark. In early Thursday trading, WTI was $44.72, more than 50 percent lower than this time last year. Paul O’Donnel, an equity analyst at IHS Energy, said the low price of crude oil, and expectations that the weak market will endure, spells trouble for companies focused on exploration and production. "Prolonged depressed prices for oil are hurting many of the [exploration and production companies] and will begin to limit their borrowing options," he said in a statement. Marathon Oil this week became the latest in a […]

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Gas prices could keep falling, AAA says

Motor club AAA expects some parts of the country could see gasoline prices around the $2 mark as weakness endures in the crude oil market. Photo by John Angelillo/UPI WASHINGTON, Aug. 6 (UPI) — The national average retail price for a gallon of gasoline is falling quickly, a trend expected to continue for the remainder of the year, motor club AAA said. AAA reports a national average price for a gallon of regular unleaded gasoline at $2.62 for Thursday, about 5 cents less than one week ago and more than 10 cents less than this date in July. The motor club said in a mid-week gauge of the retail gasoline market the price at the pump has dropped at its fastest rate since January because of continued weakness in the crude oil market and improved refinery operations. As of Thursday, the national average price for gas has dropped 17 […]

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Bakken outperforms for Marathon

Shale oil basin in North Dakota a standout for Marathon Oil as it posts a financial loss for the second quarter. Photo by Calin Tatu/Shutterstock HOUSTON, Aug. 6 (UPI) — Production from the Bakken shale play in North Dakota was a standout in terms of gains for Marathon Oil, which posted a $386 million loss in the second quarter. For all of North America, the company said in its second quarter report net production averaged 274,000 barrels of oil equivalent per day. That represents a 21 percent increase year-on-year, but 3 percent lower than first quarter 2015. Marathon President and Chief Executive Officer Lee Tillman said the net decline was in part because of less spending on exploration and production. "Capital spending in the quarter was down about 40 percent sequentially as we’ve moderated activity levels in the U.S. resource plays," he said in a statement. In North Dakota, […]

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U.S. Bankruptcy Filings Jump 77% in July, Paced by Energy Sector

Newly released numbers bear out the feeling that a long-awaited bump in bankruptcy filings has arrived this summer, as submissions under chapter 11 rose 77% in July. There were 637 filings under chapter 11 of the bankruptcy code last month across the U.S., according to statistics from Epiq Systems, compared with 359 at the same time last year. It is the most monthly new chapter 11 filings in nearly three years. That excludes April 2014, an outlier month during a very slow restructuring year, when a spike was driven by Energy Future Holdings Corp.’s massive 71-petition filing. But the summer pickup in filings might not be a permanent return to the time before low-interest rates and high filing costs kept many away from the bankruptcy courts. Shaunna Jones, bankruptcy lawyer at Willkie Farr & Gallagher LLP described this summer as one that has “pockets of business but still feels […]

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July job gains may favor September interest rate rise

A job seeker holds literature while waiting to speak with a representative of the Golden Gate National Parks Conservancy at a career fair in San Francisco, California July 14, 2015. The number of U.S. jobs probably rose at a healthy pace in July and wages likely rebounded in data due on Friday, providing further signs of an improving economy that could allow the Federal Reserve to raise interest rates in September. A Reuters survey of economists forecast U.S. nonfarm payrolls increased by 223,000 last month, matching June’s job gains, a number which would be slightly above the monthly average for the first half of the year. Though the pace of hiring has slowed from last year, it remains double the rate needed to keep up with population growth. The Labor Department will release its closely watched employment report on Friday at 8:30 a.m. (1230 GMT) "We expect this report […]

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‘Frack now, pay later,’ top services companies say amid oil crash

The exterior of the Schlumberger Corporation headquarters building is pictured in the Galleria area of Houston January 16, 2015. Business is so tough for oilfield giants Schlumberger NV and Halliburton Co that they have come up with a new sales pitch for crude producers halting work in the worst downturn in years. It amounts to this: "frack now and pay later." The moves by the world’s No. 1 and No. 2 oil services companies show how they are scrambling to book sales of new technologies to customers short of cash after a 60 percent slide in crude to $45 a barrel. In some cases, they are willing to take on the role of traditional lenders, like banks, which have grown reluctant to lend since the price drop that began last summer, or act like producers by taking what are essentially stakes in wells. At Halliburton, some of the capital […]

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U.S. refiners find the oil market’s sweet spot: Kemp

An oil refinery is seen near an oil slick along the coast of Refugio State Beach in Goleta, California, United States, May 19, 2015. Low crude prices and strong demand for gasoline are creating near-perfect conditions for oil refineries across the United States, especially those geared towards maximising gasoline production. Valero, the country’s largest independent refiner, made a gross margin of more than $13 on every barrel of oil processed in the second quarter, and a net margin of almost $8.50, both the highest since 2007. Little wonder then that Valero’s share price has climbed to the highest level since December 2007. The enormous profitability of turning crude into gasoline has incentivized refiners to run flat out since the start of the year. The volume of crude processed by U.S. refineries last week hit a record 17.1 million barrels per day (bpd), 680,000 bpd above the prior-year level and […]

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