Oil prices gained 2% Thursday on a combination of news that included a rumor that OPEC will extend output cuts until the middle of next year, though this was tampered by a build in US crude oil inventories. It’s also responding--more than anything--to the faintest of signals that there may be positive developments in the US-China trade war. A 2-percent gain is about all we can hope for at this point in time, when OPEC can no longer affect major oil price movements. The highlight of the week was Putin’s description of US shale technology as “barbaric” for its disregard for the environment and his positioning of Russia as an environmentally responsible oil and gas superpower. Intelligence has long pointed to Russian efforts to discredit fracking, which is a clear threat to Russia’s Gazprom market share, most immediately in Europe. Recent data suggests that Russia is one of the top five C02 emitters in the world.
What Just Happened Offshore Guyana?
There’s plenty to be excited about offshore Guyana with the strong of discoveries for Exxon and Hess and, more recently, the move to push first production to December this year, way ahead of 2020 schedule.
So, then why is Tullow--the other company behind some major discoveries in the same basin--seeing its stock drop?
Ireland-based Tullow Oil and its smaller partner, Eco Atlantic, have just been taken to the cleaners over Guyana. In a day (Nov 20th), Tullow stock shed…