• 25 mins Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 hour Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 hours New Video Game Targets Oil Infrastructure
  • 6 hours Shell Restarts Bonny Light Exports
  • 7 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 13 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 18 hours British Utility Companies Brace For Major Reforms
  • 22 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
Trump’s Iran Decision Haunts Big Oil

Trump’s Iran Decision Haunts Big Oil

Donald Trump’s Iran decision has…

A New Oil Crisis Is Developing In The Middle East

A New Oil Crisis Is Developing In The Middle East

As Iraqi-Kurds prepare to fight…

Are U.S. Oil Assets Too Expensive For Oil Traders?

Pipeline welder

Physical oil assets in the United States may have become so expensive that they are no longer appetizing for entities that may have at one time considered them for acquisition, according to Ian Taylor, chief of the trading house Vitol.

Vitol, among other trading companies, cite the shale boom in the United States two years ago that flooded the markets with large amounts of oil, which in turn fueled what some traders called a “Klondike Rush” on U.S. assets.

According to Taylor, as the market now stands, trading houses are “being crowded out” of purchases, and have been selling some of their holdings in a market "priced at some of the highest multiples in the world."

Speaking at the Reuters commodities summit, Taylor said “Private equity and U.S. finance will continue to make the United States a place where a lot of money is invested, it's extremely efficiently done. I'm not necessarily sure it suits traders."

In September, the company announced that it planned to sell its Permian Basin crude oil unit to Sunoco Logistics Partnerships LP, a pipeline operator. That sale involves a crude oil terminal in Midland, Texas, of about 2 million barrels, along with a crude oil gathering and mainline pipeline system in the basin. Vitol has been a big part in the physical trading markets outside the U.S., and was the first company to export U.S. crude after the ban on exports was lifted in 2015.

Taylor said that the offer for the sale was too good to pass up. He added that the sale will not impact the company’s efforts in the physical trading market. Taylor commented: “It could be that we're making a mistake. But they were good opportunities to sell assets."

Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News