Top Oil News

Russia and Venezuela - two major oil powers and concerted action from these countries depends ensuring energy security. The talks with Russia President Hugo Chavez proposed the creation of a strategic alliance in the energy field. Also at the talks by representatives of Russian companies «TNK-BP», «LUKOIL» and «Gazprom» signed several agreements with the Minister of Energy and Petroleum of Venezuela, president of state Petroleos de Venesuela (PdVSA) Rafael Ramirez Carreño.

«LUKOIL» entered into an agreement with PdVSA on the joint study of the Junin-3 block in the Orinoco oil belt rivers in the east. Junin-3 block is located in the zone of heavy oil (ie, with a higher sulphur content, paraffin, smolistyh substances), which consequently requires a more complex mining and processing technologies. «TNK-BP» and PdVSA signed an agreement on joint exploration block Ayacucho-2 oil Orinoco province.

As you know, President of Venezuela ceased relations with western oil companies. In particular, as a result of nationalization of the oil industry Exxon Mobil lost assets in that country. Now for the development of heavy oil and offshore sites will be brought Russian companies.

World market prices for oil on July 22, 2008 at the leading oil exchanges declined significantly. Official oil futures prices coming month deliveries were: at the InterContinental Exchange Futures - 129,55 US$/bbl. (IPE Brent Crude); at the New York Mercantile Exchange - 127,95 US$/bbl (Light, Sweet Crude Oil).

The price of oil began the session mildly lower on expectations that Tropical Storm Dolly wouldn’t disrupt oil operations in the Gulf of Mexico. The advance increased after comments from a Federal Reserve official sent the dollar higher against major currencies, a trend that in turn sends commodities lower.

Lower oil prices are diverting attention from earnings for the moment. There’s no questions about some negative earnings reports coming out, but we’re starting to think some of them might be company specific and not broader.

The Brazilian oil company Petrobras announced the reduction of the volume of oil production by 7% due to the strike of the company. Strike started July 14 and led to a stop 2 oil platforms in the basin Campos Basin off the coast of the State of Rio de Janeiro and to reduce production at 136 000 bbl./day.

On the application of trade union work was suspended for 12 out of 33 oil platforms, reducing production by 400 000 bbl./day. Participants sought strike giving them an additional day off at the end of each two-week shifts on the platform. As claimed in the press, the strike will last for 5 days.

Concern Brazilian Petrobras produces about 1.6 billion barrels oil per day and is the world’s sixth oil company in terms of market capitalization. At the Campos Basin field produced more than 80% of Brazilian petroleum.