Mid-Week Review – December 4, 2019
India Could See Real Growth in Oil Demand Next Year
Next year is expected to be a turnaround for oil demand in India, according to a new study by S&P Global Platts Analytics. With weakened demand caused by an economic slowdown, a slump in new vehicle sales, and flooding during monsoon season, the growth number is expected to come in at a meagre 120,000 b/d in 2019. S&P Global Platts expects India’s oil demand to grow by 170,000 b/d next year.
Iran still selling oil despite U.S. sanctions
Iran is still selling its oil despite U.S. sanctions on Tehran’s exports, the country’s Vice President Eshaq Jahangiri was quoted on Monday as saying by state TV, adding that Washington’s “maximum pressure” on Tehran had failed. “Despite America’s pressure … and its imposed sanctions on our oil exports, we still continue to sell our oil by using other means … when even friendly countries have stopped purchasing our crude fearing America’s penalties,” Jahangiri said.
Venezuela and Cuba ‘circumvent sanctions’ as Washington tightens grip on oil trade
Washington continued to tighten its grip on Venezuela and Cuba on Tuesday, naming six oil tankers that deliver fuel from the South American nation to the island as “blocked property.” The action — just the latest in a series of sanctions — also suggests how far Venezuela and Cuba are willing to go to avoid what they see as an illegal blockade.
Pipeline Crisis Forces Canadian Oil Giants to Cut Jobs
Two of Canada’s largest oil sands producers, Husky Energy and Suncor, had some bad news for investors this week. Husky said it will slash capital spending for next year and 2021 by more than US$370 million (C$500 million) combined, while Suncor warned it will spend only as much on oil projects next year as it will this year. Husky also said it will cut 370 jobs next year in a further sign that the industry’s troubles continue to take their toll.
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