Oil, Gas, And Fracking News Reads 31March, 2019 – Part 2

Written by rjs, MarketWatch 666

Here are some more selected news articles about the oil and gas industry from the week ended 31 March 2019. Go here for Part 1.

This is a feature at Global Economic Intersection every Monday evening.

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Fracking plan ‘will release same CO2 as 300 million new cars’ – The government’s fracking proposals would release the same amount of greenhouse gas emissions as almost 300 million new cars, fatally undermining ministers’ obligation to tackle the escalating climate crisis, according to new research. Analysis by the Labour party shows that the amount of carbon dioxide released into the atmosphere if the government’s plans go ahead would be the same as the lifetime emissions of 286 million cars – or 29 new coal-fired power plants. The findings come as ministers’ efforts to kickstart their fracking proposals face growing resistance, with defeat in the courts, fierce local objections and opposition from Labour and Tory councils alike.Labour leader Jeremy Corbyn, who was in Lancashire on Saturday to join the anti-fracking campaign in the region, said a future Labour government would ban fracking “once and for all”.”The Conservatives’ fracking plans will damage our environment and fly in the face of community opposition,” he said. “There is a clear alternative to fracking. Clean, renewable energy is the future of our economy and will create more than 400,000 jobs as part of Labour’s green industrial revolution.”Concerns about drilling flared in the run-up to Christmas when energy company Cuadrilla was forced to pause operations near Blackpool three times after drilling caused small earthquakes that breached government safety limits. Several local authorities – including London, Manchester, Leeds, Wakefield, Hull and York – have expressed opposition to fracking. There is also opposition from many Tories. In Westminster, almost two dozen Tory MPs are reported to be against fracking and willing to “destroy the government’s majority” if it tries to weaken planning laws. Several Tory-run local authorities – including Derby, Dorset and Nottinghamshire – are fiercely opposed to a change in planning proposals, which would mean companies could drill test sites without applying for permission. Labour, which has vowed to oversee “an economic revolution to tackle the climate crisis”, says on top of the widespread opposition, the government’s plans would produce huge amounts of greenhouse gases, wrecking any chance of the UK complying with its Paris climate obligations.

MPs warn taxpayers could face ‘hefty bill’ from North Sea and fracking decommissioning –The Public Accounts Committee (PAC) of MPs has today published a new report warning there is “significant uncertainty over costs to taxpayers of decommissioning offshore oil and gas assets”, as well as a “poor understanding” within government of the potential liabilities associated with decommissioning fracking assets. The report calls for a clearer strategy from government to minimise decommissioning costs, establish the UK as a global hub for offshore decommissioning expertise, and take steps to ensure taxpayers do not “pick up a hefty bill” to decommission fracking infrastructure. The report notes that HM Revenue & Customs (HMRC) estimates oil and gas companies will pass on £24bn of decommissioning expenditure to taxpayers through tax reliefs, but there remains a wide range of possible future costs as most companies are still improving the certainty of their cost estimates. Work is on-going to reduce the cost of decommissioning, but the PAC argues savings could be maximised if the government developed a more coherent strategy to support the sector. The report also raises fresh concerns about how tax breaks and wider support for the oil and gas industry could run counter to the UK’s carbon targets.”The Department… needs to ensure its support for oil and gas remains compatible with its other activities aimed at achieving climate change goals, including ensuring alignment with the development of carbon capture, usage and storage, which could potentially reuse offshore oil and gas assets,” the report states.”Taxpayers will incur costs running to billions for oil and gas decommissioning, but it is far from clear what these costs will be in practice,” said PAC chair Meg Hillier, MP. “The Oil and Gas Authority must bring greater certainty to its cost estimates. Together with the Department for Business, Energy and Industrial Strategy it should be transparent about how these estimates measure up to reality, and explain exactly what impact it is having on reducing costs.”

Fracking ban decision delayed by Scottish government – BBC News – A decision on whether to ban fracking in Scotland has been delayed, the Scottish government has said.A moratorium on the controversial process has been in place since 2015, and the government said in October 2017 that it backed an “effective ban”.Scottish ministers pledged they would set out their finalised policy on fracking by the end of March.However, they have now said they will launch a further consultation process after the Easter break.The Scottish government said it planned to publish an “addendum” to its previous report which would require further comments from interested parties. It said it would make a final decision “as soon as possible after this process is complete”. The development of unconventional oil and gas remains prohibited in Scotland, with ministers enforcing a moratorium on it via planning powers. Mr Wheelhouse told MSPs in October 2017 that the moratorium would continue “indefinitely”, calling this an “effective ban” and saying that fracking “cannot and will not take place in Scotland”.This position was endorsed by MSPS by a vote of 91 to 28, and First Minister Nicola Sturgeon later told the SNP conference that “fracking is now banned in Scotland”. However, when petrochemical firms Ineos and Reach launched a legal challenge, the government’s legal representative told the Court of Session that there was no ban in place as the policymaking process was still ongoing.

Will Venezuela’s Oil Sector Ever Recover? – podcast – On this week’s Capitol Crude, Frank Verrastro and Andrew Stanley with the Center for Strategic & International Studies’ energy and national security program talk about the state of Venezuela’s oil sector, the impact of US sanctions on PDVSA and what recovery might look like. With US imports of Venezuelan crude now at zero, Verrastro and Stanley talk about India’s plans to cut imports from PDVSA, remaining markets for Venezuelan crude, potential changes to the country’s hydrocarbons law and why long-term sanctions may do irrevocable harm to the South American country’s oil output.

Refinery Investments In Low-Sulfur Crude Production Hit $1B — Investments in the production of lower-sulfur fuels at refineries across the world have reached US$1 billion to date, a BP executive said at an industry forum in the UAE. “There’s been a huge amount of investment in refineries since 2015 and (it) will continue beyond 2020,” Eddie Gauci, BP’s global head of marine fuels, said as quoted by Reuters at the Fujairah Bunkering and Fuel Oil Forum. Refiners have been preparing for the entry into effect of a sulfur emission cap drafted by the International Maritime Organisation. The cap is 0.5 percent, down from 3.5 percent, and it enters into effect in January 2020. The new rule has sparked a lot of speculation about where oil markets will swing in the coming months and years, with warnings about a possible shortage of middle distillates and an oversupply of light crude. What seems certain enough is there will be a lot of fuels in storage ahead of the entry into effect of the new rule. “We will see some floating storage of high sulfur or low sulfur for a period of time until the land-based infrastructure establishes some kind of equilibrium that’s in tune with what grades of fuel are called for in particular locations,” BP’s Gauci said. Earlier this month the International Energy Agency said in its annual Oil 2019 report, “The 2020 IMO marine regulation change is one of the most dramatic ever seen to product specifications, although the shipping and refining industries have had several years notice.” So refiners are investing in preparatory activities, be it by adjusting their equipment to produce lower-sulfur fuels or, most immediately, in changing refinery maintenance schedules to capture the higher profit margins of middle distillates such as diesel and marine gasoil, which have a lower sulfur content, with an anticipated spike in demand later this year.

Tanker Hijacked By Migrant Pirates Seized By Special Forces In Mediterranean – Maltese special forces have seized a Turkish oil tanker, El Hibu 1,which had been hijacked by the very migrants it stopped to rescue in the Mediterranean Sea off the coast of Libya. Five of the migrants have been arrested, and are accused of overpowering the vessel’s 12-man crew – forcing the oil tanker’s captain to cede control “through coercive action,” according to the Telegraph, citing Maltese government sources. 77 of the 108 migrants – or 71% – were men, who were traveling with 19 women and 12 children. “The captain repeatedly stated that he was not in control of the vessel and that he and his crew were being forced and threatened by a number of migrants to proceed to Malta.” The tanker was prevented from entering Maltese waters by a Maltese patrol vessel, after which a special forces unit was dispatched to board the tanker and regain control. The operation was backed up by a patrol vessel, a helicopter and two fast interceptor craft. “The tanker, her crew and all migrants are being escorted by the Armed Forces of Malta to Boiler Wharf (in Valletta) to be handed over to the police for further investigations,” said Maltese authorities.

Major new inquiry into oil spills in Nigeria’s Niger Delta launched – A major new inquiry into oil companies operating in the Niger Delta has been launched by the Archbishop of York, John Sentamu. The probe will investigate “environmental and human damage” in Nigeria’s vast oil fields. “This Commission will investigate the human and environmental impact of multinational oil company activity and is crucial to the prosperous future of the people of Bayelsa and their environment, Nigeria and hopefully to other oil-producing nations,” he said. Nigeria is Africa’s largest oil producer. The country’s crude oil production — estimated at over 300 million liters per day — makes up 70 percent of the Nigerian government’s revenue. This new commission, convened by Bayelsa Governor Seriake Dickson, says that it wants to make oil companies in the region more accountable. “The world has looked on for too long without taking the necessary collective action to put a stop to the damage being done by oil companies in Bayelsa. We must put the environment and the health and wellbeing of our communities first,” Dickson said in a statement Wednesday. Big oil spills are common in the Niger Delta where over 40 million liters of crude oil is spilled annually, resulting in human deaths and damage to the local ecosystem. A 2018 study by the Journal of Health and Pollution found that more than 12,000 oil spill incidentshave occurred in the oil-rich region between 1976 and 2014. Pipeline corrosion and tanker accidents caused more than 50 percent of them. Other incidents can be attributed to operational error, mechanical failure, and sabotage mostly from militant groups, the study said.

Coast Guard probes oil spill in Sibulan-Dumaguete waters – The Philippine Coast Guard (PCG) here is investigating an oil spill that has left patches of oil in coastal areas in nearby Sibulan town and this capital city. Lt. Commander Jansen Benjamin, PCG-Dumaguete Station Commander, disclosed Friday that the oil spill was estimated to have occurred around three days prior to its discovery, based on the characteristics seen in the oil retrieved from shallow waters and from the shore. The extent of the damage, however, has yet to be ascertained pending reports on the effects of the oil spill on the environment. Benjamin hoped there would be no serious consequences. So far, no oil slick that would pose a greater threat to the environment has been reported yet although the Coast Guard here is coordinating with its counterparts in nearby areas outside of Negros Oriental to be on the lookout for any, he said. According to Benjamin, it is also difficult for them to determine as yet who could be responsible for the oil spill, or perhaps an oil leakage, but he said the oil most likely came from a sea vessel. The quantity of the spill could not be determined, as the black substance that hit the local shores here has already split up into smaller portions and there is no need for containment because there are no oil slicks or large oil clumps, he pointed out. Speaking in the vernacular, Benjamin explained that the oil appeared thick and heavy, and was emulsified, which means it was no longer fresh and had already been in the seawaters for several days. The oil spill was first brought to the attention of authorities, through the Provincial Disaster Risk Reduction and Management Council (PDRRMC) on Thursday, after a caller said oil patches were seen in Maslog, Sibulan.

Solomon Islands oil spill: currents push slick away from world heritage site – – Ocean currents have carried oil leaking from a shipwreck on the Solomon Islands away from a nearby world heritage site as authorities continue a clean-up operation that is expected to take months. Cleaning up after the bulk carrier MV Solomon Trader, which ran aground on a coral reef in early February and released 80 tonnes of oil, is expected to take up to four months. But the slick has been pushed away from the island’s eastern flank which is a world heritage site. Rennell Island is the the largest raised coral atoll in the world. Australian authorities, who kicked off the initial on-water clean-up, have now retreated and the ship’s Korean insurer has taken charge of the operation. There will be ongoing surveillance flights carried out to monitor the process. ‘We cannot swim, we cannot eat’: Solomon Islands struggle with nation’s worst oil spill Read more MV Solomon Trader had been loading bauxite from a mine in the days before rough seas pushed it aground on a coral reef in the early hours of 5 February, in the lead-up to Cyclone Oma. The clean-up operation of the oil slick could take between three to four months, an expert said, while the ship wreck itself could be removed in the next four to six weeks. It is unknown what percentage of oil has been cleaned up so far and the amount removed from the water each day varies from dozens of tonnes to single digits. A barge pump has been steadily removing the 600 tonnes of oil still onboard the vessel. About 300 to 400 tonnes has been removed so far. The Solomon Islands Maritime Safety Administration said its investigation into the incident was ongoing and officials were trying to get access to the ship’s voyage data recorder. “This should shed some light on the circumstances of the incident,” acting director Jonah Mitau told the Guardian.

Australia’s east faces gas shortage from 2024, market operator warns (Reuters) – Australia will face a gas shortage from 2024 unless new reserves are developed, pipeline capacity is increased or eastern states start importing liquefied natural gas, the country’s energy market operator warned on Thursday. The Australian Energy Market Operator’s (AEMO) annual gas outlook was more dire than in June last year, when it forecast no shortage before 2030. Since then, companies have cut reserve and production estimates, AEMO said. In the near term, government pressure on three liquefied natural gas (LNG) exporters in Queensland, led by Royal Dutch Shell, Origin Energy and Santos, to boost gas supply to the domestic market has succeeded in averting potential shortfalls, AEMO said. “However, southern Australia’s overall supply-demand balance for 2021-2023 remains very finely balanced, reflecting the ever-tightening integration of Australia’s electricity and gas markets,” AEMO’s chief system design and engineering officer Alex Wonhas said in a statement. Longer term, as gas output dwindles in the ageing Gippsland Basin fields off Victoria, which have long fed demand centres in Melbourne, Sydney and Adelaide, more gas will be needed from Queensland in the north or LNG will have to be imported. Victoria’s ability to supply New South Wales, South Australia and Tasmania is expected to drop from 150 petajoules (PJ) a year currently to just 23 PJ in 2023, AEMO said. To fill that gap with gas from Queensland, pipeline capacity would have to grow, it said. The key uncertainty in all the forecasts is demand for gas in power generation, which is hard to predict as it is highly dependent on weather, the speed of development of solar and wind farms, and outages at coal-fired power plants, AEMO said. While demand for gas-fired power has been falling, AEMO said that could reverse as more coal-fired power plants shut. “Continued interest in LNG import terminals … would be expected to help relieve pressure on meeting southern gas demand during peak periods and assist in reducing pipeline constraints, but may do little to ease gas pricing pressures,” AEMO said.

U.S. orders foreign firms to further cut down on oil trades with Venezuela – (Reuters) – The United States has instructed oil trading houses and refiners around the world to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published U.S. sanctions, three sources familiar with the matter said. The move comes as Washington’s efforts to oust President Nicolas Maduro in favor of opposition leader Juan Guaido have stalled, and is further evidence of how it is leaning on non-U.S. firms to achieve its foreign policy goals. The U.S. imposed fresh sanctions on Venezuela’s oil industry earlier this year but some companies have continued to supply the country with fuel from India, Russia and Europe. Washington is particularly keen to end deliveries of gasoline and refined products used to dilute Venezuela’s heavy crude oil to make it suitable for export. Jet fuel and diesel would be exempt for humanitarian reasons, the sources said. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced a ban in early February on the use of its financial system in oil deals with Venezuela after April. But as recently as this week, the U.S. State department has called up foreign firms to say that the scope of the sanctions is wider. The sources said that the State Department made clear that any kind of oil trade, whether it be direct, indirect or barter, would be considered a breach. OFAC did not immediately respond to requests for comment. A spokesman for the State Department said “we continue to engage with companies in the energy sector on the possible risks they face by conducting business with PDVSA.” “This is how the United States operates these days. They have written rules and then they call you to explain that there are also unwritten rules that they want you to follow,” one of the sources said. Washington has been using its oil clout more and more. At a major oil event in Houston this month, U.S. Secretary of State Mike Pompeo made a rare appearance and laid out a vision of working with energy firms to isolate Iran and Venezuela.

US warns oil shippers to avoid violating Syria, Iran sanctions – The US government on Monday warned the oil shipping industry to avoid violating sanctions against Syria and Iran by scrutinizing vessel histories and trading partners. The advisory includes a list of vessels believed to have been involved in illicit oil shipments in 2016-2018, including 51 deliveries to Syria and 33 banned ship-to-ship transfers. “Any violations of prohibitions or weaknesses in compliance that result in sanctionable conduct exposes the shipping community to significant risks and can trigger severe consequences,” the Treasury Department’s undersecretary for terrorism and financial intelligence, Sigal Mandelker, said in a statement. The alert issued by Treasury’s Office of Foreign Asset Control, along with the US State Department and US Coast Guard, comes after a similar advisory last week warning the oil sector to avoid violating sanctions against North Korea. That report said North Korea received at least 263 refined oil product deliveries from banned ship-to-ship transfers in 2018. If all of the vessels were fully laden, the shipments would amount to 3.78 million barrels, or more than seven times the annual limit that North Korea is allowed to import under UN sanctions, Treasury said. “Despite robust US and United Nations sanctions on North Korea, North Korea continues to evade sanctions, particularly through illicit ship-to-ship transfers of refined petroleum and coal,” the Treasury said.

South Korean officials to press for Iran sanctions waiver in United States (Reuters) – South Korean government officials are expected to press for extending a sanctions waiver on Iran’s petroleum exports that expires in May on a visit to Washington this week. South Korea’s Deputy Foreign Minister for Economic Affairs Yoon Kang-hyun and other leaders will meet with U.S. State Department officials on Wednesday and Thursday to discuss the waiver issued in November to keep buying Iranian oil in exchange for having reduced such purchases, the Seoul government said in a news release on Monday. The Trump administration has unilaterally reimposed sanctions on Iran’s oil exports, the lifeblood of its economy, as it seeks to curb Tehran’s nuclear and missile ambitions and its influence Syria and other countries in the Middle East. Washington issued sanctions waivers for eight economies in November, including for South Korea, Iran’s fourth largest oil customer in Asia. But the administration has said it wants the exports to go to zero as quickly as possible. The U.S. goal is to reduce the number of sanctions waivers and to cut Iran’s oil exports about 20 percent, to below 1 million barrels of oil per day from May, sources said this month. The South Korean officials will meet with the State Department’s top energy diplomat Francis Fannon on Thursday. On Wednesday they will meet with Brian Hook, the U.S. special representative for Iran, and David Peyman, the deputy assistant secretary of state for counter threat finance and sanctions. A State Department official, who spoke on condition of anonymity, confirmed the meeting with Peyman. Officials did not immediately respond to requests for comment about the other meetings. Peyman met with South Korean officials in Asia earlier this month. He offered “to continue to closely consult on the extension of sanctions exemption and Korean companies’ technical issues regarding trade with Iran,” a statement from Seoul’s foreign ministry said at the time. South Korea is a large buyer of a light oil called condensates from Iran and has told a former U.S. official that there are few options for getting the same quality of condensate from other suppliers. South Korea’s oil imports from Iran fell 12.5 percent year-on-year in February, customs data showed this month.

Oil Sanctioned by U.S. and Shunned by World Finds Haven in China – China is doubling down on purchases of cheap oil that other buyers are shunning due to U.S. sanctions. The world’s biggest crude importer boosted imports from Venezuela and Iran last month from January, with the shipments costing the least since November 2017, data released on Monday by the General Administration of Customs show. Both of the OPEC producers are subject to separate U.S. sanctions that have squeezed their sales to customers across the globe. While the U.S. has granted several buyers waivers from its sanctions to continue buying Iranian oil, the volumes they are allowed to buy are restricted. What’s more, other nations such as Japan are limiting cargoes to a minimum to avoid even the possibility of breaching America’s rules. China, however, has imported about 446,000 barrels a day on average since November, customs data show. The Asian nation is said to have been allotted 360,000 barrels daily under the exemption, though that excludes the share of oil owed to Chinese companies that hold stakes in Iranian projects. In Venezuela’s case, the Donald Trump administration’s sanctions only effectively block shipments to the U.S. and don’t restrict flows to other nations. Still, big buyers such as India’s Reliance Industries Ltd. have shied away from purchases to avoid potential repercussions. China buys more oil from Venezuela, Iran on cheaper cost “Increased purchases from Venezuela may very likely be due to cost concerns,” said Li Li, an analyst with Shanghai-based commodities researcher ICIS-China. If the import price is low enough, oil giant PetroChina Co. can easily make a profit by selling to independent refiners, also called teapots, at a higher premium, she said by phone. China bought 2.03 million metric tons, or 531,000 barrels a day, of crude from Venezuela last month, 17 percent more than January and the highest since December 2017, the customs data show. Imports from Iran rose 22 percent from a month earlier to 1.96 million tons. China’s purchases are also probably spurred by a shortage of so-called heavy oil, which is more dense and sulfurous than lighter crude. The squeeze has been exacerbated by output cuts by the Organization of the Petroleum Exporting Countries and its allies as well as the U.S. sanctions.

China cuts gasoline, gasoil exports in Feb – China’s gasoline exports in February fell to a three-year low, a sharper decline than analysts had expected, latest data from General Administration of Customs showed. Exports to Singapore, the traditional top destination for China’s gasoline, sank 66.5% from 1.14 million mt in January, to just 383,000 mt last month. It was also down 38.5% year on year. The February gasoline exports were well below market expectations. Two Beijing-based analysts and two traders in Singapore had earlier said they expected exports to be around the normal level of 1 million mt in the month. China’s exports to Malaysia also dropped 69.6% month on month to 530,000 mt in February. Asian trading hubs of Singapore and Malaysia remained the top destinations for Chinese gasoline — both took 84.6% of the total outflows from China amounting to 1.75 million mt, up from 75% over January-February 2018. Oil products from Asian countries are usually sent to the hubs for blending or trading before heading to end-users. Exports in February to all other Asian destinations except Vietnam fell drastically from January. The only increase outside Asia was to Australia, with 24,000 mt exported in February, compared with zero in January and a year earlier. The lower realized export total for the month could be due to the methodology used by GAC, one Singapore-based trader said. Monthly exports were last lower at 426,000 mt in October 2015. China’s gasoil exports to African continues to grow in 2019, despite the drop in overall volume in February. Exports to Mozambique totaled 185,000 mt over January-February from zero a year earlier, to be the sixth top destinations for China’s gasoil export. Mozambique, for the second time, has remained in the top 10 destinations in February, receiving 39,000 mt of gasoil. This compared with zero in February 2018, but was down 73.4% from January at 147,000 mt. Meanwhile, exports from China to Hong Kong were up 76.9% year on year to 272,000 mt, though down 11.6% from January. Total exports to Hong Kong over the first two months, rose 91.9% from a year earlier to 580,000 mt, making it the top second destination after Singapore. Besides Singapore and Hong Kong, Bangladesh was the top third destination for China’s gasoil export, taking 180,000 mt last month. It doubled from a year earlier, and also up 182.8% from January.

Us China Trade Tensions In Focus As The Lng2019 Conference In Shanghai Takes Center Stage (podcast) S&P Global Platts senior natural gas writer Harry Weber and Platts Analytics team lead for North America natural gas Ross Wyeno preview the upcoming LNG2019 conference in Shanghai with natural gas managing editor Joe Fisher. The conference will bring together global liquefaction terminal developers, end users and traders interested in buying capacity. The US will be a key player during the conference, and the question of whether trade tensions with China will ease or escalate will be on many people’s minds, as officials from both countries continue to meet in Beijing and Washington.

World’s 2nd Largest Oil Company Sees Huge Drop In Profit -Sinopec reported a 76-percent drop in its latest quarterly profit for October-December 2018, which is the lowest since at least the third quarter of 2016, Reuters reports, citing the company. However, the bad news was not a result of the company’s normal operations but of derivatives trading losses incurred by its trading arm Unipec. The division booked net losses of US$690 million (4.65 billion yuan) in the fourth quarter of last year on bad oil hedging bets. This pressed the parent company’s net result to US$461.57 million (3.1 billion yuan) despite a 33-percent increase in revenues during the three-month period, as calculated by Reuters.In refining specifically, China’s top refiner reported even worse profit figures, according to Bloomberg calculations. This fell by as much as 90 percent in the fourth quarterFor the full year, however, things looked much better in the profit department, with Sinopec reporting a 23-percent annual rise and solid growth in revenues. The improvements, like the better results of other oil companies, came on the back of higher oil prices.Now the company plans to spend more to boost oil production as instructed by Beijing. This year, however, production will not grow but decline from 2018, projected at 288 million barrels, of which 39 million barrels from projects abroad. Last year, Sinopec pumped 288.5 million barrels, of which 39.6 million barrels from projects abroad.To this end, Sinopec’s 2019 capital spending will be the highest in five years at US$20.3 billion (136.3 billion yuan), versus US$17.58 billion (118 billion yuan) spent last year. Boosting local production of oil and gas is a priority for China’s government as demand for the commodities rises and so do imports.No wonder then that 44 percent of the total 2019 budget will be allocated for exploration and production, with the focus being on boosting natural gas production to 1.02 trillion cubic meters from 977 billion cubic meters in 2018.

More shale, who cares? Saudi Arabia pushes for at least $70 oil (Reuters) – Budget needs are forcing Saudi Arabia to push for oil prices of at least $70 per barrel this year, industry sources say, even though U.S. shale oil producers could benefit and Riyadh’s share of global crude markets might be further eroded. Riyadh, OPEC’s de facto leader, said it was steeply cutting exports to its main customers in March and April despite refiners asking for more of its oil. The move defies U.S. President Donald Trump’s demands for OPEC to help reduce prices while he toughens sanctions on oil producers Iran and Venezuela. The export cuts are designed to prop up prices, sources close to Saudi oil policy say. Saudi officials say the kingdom’s output policies are merely intended to balance the world market and reduce high inventories. “The Saudis want oil at $70 at least and are not worried about too much shale oil,” said one industry source familiar with Saudi oil policy. Another source said Saudi Arabia wanted to “put a floor under oil prices” at $70 or slightly lower, and added: “No one at OPEC can talk about output increases now.” Officially, Saudi Arabia, which plans to raise government spending to boost economic growth, does not have a price target. It says price levels are determined by the market and that it is merely targeting a balance of global supply and demand. Even a price of around $70 a barrel would not balance Saudi Arabia’s books this year, according to figures cited by Jihad Azour, director of the International Monetary Fund’s Middle East and Central Asia department in February. For that, he said, Riyadh needs oil prices at $80-$85 a barrel. Saudi Arabia, the world’s largest oil exporter, also wants to make sure it avoids a repeat of the 2014-2016 oil price crash below $30 per barrel, sources familiar with Saudi policy said.

OPEC struggles to keep Russia on board with oil cut, may offer shorter extension (Reuters) – Saudi Arabia is having a hard time convincing Russia to stay much longer in an OPEC-led pact cutting oil supply, and Moscow may agree only to a three-month extension, three sources familiar with the matter said. Russian Energy Minister Alexander Novak told his Saudi counterpart Khalid al-Falih when the two met in Baku this month that he cannot guarantee an extension to the end of 2019, the sources said. “Novak told Falih that he will extend in June but can only do it until the end of September as he is under too much pressure internally to end the cuts,” a source familiar with Russian oil policy said. The Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers – an alliance known as OPEC+ – agreed in December to reduce oil supply by 1.2 million barrels per day from Jan. 1 for six months. “We can extend for three months when we meet in June and then see if we need to extend later,” an OPEC source said. “We really don’t know now, and we may not know until the last minute before we meet in June, whether the Russians will stay.” The OPEC+ alliance was formed in 2017. Since its inception, oil prices have doubled to more than $60 per barrel – mainly as a result of a series of production cuts by its members. Should Russia pull out of the latest agreement on cutting output, oil prices would drop. Saudi Arabia and other OPEC members could be forced to consider continuing the cuts alone if Russia opted not to stay, the OPEC source said. It was unclear whether Russia’s tough stance was a negotiation tactic or a real threat to quit the agreement as Novak faces mounting pressure from Russian oil companies that no longer want curbs on their production, the sources said. Igor Sechin, head of Russian oil giant Rosneft and an ally of Vladimir Putin, told the Russian president that the deal with OPEC is a strategic threat and plays into the hands of the United States, Reuters reported in February. There is no guarantee Putin will back Sechin’s view. The president sees the pact with OPEC as part of a bigger puzzle involving dialogue with OPEC’s de facto leader, Saudi Arabia, over Syria and other geopolitical issues. But Russia knows Saudi Arabia wants oil at a minimum $70 a barrel for its budget requirements, while Moscow needs just $55 a barrel to balance its books, the sources said.

Hedge funds increase appetite for oil: Kemp-(Reuters) – Hedge funds bought another 65 million barrels of petroleum futures and options in the week to March 19, taking total purchases over the last 10 weeks to 384 million barrels, according to reports published on Friday. The one-week increase in net long positions was the largest since the end of August 2018, a strong bullish signal about the expected direction of prices over the next six months. Hedge funds and other money managers have boosted their overall bullish position in the six most important derivative contracts linked to crude and fuels prices to 685 million barrels, up from just 302 million on Jan. 8. Funds were substantial net buyers in the most recent week of NYMEX and ICE WTI (+50 million barrels) as well as Brent (+16 million barrels) and U.S. gasoline (+12 million barrels). But they were net sellers of U.S. heating oil (-4 million barrels) and European gasoil (-9 million barrels), according to exchange and regulatory data (https://tmsnrt.rs/2UT8fPK ). Funds now hold almost five bullish long positions for every short bearish one in petroleum, up from a ratio of less than 2:1 at the start of the year, but still far below the recent peak of 12:1 at the end of September. Until recently, most of the buying was concentrated in Brent and European gasoil, but buying rotated into WTI and U.S. gasoline in the most recent week. Funds have reduced most, though not all, of the short positions that they started to accumulate from the end of August, indicating that the most recent short-selling cycle is nearing its end. Portfolio managers have now reduced the number of short positions across the petroleum complex to just 173 million barrels, less than half a recent peak of 357 million on Jan. 8.

Oil traders wait to assess impact of IMO regulations- Kemp (Reuters) – If oil traders and consumers are worried about the impact of new maritime fuel regulations from the start of next year, they have not yet started to mark up prices for low-sulphur middle distillate fuels. Under new rules agreed by the International Maritime Organization (IMO), ships will be forced to switch to using low-sulphur fuels rather than high-sulphur residual fuel oil, or fit scrubbers to remove sulphur dioxide emissions. Refiners have been gearing up to increase the production of IMO-compliant shipping fuels, and many ship owners have installed or plan to fit scrubber units to enable them to continue using cheaper residual fuel oil. There is considerable uncertainty about exactly how vessel owners will comply with the new regulations and how much extra low-sulphur fuel the refiners will manage to produce. But the forthcoming regulations are expected to increase consumption of middle distillates and cause that segment of the oil market to tighten significantly. Ships will be competing for the same low-sulphur middle distillates used as diesel, jet fuel and heating oil by road hauliers, railroads, airlines and farmers as well as many homes, offices and factories. As a result, some analysts are forecasting a severe shortage of middle distillates, causing prices to spike, while others see a more limited impact.

Oil prices fall as markets brace for potential US recession – Oil prices slipped on Monday, with concerns of a sharp economic slowdown overshadowing support from tighter supply due to OPEC’s production cuts and U.S. sanctions on Iran and Venezuela. Brent crude oil futures were down 14 cents, or 0.2 percent, at $66.89 per barrel, while U.S. West Texas Intermediate (WTI) futures were at $58.96 per barrel, down 8 cents, or 0.1 percent. Both crude oil price benchmarks closed down last week after briefly hitting their highest since November 2018. “Oil remains in a tug-of-war between fundamentals and a fickle sentiment in the global financial markets,” said Vandana Hari of consultancy Vanda Insights. Concerns about a potential U.S. recession emerged on Friday after cautious remarks by the U.S. Federal Reserve caused 10-year treasury yields to slip below the three-month rate for the first time since 2007. Historically, an inverted yield curve – where long-term rates fall below short-term ones – has signaled an upcoming recession, and world stocks hit a 12-day trough on Monday. Bullish sentiment helped drive benchmarks to last week’s highs, but that move could now leave them vulnerable to a correction. “Speculators increased their net long in ICE Brent by 15,934 lots over the last reporting week, to leave them with a net long of 308,606 lots … the largest position since late October,” ING said in a note. “A large gross long is a key downside risk for the market, especially with growing concerns over the economy.”

Oil prices hit by worries of sharp economic slowdown – (Reuters) – Oil prices were mixed on Monday, as concerns about a slowdown in global economic growth lingered, offset by the prospect of tighter U.S. crude supply. Brent crude oil futures settled at $67.21 a barrel, up 18 cents, while U.S. crude fell to $58.82 a barrel, down 22 cents. “Some of the weakness we saw earlier was related to the reawakening of concerns surrounding demand growth,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. The market is now looking ahead to weekly data on U.S. crude inventories, McGillian said, beginning with Tuesday’s report from the American Petroleum Institute, an industry group, followed by U.S. Energy Information Administration figures on Wednesday. [API/S] “If we see another week of inventory numbers like we saw last week that could restart the rally,” he said. The latest data is expected to show U.S. crude inventories falling for a third straight week, after having declined by nearly 10 million barrels the prior week on a near-record week for exports. [EIA/S] “We expect U.S. crude balances to see some additional tightening as crude exports remain sharply elevated and imports are likely downsized,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note. “(But) we see a reduction in the rate of global oil demand growth as becoming a larger price influencer during the next few weeks,” Ritterbusch said. Oil prices took a hit last week after cautious remarks by the U.S. Federal Reserve and weak factory data from the United States, Europe and Asia led to the inversion of the U.S. Treasury yield curve for the first time since 2007. Three-month Treasury bills currently yield more than 10-year notes. An inverted yield curve, where long-term rates fall below short-term ones, has historically pointed to a looming recession, as it reflects investor belief in greater short-term risk.

Oil rises 2 percent as tightening supplies take focus (Reuters) – Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories. Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela. Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities. “There is no electricity, everything is paralyzed,” oil workers’ union leader Jose Bodas told Reuters on Tuesday. The blackout earlier this month, due to years of underinvestment and lack of maintenance, also interrupted oil exports at Jose, the lifeblood of the OPEC nation’s economy, eroding total export volumes and causing delays in loading and discharging oil. “We’re seeing increasing attention paid to what is going on in Venezuela and to the effect of sanctions,” said Gene McGillian, director of market research at Tradition Energy. “Buyers are driving prices higher due to expectations that tightening of waivers on U.S. sanctions on Iran will create a tighter fundamental picture.” Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21. U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data. Crude futures were little changed in post-settlement trade after the American Petroleum Institute, a trade organization, said U.S. crude inventories rose 1.9 million barrels in the latest week. The market was waiting to see whether official figures due on Wednesday confirmed the API data or were in line with estimates that forecast a 1.2 million-barrel decline. Worries about demand have limited oil’s rally as manufacturing data from Asia, Europe and the United States pointed to an economic slowdown, although bullish bets by some investors are rising.

WTI Drops Back Below $60 After Surprise Crude Build – WTI crude extended recent gains, hovering around $60 – setting the stage for its best quarter since 2002 – ahead of the API inventory report that was expected to show a draw after three draws in the last four weeks.“We’re back in rally mode,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. “We’re seeing a steady supply decline that’s getting us back to $60 and everyone is trying to figure out the fallout from the refinery snags in Houston and the disruption in the Houston Ship Channel.” API

• Crude +1.93mm (-3mm exp)
• Cushing +688k (+300k exp)
• Gasoline -3.469mm (-3mm exp) – 5th draw in a row
• Distillates -4.278mm (-500k exp)

Amid disruptions to refiners along the Houston Ship Channel, expectations for a 4th draw in 5 weeks were dashed as API reported a 1.93mm build… However, the notable draws in the product side took the bearish slant of price reaction. “The second wave of the U.S. shale revolution is coming,” said Fatih Birol, the head of the International Energy Agency.“This will shake up international oil and gas trade flows, with profound implications for geopolitics.” WTI was hovering at $60 ahead of the API print and dropped as the data disappointed…

Oil prices mixed as US crude stockpiles rise, gasoline and fuel stocks fall – Oil prices were little changed on Wednesday morning after U.S. government data showed the nation’s crude oil stockpiles increased last week, but its fuel inventories fell. Crude inventories rose by 2.8 million barrels in the last week, the U.S. Energy Information Administration reported, compared with analysts’ expectations for a decrease of 1.2 million barrels. Meanwhile, gasoline stocks fell by 2.9 million barrels, a slightly greater draw than analysts expected in a Reuters poll that called for a 2.8 million-barrel drop. Distillate stockpiles, which include diesel and heating oil, fell by 2.1 million barrels, versus expectations for a 896,000-barrel drop, the EIA data showed. Brent added 16 cents to $68.13 around 10:30 a.m. ET (1430 GMT), reversing earlier losses, and was not far off its year-to-date high of $68.69 reached last week. U.S. crude futures were down 5 cents at $59.89, also rebounding from an early morning dip. The U.S. benchmark rose 1.9 percent in the previous session. Crude futures gyrated earlier in the session as disruptions to Venezuela’s crude exports provided support but were offset by an earlier report of rising U.S. fuel stockpiles last week. Gains were also kept in check amid growing fears over the impact of a global economic slowdown on demand. “We seem to have reached a state of equilibrium after the recent headline-driven choppy trading and we need to see some new impetus for price direction,” said Jeff Halley, senior market analyst at OANDA in Singapore. That is unlikely until a conclusion is reached on U.S.-China trade talks, he added, referring to negotiations due to restart on Thursday as the world’s two largest economies seek to end an eight-month old trade war. Worries about demand have limited oil’s rally as manufacturing data from Asia, Europe and the United States pointed to an economic slowdown. Venezuela’s main oil export port of Jose and its four crude upgraders were unable to resume operations following a massive power blackout on Monday, the second in a month.

WTI Tumbles Back Below $60 After Surprise Crude Build, Record Production – WTI chopped around after last night’s surprise crude build from API but remains back at $60 ahead of the DOE dataAs Bloomberg Intelligence’s Senior Energy Analyst Vince Piazza notes, WTI crude will likely have a difficult time sustaining $60 a barrel, with macroeconomic headwinds slowing its ascent. We’re more concerned about demand slowing, yet we appreciate compliance with output curbs by OPEC and its partners. Still, capacity hasn’t disappeared; it’s been deferred. While U.S. production growth has ebbed on calls for capital discipline, the backlog of uncompleted wells highlights the industry’s potential for just-in-time inventory should crude prices seem attractive. Stockpiles are 3% above 2018 levels and about 1% below the five-year norm and Cushing inventories, almost 58% above last year. DOE:

• Crude +2.88mm (-3mm exp)
• Cushing +541k (+300k exp)
• Gasoline -2.883mm (-3mm exp) – 6th weekly draw in a row
• Distillates -2.075mm (-500k exp)

After last week’s huge crude draw, and despite last night’s surprise API-reported build, expectations remained for a smaller draw but, like API, crude inventories rose by 2.88mm barrels… Bloomberg notes that refinery runs took a tumble at a time when they have typically started to creep higher after seasonal maintenance, thanks to a spate of fires and other upsets. The Gulf Coast was especially hard hit, with crude demand down 294,000 barrels a day. That may have contributed to the 4.6 million-barrel increase in crude stocks in the region. Production was flat at record highs as the lagged impact of declining rig counts is set to hit… Unsurprisingly, Venezuelan crude imports into the U.S. remained at zero for the second week in a row. The LatAm country continues to struggle with power losses that have crippled production, as well as American sanctions on PDVSA.

Oil Prices Down Amid Unexpected US Build – Both major oil benchmarks were lower Wednesday. May West Texas Intermediate (WTI) crude oil futures lost 53 cents Wednesday, settling at $59.41 per barrel. The benchmark traded within a range from $58.81 to $60.22.The latest U.S. commercial crude oil inventory data from the Energy Information Administration (EIA) contributed to the downward momentum for crude. The EIA data showed an unanticipated build in domestic crude stocks for the week ending March 22, 2019. Last week’s 2.8 million-barrel build brought the EIA’s oil inventory figure to 442.3 million barrels, which amounts to a nearly three-percent increase compared to this time last year.As an analyst told Rigzone Tuesday, the market had been expecting EIA to report a drawdown exceeding 1 million barrels. Bloomberg, in an article posted to Rigzone earlier Wednesday, reported that a survey of analysts that it conducted projected a 2.5-million-barrel decrease in inventories.Brent crude oil for May delivery posted a more modest decline than the WTI, shedding 14 cents during the midweek session to end the day at $67.83 per barrel.The contract price for reformulated gasoline (RBOB) also edged downward Wednesday. April RBOB futures dropped six cents to settle at just under $1.90 per gallon. Henry Hub natural gas futures also finished the day lower. The April price for the gas benchmark fell three cents, settling at $2.71.

Analysis: US crude supply adds barrels as refinery runs, exports slow – US crude supply edged higher last week as exports dipped and refinery headwinds weighed on utilization rates, US Energy Information Administration data showed Wednesday. Commercial crude inventories added 2.8 million barrels last week, bringing stocks to 442.28 million barrels for the week ended March 22, EIA data showed. Despite the build, nationwide inventories still fell relative to historic levels, and the deficit to the five-year average widened to 1.8% from 1.6% the week prior.The crude build was concentrated in the US Gulf Coast, where stocks grew 4.58 million barrels on the week to 21.81 million barrels last week. Draws of 1.55 million and 1 million barrels in the Midwest and West Coast, respectively, blunted the nationwide crude build. Notably, stocks at Cushing, Oklahoma, the delivery point of the NYMEX crude contract, added 541,000 barrels, snapping back-to-back weeks of declines.Crude exports dropped 506,000 b/d to 2.89 million b/d last week, but the impact on crude stocks was mitigated by a 392,000 b/d drop in imports. The import decline was especially notable in the Gulf Coast where inbound crude volumes fell 219,000 b/d to 1.48 million b/d, testing multi-decade lows of 1.43 million b/d seen in early February. Nationwide refinery utilization dropped 2.3 percentage points to 86.6% of capacity. The decline put rates at the lowest since mid-February and more than 3% below the five-year average. About 3.1 million b/d of crude distillation capacity was offline for planned turnaround work last week, compared with 2.7 million b/d during the week prior, S&P Global Platts Analytics data showed. Last week was expected to be the high-water mark of seasonal turnaround work, and nationwide offline distillation capacity was expected to decline going forward.

Oil extends losses into second session as US stocks rise – Oil prices fell on Thursday, but bounced from session lows struck after President Donald Trump asked OPEC to hike production and tamp down the cost of crude.International Brent crude oil futures were down 59 cents, or nearly 1 percent, at $67.24 a barrel around 10 a.m. ET (1400 GMT). U.S. West Texas Intermediate crude futures were down 50 cents to $58.91 per barrel.Crude futures briefly extended losses, falling almost 2 percent, after Trump issued his second tweet this year geared toward changing OPEC’s policy of cutting production.”Very important that OPEC increase the flow of Oil. World Markets are fragile, price of Oil getting too high. Thank you!” Trump tweeted.U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said. Demand concerns on the back of economic jitters linked to the U.S.-Chinese trade war have also capped prices.In a fresh development, China has made unprecedented proposals on a range of issues, including forced technology transfer, as the two sides work to end their protracted dispute.

Trump says it’s ‘very important that OPEC increase the flow of oil’ because prices are too high — President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year as crude prices continue to rise. Trump’s latest tweet comes as OPEC and a group of allies led by Russia are cutting production following a collapse in oil prices in the final months of 2018. The output curbs by the so-called OPEC+ group have played a major part in the rebound in the oil market this year. Oil prices briefly fell nearly 2 percent after Trump’s tweet, but soon rebounded, settling just pennies below Wednesday’s closing price. The last time Trump tweeted at OPEC, oil prices tanked about $2 a barrel, or more than 3 percent.”I would say that it is apparent that the oil market has concluded that the OPEC+ group has put President Trump’s Twitter account on mute,” said John Kilduff, founding partner at energy hedge fund Again Capital.Analysts say pressure from the Trump administration last year – punctuated by a series of Twitter attacks on OPEC – contributed to the producer group’s decision to lift production limits in June. But in recent months, OPEC members have mostly shrugged off Trump’s social media demands.The OPEC+ alliance agreed to a fresh round of production cuts in December, despite Trump calling on the group to keep pumping at high levels. Since January, the group has aimed to keep 1.2 million barrels a day off the market in order to drain oversupply.After Trump asked OPEC last month to “please relax and take it easy,” Saudi Energy Minister Khalid al-Falihtold CNBC “We are taking it easy.” He added that he is leaning toward extending the six-month production cuts into the second half of 2019.Last week, OPEC+ canceled an April meeting meant to review the output pact, leaving the production curbs in place until at least June. OPEC ministers have expressed frustration with the Trump administration for allowing several of Iran’s biggest oil buyers to continue purchasing limited amounts of the Islamic Republic’s crude, despite U.S. sanctions on the country.

Crude Oil Prices Plunge After Trump Tweet Bashes OPEC Supply Cuts — President Trump tweeted this morning that it’s “very important that OPEC increase the flow of Oil” which sent crude prices tumbling lower. Trump’s remarks were not the first time he’s voiced his opinion that oil prices are too high. OPEC agreed to cut its supply of oil after prices collapsed through the fourth quarter of 2018 in response to shrinking demand for the commodity amid slowing global growth. Crude oil prices have since surged over 40 percent to $60/bbl after bottoming around $42/bbl in December. Although, risks of a slowing global economy remains a burden which is reflected by the latest downward revisions to GDP growth forecasts and plummeting sovereign yields.On that point, President Trump also stated that ‘world markets are fragile’ in his tweet. The President of the United States has a history of chiming in on market performance, especially when it comes to stocks and the Dow Jones Industrial Average. As such, it appears that POTUS is looking to jawbone growth-favorable turns attemping to boost the equity index higher with positive US-China trade war news – or alternatively talk down high oil prices which can increase costs across the economy as is the case today.That being said, OPEC likely will disregard Trump’s comments with the oil cartel independently deciding their production plans. OPEC was supposed to convene to discuss oil output in April, but have since canceled the meeting as the group and its allies remain in agreement to hold production cuts at 1.2 million barrels per day.However, Russia’s Gazprom Neft, one of the important non-OPEC oil producing stalwarts, stated it does not expect to continue the previously agreed upon supply cuts through the end of 2019. This news could be adding further downward pressure on oil prices today thus exacerbating the move lower in Crude following Trump’s tweet. But, prices look to remain steady above $58/bbl as OPEC output decisions vastly outweigh non-OPEC members in terms of relative impact on the global supply of oil.

Oil near flat, shrugs off Trump calls for OPEC to boost output (Reuters) – Oil futures were near flat on Thursday after recovering from the day’s worst losses that came when U.S. President Donald Trump called for OPEC to boost crude output in an effort to lower prices that were headed for their best quarterly gains in a decade. Futures hit a session low immediately following Trump’s comments, but subsequently rallied above pre-tweet levels. U.S. West Texas Intermediate (WTI) crude futures dropped 11 cents to settle at $59.30 a barrel. Earlier the contract fell to $58.20 in the wake of Trump’s tweet, where he said it was “very important that OPEC (the Organization of the Petroleum Exporting Countries) increase the flow of Oil” due to fragile world markets. Brent crude futures lost 1 cent to settle at $67.82 a barrel, after earlier sinking to $66.54 a barrel. Oil prices have risen more than 25 percent this year, with WTI heading for the biggest first quarter gains since 2002 and for both benchmarks the best quarterly gain since 2009, mainly due to moves by OPEC and allies such as Russia to cut output. The group, known as OPEC+, agreed to cut 1.2 million barrels per day of output at the beginning of this year. “These Trump tweets where he ambushes the OPEC folks are not having the same kind of price significance that they did when it was a brand-new phenomenon,” “The market is finding this a bit old and it’s not a novelty anymore.” Sowing uncertainty for the OPEC-led pact, Saudi Arabia is having a hard time convincing Russia to stay much longer in the deal, and Moscow may agree only to a three-month extension, three sources familiar with the matter said. U.S. sanctions on Venezuela and Iran have restricted those countries’ oil exports and buoyed crude prices this year. The United States has instructed oil trading houses and refiners around the world to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published U.S. sanctions, three sources familiar with the matter said. On top of U.S. sanctions, power blackouts this month have crippled Venezuela’s oil industry. The country’s main oil export port of Jose and four crude upgraders, needed to convert Venezuela’s heavy oil into exportable grades, were halted this week, industry sources said.

Oil prices set for biggest first quarter gain since 2009 on US sanctions, OPEC – Oil prices rose on Friday, on track for their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy.The rebound comes after a swift and punishing collapse in oil prices during the final quarter of 2018. U.S. West Texas Intermediate crude futures settled 84 cents higher at $60.14 per barrel, up 1.4 percent on the day. WTI earlier touched $60.73, its highest level since Nov. 12. WTI futures rose for a fourth straight week and surged 32 percent in the first three months of the year. The May Brent crude futures contract, which expires Friday, gained 57 cents to $68.39 a barrel, gaining 27 percent in the first quarter. The more-active June contract was up 57 cents to $67.67 a barrel around 2:30 p.m. EDT (1830 GMT). For both futures contracts, the first quarter 2019 is the best performing quarter since the second quarter of 2009 when both gained about 40 percent. U.S. sanctions on Iran and Venezuela have boosted oil prices this year, as the sanctions have restricted crude exports out of the countries. The United States is keen to see that Malaysia, Singapore and others are fully aware of illicit Iranian oil shipments and the tactics Iran uses to evade sanctions, a top U.S. sanctions official said on Friday.

Oil Rig Count Falls As WTI Hits $60 – The the number of active oil and gas rigs fell for the second week in a row in the United States this week according to Baker Hughes, while actual US production was stagnate for the week.The total number of active oil and gas drilling rigs fell by 10 rigs­ according to the report – like last week – with the number of active oil rigs falling by 8 to reach 816 and the number of gas rigs falling by 2 to 190.The oil and gas rig count is now just 13 up from this time last year, with oil being seeing a 19-rig increase year on year, gas rigs seeing a 4-rig decrease, and miscellaneous rigs seeing a 2-rig decrease for the year. Oil prices were trading up earlier on Friday leading up to the data release despite reports on Wednesday from the Energy Information Administration that showed a build in crude oil inventories.WTI was trading up $0.75(+1.26%) at $60.05 – above the psychologically important $60 per barrel. The Brent benchmark was trading up $0.44 (+0.66%) at $67.54 at 10:47am EST. Prices for both represent a gain over last week’s prices at this time. US crude oil production for week ending March 22 was 12.1 million bpd for the second week in a row.Canada, too, saw a marked decline in the number of active rigs this week. Canada’s total oil and gas rig count fell by 17 and is now 88, which is 46 fewer rigs than this time last year as Canada’s oil industry continues to face steep uphill battles over its constrained pipeline capacity that is necessary to get its heavy crude to market along with production caps instituted to keep Western Canadian Select prices from falling further. By 1:08pm EDT, WTI was trading up 1.28% (+$0.76) at $60.06 on the day. Brent crude was trading up 0.70% (+$0.47) at $67.57 per barrel.

Oil posts biggest quarterly rise since 2009 on OPEC cuts, sanctions (Reuters) – Oil prices rose about 1 percent on Friday, posting their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy. The May Brent crude oil futures contract, which expired Friday, gained 57 cents, or 0.84 percent, to settle at $68.39 a barrel, marking a first-quarter gain of 27 percent. The more-active June contract settled up 48 cents at $67.58 a barrel. U.S. West Texas Intermediate (WTI) futures rose 84 cents, or 1.42 percent, to $60.14 a barrel, and posted a rise of 32 percent in the January-March period. For the two benchmarks, the quarterly rise was the biggest since the second quarter of 2009, when both gained about 40 percent. U.S. sanctions on Iran and Venezuela have boosted prices this year. Washington is keen to see that Malaysia, Singapore and others are fully aware of illicit Iranian oil shipments and the tactics Iran uses to evade sanctions, a U.S. sanctions official said on Friday. Sigal Mandelker, under-secretary of the Treasury for Terrorism and Financial Intelligence, told reporters in Singapore that the United States had placed additional “intense pressure” on Iran this week. Meanwhile, the United States has instructed oil trading houses and refiners to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published U.S. sanctions, three sources familiar with the matter said. “With U.S. sanctions taking Iranian and Venezuelan oil off the market, at the same time OPEC and non-OPEC producers want to see higher prices and are currently reluctant to make up for any lost volume,” said Andrew Lipow, president of Lipow Oil Associates in Houston. Also lifting prices this year has been a deal between the Organization of the Petroleum Exporting Countries and allies such as Russia to cut output by around 1.2 million barrels per day, which officially started in January

U.S. approved secret nuclear power work for Saudi Arabia (Reuters) – U.S. Energy Secretary Rick Perry has approved six secret authorizations by companies to sell nuclear power technology and assistance to Saudi Arabia, according to a copy of a document seen by Reuters on Wednesday. The Trump administration has quietly pursued a wider deal on sharing U.S. nuclear power technology with Saudi Arabia, which aims to build at least two nuclear power plants. Several countries including the United States, South Korea and Russia are in competition for that deal, and the winners are expected to be announced later this year by Saudi Arabia. Perry’s approvals, known as Part 810 authorizations, allow companies to do preliminary work on nuclear power ahead of any deal but not ship equipment that would go into a plant, a source with knowledge of the agreements said on condition of anonymity. The approvals were first reported by the Daily Beast. The Department of Energy’s National Nuclear Security Administration (NNSA) said in the document that the companies had requested that the Trump administration keep the approvals secret. “In this case, each of the companies which received a specific authorization for (Saudi Arabia) have provided us written request that their authorization be withheld from public release,” the NNSA said in the document. In the past, the Energy Department made previous Part 810 authorizations available for the public to read at its headquarters. A Department of Energy official said the requests contained proprietary information and that the authorizations went through multi-agency approval process. Many U.S. lawmakers are concerned that sharing nuclear technology with Saudi Arabia could eventually lead to a nuclear arms race in the Middle East. Saudi Crown Prince Mohammed bin Salman told CBS last year that the kingdom would develop nuclear weapons if its rival Iran did. In addition, the kingdom has occasionally pushed back against agreeing to U.S. standards that would block two paths to potentially making fissile material for nuclear weapons clandestinely: enriching uranium and reprocessing spent fuel. Concern in Congress about sharing nuclear technology and knowledge with Saudi Arabia rose after U.S.-based journalist Jamal Khashoggi was killed last October in the Saudi consulate in Istanbul. The Part 810 authorizations were made after November 2017, but it was not clear from the document whether any of them were made after Khashoggi’s killing.

Saudi Aramco reaches $69.1 billion deal to buy majority stake in petrochemicals firm SABIC – Saudi Arabia’s state-controlled energy giant Aramco has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund. The deal will see Aramco purchase the 70 percent stake in Sabic held by Saudi Arabia’s Public Investment Fund in a share purchase agreement. It will expand Aramco’s footprint in refining and petrochemicals and inject cash into PIF, which underpins ambitious plans to remake Saudi Arabia’s economy. Aramco and PIF announced the news Wednesday shortly after CNBC and other news outlets confirmed the transaction. The deal remains subject to closing conditions and regulatory approvals. Saudi Arabia is attempting to diversify its economy and reduce its reliance on oil revenues under a plan called Vision 2030 directed by Crown Prince Mohammed bin Salman. Plans to sell shares in Aramco are meant to underwrite that endeavor, but an initial public offering on an international exchange has been delayed by several years. The Aramco-Sabic deal further delayed the IPO plans – the company now expects to list shares in 2021. The kingdom sought to raise $100 billion by publicly listing a small percentage of Aramco. Wednesday’s agreement comes as Aramco, the world’s largest oil company by production, is expanding its high-value downstream operations, which includes refining crude oil into fuels and making petrochemicals. Aramco currently has the capacity to produce 17 million tons of petrochemicals per year, while Sabic’s capacity is 62 million tons. By 2030, Aramco aims to increase its refining capacity from 4.9 million barrels per day to 8 million to 10 million bpd. “This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals,” Aramco President and CEO Amin Nasser said in a statement. “SABIC is a world-class company with an outstanding workforce and chemicals capabilities.” Sabic has operations in 50 countries and employees about 35,000 people around the world.

Saudi Aramco Buying 70% Of SABIC In $70 Billion Cash Injection For Mohammed bin Salman — Saudi oil giant Saudi Aramco is acquiring a 70% stake in the country’s petrochemcial firm Saudi Arabian Basic Industries Corporation – or SABIC – from the country’s sovereign wealth fund, Aramco reported on its Twitter account shortly after Bloomberg leaked the news on Wednesday morning. The remaining 30% publicly traded shares in SABIC will not be part of the transaction The agreed purchase price for the shares is 123.40 riyals per share, totaling 259.125b riyals, which is just shy of $70 billion. The transaction will give Crown Prince Mohammed bin Salman’s agenda a giant jolt of cash according to the WSJ, adding that the agreement culminates over a year of negotiations between Saudi Arabia’s two biggest companies, which Prince Mohammed has urged to tie up to free up money for his economic agenda. The deal would give billions of dollars to the Public Investment Fund, which has become one of the world’s biggest tech investors in recent years in collaboration with Japan’s SoftBank.The Sabic deal was initially proposed last year after the oil giant’s plans for an IPO were indefinitely postponed after potential investors threw up on the $2 trillion valuation proposed by MbS. By channeling money from Aramco to the PIF, two arms of the Saudi state, the deal offered another route to the cash originally sought from the offering.Saudi Aramco may stagger payments for the Sabic acquisition, offering flexibility in how to finance the largest deal in the kingdom’s history, Al-Falih said in January. The company has very little debt and plans to issue bonds to fund at least part of the purchase. Saudi Aramco picked banks including JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc., HSBC Holdings Plc, National Commercial Bank to manage the bond sale, people familiar with the matter have said. As a reminder, this is merely a money “recirculating” transaction meant to provide funding to Saudi Arabia by way of international creditors, who will be expected to buy tens of billions in bonds from Aramco as we explained last year.This is how we simplified the money flow last July: the cash goes from international yield chasers, to a consortium of banks, to Aramco, to Sabic, to Crown Prince MbS.

Saudi Aramco reportedly plans to issue $10 billion bond, opening books for the first time – Saudi Arabia’s state-controlled energy giant Aramco plans to tap bond markets for the first time as early as next week, sources within the company told CNBC on Thursday. While the exact dollar figure has not been confirmed, initial media reports put the Aramco bond issuance amount at $10 billion, which sources have told CNBC is “reasonable as a minimum.” The move is designed to help raise funds for a down payment on the oil giant’s $69.1 billion purchase of a majority stake in Saudi petrochemicals firm Sabic. It would also mark the first-ever debt issuance from the world’s largest oil firm, enabling greater visibility into its financial performance. While the corporate issuance has been in the works for some time, the news comes sooner than expected – Saudi Energy Minister Khalid al Falih said in January that Aramco would likely issue bonds in the second quarter of 2019. Al-Falih, who also serves as Aramco’s chairman, has said the company will release data on its financial health and oil and gas reserves as part of a bond prospectus. The oil giant delayed a highly-anticipated initial public offering originally scheduled for 2018 reportedly over Saudi concerns about public scrutiny over its finances and because of the complexity of its corporate structure. Aramco declined to comment when contacted by CNBC Thursday morning. Saudi Arabia is attempting to diversify its economy and reduce its reliance on oil revenues under a plan called Vision 2030 directed by Crown Prince Mohammed bin Salman. “The Saudi government is increasingly becoming more open and transparent about its finances and budget updates,”

Hedge Fund Returns $300 Million To Saudis Over Khashoggi Killing – In a rare move, a hedge fund has returned about $300 million in investment funds to Saudi Arabia over the Oct. 2nd murder of journalist Jamal Khashoggi. Bloomberg cited anonymous sources with knowledge of the matter after British hedge fund Pharo Management told investors it had returned the money to the Saudi Arabian Monetary Authority (SAMA) due to the heinous killing which last year shocked the world, and further has made things increasingly difficult for Riyadh in attracting foreign investment for its Vision 2030 project. SAMA, the kingdom’s central bank, invested the funds with Pharo in December, but the decision to publicly return the money has turned heads as a rare rebuke to one of the world’s most powerful and influential investors. According to Bloomberg‘s sources: Guillaume Fonkenell, 54, who founded Pharo, told some investors in January that the decision was made to uphold its principles due to concerns about Khashoggi’s death at the hands of government agents last year, the person said.

US Media Remains Silent as Historically Huge Protests Take Place Across Yemen – Massive demonstrations took place across Yemen’s major cities on Tuesday to commemorate the fourth anniversary of the Saudi-led war on the country. The war ostensibly began on March 26, 2015, when Saudi Arabia, backed by the U.S. and other regional allies, launched a large-scale attack on Yemen under the pretext of reinstating ousted former president Abdrabbuh Mansur Hadi. The war’s real purpose was to defeat the Houthi Ansar Allah movement, which gained popular support following the Arab Spring and has grown even more powerful since the Saudi war began. In Yemen’s capital city of Sana`a, where the largest demonstrations took place, hundreds of thousands of residents from the suburbs of Sana`a and its neighboring provinces gathered in the southern al Sabaeen district carrying Yemeni flags and holding banners emblazoned with messages of steadfastness, promises to challenge to the Saudi-led Coalition, and pledges of resistance against foreign forces in Yemen. In the Sada’a province in northern Yemen, hundreds of thousands also took to the streets despite an ever-present hovering of Saudi warplane above. The Saudi air presence began two days ago as residents started their preparations for the upcoming rallies. The demonstrations were organized primarily by the Houthis, the main force battling the Saudi-led Coalition in Yemen. Large rallies also took place in the provinces of Hodeida, Ibb, Ta`ze, al-Jawf, Reimah and Dhamar. The number of people who took part in the demonstrations dwarfed similar rallies that took place in previous years, indicating a growing opposition to the Saudi-led Coalition war in Yemen. Anti-Saudi demonstrations were also held for the first time in the northwest province of Hajjah and the central province of al-Beidha. Images of demonstrations show a sea of Yemeni flags, posters bearing pictures of Houthi leader Abdulmalik al-Houthi and the slogan, “Four years of aggression – We are steadfast for the fifth year – We will win.” A protest leader in Sana`a’s Sabaeen Square rallied the crowd, chanting, “I am ready to make more sacrifices against the Saudi-led Coalition.”

With an Eye on Iran, US to Open Yet Another Military Base in the Middle East – – The United States clinched a strategic port deal with Oman on Sunday which US officials say will allow the US military better access the Gulf region and reduce the need to send ships through the Strait of Hormuz, a maritime choke point off Iran.The US embassy in Oman said in a statement that the agreement governed US access to facilities and ports in Duqm as well as in Salalah and “reaffirms the commitment of both countries to promoting mutual security goals.” The accord is viewed through an economic prism by Oman, which wants to develop Duqm while preserving its Switzerland-like neutral role in Middle Eastern politics and diplomacy. But it comes as the United States grows increasingly concerned about Iran’s expanding missile programs, which have improved in recent years despite sanctions and diplomatic pressure by the United States. A US official, speaking on condition of anonymity to Reuters, said the deal was significant by improving access to ports that connect to a network of roads to the broader region, giving the US military great resiliency in a crisis.

An Iran-Syria ‘Belt & Road’- A Far-Reaching Geopolitical Strategy Unfolds – As the US tries to consolidate its strategy for weakening and confronting Iran, the contours of an important geopolitical strategy, launched by Syria and Iran, are surfacing. On the one hand, it consists of a multi-layered sewing together of a wide ‘deterrence’ that ultimately could result in Israel being pulled into a regional war – were certain military trip wires (such as air attacks on Syria’s strategic defences) – to be triggered. Or, if the US economic war on Iran crosses certain boundaries (such as blockading Iranian tankers from sailing, or putting a full stranglehold on the Iranian economy). To be clear, the aim of this geo-political strategy is not to provoke a war with the US or Israel – it is to deter one. It sends a message to Washington that any carelessly thought-through aggression (of whatever hybrid nature) against the ‘northern states’ (from Lebanon to Iraq) might end by putting their ally – Israel – in full jeopardy. And that Washington should reflect carefully on its threats. The deterrence consists at the top-level of Syrian S300 air defences over which Russia and Syria have joint-key control. The aim here, seems to be to maintain strategic ambiguity over the exact rules of S300 engagement. Russia wants to stand ‘above’ any conflict that involves Israel or the US – as best it can – and thus be positioned to act as a potential mediator and peace-maker, should armed conflict occur. In a sense, the S300s represent deterrence of ‘last resort’ – the final option, were graduated escalation somehow to be surpassed, via some major military event. At the next level down, deterrence (already well signalled in advance) is focussed on halting Israeli air attacks on either Iranian or Syrian infrastructure (in either state). Initially, air attacks would be countered by the effective (80%) Syrian, Panzir and BUK air defence systems.More ‘substantive’ attacks will be met with a proportionate response (most probably by Syrian missiles fired into the occupied Golan). Were this to prove insufficient, and were escalation to occur, missiles are likely to be fired into the depth of Israel. Were escalation to mount yet further, the risk would be then of Iranian and Hizbullah missiles entering into the frame of conflict. Here, we would be on the cusp of region-wide war.

Netanyahu: Golan Endorsement ‘Proves’ Israel Can Keep Occupied Territories – Still trying to make political gains on President Trump’s endorsement of the Golan Heights annexation, Israeli Prime Minister Benjamin Netanyahu is hinting that Trump’s extra-legal decree could have broad ramifications across the occupied territories. Netanyahu claimed Trump’s move “proves” that Israel is able to hold occupied territories permanently, telling reporters that anything that is occupied “in a defensive war, then it’s ours.” That the 1967 War actually saw Israel attack several countries and seize territory from them is beside the point, as Netanyahu and a generation of politicians have engaged in enough historical revisionism to sell at least a modicum of the far right on the idea that the attack was a “preemptive war.” The war not only saw the capture of Golan Heights from Syria, but also of the West Bank from Jordan. Netanyahu’s new “it’s ours” mantra is clearly meant to sent the message to Israeli voters that the annexation of the West Bank, too, could be in the offing. Annexing the West Bank would have been unthinkable before Trump’s Golan move, as it would be seen as a formal and irrevocable disavowal of peace with the Palestinians. Netanyahu may, however, believe that Trump will go for it, and his far-right constituents also certainly will go for it. Whether he intends to actually attempt to do so before the election or not, Netanyahu has made the West Bank annexation a political issue.

Israeli Jets Strike Syria’s Aleppo, Causing Electricity Blackout – The Syrian military said Israel on Wednesday launched air raids on an industrial zone in the northern city of Aleppo, causing damage only to materials, while opposition sources said the strikes hit Iranian ammunition stores and a military airport used by Tehran’s forces, Reuters reported. “The Israeli aggression targeted some positions in Sheikh Najjar industrial zone and a number of enemy missiles were brought down,” an army statement said, as cited by Reuters. Israel had not commented on the claims.A number of residents of Aleppo city told AFP that the attack caused a power cut for the entire city. The blasts caused an electrical blackout in Aleppo, the country’s second-largest city and a major industrial hub that bore the brunt of years of fighting and heavy Russian and Syrian aerial bombardment of its former rebel-held areas. Military experts told Reuters that Aleppo is one of the main areas where Iran’s elite Revolutionary Guards have a strong military presence supporting local militias that have for years been fighting alongside the Syrian army to defeat rebel groups. Two opposition sources familiar with Tehran’s military presence in the area told Reuters large ammunitions depot and a logistics hub that belonged to Iranian-backed militias inside the industrial zone received direct hits.Other strikes hit the vicinity of Nairab military airport on the outskirts of Aleppo in the second such strike on the installation used by Iranian troops in less than a year, they added. Israel, which considers Iran its biggest threat, has repeatedly attacked Iranian targets in Syria and those of allied militia, including Lebanon’s Hezbollah.

US Airstrikes Kill Over 50 People in Syria – Officials very much want to brand the ISIS battle in Syria as “over,” so long as it is understood that it won’t involve withdrawing forces or ending anything in practice. The village of Baghouz, however, continues to be the center of conflict.According to the Syrian Observatory for Human Rights, US forces attacked some caves on the outskirts of Baghouz on Thursday, killing over 50 people. They are assuming everyone killed was an ISIS remnant, though of course none were positively identified.The conclusion of ISIS is based on the fact that ISIS had fighters hidden in caves and connecting underground bunkers. Yet there was also what Kurdish forces described as a nearly endless number of civilians hiding in the same area, with tens of thousands fleeing the tiny village long after everyone had assumed it was more or less entirely depopulated. That the strikes are still centering on what is effectively Baghouz also undercuts claims that the Kurds actually “won” in that village, as clearly the US believes someone is still there worth dropping bombs on well after the war was called over.

All ISIS Has Left Is Money. Lots of It. – BEIRUT – If you’re looking to transfer money here, there’s a chance you will be directed to Abu Shawkat. He works out of a small office in a working-class suburb of the Lebanese capital, but won’t give you its exact location. Instead, he’ll direct you to a nearby alleyway, and whether he shows up depends on whether he likes the look of you. Abu Shawkat – not his real name – is part of the hawala system, which is often used to transfer cash between places where the banking system has broken down or is too expensive for some to access. If he agrees to do business, you’ll set a password and he will take your cash, then provide you with the contact information of a hawala broker in the city where your money is headed. Anyone who offers that specific password to that particular broker will get the funds. Thus, cash can travel across borders without any inquiry into who is sending or receiving it, or its purpose.In the case of neighboring Syria, U.S.- and British-funded projects have sent millions of dollars into the country using the hawala system, humanitarian organizations use it to pay staff, and Syrians working abroad depend on it to get money to impoverished relatives. But Abu Shawkat runs the hawala equivalent of a mom-and-pop store: One of the giants of the industry, which analysts believe owns a network of money-services businesses and has moved millions of dollars a week, is the Islamic State. Even as U.S.-backed forces wrest back the Islamic State’s last strip of territory in Syria, the United States and its allies are nowhere close to bringing down the terrorist organization’s economic empire. The group remains a financial powerhouse: It still has access to hundreds of millions of dollars, according to experts’ estimates, and can rely on a battle-tested playbook to keep money flowing into its coffers. That continued wealth has real risks, threatening to help it retain the allegiance of a committed core of loyalists and wreak havoc through terrorist attacks for years to come. The Islamic State’s financial strength offers a window into the broader challenge facing the United States and other governments. In its effort to squeeze the group financially, Washington has been forced to rely on a fundamentally different strategy than it employed in its military campaign: The main weapons at its disposal are not air strikes and artillery barrages, but subtler tools, such as sanctioning Islamic State – linked businesses, denying them access to the international financial system, and quietly cooperating with governments across the globe. Successes will be less visible, the campaign against the group will likely take years, and there is no guarantee of victory.

Israel Avenges Burning Balloons With Airstrikes on Gaza Refugee Camp – Israeli fighter jets carried out two airstrikes in the Gaza Strip early Sunday following the launch of incendiary balloons from the Palestinian territory, according to the military. In a statement, the army said the attacks targeted two Hamas posts in the seaside enclave. According to an Anadolu Agency reporter, the Israeli warplanes struck positions in Al-Awda refugee camp, east of Rafah in the southern Gaza Strip. No injuries were reported. These airstrikes followed two other airstrikes earlier today, on eastern parts of the Bureyc refugee camp, which injured three Palestinians. Palestinian activists have been flying burning kites and balloons into Israel as part of ongoing anti-occupation protests along the Gaza-Israel buffer zone. According to Israeli officials, the improvised aerial “weapons” have caused a number of fires inside illegal Israeli settlements, causing significant material damage but not resulting in any deaths or injuries.Since March of last year, more than 250 Palestinians have been killed and thousands more injured by Israeli army fire during protests demanding the right of Palestinian refugees to return to their homes in historical Palestine from which they were driven in 1948 to make way for the new state of Israel. Israeli forces have recently been targeting Gaza with airstrikes, alleging that burning kites and balloons were sent from Gaza to the Israeli side.

Israel rocket attack: Seven wounded north of Tel Aviv – An early morning rocket, allegedly fired from the Gaza Strip, struck a home in central Israel on Monday, wounding seven people and prompting Prime Minister Benjamin Netanyahu to cut short a trip to Washington.The developments set the stage for a potential major conflagration, shortly before Israel’s upcoming elections.The rocket attack destroyed a residential home in the community of Mishmeret, north of the city of Kfar Saba, wounding six members of the family. Israel’s ambulance service said it treated seven people overall, including two women who were moderately wounded. The others, including two children and an infant, had minor wounds.The sounds of air raid sirens jolted residents of the Sharon area, northeast of Tel Aviv, from their sleep shortly after 5am (03:00 GMT). A strong sound of an explosion followed. An Israeli military spokesperson said the rocket attack was carried out by Hamas, adding that the army was set to deploy two brigades and infantry units to the southern Gaza area. It also called up reserves after the rocket attack.There was no immediate claim of responsibility for Monday’s incident. Al Jazeera reached out to Hamas officials in the Gaza Strip but received no response.Later on Monday, a Hamas official denied to AFP news agency that the movement was behind the attack. “No one from the resistance movements, including Hamas, has an interest in firing rockets from the Gaza Strip towards the enemy,” the official said

Israel military mobilizes troops after Gaza rocket wounds 7 – The Israeli military said it was reinforcing troops along the border with the Gaza Strip and calling up reserves after a rocket attack on an Israeli home wounded seven people. Prime Minister Benjamin Netanyahu said he would cut short his trip to the United States after news of the rocket strike on Mishmeret, an agricultural town north of Tel Aviv. In Mishmeret one house was completely destroyed, and at least one other house and cars were left badly damaged. Israel’s Magen David Adom ambulance service said it was treating seven people, including an infant, a 3-year-old boy, a 12-year-old girl and a 60-year-old woman who was suffering from blast injuries, burns and shrapnel wounds. Netanyahu, who arrived in Washington on Sunday for a four-day visit ahead of an April 9 Israeli election, said he would fly home immediately after meeting President Donald Trump at the White House, as planned, later on Monday. “In light of the security events I decided to cut short my visit to the U.S.,” Netanyahu said, calling the rocket fire a “heinous attack.” The early morning attack came at a time of high tension ahead of the anniversary of Gaza border protests over the weekend, and Trump’s expression of support for Israeli sovereignty over the occupied Golan Heights.

Israel Launches Strikes on Gaza, Putting ‘Ceasefire’ in Jeopardy – Israel has struck several targets in the besieged Gaza Strip, potentially shattering a ceasefire that Hamas said was negotiated between Egypt and Israel. Israel’s military attacked a Hamas compound and a weapons site in the Khan Yunis district, Haaretz reported, citing an Israeli army spokesperson. The strikes by Israel on Tuesday night came one day after a rocket from Gaza hit a house north of Tel Aviv. Contrary to Hamas’s claim, Israeli media outlets Haaretz and Ynet reported on Tuesday that a ceasefire had not been reached to end this week’s flare-up in violence in the Gaza Strip. The Israeli military bombed several targets in Gaza throughout the day on Monday, including the office of Hamas leader Ismail Haniyeh and a Palestinian family’s home in central Gaza City. The violence began after a rocket fired from the besieged Palestinian territory hit a town in central Israel, wounding seven people. Israel was quick to accuse Hamas of being behind the attack, but the Palestinian group denied responsibility. An unidentified official in Gaza told AFP on Monday that the rocket may have been triggered unintentionally due to “bad weather”.

Israeli Airstrikes Rock Gaza, Target Hamas Command, After Netanyahu Cut Short US Trip – As predicted, a major Israeli assault on the Gaza Strip is underway after an early Monday morning long-range rocket launch from the strip scored a direct hit on a home in central Israel. The Israeli Defense Forces (IDF) struck targets across the strip throughout the evening Monday, and targeted the offices of Hamas’ supreme leader, though there were no early reports of fatalities, but Gaza’s Health Ministry cited at least seven wounded in the campaign. Israel says it’s responding to an early Monday morning rocket launch from Gaza which destroyed a residential home in Mishmeret, an agricultural town north of Tel Aviv, which reportedly left at least seven Israelis injured, including children, after the family was able to escape the flaming building. Prime Minister Benjamin Netanyahu announced in the immediate aftermath of the prior Hamas attack that he would be returning to Tel Aviv from a visit to the United States, cutting short his trip to Washington, saying he would “respond forcefully” to the rocket attack, on the same morning President Trump signed an order officially recognizing Israeli sovereignty over the occupied Golan Heights, seized from Syria in 1967, in a move which Netanyahu also welcomed as “historic”. “The [Israeli Defense Forces] has begun striking Hamas terror targets throughout the Gaza Strip,” the IDF confirmed in a statement.Amidst the Israeli onslaught on Gaza, Israel opened public bomb shelters throughout most major cities, and its ‘Iron Dome’ missile defense systems appeared busy as Hamas responded to the Israeli assault with its own rockets. According to the AP, by Monday evening Hamas had fired at least ten rockets since the IDF aerial attack began. “Israel will not tolerate this. I will not tolerate this,” Prime Minister Benjamin Netanyahu said while meeting with Trump at the White House moments before he departed for Tel Aviv. “Israel is responding forcefully to this wanton aggression,” he said. “We will do whatever we must do to defend our people and defend our state.”

Gaza Strikes Continued Overnight Despite Reports Of Cease-Fire – Local reports say that Israel and Hamas militants continued to exchange blows throughout the night and early Wednesday morning despite reports of a ceasefire brokered by Egypt, and after Tuesday witnessed moments of relative calm. The Israeli military said it continued strikes on Hamas targets throughout the early morning hours of Wednesday after a rocket launch from the strip targeted southern Israel, triggering rocket sirens and seek shelter warnings in the Israeli city of Ashkelon. Tuesday was the second day of cross-border violence after the latest round of fighting began when a long-range rocket launched from Gaza slammed into a residential house in central Israel, reportedly wounding seven, including multiple children.Israeli Prime Minister Benjamin Netanyahu had cut short his US trip where he discussed White House recognition of Israeli sovereignty over the Golan Heights with President Trump – a move which most international countries that have spoken on the matter have condemned, including close regional American ally Saudi Arabia. The politically embattled prime minister is now just under two weeks ahead the most high pressure reelection campaign of his career on April 9, and as he faces down indictments related to multiple corruption charges and a rising opposition.

Ten children killed by U.S. air strike in Afghanistan- U.N. – (Reuters) – Ten children, part of the same extended family, were killed by a U.S. air strike in Afghanistan, along with three adult civilians, the United Nations said on Monday. The air strike early on Saturday was part of a battle between the Taliban and combined Afghan and U.S. forces that lasted about 30 hours in Kunduz, a northern province where the Taliban insurgency is strong. The children and their family had been displaced by fighting elsewhere in the country, the UN Assistance Mission in Afghanistan (UNAMA) said, releasing its preliminary findings about the incident. UNAMA said in a statement that it is verifying that all 13 civilian casualties occurred around the time of the air strike. Three other civilians were wounded. The incident happened in the Telawka neighborhood near Kunduz city. Sgt. Debra Richardson, spokeswoman for the NATO-led Resolute Support mission in Afghanistan, confirmed that U.S. forces carried out an air strike, but she said on Monday that the mission still had not confirmed that it had caused civilian casualties. She said the mission aims to prevent civilian casualties, while the Taliban intentionally hides among civilians. A record number of Afghan civilians were killed last year as aerial attacks and suicide bombings increased, the United Nations said in a February report. Child casualties from air strikes have increased every year since 2014. Fighting has accelerated during a period of recurring talks between U.S. and Taliban officials aimed at ending Afghanistan’s 17-year war.

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