Latest news with #BPPlc
Arabian Post
16 hours ago
- Business
- Arabian Post
UAE Supply Cut Prompts Murban Derivatives Losses for Oil Majors
A decision by Abu Dhabi National Oil Company to slash July shipments of its flagship Murban crude has led to significant trading losses for equity partners hedging their positions, with estimates reaching $12 per barrel. The move stunned major stakeholders, including BP Plc and TotalEnergies SE, forcing abrupt reshuffling in the derivatives market and weighing on profitability metrics. The volume cut, amounting to approximately 3–4 million barrels or around two days of production, was effected unevenly across equity holders—reducing cargoes by between 5% and 40%, according to industry sources. Term buyers under long-term contracts were reportedly unaffected, indicating a strategic move to preserve foundation relationships while squeezing discretionary volumes. This has created a hedging mismatch: partners had positioned in futures and options to offset anticipated Murban deliveries, but actual supply fell short. The result: mounting mark‑to‑market losses on paper positions, with some market estimates as high as $12 per barrel—a steep decline considering thin typical margins. ADVERTISEMENT Murban crude, trading via ICE Futures Abu Dhabi since March, has been gaining prominence as a Middle East light crude benchmark. However, the recent cut has triggered volatility in its futures market. While spot premiums had previously eased due to ample supply and rising output post-OPEC+ easing, this supply setback has reversed some of that trend. The background to the decision lies in ADNOC's broader strategic recalibration. In late May, the company downgraded its projected Murban export capacity from 1.76 mb/d to 1.61 mb/d through May 2026—choosing to retain more crude for refining and domestic consumption. Analysts suggest this could reflect a drive to optimise margins via Ruwais refinery integration, as well as to better balance global market positioning. Market reaction was swift. Murban spot premiums fell to six‑month lows in Asia, even as export levels surged earlier this year in a bid to undercut competing heavier Middle Eastern grades. Yet the supply curtailment prior to July led to retreating premiums and amplified uncertainty among refiners and traders. BP and TotalEnergies, two of the most significant equity partners, have reportedly taken the hardest hit. With pre‑hedged positions now misaligned to actual cargoes, both companies face pressure to unwind derivatives, likely at a loss. Platts estimates suggest losses could total up to $12 per barrel—potentially eroding tens of millions of dollars in trading gains. These developments underscore the evolving risk profile of Murban as a benchmark. Its growing adoption, underscored by record trading volumes on exchanges such as ICE and Platts MoC, has attracted global attention. Yet supply-side control remains firmly in ADNOC's hands—a stark contrast to more decentralized benchmarks like Brent or WTI—raising questions about market predictability. ADVERTISEMENT The scenario highlights divergent strategies among Murban's partners: equity holders dependent on predictable allocations, versus term buyers whose contractual priority provides insulation from short-term supply shifts. It also accentuates the complexities that major oil trading desks face when aligning physical logistics with financial hedging. Analysts are cautioning that such volatility may influence future demand for Murban derivatives. Omar Najia of BB Energy has previously noted that futures liquidity depends heavily on consistent physical volumes; erratic supply cuts could impede long-term development of a robust trading framework. ADNOC, for its part, has yet to publicly comment on the allocation adjustments for July cargoes. The lack of transparency is typical of the company's market posture, rooted in a strategy that increasingly blends output management with integrated downstream optimisation. Market observers are now eyeing two key developments: first, how quickly ADNOC will restore shipments to original estimates; second, how equity partners will recalibrate hedging approaches to accommodate supply-phase volatility. The shock to trading positions could also spark a reassessment of Murban's maturity as a benchmark. While its rise has been meteoric—becoming the cheapest medium-sour crude in key Asian benchmarks earlier this year, prompting record cargo allocations via Platts MoC —the latest contraction exposes vulnerabilities inherent in single-provider control. Equity partners are said to be preparing for tighter cooperation and improved supply forecasting. Speculators suggest that future terms may include contractual safeguards or compensation clauses to protect those hedging against supply deficits. This episode marks a defining moment for Murban's financial architecture. Traders and refiners will be watching closely to see whether this diversion is an isolated incident or the beginning of recurring supply-management interventions. Either way, it signals the growing pains of what aspires to be a global oil benchmark—one still subject to the strategic impulses of its originator.
Bloomberg
2 days ago
- Business
- Bloomberg
Bloomberg Daybreak: US-Iran Nuclear Talks
On today's podcast: 1) President Donald Trump said the US would hold a meeting with Iran next week but cast doubt on the need for a diplomatic agreement on the country's nuclear program, citing the damage that American bombing had done to key sites. 2) President Donald Trump said he has three or four people in mind to succeed Federal Reserve Chair Jerome Powell when his term expires next year. 3) Shell Plc said it has no intention of making a takeover offer for BP Plc, refuting an earlier report that two of Europe's biggest companies were in active merger talks.
Bloomberg
2 days ago
- Business
- Bloomberg
Shell Says It Has No Intention of Making Offer for BP
Shell Plc confirmed it has no intention of making an offer for BP Plc, having denied a report Wednesday that it was in active talks about acquiring its rival. 'In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP,' the company said Thursday in a statement. 'Shell confirms it has no intention of making an offer for BP.'
Yahoo
2 days ago
- Business
- Yahoo
Shell Says It's Not in Talks to Buy BP
Shell Plc denied a Wall Street Journal report that it is in active talks about acquiring its London-based oil rival BP Plc. "This is further market speculation. No talks are taking place," a Shell spokesperson said. Bloomberg's Simon Casey reports.
Yahoo
13-06-2025
- Business
- Yahoo
BP Tech Ecosystem Company Profile 2025: Digital Transformation Strategy
Explore BP Plc's technological advancements with insights into its digital transformation strategies, innovation initiatives, and tech themes. Learn about new partnerships, product launches, and major ICT contracts globally, enhancing BP's energy and petrochemical operations. Dublin, June 13, 2025 (GLOBE NEWSWIRE) -- The "Enterprise Tech Ecosystem Series - BP Plc 2025" company profile has been added to offering. The report provides insights into BP's tech activities, including its digital transformation strategies, its innovation programs, and its technology initiatives. BP Plc (BP) is an integrated oil & gas company that produces fuel, energy, lubricants, and petrochemicals. The company's upstream activities include exploration, development and production of oil and natural gas, as well as field development and production. Its midstream operations include transportation, and marketing and trading of natural gas, including liquefied natural gas (LNG), and natural gas liquids (NGLs), and its downstream operations include refining, manufacturing, marketing, transportation, supply, and trading of crude oil, petroleum, and petrochemical products. The company has operational presence in Europe, North and South America, Australasia, Asia, and report provides information and insights into BP's tech activities, including: Insights of its digital transformation strategies and innovation programs. Overview of technology initiatives covering partnerships and product launches. Insights on each technology initiative including technology theme, objective, and benefits. Details of estimated ICT budgets and major ICT contracts. Reasons to Buy Gain insights into BP's tech operations. Gain insights into its tech strategies and innovation initiatives. Gain insights into its technology themes under focus. Gain insights into various product launches and partnerships. Key Topics Covered: Overview Digital Transformation Strategy Accelerators, Incubators, and Innovation Programs Technology Focus Technology Initiatives Investments Acquisition Partnership, Investments, and Acquisition Network Map ICT Budget Key Executives For more information about this company profile visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
