Latest news with #oversupply
Reuters
4 hours ago
- Business
- Reuters
US oil output rose to a record in May, EIA data shows
NEW YORK, July 31 (Reuters) - U.S. crude oil production rose to a record 13.49 million barrels-per-day in May, even as oversupply concerns pushed prices for the commodity to four-year lows, data from the U.S. Energy Information Administration showed on Thursday. U.S. President Donald Trump has repeatedly called for higher oil production from the country, where output was already at record levels in each of the past two years, and has taken steps to speed up and expand drilling on federal lands. At the same time, producers who are part of the OPEC+ group have also accelerated output hikes since May, partly to win back market share from U.S. shale drillers, leading some analysts to warn that the market is likely to be oversupplied this year. U.S. crude output was up 24,000 bpd in May from the prior record of 13.46 million bpd in April, which was the previous record, the EIA data showed. Output from the U.S. federal offshore Gulf region rose by 0.5% from April to about 1.80 million bpd in May, the highest since December, according to the EIA. Output from Texas, the top U.S. oil producing state, edged up to 5.752 million bpd, from 5.751 million bpd in April, the data showed. Meanwhile, gross natural gas production in the U.S. lower 48 states rose to a record 120.60 billion cubic feet per day in April, up from the prior all-time high of 120.45 bcfd in March, the EIA said. In top gas-producing states, monthly output in April fell by 0.3% to 36.75 bcfd in Texas, while Pennsylvania reported a 0.6% increase to 21.25 bcfd, the EIA said.
Zawya
14 hours ago
- Business
- Zawya
Covestro sticks to ADNOC deal timeline as sales miss expectations
German chemicals maker Covestro missed second-quarter sales expectations on Thursday as U.S. trade policies weighed on prices, but expressed confidence its takeover by Abu Dhabi's ADNOC would be sealed this year despite an EU competition probe. Covestro, whose products include foam chemicals used in mattresses, car seats and insulation for buildings, said the prospect of U.S. higher tariffs had led to a huge oversupply of products to the market there, particularly from the Asia-Pacific region, which had then caused by a big drop in prices. The company's revenues fell 8.4% to 3.38 billion euros ($3.86 billion) in April-June, missing analysts' average estimate of 3.55 billion euros in a company-provided consensus. "At the moment, demand is too weak to absorb the partial oversupply," Chief Financial Officer Christian Baier told Reuters in an interview. Earlier this month, Covestro cut its full-year earnings forecast for the second time this year. It now sees earnings before interest, taxes, depreciation and amortisation within a range of 700 million euros to 1.1 billion euros, down from a previously expected 1 billion euros to 1.4 billion euros. ADNOC EXPECTATIONS UNCHANGED Baier said Covestro's 14.7-billion-euro takeover by Abu Dhabi state oil giant ADNOC should be finalised in the second half of the year, despite European Union regulators saying on Monday that they had opened an investigation into potential market distortions from the deal due to foreign subsidies. "We are very confident that we will implement the transaction in the second half of the year," Baier said. At 0835 GMT, Covestro shares were up 0.5% at 60.56 euros. ADNOC struck the deal last October, marking its biggest ever acquisition and one of the largest foreign takeovers of an EU company by a Gulf state. ($1 = 0.8751 euros) (Reporting by Bartosz Dabrowski and Patricia Weiss. Editing by Mrigank Dhaniwala and Mark Potter)
Bloomberg
a day ago
- Business
- Bloomberg
Glencore JV Buys Into Giant Oil Storage Site With Surplus Ahead
A Glencore Plc joint venture is buying into Africa's biggest oil storage site at a time when the market is bracing for an expected oversupply. Aquarius Energy said Wednesday it had finalized a deal to acquire a 37% stake in the massive South African facility. The transaction — for Oiltanking's share in MOGS Saldanha OTMS — was first announced last year, but is being completed as oil trading firms begin positioning for an anticipated surplus.
Reuters
3 days ago
- Business
- Reuters
New coal mines fell to 10-year low in 2024, but China pipeline risks oversupply, report says
BEIJING, July 28 (Reuters) - New coal mining capacity fell to a 10-year low in 2024, but future projects especially in major producer China still risk oversupply, said a new report from U.S. think tank Global Energy Monitor on Tuesday. New mines opened globally in 2024 can dig up about 105 million tons of coal per year, down 46% from 2023 and the smallest increase in a decade, the report found. That is about 1% of the 8.9 billion tons of global capacity in 2024. Construction plans in top producers China and India slowed in 2024 from previous years, explaining why new capacity fell to a 10-year low, the report said. But the researchers said the slowdown might not continue. "The slowdown likely reflects delays in expansion approvals, the inherently lengthy nature of coal mine development phases, and a potential easing of supply-demand pressure following the pandemic-fuelled surge in capacity additions over the previous two years." In China, coal mine approvals surged in 2022 after a coal and power shortage raised energy security concerns, but then dipped again as shortages turned to oversupply. Despite the drop in 2024, the world is still planning new mines that could produce over 2 billion tons per year of coal. Of the 2.27 billion tons per year in capacity under development, 1.35 million tons are in China, more than the rest of the world combined. If these projects move forward, China could see another round of overcapacity similar to 2012-2025, the researchers said. In 2015, China had to undertake major supply side reforms to shutter excess steel and coal capacity - a period that has come into the spotlight as China's industrial sector again struggles with crushing oversupply. The GEM data spans 850 new mines, expansions and recommission projects, and China, India, Australia, and Russia make up almost 90% of the proposed developments. The 2024 slowdown in new capacity isn't enough to meet global climate targets, which call for significantly cutting instead of adding coal production, the researchers said. Limiting global warming to 1.5 degrees would require reducing coal production 75% by 2030 from 2020 levels, according to a UN estimate. One of China's proposed mines, the Changtan surface coal mine in Inner Mongolia, would be one of the world's top mines for emissions of methane, a particularly potent greenhouse gas, GEM said.
South China Morning Post
24-07-2025
- Business
- South China Morning Post
China cuts back on pork as excess hog supply drives down prices
In response to a persistent oversupply of pigs that has contributed to a steep drop in pork prices, China's agricultural authorities have announced concrete plans to cut back on the country's breeding stock. Measures should be taken to reasonably cull the sow population , reduce secondary fattening – feeding hogs past standard slaughter weights to increase margins – and strictly control new capacity to address the issue, said Minister of Agriculture and Rural Affairs Han Jun at a meeting on Wednesday. The announcement comes as pig, chicken and duck farmers across the country report deep losses and mounting financial pressure. Analysts noted weak end-market demand and high inventory levels are weighing heavily on the sector, and while marginal improvements are expected in the second half of the year, the overall scope for recovery remains limited. 'This round of losses has lasted more than seven months, unlike anything the industry has experienced before,' said Liu Changsheng, head of the Shandong Duck Breeding Alliance industry group, in an interview with financial news platform According to the National Bureau of Statistics, by the end of June the national breeding sow inventory stood at 40.43 million – down 370,000 from its peak in 2024, but still 3.7 per cent above the official target of 39 million.
