Russian oil production giant Rosneft said it had ceased operating in Venezuela and transferred its assets to a company own entirely by the Russian government. The move is apparently intended to shield the company from US sanctions aimed at punishing entities that do business with the government of President Nicolas Maduro.
S&P downgraded Mexico’s credit rating on Thursday as the coronavirus pandemic and a hit to state oil firm Pemex from plunging crude prices battered the growth outlook and piled pressure on the government to lift the struggling economy.
Argentine state-run oil company YPF has already seen a drop in energy consumption because of a nationwide mandatory quarantine over the coronavirus announced last Friday, a company executive said in an internal video obtained by La Nacion on Tuesday and confirmed by the company.
Oil rose over 3% on Tuesday after the U.S. Federal Reserve said it would take steps to bolster the economy and on growing hopes the United States will soon reach a deal on a US$ 2 trillion coronavirus economic package.
Rockhopper Exploration, a partner in Premier Oil-operated Sea Lion offshore oil project in the Falkland Islands, is confident it will manage to farm-out a share in the project despite the low oil prices and COVID-10 uncertainty. The two companies in January signed non-binding heads of terms with US/Israel Navitas Petroleum, which should lead to Navitas obtaining a 30% interest in the Sea Lion offshore blocks.
U.S. oil prices reached their lowest point since 2003 on Wednesday as the coronavirus has reduced demand in countries around the world. The prices fell for a third session, with U.S. crude Clc1 reaching US$ 25.06 per barrel, the lowest prices since late April 2003. As of 11:35 GMT, U.S. crude Clc1 hit US$1.51 cents or 5.6 percent at US$ 25.44 per barrel.
Oil, which plunged about 25% on Monday, rebounded on Tuesday along with equities and other financial markets. Brent futures rose US$2.69, or 7.8%, to US$37.05 a barrel by 2:24 p.m. EDT (1824 GMT), while U.S. West Texas Intermediate (WTI) crude rose US$2.73, or 8.8 percent, to US$33.86.
Oil prices plunged 30% in early trading after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.
UK Deputy Foreign Secretary for Europe and the Americas Wendy Morton held on Monday several meetings in Buenos Aires with officials from the new Argentine government looking to strengthen bilateral ties as well as boosting trade and investment.
Brazil increased the volume of biodiesel blended with diesel sold at the pump to 12% from 11% on Sunday, the latest increase to a biofuels mandate that aims to decrease Latin America's largest economy's dependence on imported barrels.