Saudi Arabia is said to have cut crude sales for next month to some buyers in the world’s biggest oil market, limiting sales to prized buyers as part of its pledge to curb exports and shrink a global glut.
All producers agree to extend crude output cuts by nine months to help trim a supply glut, according to Saudi Arabia’s energy minister.
Norwegian oil service provider Aker Solutions has reduced its total headcount by nearly 5,000 jobs since the start of the downturn in 2014.
Oil extended its biggest gain in nine months and crude producers rallied after OPEC approved the first supply cuts in eight years, with focus now shifting to how strictly it will implement its bid to ease a record glut.
The chief executive of Vitol said the oil market may see supply and demand rebalance if both Russia and OPEC deliver a meaningful production cut.
The Norwegian central bank reduced its key interest rate by 0.25 percentage point, to 0.5 percent, and said it may act again later this year to spur the economy from its oil-led downturn.
Energy giant SSE is to cut its standard gas prices by 5.3% in the latest move by a Big Six supplier to reduce tariffs.
One of the smaller energy companies has slashed its gas prices by more than a 10th in response to falling wholesale costs. Ovo Energy said it was dropping the price of gas by 10.4%, a reduction which is more than double the largest cut announced by any of the Big Six major energy firms in recent weeks. The cut, which comes into effect on March 1, means that Ovo’s dual fuel standard variable tariff will be reduced by 5.8%, resulting in an average saving for customers of £65 a year.
Energy supplier SSE is to reduce household gas prices by 4.1% on April 30 before extending its energy price freeze until at least July 2016. The move is the latest cut by one of the UK’s Big Six energy firms, although SSE’s reduction will take effect much later than the company’s rivals, with British Gas due to cut its gas tariffs by 5% from February 27. In March, SSE pledged to freeze prices until January 2016 after putting up gas and electricity bills by 8.2% in the previous autumn. The UK’s second biggest supplier said today it has extended this guarantee, meaning its gas and electricity prices will not go up before July 2016 at the earliest.
BlackPearl Resources has reduced its 2015 capital spending programmed from $80million to $31million. The company said it had made the decision in response to the “continued deterioration” in crude oil prices. Last year it announced plans to spend $280million and had set a 2015 capital budget of $80million.
As oil drops below $55 a barrel, speculation is growing that the central bank of western Europe’s biggest crude producer will need to cut rates again. A 54% slump in Brent crude since a June high has pummelled the offshore industry in Norway, where oil and gas make up 22% of gross domestic product.
The chief executive of Cheniere Energy has had his salary cut to $1 following a revolt by the company’s shareholders. Last year, Charif Souki took home a $142million pay package. However, Cheniere Energy said it was cutting his salary from $800,000 to just $1, but also approved a cash bonus of $2.4million.
Australian energy company Santos has cut its capital expenditure for 2015 by 25%. The company said there will be a drop in spending from $2.7billion to $2billion. However managing director, David Knox, has insisted the company’s financial position remains strong.