Oil Takes Center Stage in Global Geopolitics After Attacks on Aramco installations

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  • Oil Takes Center Stage in Global Geopolitics After Attacks on Aramco installations
25 September 2019
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Oil Takes Center Stage in Global Geopolitics After Attacks on Aramco installations, Rogue Trader’s $320M Loss On Bad Oil Bets Leaves Mitsubishi Seeing Red, Vitol and ENH Announce the Launch of ENH Energy Trading and Google Touts ‘Biggest Ever’ Wind and Solar Deals.

Oil Takes Center Stage in Global Geopolitics After Attacks on Aramco installations:
With thriving shale oil production in the United States, higher oil prices could benefit the US economy. Attacks on the Abqaiq processing plant and Khurais oil field in Saudi Arabia has had a major impact on the price of oil; increasing it to the highest it has ever been in almost half a decade. Washington claimed that the attack was most likely from Iraq. As a result, oil production has been halved in Saudi Arabia, which totals around 5% of the global oil output. The disruption has meant Saudi Arabia has been forced to take from its reserve to ensure customers have access to oil.

Iran was once one of the world’s largest oil exporters but could now be losing $3 billion every month due to disrupting regional activities, which reportedly, Washington has now had enough of. Donald Trump has since called for lower oil prices in order to put a stop to the slow-growth economy of the US. Yet, the attacks on Saudi Arabia could set oil prices soaring again, meaning that the US could become the world’s largest oil exporter. One-fifth of China’s exports come from Saudi Arabia, meaning that as the price of the barrel increases by the dollar, the cost to China rises more than $1 billion. Click here to read more

Rogue Trader’s $320M Loss On Bad Oil Bets Leaves Mitsubishi Seeing Red: A rogue trader working for Mitsubishi in Singapore has lot $320 million on poor bets on oil prices. The company said the employee: “was discovered to have been repeatedly engaging in unauthorized derivatives transactions and disguising them to look like hedge transactions since January of this year”. The total amount of losses has not yet been calculated and is still under examination, but there is an expectation of a total $700 million in losses. The case has been referred to the police for further investigation and the trader’s contract has been terminated after the individual was found out to have gone on vacation without return. Mitsubishi have failed to comment the impact on the company’s earnings and profits as a result of the incident. Click here to read more

The trader “was discovered to have been repeatedly engaging in unauthorized derivatives transactions and disguising them to look like hedge transactions since January of this year,” Mitsubishi said.

Vitol and ENH Announce the Launch of ENH Energy Trading: Vital and ENH have joined forces to create a commodity trading company to make Mozambique a leading exporter in LNG. The company will be owned 51% by ENH and 49% by Vitol. It is expected that ENH’s share is set to increase in the next few years. Dr. Omar Mithá, Chairman of ENH said: “Our expectation for this JV is to embark on a path into international commodity trading markets to support our growth. We are confidently expanding our operations overseas, and building a reputable asset for future generations”; while CEO of Vitol, Russell Hardy said: “We very much look forward to replicating our previous experience of partnering with an NOC and working with ENH to build ENH Energy Trading into a successful trading company with the expertise to serve Mozambique’s energy needs.” Click here to read more

Google Touts ‘Biggest Ever’ Wind and Solar Deals: Google announced on Thursday that it had made 18 wind and solar energy deals across Europe, the US and Latin America. The company claimed it would secure a total of 1600 megawatts of renewable energies across the globe and also stimulate an astonishing $2 billion investment in wind and solar infrastructure. Google has the goal of achieving ‘carbon free’ operations in the long-term, but currently, this isn’t quite achievable, with solar and wind power not being a reliable enough source. Amazon also claimed that by 2040, they plan on becoming carbon neutral, while Apple said they are currently 100% reliant on renewable power. Chief executive of The Climate Group, Helen Clarkson commented: “This huge portfolio of new projects demonstrates how corporate investment in renewable electricity is expanding in scale and global reach.” It appears that Google’s intentions are making a positive impact on the environment, with greenhouse gas emissions being cut due to purchasing carbon credits. Last year, the company were responsible for emitting 1.2m tons of CO2 into the atmosphere. Click here to read more

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