May 19 (Reuters) &#8211; Russia will send any oil rejected by European countries to Asia and other regions, Deputy Prime Minister Alexander Novak said on Thursday, adding that Europe would have to find substitute supplies that would be more expensive.



The European Commission on Wednesday unveiled a 210 billion euro ($220 billion) plan for Europe to end its reliance on Russian fossil fuels by 2027 and to use the pivot away from Moscow to quicken its transition to green energy. <a href="https://www.reuters.com/business/sustainable-business/eu-unveils-escape-route-russian-fossil-fuels-by-2027-2022-05-18/">read more</a>



Europe receives about 4 million barrels per day (bpd) of Russian oil, Novak said, adding that Russia was ready to reroute those supplies leaving Europe with more expensive crude from other origins.



Western sanctions imposed on Russia after its troops marched into Ukraine in February forced a number of oil buyers to delay or refuse cargoes, which in turn knocked Russian oil production.



Novak said Russian oil production was about 1 million bpd lower in April but had increased by 200,000-300,000 bpd in May with more volumes expected to be restored next month.



He said Russia&#8217;s oil exports were gradually recovering and the country would be able to find export markets because its energy resources were competitive.



($1 = 0.9537 euros)



RegisterReporting by Reuters; Editing by Edmund Blair



<a href="https://eb2.3lift.com/pass?tl_clickthrough=true&amp;redir=https%3A%2F%2Frtb-us-east.linkedin.com%2Flax%2Fclk%3Ftrk%3DCwEAAAGA3JCq4mVrhscHC6XDe2DE2ro5JDlEjtw-w19DJo5ePkcIoSpbHWSScK0OeYlrUBmKpgzhzZ1y6JEY2ocP9vRVaaZiPt8YSS7Gq_eLkjPaoDqQ75p_iPl1pRk5L2YwP2X6IDKGWIqE3-ap-_gpkQqKiM_Rksb-VIYbZXviu4-cG6jJxCFd5eiQv1DJBJji8Piv_c14WM6ZVVHx7OjEgHSSNIl3Xb1AMZpS31o7FGFuKBrEFNPWT8F83gC1-yZw9CJhhrZWIyLz06xe1GmH-iuByGuDTQ4CgE5wa9z2OSWBEhtiCAFUMMPM4hG8X8bmE_OTZBLSLqFmT-tiM36jAesbJ8bxRnyLAf62uR0skxp3WSpMf3x-5_hn-osx-KcQ79hmbQ_82lnPz2-028CEOKmSW_ZzBnVUYQizW9GrGUUQVLihjGOVycNL7fEiEyhZe5ijf60hf3z5UHJellPn3KshJYB4Tp1_RJ0xrmLErvCYJeslsQD_DIjdFFg57JhNsIQXf8zvJC4wzzzkIiA27qFWRKL48u16NB-VU38PjywkxFXeF-jh3-8hgFAnWaazk0G0fVQc4JgyaiNjEIBc-TuyD0uto80S0Ii8OixkcgPqgHw62VqtAKP4LHLXywkREq5bZxg-Z0NqubwSJqmW3uMmpxXHkuhVNWhI3m5Oa1EG5zMOw6Dj8DND-C_30tJOX1OP6xKX9hCMRHlU3uHrKo8Aow2siZs54qdvUeGfJLm1Zbp657VRNHcaSOO2NfCc5VuDCXOAOiKkdYMz9KQwGaZPki11VBud0niYF8H0itM8f79DdJPtIDcmMKDJYA9ZPFAt0kVNENZ330tDzh8gyT6Nd0KOnpRPH_qn2cJzgUGtngcpjDU4laODj40tzDV8pfkp6GE1lUqLhUZhpY1eKoCIVCdXejMBsD7p2YmtEyNHkSzdaB5shBZuGxaDJ45okavF2X1fdMvgUz41roNCxC2fnMXxv-y79qByr5qwjAmNjE9d6gTyww5LNVcYEKW_PL803F51DheN12iLMOhb3NgzAnVlwctQ8V9dT6Di6eLHnMge7HYRu-sGnfBynv1EhHFyTk45KSKZSXsR2pK0vZvQ8NvqpIcgjfy7m_Ctnhp2fEGO8MGDcWtt7u_sw6hAu3kkHzU9KbQxqCZb3mmkzvGotPX4mbDpJM8LqbrnNXa2mgIjvYBTm6bJj62lrCJYc1yYCHJ2-enalD_4Z7EadYX6MRaMSvLMe1x7wuLwPgw2fO1WJWPp44CDjoMyKkyz4KH1i4w679BdeSIx7sQ8O03DD9aylx3RnZnoj9zPSdriem8q4kPFaZ54lW-FiacyvipCs3QTBhhP2stoxhwAnLiEcBDoSGqORfRvX-IWoduC1KrJACd8_nV1zGZb4jd45mNOe04bhThQYq76Ixg-vC7mYmgWbJjzxSjIcok-KynftIYyIiUrLMzxV6N1kO3Oh5SgAfCATfX5fLOaA-UL%26action%3Dclick%26laxrid%3D24f5c29d-cf3d-40f2-b108-99addb80d74f%26laxbid%3D2%26eid%3D3%26crtype%3Dvid%26laxerid%3D27513682238991459463900%26adfmt%3D6%26urle%3DCwEAAAGA3JCq9-hRRtXsu-wPa_J8Ur10q0hLs8UOYV-GjXUfbMvOviv_7QvcFASlXhVdCuJlBBI4mJFxQ7TvqvOV1gjmLavd4lh3vI-t4JxDYlGEfZ3nhBLwRZKc7v7xRflbkOCy89yplrQJHVVX5u0_god5Rfh15o1QauwG-LoPK8PGUaRwif4Mtt0j-uJe5wXC5WBuLdOvRr580aEuP4nQuywCESJyla65oBSQpDvgBs07_7aYsYqIFJSAm3M87TF38x4RR2jzZJAtA5BZrg-575fm_jyWN2xk1r6TXzjz2qTj8b_dQhfICDT-eGHThJhs9d0ins-182El193wr4H6mp5trHdxpJC1srZ0s2hra9jOeqWMFrWTb_wF4utRlgXaFCg9QnCk_cNP32UGnr0Y_Wt26BI4QQFtJUgNLbbVYjkTfsfiLXs0P765HUO36C8RTahma63SCAHdE-wo4XvxbbzFLq484BR-AA%26urlhash%3DwsTS&amp;pr=1.444&amp;bc=3.307&amp;aid=27513682238991459463900&amp;bmid=6250&amp;biid=6250&amp;sid=66552&amp;brid=554848&amp;adid=193517973&amp;crid=29158957&amp;ts=1652967909&amp;bcud=3307&amp;ss=12&amp;cb=81714" target="_blank" rel="noreferrer noopener"></a>

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Russia to send oil rejected by Europe to Asia, other regions, says Novak

OPEC+ likely to agree 432,000 bpd increase in June



OPEC says Chinese lockdowns hitting demand



Formal talks start at 1100 GMT



Updates with analyst



By Maha El Dahan, Ahmad Ghaddar and Alex Lawler



LONDON, May 5 (Reuters)&nbsp;&#8211;&nbsp;OPEC+ is likely stick to its plan for modest oil output increases on Thursday, arguing that the producer group cannot be blamed for global supply disruptions and saying China&#8217;s coronavirus lockdowns threaten the outlook for demand.



Five OPEC+ delegates said the group was set to agree to increase its June output target by 432,000 barrels per day, in line with its existing plan to unwind output curbs made during the worst of the COVID-19 pandemic in 2020.



The Organization of Petroleum Exporting Countries and allies including Russia, which together make up OPEC+, hold formal ministerial talks at 1130 GMT after a meeting of the advisory Joint Ministerial Monitoring Committee.



The meeting comes against a backdrop of surging oil prices, which hit their highest since 2008 at more than $139 a barrel in March after Russia&#8217;s invasion of Ukraine exacerbated supply concerns that were already fuelling a price rally.



&#8220;I do not think a new decision will be made,&#8221; one of the delegates said. Another said it was &#8220;highly expected&#8221; that the meeting would be short and stick to the plan.



The OPEC+ meeting comes a day after the European Union proposed a phased embargo on Russian oil in its toughest measures yet over the war in Ukraine, which Moscow calls a &#8220;special military operation&#8221;.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WW23E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The embargo will likely force Russia to reroute flows to Asia and cut production steeply, while the EU will compete for the remaining available supply &#8211; both factors likely to support elevated crude prices.



&#8220;OPEC+ continues to view this as a problem of the West’s own making and not a fundamental supply issue that it should respond to,&#8221; said Callum Macpherson from Investec.



He said only Saudi Arabia and the United Arab Emirates had capacity to lift supply significantly, adding: &#8220;If they were to do so, the ensuing falling out with Russia could bring an end to OPEC+.&#8221;



OPEC Secretary General Mohammad Barkindo said on Wednesday it was not possible for other producers to replace Russian exports of more than 7 million bpd. &#8220;The spare capacity just does not exist,&#8221; he said.



The Brent crude oil benchmark rose on Thursday to trade above $111.&nbsp;O/R



The United States has repeatedly asked OPEC to raise production, but the Saudi-led organisation has resisted the calls amid strained relations with Washington.



The West&#8217;s energy watchdog, the International Energy Agency, agreed last month to release record volumes of oil stocks to help to cool prices and offset supply disruptions from Russia.



(Reporting by Ahmad Ghaddar, Alex Lawler, Maha El Dahan and Rowena Edwards; Writing by Dmitry Zhdannikov; Editing by David Goodman and Edmund Blair)

Silhouette of oil pump jack on rig

OPEC+ set to stick to modest oil output rise amid price rally

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1-820x547.jpg" alt="" class="wp-image-401247" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/GettyImages-109438462-1.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



SINGAPORE, July 21 (Reuters) – Oil prices fell on Wednesday after an industry report showed an unexpected build-up in U.S. oil inventories last week, which heightened worries about a resurgence in COVID-19 infections potentially dampening fuel demand.



<a href="https://www.cnbcafrica.com/quotes/@lcoc1/">Brent crude</a> futures fell 52 cents, or 0.8%, to $68.83 a barrel at 0354 GMT, giving up Tuesday’s 1.1% gain.



U.S. West Texas Intermediate (WTI) crude futures dropped 50 cents, or 0.7%, to $66.70 a barrel, after rising $1 on Tuesday.



The market “has come under a bit of downward pressure in early morning trading today after a bearish and rather surprising inventory report from the API,” ING Economics analysts said in a note, referring to weekly figures from the American Petroleum Institute.



U.S. crude stocks rose by 806,000 barrels for the week that ended July 16, according to two market sources, citing American Petroleum Institute figures.



By comparison, 10 analysts polled by Reuters had estimated, on average, that crude stocks fell by about 4.5 million barrels.



Investors are awaiting data from the U.S. Energy Information Administration to see whether it confirms there was an increase in crude inventories, which would end an eight-week streak of inventory drawdowns.



“The price moves today and potentially tomorrow will be driven by U.S. oil stocks data, but the biggest thematic will be the OPEC+ deal to add 400,000 barrels per day a month versus whether demand will hold up given what we’re seeing on the Delta variant,” Commonwealth Bank analyst Vivek Dhar said.



<a href="https://www.cnbcafrica.com/2021/opec-oil-deal-sends-prices-lower-and-this-could-be-a-buying-opportunity/">A deal</a> by the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 bpd each month from August through December sparked an oil price selloff on Monday, exacerbated by demand fears with cases of the Delta variant of the coronavirus picking up in major markets like the United States, Britain and Japan.



While fuel demand has improved during the peak summer months, a surge in Delta variant COVID-19 cases is taking a toll on the demand outlook.



“The Delta dread has a rather firm grip of the oil market sentiment, having put a big question-mark over the demand rebound narrative of the past several weeks,” said Vandana Hari, energy analyst at Vanda Insights.



“Crude may eke out some modest gains in the coming days, but it is hard to see prices jumping to the higher orbits any time soon,” said Hari. 



(Reporting by Sonali Paul in Melbourne and Roslan Khasawneh in Singapore. Editing by Gerry Doyle and Richard Pullin)



(c) Copyright Thomson Reuters 2021. Click For Restrictions – https://agency.reuters.com/en/copyright.html

106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND

Oil retreats on surprise rise in U.S. stocks, weakening demand outlook

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The oil market continues to remain on high alert as it expects producer club, OPEC and its allies to reach a decision on its production guidance for member countries come 2021. But what OPEC+ deal will be most favourable for the Nigerian economy whose oil sector contracted by 13.89 per cent in the third quarter of the year? Kola Karim, Chairman of Shoreline Group and Tajudeen Ibarhim, Senior Vice President and Head of Research at Chapel Hill Denham joins CNBC Africa for more.

OPEC+ meeting: What’s best for Nigeria?

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OPEC and its allies have delayed talks for an output policy for 2021 until Thursday. The group is faced with the options of extending its current supply cut in other to monitor market trends or reverse it on hopes that recent vaccine developments will support global economic growth which will in turn boost crude demand recovery. Rolake Akinkugbe-Filani, Chief Commercial Officer at Mixta Nigeria joins CNBC Africa for more.

OPEC+ delays talks on output policy for 2021

ABUJA (Reuters) &#8211; The Nigerian unit of oil major Chevron&nbsp;<a href="https://www.reuters.com/companies/CVX.N">CVX.N</a>&nbsp;plans to cut its local workforce by 25% to reduce costs, it said on Saturday, due to weak demand for oil in the wake of the coronavirus pandemic.



The company, which operates a joint venture with Nigeria’s state-owned NNPC, said it needed to make the adjustments to remain competitive in light of the prevailing business climate. It did not say how many jobs would be affected but said the cuts would affect workers across its operations.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="640" height="360" src="https://www.cnbcafrica.com/wp-content/uploads/2020/02/1571595826001_6129464868001_6129473455001-vs.jpg" alt="" class="wp-image-355059" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/02/1571595826001_6129464868001_6129473455001-vs.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/1571595826001_6129464868001_6129473455001-vs-300x169.jpg 300w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption>Here’s how Coronavirus outbreak impacts oil markets and Nigerian economy</figcaption></figure>



It added in a statement there were no plans to move jobs abroad and it was engaging with its workforce on the plan. Employees will retain their jobs until the reorganisation is completed.



Prices of oil, Nigeria&#8217;s main export, fell sharply early this year and in April global benchmark Brent&nbsp;<a href="https://www.reuters.com/quote/LCOc1">LCOc1</a>&nbsp;hit a 21-year low below $16 as the coronavirus outbreak hit demand, though oil markets have recovered since then.



The International Energy Agency (IEA) trimmed its 2020 oil demand forecast in September, citing caution about the pace of economic recovery from the pandemic.

shutterstock_306272309

Chevron Nigeria plans to cut 25% of staff after oil price drop

BOSTON (Reuters) &#8211; Top asset managers Vanguard Group Inc and BlackRock Inc&nbsp;<a href="https://www.reuters.com/companies/BLK.N">BLK.N</a>&nbsp;on Thursday introduced new exchange-traded funds that exclude oil companies, coal producers and other industries that a growing number of investors want to avoid.



The so-called ESG funds use environmental, social or governance criteria to pick investments.



“In our conversations clients continuously bring up the topic,” said Rich Powers, head of ETF product management for Vanguard, the largest mutual fund company with $6.6 trillion under management.



Researcher Morningstar Inc&nbsp;<a href="https://www.reuters.com/companies/MORN.O">MORN.O</a>&nbsp;found flows into such funds reached a record pace this year, taking in $20.9 billion through June, just shy of the annual record of $21.4 billion for all of 2019.



The demand partly reflects the performance of the funds, which has often topped traditional investment products this year. That was despite many funds being held back by strategies such as not owning high-performing energy stocks, as second-quarter results showed.



The Vanguard ESG U.S. Corporate Bond ETF&nbsp;<a href="https://www.reuters.com/companies/VCEB.O">VCEB.O</a>, the company&#8217;s first fixed income offering in the sector, will track the Bloomberg Barclays MSCI U.S. Corporate Select Index, which excludes oil and gas, alcohol and civilian firearms companies.







Previously the manager launched ESG equity products including the Vanguard ESG US Stock ETF,&nbsp;<a href="https://www.reuters.com/companies/ESGV.Z">ESGV.Z</a>&nbsp;now with about $2 billion in assets.



BlackRock, with $7 trillion in total assets, will offer three ESG stock funds that recreate exposure to S&amp;P indexes of large, mid-cap and small-cap companies.



The ETFs will screen out companies with certain levels of investment in the thermal coal, oil sands or shale energy sectors, BlackRock said.



Reporting by Ross Kerber; Editing by Richard Chang

rig-drilling-drilling-rig-oil

Vanguard, BlackRock add new climate-focused ETFs as demand soars

NAIROBI (Thomson Reuters Foundation) &#8211; A multibillion-dollar oil pipeline planned for East Africa could spell disaster for local communities, charities said on Thursday, warning of lost land and livelihoods unless oil firms listen up and change tack.



French energy giant Total and its partner China National Offshore Oil Corporation plan to exploit oil reserves in Lake Albert in Uganda and construct a 1,443-km (896-mile) pipeline to neighbouring Tanzania for export.



Human rights groups say the oil firms involved in the $3.5 billion East Africa Crude Oil Pipeline (EACOP) have failed to fully address concerns raised by many of the 12,000 families who are expected to lose land due to the project.



The families &#8211; most of whom farm and rear livestock for a living &#8211; say they fear&nbsp;unfair&nbsp;resettlement, low compensation and damage to their rich and diverse environment.



“Time and time again &#8230; we heard people talk about their land and their fears that they would not receive fair value for what they may lose,” said Joy Akoli Atine of Global Rights Alert, co-author of a study into the project by six charities.&nbsp;



“There was very limited understanding amongst affected communities about the land valuation and compensation process,” she told a virtual news conference.



“Total and its partners must take immediate steps to clear up any and all confusion and misunderstanding surrounding the land valuation and compensation process.”



Total said it had engaged with the charities on their reports and welcomed some of their findings,&nbsp;while disputing others &#8211; including allegations related to unfair compensation and a lack of engagement with locals.



“The project was designed with the overarching concern of minimising and mitigating the impacts on local communities and in particular the need to relocate households,” said a company statement.&nbsp;



“Compensation is proposed to meet full replacement value. Other accompanying measures such as provision of replacement housing and access to livelihood programs are planned once the project moves into the implementation phase.”



Total said it was making “considerable efforts” to engage residents in the face of project delays, adding that a grievance mechanism existed to ensure complaints were heard.&nbsp;



China National Offshore Oil Corporation did not immediately respond to a request for comment.



Commercial quantities of oil were discovered in the Lake Albert basin in western Uganda in 2006. Since then, the oil companies have been involved in exploration activities with construction of the pipeline expected to begin in May.



It will carry crude oil from Hoima in Uganda to the Chongoleani peninsula near Tanga port in Tanzania &#8211; making it the world’s longest electrically heated pipeline.



Charities say oil wells will be dug on the shore of Lake Albert, and in a number of natural reserves and protected areas, including the Murchison Falls National Park.&nbsp;



The pipeline will run beside Lake Victoria, Africa’s largest lake. It&nbsp;will be buried to minimise environmental impacts, with some facilities set above ground, designed to ensure minimal environmental and social impact, an EACOP statement said.&nbsp; &nbsp;

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Communities ‘left out’ as oil pipeline project set to get underway in East Africa

LONDON (Reuters) &#8211; The former first-daughter of Angola Irene Neto has denied any wrongdoing by her husband, a top figure in the oil industry who is the focus of a Swiss money-laundering probe and subject to one of the largest personal asset freezes in Swiss history.



Prosecutors say Carlos Manuel de São Vicente’s monopoly over insurance and re-insurance for state oil giant Sonangol from 2000 to 2016 culminated in huge bank transfers into accounts in his own name, his companies, wife and family members, according to court documents seen by Reuters.



The Geneva-based law firm representing De São Vicente has told Reuters he refutes the charges and had always acted according to the law.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/09/aghostino-neto.jpeg" alt="" class="wp-image-380835" width="450" height="575"/><figcaption>Agostinho Neto</figcaption></figure>



His wife, Neto, reinforced that denial in a statement to Reuters via the political foundation she heads.



Neto is the daughter of the Angola’s first president from 1975 to 1979, Agostinho Neto, and was herself a former deputy minister from Angola’s ruling MPLA party. She is not accused of any wrongdoing as part of the probe.







“Any allegation of a possible link between her late father’s position and her husband’s activities is defamatory,” the statement said.



“Mrs. Neto stresses that her husband at all times and in any circumstances conducted his business according to the law and has no doubt that justice will prove so.”



Angola is seeking to tackle a legacy of alleged corruption which has dogged the nation as it seeks to attract foreign investment into its struggling economy.

angola-162225_1280

Ex-first daughter of Angola Neto says no wrongdoing by husband in Swiss corruption probe

LAGOS (Reuters) &#8211; Angola plans to join the Extractive Industries Transparency Initiative (EITI), an international effort to fight corruption in revenues from oil, gas and mineral extraction.



Tete Antonio, Angola’s minister of foreign affairs, announced the move on Twitter late on Friday and said Angola “has clearly demonstrated its commitment to promote the open and accountable management of its natural resources for the benefit of its people.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="910" height="609" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil.jpg" alt="" class="wp-image-375804" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil.jpg 910w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-696x466.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-600x402.jpg 600w" sizes="(max-width: 910px) 100vw, 910px" /></figure>



EITI, formed in 2003, has more than 50 implementing countries.



Angola’s President Joao Lourenco has embarked on an anti-corruption drive since taking power from Jose Eduardo dos Santos, who stepped down in 2017 after a near four-decade rule.



Earlier this month, a court in Luanda sentenced dos Santos’s son to five years in prison over a $500 million corruption case.



Africa’s second-largest oil exporter is also working to stem a steady decline in oil output due to a lack of investment.

Angola to join oil and extractives transparency group to fight corruption

HOUSTON (Reuters) &#8211; Hurricane Laura strengthened on Wednesday as it churned over evacuated oil-production platforms in the U.S. Gulf of Mexico and took aim at the energy industry’s refining hub along the Texas/Louisiana coast.



The storm is forecast to become a Category 4 hurricane with heavy rains and catastrophic, 130 mile-per-hour (209 kph) winds that will drive ocean waters up to 30 miles (48 km) inland, forecasters said.



A half a million people in the two states fled the storm, clogging highways out of the area before it makes landfall at about midnight (0500 GMT Thursday).



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul><li><a href="https://www.reuters.com/article/us-storm-laura-energy-colonial/colonial-pipeline-to-continue-normal-operations-ahead-of-hurricane-laura-idUSKBN25M2BW">Colonial Pipeline to continue normal operations ahead of Hurricane Laura</a></li></ul>



The storm resembles 2005’s Hurricane Rita, which caused more than $18 billion in damages and killed more than 120 people, many during a hurried Texas evacuation.



Laura’s 12 mph to 15 mph race to the coast is driving a wall of water, said Jim Foerster, chief meteorologist at DTN, an energy, agriculture and weather data provider.



“The storm surge is going to be catastrophic, easily a 10- to 15-foot (3-4.6 m) surge on top of five to 10 inches (13-25 cm) of rain,” near the storm’s center, said Foerster.



The wall of water presents an “unsurvivable” surge that could stretch as far as 30 miles from the coast, the NHC said.



Laura’s path spares Houston, the nation’s fourth largest city, but bring a deadly combination of 120 mph winds, blinding rainfall and storm surge to the Texas/Louisiana state line, Foerster said.



The storm track spans Port Arthur, Texas, to Lake Charles, Louisiana, an area with a half-dozen large oil refineries and natural-gas processing plants. Lake Charles, on the eastern side of the storm eye wall, could see an at six to nine foot wall of water, Foerster said.



The ports of Lake Charles, Louisiana, and Houston, Beaumont, Port Arthur and Orange, Texas, were closed to vessel traffic on Wednesday, the U.S. Coast Guard said



Already, nine oil-processing plants that convert nearly 2.9 million barrels per day of oil into fuel, and account for about 15% of U.S. processing were reducing production or shutting down.



Chevron Corp (<a href="https://www.reuters.com/companies/CVX.N">CVX.N</a>), Exxon Mobil Corp (<a href="https://www.reuters.com/companies/XOM.N">XOM.N</a>) and Motiva Enterprises [MOTIV.UL] had halted or reduced operations at oil refineries in the area on Wednesday.



Oil producers on Tuesday had evacuated 310 offshore oil facilities and shut 1.56 million bpd of crude output, 84% of Gulf of Mexico’s offshore production.



As the storm prepared to strike the Texas/Louisiana border, refiners farther west were expecting to ride it out.Slideshow&nbsp;(2 Images)



Marathon Petroleum Corp (<a href="https://www.reuters.com/companies/MPC.N">MPC.N</a>) and LyondellBasell (<a href="https://www.reuters.com/companies/LYB.N">LYB.N</a>) plan normal production at their Houston-area refineries, according to people familiar with the matter. Marathon did not have an immediate response. LyondellBasell did not immediately reply to a request for comment.



Exxon said its Baytown, Texas, plant outside of Houston, continued to run but was taking precautions in event conditions worsen.

Stronger Hurricane Laura aims at heart of U.S. oil refining industry

LAGOS (Reuters) &#8211; Nigeria’s oil ministry will present a long-awaited oil and gas reform bill to the president in the coming days aimed at boosting output and attracting foreign investment, three sources close to the negotiations told Reuters.



The reforms, 20 years in the making, are particularly urgent this year as low oil prices and a shift towards renewable energy have made competition tougher to attract investment from oil majors.



Fiscal uncertainty has delayed a decision&nbsp;<a href="https://reut.rs/3g28DoM">reut.rs/3g28DoM</a>&nbsp;on a multi-billion dollar expansion by Royal Dutch Shell (<a href="https://www.reuters.com/companies/RDSa.L">RDSa.L</a>) and its partners, while Chevron (<a href="https://www.reuters.com/companies/CVX.N">CVX.N</a>), Total (<a href="https://www.reuters.com/companies/TOTF.PA">TOTF.PA</a>) and ExxonMobil&nbsp;<a href="https://reut.rs/348WfAX">reut.rs/348WfAX</a>&nbsp;(<a href="https://www.reuters.com/companies/XOM.N">XOM.N</a>) are selling various Nigerian assets.



A spokesman for the Petroleum Ministry, which led the bill’s drafting, did not reply to a request for comment and the president’s office declined to comment.



Royal Dutch Shell, the largest international operator in Nigeria, said a botched reform effort would be “putting at risk and making unviable most of the planned projects.”



“We hope that the final bill would be one that would unlock potential investments that Nigeria’s rich resource base truly deserves,” a spokesman for Shell companies in Nigeria said.



A draft summary seen by Reuters included provisions that would streamline and reduce some oil and gas royalties. One of the sources described even the government’s reduced take of oil revenues, through taxes, royalties and other fees, as “aggressive” compared with other nations. Some African countries are trying to cut red tape and taxes in order to make developing their oil and gas reserves attractive to companies.



It proposes to boost the amount of money companies pay to local communities and for environmental cleanups.



It would also alter the dispute resolution process between companies and the government, though specifics of the changes were not included in the summary. The bill also included measures aimed at pushing companies to develop gas discoveries and a framework for gas tariffs and delivery.



Commercializing gas, particularly for use in local power generation, is a core government priority.



The bill will be presented in one piece with four chapters, the sources said. An effort to pass reforms by breaking them into several bills in 2018 fell flat; just one portion made it to President Buhari&#8217;s desk, and he never signed it&nbsp;<a href="https://reut.rs/346RIPH.">reut.rs/346RIPH.</a>



Once Buhari signs off on the draft, it will go to the National Assembly, which is controlled by his All Progressives Congress party. The alignment of the presidency and the assembly give the measure the best chance of passage it has had in years.



The law underpinning oil, the financial lifeline for Africa’s biggest exporter, has not been updated since the 1960s.



Pumping its oil has historically been hugely profitable, but changes late last year that hiked Nigeria’s take of oil earnings, and a VAT increase, frustrated companies.

Exclusive: Nigeria’s long-awaited oil reform bill to go to president – sources

TOKYO (Reuters) &#8211; Most of oil remaining on a Japanese bulk carrier that struck a coral reef off Mauritius late last month and leaked an estimated 1,000 tonnes of oil has been collected, a representative of the ship owner, Nagashiki Shipping, said on Wednesday.



The ship, MV Wakashio, is owned by Nagashiki and operated by Mitsui OSK Lines Ltd.



Activists told Reuters that dead eels were floating in the water and dead starfish were marked by the sticky black liquid. Crabs and seabirds are also dying.



“We don’t know what may happen further with the boat, it may crack more,” said clean up volunteer Yvan Luckhun.



The MV Wakashio is still holding some 2,000 tonnes of oil and it is expected to eventually break up, Prime Minister Pravind Jugnauth said late on Monday, warning that the country must brace for the worst.



Tourism is a leading part of the Mauritius economy. The government, which declared an emergency on Friday due to the spill, is working with former colonial ruler France to try to remove the oil.



The spill has set back two decades worth of restoring the natural wildlife and plants in the lagoon, which started after the government banned sand harvesting in the area back in 2000, said Vikash Tatayah, conservation director at Mauritius Wildlife Foundation, a non-governmental organisation.



The fragmentation of the oil in the sea is expected to damage corals when the heavier particles in the oil settle on them, he said, adding that the steps taken by the government to prevent the disaster are also being scrutinised.



“There is some anger and some criticism from the civil society that the government may have taken too much time to respond,” Tatayah said. The ship was grounded for nearly two weeks before it started leaking oil.



There was no immediate comment from Mauritian government officials.Slideshow&nbsp;(5 Images)



The Wakashio passed an annual inspection in March without any problems, Japan’s ClassNK inspection body said.



Mitsui OSK Lines said in statement: “We will do our utmost towards resolving the situation quickly.” It did not provide any details. The company said it has sent six employees to the site and was considering sending more, along with transport supplies.



The International Maritime Organization said it had joined efforts to tackle the spill by providing technical advice and coordinating the response. U.N. agencies and other international groups were also mobilising environmental and oil spill experts.

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Most of oil on damaged ship in Mauritius collected: representative for ship owner

TOKYO (Reuters) &#8211; Oil prices moved higher on Wednesday after an industry report showed that U.S. inventories of crude fell more than analysts expected, bolstering hopes that fuel demand in the world’s biggest economy can weather the coronavirus pandemic.



Brent crude LCOc1 was up 52 cents, or 1.2%, at $45.02 a barrel by 0648 GMT, after falling around 1% on Tuesday.



West Texas Intermediate CLc1 oil was up 49 cents, or 1.2%, at $42.10 a barrel, having dropped 0.8% in the previous session.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="910" height="683" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil.jpg" alt="" class="wp-image-378230" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil.jpg 910w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil-696x522.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/rig-drilling-drilling-rig-oil-600x450.jpg 600w" sizes="(max-width: 910px) 100vw, 910px" /></figure>



The American Petroleum Institute [API] said on Tuesday that crude stocks fell by 4 million barrels last week, more than analysts’ expectations of draw of 2.9 million barrels. Official government data is due later on Wednesday. [EIA/S] [API/S]



The “fall in U.S. API crude inventories &#8230; the third sizeable weekly fall in a row, has supported prices today,” said Jeffrey Halley, senior market analyst at OANDA.



Still, growing uncertainty over a stalemate in Washington in talks for a stimulus package to support recovery from the deepest impact of the pandemic may weigh on prices looking ahead.



In India, demand for fuel in July dropped 10.8% from a year earlier, the fifth month of year-on-year declines, government data showed on Tuesday as a rise in coronavirus cases and floods in many parts of the country restricted economic activity.

oil-oil-production-oil-pump-heating-oil-crude-oil-thumbnail

Oil rises after bigger-than-expected drop in inventories

NEW YORK (Reuters) &#8211; Crude prices rose on Tuesday, underpinned by expectations of U.S. economic stimulus to support the world’s biggest oil consumer as well as a rebound in Asian demand as economies pick up



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="338" height="253" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/oil-oil-production-oil-pump-heating-oil-crude-oil-thumbnail.jpg" alt="" class="wp-image-376014" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-oil-production-oil-pump-heating-oil-crude-oil-thumbnail.jpg 338w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-oil-production-oil-pump-heating-oil-crude-oil-thumbnail-300x225.jpg 300w" sizes="(max-width: 338px) 100vw, 338px" /></figure>



Brent crude LCOc1 futures rose 22 cents to $45.21 a barrel by (1543 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 32 cents to $42.26 a barrel.



On Monday, U.S. President Donald Trump tweeted that top congressional Democrats want to meet him to discuss coronavirus-related economic relief after talks broke down last week.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="594" height="438" src="https://www.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-642093036-594x594-2.jpg" alt="" class="wp-image-352574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-642093036-594x594-2.jpg 594w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-642093036-594x594-2-300x221.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-642093036-594x594-2-80x60.jpg 80w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-642093036-594x594-2-570x420.jpg 570w" sizes="(max-width: 594px) 100vw, 594px" /><figcaption>WASHINGTON, DC &#8211; FEBRUARY 16: U.S. President Donald Trump stands during a news conference announcing Alexander Acosta as the new Labor Secretary nominee in the East Room at the White House on February 16, 2017 in Washington, DC. The announcement comes a day after Andrew Puzder withdrew his nomination. (Photo by Mario Tama/Getty Images)</figcaption></figure>



“Talks of coronavirus-related economic relief in the U.S. help boost confidence among oil and gas firms, that have so far lacked the funds to invest this year, or were simply avoiding the risk in a depressed market,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.



Signs of recovering Asian oil demand also boosted prices.



On Sunday, Saudi Aramco CEO Amin Nasser said he expects oil demand to rebound in Asia as economies open up.



China’s factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels, adding to signs of recovery in the world’s second-largest economy.



Prices also found support from a rally in European stocks, which rose for a third straight session on Tuesday as automakers gained on firm Chinese sales data.



Meanwhile, European refinery crude intake in July rose 3.3% from June, Euroilstock data showed on Tuesday.



U.S. passenger airline traffic, which was slammed by the pandemic, was down 80% year on year in June, official figures showed, but was still nearly twice the levels in May.



Energy companies have begun taking back millions of barrels of oil from the U.S. government’s emergency stockpile after renting storage to manage a glut of crude this spring after energy demand collapsed during coronavirus lockdowns, a Department of Energy website showed on Monday.

Oil gains on U.S. stimulus hopes and demand recovery

NAIROBI (Reuters) &#8211; Mauritian volunteers fished dead eels from oily waters on Tuesday as they tried to clean up damage to the Indian Ocean island’s most pristine beaches after a Japanese bulk carrier leaked an estimated 1,000 tonnes of oil.



The ship, MV Wakashio, owned by Nagashiki Shipping and operated by Mitsui OSK Lines Ltd, struck a coral reef on Mauritius’ southeast coast on July 25, and began leaking oil last week, raising fears of a major ecological crisis.



Activists told Reuters that dead eels were floating in the water and dead starfish washed in the sticky black liquid. Crabs and seabirds are also dying.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="960" height="540" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs.jpg" alt="" class="wp-image-378691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs.jpg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs-696x392.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/1571595826001_6180184254001_6180184697001-vs-600x338.jpg 600w" sizes="(max-width: 960px) 100vw, 960px" /><figcaption>Ameenah Gurib-Fakim on how the oil spill will impact the Mauritian economy</figcaption></figure>



“We don’t know what may happen further with the boat, it may crack more,” said clean up volunteer Yvan Luckhun.



The MV Wakashio is still holding some 2,000 tonnes of oil and it is expected to eventually break up, Prime Minister Pravind Jugnauth said late on Monday, warning that the country must brace for the worst.



Tourism is a key part of the Mauritius economy and the government, which has declared a state of emergency due to the spill, is working with former colonial ruler France to try to remove the oil.



The spill has set back two decades worth of restoring the natural wildlife and plants in the lagoon, which started after the government banned sand harvesting in the area back in 2000, said Vikash Tatayah, conservation director at Mauritius Wildlife Foundation, a non-governmental organisation.Slideshow&nbsp;(5 Images)



The fragmentation of the oil in the sea is expected to damage corals when the heavier particles in the oil settle on them, he said, adding that the steps taken by the government to prevent the disaster are also being scrutinised.



“There is some anger and some criticism from the civil society that the government may have taken too much time to respond,” he said. The ship was grounded for nearly two weeks before it started leaking oil.



There was no immediate comment from Mauritian government officials.



Mitsui OSK Lines said in statement: “We will do our utmost towards resolving the situation quickly.” It did not provide any details.

Sea life around Mauritius dying as Japanese tanker oil spill spreads

NEW YORK (Reuters) &#8211; Oil prices were up more than 1% on Monday on positive economic data from the United States, Europe and Asia, but investors remained concerned about rising COVID-19 cases globally and oversupply as OPEC begins to lift supply cuts.



Brent crude settled at $44.15 a barrel, rising 63 cents, or 1.5%. U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1.8%, to end at $41.01 a barrel.



U.S. manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections, the Institute for Supply Management said.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="910" height="609" src="https://www.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil.jpg" alt="" class="wp-image-375804" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil.jpg 910w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-696x466.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/07/oil-rig-industry-oil-600x402.jpg 600w" sizes="(max-width: 910px) 100vw, 910px" /></figure>



A similar survey showed manufacturing activity across the euro zone expanded last month for the first time since early 2019, while positive manufacturing data in Asia also boosted oil.



“The industrial sector is picking back up and that portends well for demand going forward,” said John Kilduff, partner at Again Capital LLC in New York.



Investors, however, continue to worry about the economic recovery as coronavirus cases climb, with known infections reaching almost 18 million globally. More countries are imposing new restrictions or extending existing curbs in an effort to control the pandemic.



The prospect of oversupply also weighed on oil prices as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, prepare to ease oil supply cuts while U.S. shale production begins to increase.



“I think the question is going to remain, as OPEC reduces their production cuts, are we going to continue to see oil inventories around the world decline,” said Andy Lipow or Lipow Oil Associates.



OPEC+ members have been cutting output by 9.7 million barrels per day (bpd) since May. This month, cuts will taper to 7.7 million bpd until December.



Russian oil and gas condensate output increased to 9.8 million bpd over Aug. 1-2, from 9.37 million bpd in July, a source familiar with data said.

oil

Russia to send oil rejected by Europe to Asia, other regions, says Novak

OPEC+ set to stick to modest oil output rise amid price rally

Oil retreats on surprise rise in U.S. stocks, weakening demand outlook

OPEC+ meeting: What’s best for Nigeria?

OPEC+ delays talks on output policy for 2021

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Communities ‘left out’ as oil pipeline project set to get underway in East Africa

Ex-first daughter of Angola Neto says no wrongdoing by husband in Swiss corruption probe

Angola to join oil and extractives transparency group to fight corruption

Stronger Hurricane Laura aims at heart of U.S. oil refining industry

Exclusive: Nigeria’s long-awaited oil reform bill to go to president – sources

Most of oil on damaged ship in Mauritius collected: representative for ship owner

Oil rises after bigger-than-expected drop in inventories

Oil gains on U.S. stimulus hopes and demand recovery

Sea life around Mauritius dying as Japanese tanker oil spill spreads

Oil rises more than 1% on hopes for economic recovery

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oil

Russia to send oil rejected by Europe to Asia, other regions, says Novak

OPEC+ set to stick to modest oil output rise amid price rally

Oil retreats on surprise rise in U.S. stocks, weakening demand outlook

OPEC+ meeting: What’s best for Nigeria?

OPEC+ delays talks on output policy for 2021

Chevron Nigeria plans to cut 25% of staff after oil price drop

Vanguard, BlackRock add new climate-focused ETFs as demand soars

Communities ‘left out’ as oil pipeline project set to get underway in East Africa

Ex-first daughter of Angola Neto says no wrongdoing by husband in Swiss corruption probe

Angola to join oil and extractives transparency group to fight corruption

Stronger Hurricane Laura aims at heart of U.S. oil refining industry

Exclusive: Nigeria’s long-awaited oil reform bill to go to president – sources

Most of oil on damaged ship in Mauritius collected: representative for ship owner

Oil rises after bigger-than-expected drop in inventories

Oil gains on U.S. stimulus hopes and demand recovery

Sea life around Mauritius dying as Japanese tanker oil spill spreads

Oil rises more than 1% on hopes for economic recovery

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