After the worst quarter for oil prices in history, some oil producers have begun to include protection in their contracts to avoid being forced to pay buyers for the oil they pump if prices slide below $0 a barrel.
Oil prices fell on Friday, coming off their biggest one-day gains in the previous session, after U.S. President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce U.S. production. Brent crude futures fell 3.27%, or 98 cents, to $28.96 per barrel as of 0335 GMT, after having soared 21% on Thursday.
Oil prices fell on Friday, coming off their biggest one-day gains in the previous session after U.S. President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce U.S. production. Brent crude futures fell 3%, or 9 cents, to $29.05 as of 0127 GMT, after having soared 21% on Thursday.
Oil prices fell on Friday, coming off their biggest one-day gains in the previous session after U.S. President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce U.S. production. Brent crude futures fell 3%, or 9 cents, to $29.05 as of 0127 GMT, after having soared 21% on Thursday.
Recent negotiations involving leaders from major oil-producing nations and the United States will prove irrelevant for oil prices, which are low because of depressed demand, the chief executive of Brazil's Petrobras said on Thursday evening.
* Trump says cuts of 10-15 mln barrels per day possible. * Saudi Arabia calls emergency OPEC meeting. * Oil prices surge, give back some gains. * Fuel demand has slumped on coronavirus outbreak. By Rania El Gamal, Vladimir Soldatkin and Jeff Mason.
Benchmark U.S. crude fell more than 1% in early trade on Friday, coming off its biggest one-day gain in the previous session after U.S. President Donald Trump said he expected Saudi Arabia and Russia to announce a major oil production cut. U.S. West Texas Intermediate crude futures were down 1.4%, or 36 cents, at $24.96 a barrel at 2223 GMT, after having surged 24.7% on Thursday.
Ovintiv Inc (OVV): * OVINTIV RESTRUCTURES CRUDE OIL DERIVATIVES TO PROVIDE ADDITIONAL DOWNSIDE PROTECTION; COMPANY NOW PLANS TO REDUCE SECOND QUARTER 2020 INVESTMENTS BY $500 MILLION. * Ovintiv Inc (OVV) - FOR Q2 OF 2020, 206 MBBLS/D IS HEDGED AT AN AVERAGE PRICE OF $42.09 PER BARREL. * Ovintiv Inc (OVV) - NOW PLANS TO FURTHER REDUCE ITS Q2 INVESTMENTS BY AN ADDITIONAL $200 MILLION.
CME GROUP INC (CME): * CME RAISES CRUDE OIL FUTURE NYMEX MAINTENANCE MARGINS BY 13.4% TO $6,350 PER CONTRACT FROM $5,600 FOR MAY 2020. * SAYS INITIAL MARGIN RATES ARE 110% OF THESE LEVELS. * SAYS RATES WILL BE EFFECTIVE AFTER THE CLOSE OF BUSINESS ON APRIL 3, 2020.
* Trump says cuts of 10-15 mln barrels per day possible. * Saudi Arabia calls emergency OPEC meeting. * Oil prices surge, give back some gains. * Fuel demand has slumped on coronavirus outbreak. By Rania El Gamal, Vladimir Soldatkin and Jeff Mason.
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