After sharp falls post-Brexit, oil prices largely clawed back last week as the initial panic of the UK leaving the EU subsided. Signs that Saudi Arabia is considering an end to its bid to wipe of cheap US shale oil have also given oil a boost, with prices hovering around US$50/b.
Upstream & Midstream
Less than a week after Nigeria announced it had negotiated a 30-day truce with the Niger Delta Avengers, attacks have resumed – affecting three NNPC pipelines and two Chevron wells. Despite the attacks, Nigerian oil production recovered slightly in June, up by 90 kb/d, but still more than a third down of its usual 2 mb/d level. In separate Nigerian news, deputy oil minister Emmanuel Ibe Kachikwu has been removed as the managing director of NNPC, removing a conflict of interest.
A study by Norway’s Rystad Energy has concluded that the US holds more oil reserves than Saudi Arabia and Russia. Estimated recoverable oil in existing and undiscovered areas in the US is about 264 billion barrels, versus Saudi Arabia’s 212 billion and Russia’s 256 billion. More than half of the US number comes from unconventional shale oil.
The US oil rig count jumped by 11 last week to 341, with expectations that crude oil will find a base price of US$50/b spurring restarts. Most of the restarts are coming from the Permian Basin in Texas and New Mexico. Gas rigs dropped by 1, bringing the total operational rig count to 431.
Two American refineries changed hands last week – PBF Energy purchasing ExxonMobil’s 155 kb/d Torrance plant in California for US$537.5 million, and Tesoro buying the struggling Dakota Prairie Refinery in Dickson. In South Africa, the state Strategic Fuel Fund has expressed interest in purchasing Chevron’s downstream assets in the country, continuing a worldwide trend of the majors exiting downstream.
Nigeria’s Oando has sold a majority stake in its fuel business to a consortium consisting of Vitol and Helios Investment Partners, expanding the Dutch trading house’s downstream presence in Africa.
Uganda has abandoned talks with Russia’s Rostec Global Resources and switched to a Korean consortium led by SK Engineering to build a new 60 kb/d refinery in Hoima, western Uganda. Plans for the refinery include product pipelines to neighbouring states of Burundi, Rwanda, DR Congo, Tanzania and Kenya.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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