Oil prices are moderately higher on Friday morning after a strong rise at the end of the previous session, triggered by the decision of Saudi Arabia and Russia to extend supply cuts.
The price of October Brent futures on the London-based ICE Futures exchange at 8:01 a.m. Q1 is $85.26 per barrel, up 12 cents (0.14%) from the previous session’s close. On Thursday, these contracts rose in price by $1.94 (2.3%) – to $85.14 per barrel.
Quotes of futures for WTI for September at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time rose by 17 cents (0.21%) and amounted to $81.72 per barrel. At the end of the previous session they rose by $2.05 (2.6%) – to $81.55 per barrel.
Both grades may end in the plus for the sixth week in a row.
Riyadh extends an additional voluntary cut in oil production by 1 million barrels per day for September, the kingdom’s state news agency reported, citing an official source in the energy ministry. Thus, the actual level of oil production in Saudi Arabia next month is expected to be 9 million bpd.
This reduction is in addition to the announced in April limitation of production by 500 thousand b / s, which will last until the end of 2024.
Investors are waiting for the meeting of the OPEC+ Ministerial Monitoring Committee (JMMC) on Friday, although it is unlikely to recommend any changes in production policy, MarketWatch writes.
Enterprises of Ukrtruboprom association in January-June this year increased production of pipes by 5% compared to the same period last year – up to 253.5 thousand tons.
According to the data of the association on Thursday, in January this year about 30 thousand tons of pipe products were produced (44.9% to January-2022), in February – 39.5 thousand tons (80.4% to February). tons (80.4% of February-2022), in March – 57 thousand tons (1631.4% of March-2022), in April – 42.3 thousand tons (228.6% of April-2022), in May – 49.6 thousand tons (96.5% of May-2022), in June – 35 thousand tons (67.8% of June-2022).
At the same time, it is noted that in the first half of the year-2023, pipe companies demonstrated multidirectional dynamics. In particular, “Interpipe Niko Tube” and NPP with AI “Ukrtruboizol” increased production of seamless pipes by 12.4% and 81.8% respectively, while “Trubostal” reduced by 69.4%, “Centravis” – stainless pipes by 3%, “Interpipe NMTZ” – electric-welded pipes by 79.5%. Production of pipes by Oskar decreased by 27.7%.
General Director of Ukrtruboprom Association Heorhiy Polskiy noted that “the results of the first half of the year can be called positive for the industry as a whole, although it is necessary to note the effect of a low base of comparison for the same period last year”.
“It is obvious that the production capacities of the enterprises are not loaded to the pre-war level”, – stated the general director.
Nevertheless, he added, Ukrainian companies even in such difficult, military conditions are looking for customers and orders, establishing interaction with partners in foreign markets, mainly in Europe, which is close to Ukraine logistically.
“In addition, we hold positions in the Middle East and Central Asia, despite aggressive competition from manufacturers from China,” Polsky added.
As reported, the enterprises of Ukrtruboprom in the first quarter increased the output of pipes by 5.9% to 126.5 thousand tons. And it was noted that a strong concern of pipe companies is the situation with the supply of scrap metal to Ukrainian seamless pipe manufacturers, which use it as the main raw material. Thus, the first quarter of 2023 was characterized by a strong deficit of scrap in Ukraine, the volume of which reached 20% in the whole MMC.
“Obviously, this factor led to production losses at pipe mills. Moreover, the situation remains tense, as Ukraine has been experiencing a strategic scrap shortage for more than 20 years, and there are no tools to increase scrap procurement now. The situation is aggravated by record volumes of scrap exports, which are taken out of the country without paying duty through non-transparent schemes, which causes damage to the state budget,” Polsky emphasized.
Enterprises of Ukrtruboprom in 2022 reduced the production of pipes by 37.9% compared to 2021 – to 449.7 thousand tons. Last year, all plants demonstrated negative dynamics. “Interpipe Niko Tube” and “Trubostal” reduced seamless pipe production by 31.1% and 61.6% respectively, “Centravis” – stainless steel pipes by 38.3%, “Interpipe NMTZ” – electric-welded pipes by 67.1%. Production of pipes of PO Oskar fell by 20%, and only NGO with AI Ukrtruboisol reached the production level of the year before last. Dnipropetrovsk Pipe Plant is idle and in a state of liquidation.
Dynamics of changes in discount rate of NBU – from 2013 to may 2023
Source: Open4Business.com.ua and experts.news
Ukraine in the 2022-2023 marketing year (MY) harvested 70 million tons of grain and managed to export two-thirds of the harvest planned for export even taking into account the record high transitional residues, Minister of Agrarian Policy and Food Mykola Solskiy said on air of the marathon “United News”.
“Last year we harvested only about 70 million tons. All that we planned to take out, we took out. This is about two-thirds. We have transitional residues by the beginning of July – several million tons. If we compare it with the transitional residues last year, it is several times less – it was 22 million tons then. This is due to the fact that we were not traveling for a couple of months and had a huge harvest in 2021,” he explained.
Solsky recalled that in May in the Ministry of Agrarian Policy predicted that this year’s grain harvest will be 10% lower than last year. However, now the expectations have changed and the Ministry expects that the grain harvest will be less by about 6% due to favorable weather conditions.
“Agrarians have decided to sow corn not in the same volume (as before – IF-U), but to sow more sunflower and soybeans. It can be the same income in money, but the logistics costs are less and it is necessary to deal with it less, because conditionally the yield of corn per hectare is two to three times higher than that of soybeans and sunflowers,” the minister explained.
Solsky noted that farmers are not accustomed to difficulties and expressed confidence that Ukrainian farmers will cope with the challenges that constantly arise before them.
The minister called the main problem of Ukrainian farmers not difficulties with the realization of the produced products, but with the price for them.
“In the coming months, the work of everyone related to the state authorities will be related to the fact that they (agrarians – IF-U) will be able to sell expensively. This has to do with reducing logistics costs, with expanding opportunities, where it can go, to which countries to sell,” he summarized.
The number of U.S. company bankruptcies in January-July 2023 reached 402, the highest number for the period since 2010, excluding the “covid” 2020, according to a report from S&P Global Market Intelligence.
“High interest rates and a troubled operating environment continue to drive the collapse of U.S. companies,” the analysts wrote.
The number of bankruptcies in the seven-month period is nearly double the rate for the same period in 2022. In January-July 2020, the figure was 407 as the coronavirus pandemic caused many firms to close.
In July alone, 64 companies filed for bankruptcy in the U.S., the highest since March’s 70. The largest of them was the aircraft leasing company Voyager Aviation Holdings LLC, which owes more than $1 billion. In June, there were four companies with debts of more than $1 billion that filed for bankruptcy.
PJSC “Cherkassyoblenergo” in the first half of 2023 in preparation for the fall-winter period repaired more than 430 overhead power lines 0,4-20 kW and 35-154 kV, as well as 96 transformer substations, the press service reported.
As noted in its release on Thursday, in addition, 64 6-20 kV transformers have been repaired and put in proper condition, 187 damaged cable lines with voltage above 1,000 V have been restored, and about 1,800 km of overhead lines have been cleared.
“Currently, all planned tasks are performed in a timely manner and in full, so tentatively the work will be completed before the start of the heating season,” commented Oleg Samchuk, Chairman of the Board of PJSC PJSC, whose words are quoted in the release.
The press service added that the accumulation of emergency stocks of materials and equipment continues.
