Siemens AG agreed to buy Dresser- Rand Group Inc. for $7.6 billion including debt as Europe’s largest engineering company expands its business with oil-and- gas equipment in the U.S. Siemens will pay $83 a share in cash, the Munich-based company said in a statement today. That’s a premium of about 37 percent to Dresser-Rand’s share price in July before reports about a potential bid boosted the stock.
Aberdeen firm Xodus Group has reported slower-than expected progress in its overseas expansion in accounts showing a substantial widening of losses.
West Texas Intermediate and Brent headed for their first weekly increase this month as the Organization of Petroleum Exporting Countries considered cutting output next year. Futures were little changed in New York, poised for a 0.8% increase this week. OPEC, the group that supplies about 40% of the world’s oil, may reduce its daily production target by 500,000 barrels to 29.5 million in 2015, its secretary general said in Vienna on Sept. 16. Libya halted the Sharara field, the country’s largest, following a rocket attack at the connected Zawiya refinery, threatening almost 30% of the OPEC member’s output.
Saudi Arabia will need to keep cutting oil output to sustain prices above $100 a barrel, even after the kingdom’s largest reduction in two years, according to BNP Paribas SA and Societe Generale SA. The world’s biggest crude exporter told OPEC last week it pumped 408,000 barrels a day less last month, about as much as Australia produces. Output rose in Iran, Iraq and Nigeria, adding to supply that drove benchmark Brent crude futures below $100 this month for the first time since June 2013. Saudi Arabia probably will have to cut a similar amount again to stabilize prices, the banks said. Global oil demand growth this year will be the weakest since 2011, just as the U.S. shale boom means oil production from countries outside OPEC rises by the most since the 1980s, according to the International Energy Agency. The glut is prompting most of OPEC’s Middle Eastern members, including Saudi Arabia, to cut prices to customers.
Western sanctions against Russia and turmoil in the Middle East could reverse a decline in oil prices and send them rocketing to $150 a barrel, according to former BP boss Tony Hayward. Investment in production from untapped resources in the Arctic and shale reserves in Siberia are at risk, which could constrain global supplies and send prices soaring, he warned. His comments in a UK newspaper interview follow sanctions against Russia's Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft, banning western firms from supporting their activities in exploration or production from deepwater, Arctic offshore or shale projects.
Energy expert Alex Kemp highlighted "subdued global demand" as the main reason why oil prices are so low. The Aberdeen University petroleum economics professor said western Europe and the US needed less crude than expected. A weakening of economic growth in China and increased shale oil production in the US, meaning America is less reliant on imports of crude from overseas, is keeping oil supplies on top of demand and lowering prices, he added.
The FTSE 100 Index was in positive territory today after the latest opinion poll on the Scottish referendum showed a lead for the No campaign.
West Texas Intermediate and Brent headed for a second weekly drop amid signs that crude supply will continue to rise even as global demand weakens. Futures are 0.2% lower in New York this week and down 2.9% in London. Brent closed below $100 a barrel for a third time yesterday as the International Energy Agency cut its global oil demand forecasts and OPEC trimmed its output target. The US will join the European Union in stiffening sanctions on Russia over Ukraine, prompting the government in Moscow to threaten retaliation.
The International Energy Agency cut its global oil demand forecasts for 2015 and said Saudi Arabia exported the least in almost three years amid slowing purchases from China and Europe.
OPEC reduced forecasts for the amount of crude it will need to supply by the most in three years as surging North American shale output reduces reliance on the group’s production.
A north-east businessman has become one of Scotland’s richest people after selling his company to a global supply-chain giant for £320million.
UK-based company Corac Group's revenue has increased 20%, the company announced today.
UK stocks declined for a third day, their longest streak of losses in a month, as oil companies led the benchmark FTSE 100 Index lower. Royal Dutch Shell Plc’s Class B shares, which have a UK source for tax purposes, slid 1.6%. BP Plc retreated 1%. Wm Morrison Supermarkets Plc gained 2.9% as Citigroup Inc. recommended buying the stock. Quindell Plc gained 5.6% after saying a court ruled in its favour in libel proceedings against short seller Gotham City Research LLC.
Brent crude fell below $100 a barrel for the first time since June 2013, as a slowdown in imports into China reinforced signs that global markets are comfortably supplied. West Texas Intermediate dropped to the lowest in almost eight months.
The FTSE 100 Index’s first foray above the 6900 barrier in 14 years proved short-lived amid a disappointing session for European markets today.
Oil and gas companies are predicting an 18% drop in investments in Norway next year, a bigger decline than factored in by the central bank in June and adding to pressure on interest rates.
Last month, Canadian group SNC-Lavalin put the seal on its biggest acquisition yet . . . the purchase of the Kentz Corporation for $2billion.
Brent crude dropped, extending a two-month slide, as OPEC’s production was seen increasing and manufacturing gauges in Europe and China missed estimates. West Texas Intermediate fell in New York.
Afren, the UK explorer focused on Nigeria, has expanded its investigation into unauthorized payments and is reviewing about $433million on its half-year balance sheet.
A “robust” performance by north-east diving and subsea equipment specialist Divex helped James Fisher and Sons to a 13% rise in first-half profits, the marine service group said yesterday.
As Norway decides how to spend its oil wealth in next year’s budget, parties key to the government’s ability to stay in power are questioning its priorities.
Energy service giant Petrofac shrugged off a 44% slump in profits today, highlighting a record year for new orders.
Brent fell for a second day amid speculation that turmoil across the Middle East will not threaten crude supplies.
Norwegian oil and gas firm DNO has reported record output in the second quarter of the year following the upgrade of its key Kurdish asset.
Brent crude fell from the highest closing price in three days as a measure of China’s manufacturing missed estimates and the U.S. pledged to continue operations to stop Islamic radicals in Iraq. West Texas Intermediate also dropped.