Coronavirus company news summary – Woodside Petroleum expects oil markets to improve – Fuel demand drops in July in India

13 August 2020 (Last Updated August 13th, 2020 11:31)

13 August

Iran intends to begin providing oil-backed securities to its people, President Hassan Rouhani said as part of the government’s initiatives to bolster the state coffer that has been impacted by the US sanctions as well as coronavirus crisis. Furthermore, Iran’s economy strained due to low oil prices, reported Reuters.

Australia-based Woodside Petroleum expects oil and gas markets to improve later this year following a dismal first-half due to the Covid-19 pandemic. The firm expects to acquire cheap assets, said Woodside Petroleum CEO Peter Coleman. The firm’s underlying net profit after tax dropped to $303m for the six months ended 30 June compared with $419m posted a year earlier.

Production and demand of natural gas in the US will drop in 2020 and 2021 after posting record highs in 2019 as coronavirus lockdowns reduced economic activity and natural   gas prices, according to the US Energy Information Administration (EIA).  As per the Short-Term Energy Outlook (STEO) projected by the EIA, dry gas production will witness a drop to 88.65 billion cubic feet per day (bcfd) in 2020 and 84.02 bcfd in 2021 from last year’s all time high of 92.21 bcfd. EIA also forecast that gas consumption will decline to 82.42 bcfd in 2020 and 78.71 bcfd in the next year, from last year’s record high of 84.97 bcfd.

Fuel demand in India dropped lower in July, marking the fifth consecutive year-on-year decline, according to the data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas. This was because of a spike in Covid-19 cases and floods in several parts of the country that limited economic activity.