Oil Updates – Crude Soars; Petrobras sells its stake; Crude prices push Halliburton’s first-quarter earnings up

RIYADH: Oil prices rose on Tuesday as investors worried about tight global supply after Libya was forced to halt some exports and Shanghai factories prepared to reopen after the COVID-19 lockdown. 19, alleviating some concerns about demand.

Brent crude futures rose 61 cents, or 0.5%, to $113.77 a barrel at 0349 GMT, while US West Texas Intermediate crude futures gained 33 cents, or 0.3%, to 108.54 dollars a barrel.

Crude boosts Halliburton profits

Oil services company Halliburton Co. reported an 85% jump in first-quarter adjusted profit on Tuesday as higher crude prices boosted demand for its services and equipment.

Halliburton said margins for its Drilling and Evaluation division exceeded 15% in the first quarter for the first time since 2010, despite weather and supply chain disruptions.

The company predicts that the supply chain issues that have plagued the industry since demand rebounded following coronavirus-related lockdowns will continue.

Halliburton also recorded a pretax charge of $22 million in the quarter for the impairment of its assets in Ukraine due to the ongoing conflict.

Adjusted net income for the Houston, Texas-based company was $314 million, or 35 cents per share, for the quarter through March 31, compared with $170 million, or 19 cents per share, a year ago. year.

Analysts had expected earnings of 34 cents per share for the first quarter, according to Refinitiv IBES.

The developments in Libya and China behind the price hike

Both benchmark contracts rose more than 1% in the previous session after hitting their highest level since March 28 after Libya said it could not deliver oil from its largest field and in closed another due to political protests.

The latest supply hit came just as fuel demand in China, the world’s biggest oil importer, was expected to surge as manufacturing plants prepared to reopen in Shanghai.

Demand concerns remain, however, as China continues to impose strict restrictions to contain COVID-19 outbreaks.

Petrobras sells its stake

Brazil’s Petrobras on Monday began the binding phase of selling its subsidiary’s 20% stake in Texas-based MP Gulf of Mexico LLC, which owns offshore fields in the region.

Potential buyers classified for this phase will receive a letter with instructions on the disposal process, Petrobras said in a title filing.

Murphy Exploration & Production Company holds the remaining 80% interest in MP Gulf of Mexico.

Russia and Algeria team up in crucial move

Algerian President Abdelmadjid Tebboune (File/AFP)

Russian President Vladimir Putin and his Algerian counterpart Abdelmadjid Tebboune had a telephone conversation during which they confirmed their plans to continue coordination within the OPEC+ group of major oil producers, the Kremlin announced on Monday.

They also agreed to continue cooperation at the Gas Exporting Countries Forum “in the interest of preserving stability in global energy markets”, the Kremlin added.

Putin and Tebboune also discussed the situation in Ukraine, according to the Kremlin.

(With contributions from Reuters)