OPEC sticks to 2021 oil demand growth forecast despite Indian COVID-19 crisis theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Oil industry spending cuts hammer services firm CGG
05/12/2021 | 03:31am EDT
Send by mail :
Message :
Required fields
(Reuters) -French oil services group CGG posted a 71% plunge in first-quarter core profit on Wednesday, reflecting a year of drastic spending cuts by the oil industry in the pandemic and sending its shares sharply lower.
In a call with analysts, CEO Sophie Zurquiyah said the quarter had been slow as expected, but predicted more spending in the second half of 2021, noting a resumption of commercial business and contract awards in March and higher oil prices. I believe we will see the need for our clients to increase their activity to not only catch up on the work postponed from 2020, but also to compensate for the depletion of their existing reservoirs, she told analysts in a call.
Updated / Wednesday, 12 May 2021
14:41
The oil market is waiting for fresh updates on the Colonial Pipeline outage
Oil prices rose today on signs of a speedy economic recovery and upbeat forecasts for energy demand supported by vaccinations against Covid-19 although waves of infections in India and Brazil curbed gains.
Brent crude climbed 83 cents, or 1.2% to $69.38 a barrel this afternoon. West Texas Intermediate US crude rose 86 cents, or 1.3%, to $66.14. Expectation that the economy and demand will recover rapidly have once again allowed Brent to climb, said Commerzbank analyst Carsten Fritsch.
The International Energy Agency (IEA) said in its monthly report that demand for oil will exceed the output of top producers.
By Reuters Staff
(Adds detail from call, shares move)
May 12 (Reuters) - French oil services group CGG posted a 71% plunge in first-quarter core profit on Wednesday, reflecting a year of drastic spending cuts by the oil industry in the pandemic and sending its shares sharply lower.
In a call with analysts, CEO Sophie Zurquiyah said the quarter had been slow as expected, but predicted more spending in the second half of 2021, noting a resumption of commercial business and contract awards in March and higher oil prices.
“I believe we will see the need for our clients to increase their activity to not only catch up on the work postponed from 2020, but also to compensate for the depletion of their existing reservoirs,” she told analysts in a call.