Latest news with #LorenzoSimonelli
The Star
3 days ago
- Business
- The Star
Oil rises as Iran-Israel conflict keeps floor under prices
SINGAPORE: Oil prices rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict for now. Brent crude futures climbed 54 cents, or 0.7%, to $73.77 a barrel as of 0730 GMT. U.S. West Texas Intermediate crude was up 58 cents, or 0.8%, at $72.35. Both contracts rose more than 2% earlier in the trading session but also notched declines before bouncing back in volatile trading. Prices traded higher as there was still risk of further unrest and potential disruption of oil supply from the key Middle East producing region. However, there were no visible signs of supply loss for now, industry sources said. The Israel-Iran conflict has not led to a loss in oil production, and the Organization of the Petroleum Exporting Countries still has spare production capacity, the chief executive of Italy's Eni said on Tuesday. Meanwhile, all the facilities of energy services firm Baker Hughes are operating normally in the Middle East, its chief executive Lorenzo Simonelli told Reuters on Monday. The benchmark oil contracts settled more than 1% lower on Monday amid hopes that the conflict would ease after media reports Iran was seeking an end to hostilities. However, concerns remained as U.S. President Donald Trump in a social media post urged "everyone" to evacuate the Iranian capital of Tehran. Entering its fifth day on Tuesday, the fighting has continued with Iranian media reporting explosions and heavy air defence fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles. "The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the 'war risks'," Priyanka Sachdeva, senior market analyst at Phillip Nova, said in an email. "Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil," Sachdeva added, referring to the U.S. Federal Open Market Committee meeting, which guides interest rate decisions, that begins on Tuesday. Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries. The concern is the fighting could disrupt its oil supply and raise prices, or Iran could retaliate by blocking shipping through the Strait of Hormuz. U.S. media on Monday night reported Trump was proposing renewed talks with Iran on a nuclear deal, even as shipping sources said a vessel collided with two other ships sailing near the Strait of Hormuz, highlighting risks to companies moving oil and fuel supplies in the region. - Reuters
CNBC
5 days ago
- Business
- CNBC
Baker Hughes CEO: Focus on future oil demand-supply dynamics, not short term volatility
Lorenzo Simonelli, CEO of Baker Hughes discusses the recent Israel-Iran and its' impact on volatility in oil prices and stresses not to focus on short-term volatility in oil prices. He also touches on the firm's business strategy and sustainability efforts.
Zawya
5 days ago
- Business
- Zawya
Baker Hughes says all facilities operating in Middle East
KUALA LUMPUR: All the facilities of energy services firm Baker Hughes are operating normally in the Middle East, chief executive Lorenzo Simonelli told Reuters on the sidelines of the Energy Asia conference on Monday. "Currently, all of our employees are safe, and the facilities continue to run and operate," he said. "Hopefully there's a de-escalation of tensions." He said that it was still too early to say what impact the fighting between Israel and Iran would have on energy supplies. "It's a little early, and we've got to monitor the situation," he said. "What we know is that demand is resilient, and we continue to see strong demand, and ... if there are constraints in supply from one region, it will drive the supply opportunities from other regions," he added. Baker Hughes has a substantial presence in the Middle East, including an oil services hub in Saudi Arabia. The headquarters of its surface pressure control business are located in Abu Dhabi. Simonelli said the company would continue to monitor and review routes and ports in the region to ensure safety when shipping equipment and providing services. "We will not go into a location that is insecure for our employees or also for ... supporting our operations," he said. The company forecast in April steeper drops in spending by global oil producers as tariffs dent demand expectations and push down crude prices. Tariffs on steel and aluminium imports to the United States are due to kick in on July 9 after a series of delays. "I think we're all monitoring the situation on tariffs," he said, adding that higher commodity and raw material prices could impact investment decisions on new projects. "At this stage, we're not seeing any change in position from our customers," he said.
Reuters
5 days ago
- Business
- Reuters
Baker Hughes says all facilities operating in Middle East
KUALA LUMPUR, June 16 (Reuters) - All the facilities of energy services firm Baker Hughes (BKR.O), opens new tab are operating normally in the Middle East, chief executive Lorenzo Simonelli told Reuters on the sidelines of the Energy Asia conference on Monday. "Currently, all of our employees are safe, and the facilities continue to run and operate," he said. "Hopefully there's a de-escalation of tensions." He said that it was still too early to say what impact the fighting between Israel and Iran would have on energy supplies. "It's a little early, and we've got to monitor the situation," he said. "What we know is that demand is resilient, and we continue to see strong demand, and ... if there are constraints in supply from one region, it will drive the supply opportunities from other regions," he added. Baker Hughes has a substantial presence in the Middle East, including an oil services hub in Saudi Arabia. The headquarters of its surface pressure control business are located in Abu Dhabi. Simonelli said the company would continue to monitor and review routes and ports in the region to ensure safety when shipping equipment and providing services. "We will not go into a location that is insecure for our employees or also for ... supporting our operations," he said. The company forecast in April steeper drops in spending by global oil producers as tariffs dent demand expectations and push down crude prices. Tariffs on steel and aluminium imports to the United States are due to kick in on July 9 after a series of delays. "I think we're all monitoring the situation on tariffs," he said, adding that higher commodity and raw material prices could impact investment decisions on new projects. "At this stage, we're not seeing any change in position from our customers," he said.
CNBC
5 days ago
- Business
- CNBC
Energy giants Baker Hughes, Woodside shy away from making oil forecasts as Iran-Israel conflict escalates
The CEOs of two major energy companies are monitoring the developments between Iran and Israel — but they aren't about to make firm predictions on oil prices. Both countries traded strikes over the weekend, after Israel targeted nuclear and military facilities in Iran on Friday, killing some of its top nuclear scientists and military commanders. Speaking at the Energy Asia conference in Kuala Lumpur on Monday, Lorenzo Simonelli, president and CEO of energy technology company Baker Hughes, told CNBC's "Squawk Box Asia" that "my experience has been, never try and predict what the price of oil is going to be, because there's one sure thing: You're going to be wrong." Simonelli said the last 96 hours "have been very fluid," and expressed hope that there would be a de-escalation in tensions in the region. "As we go forward, we'll obviously monitor the situation like everybody else is. It is moving very quickly, and we're going to anticipate the aspect of what's next," he added, saying that the company will take a wait-and-see approach for its projects. At the same conference, Meg O'Neill, CEO of Australian oil and gas giant Woodside Energy, likewise told CNBC that the company is monitoring the impact of the conflict on markets around the world. She highlighted that forward prices were already experiencing "very significant" effects in light of the events of the past four days. If supplies through the Strait of Hormuz are affected, "that would have even more significant effects on prices, as customers around the world would be scrambling to meet their own energy needs," she added. As of Sunday, the Strait remained open, according to an advisory from the Joint Maritime Information Center. It said, "There remains a media narrative on a potential blockade of the [Strait of Hormuz]. JMIC has no confirmed information pointing towards a blockade or closure, but will follow the situation closely." Iran was reportedly considering closing the Strait of Hormuz in response to the attacks. O'Neill said that oil and gas prices are closely linked to geopolitics, citing as examples events that date back to World War II and the oil crisis in the 1970s. Nevertheless, she would not make a firm prediction on the price of oil, saying, "there's many things we can forecast. The price of oil in five years is not something I would I would try to put a bet on." The Strait of Hormuz is a vital waterway between Iran and the United Arab Emirates. About 20% of the world's oil passes through it. It is the only sea route from the Persian Gulf to the open ocean, and the U.S. Energy Information Administration has described it as the "world's most important oil transit chokepoint."
