Last week began with the reports of bankruptcies of drilling companies in the United States.

Diamond Offshore Drilling, an offshore diamond service company in the United States, has requested protection from lenders. The Wall Street Journal reports that the company took advantage of Chapter 11 of the United States Bankruptcy Code. The reason was the catastrophic collapse in oil prices caused by the coronavirus pandemic.

According to statistics, in April the number of operating drilling rigs for oil and gas production in the world decreased by 450 units compared to March. According to the oil service company Baker Hughes, the number of installations fell by 23% to 1,514 units. For comparison, a year ago, in April 2019, there were 2,140 drilling rigs in the world. Thus, over the year their number fell by 626, or 29%. Baker Hughes notes that in the US oil and gas rigs decreased by 206 (26.6%) per month, in April there were 566. In Canada the number of towers compared to March fell four times - from 100 to 33.

Baker Hughes says that in Europe the number of drilling rigs decreased in April compared to the previous month by 11, to 112. In the Middle East - by eight, to 240. In Latin America - by 80, to 89. In the Asia-Pacific region - by 40, to 191. In Africa - by five, to 103. Despite this, a quotation rally was observed in the oil market. The world economy began to make attempts to overcome the pandemic crisis, in addition, on May 1, the OPEC + agreement came into force and oil production in the world began to decline. Another catalyst for the growth of commodity quotes was the data from the US Department of Energy. They showed much less-than-expected growth of stocks at the US terminal in Cushing. Investors took this as a signal of the beginning of recovery in consumption.

Against this background the results of the first quarter of 2020 of the French oil and gas group Total are indicative. Over this period, the company's net profit fell to 34 million from 3 billion dollars in the same period last year. The adjusted net profit of the group in the reporting period decreased by 35% in annual terms - up to $ 1.781 billion. Loss per share amounted to $ 0.01 against a profit of $ 1.17 a year earlier. Total revenue for the reporting period decreased by 14.5% to $ 38.6 billion. At the same time, analysts expected revenue of $ 34.36 billion. In response to the crisis caused by the coronavirus pandemic, Total will reduce the investment program in 2020 by about 25% - to $ 14 billion from 18 billion announced in February.

At the end of the week, Russian and US Presidents Vladimir Putin and Donald Trump had a telephone conversation about the situation in the world oil market. The Kremlin press service said that the situation on the world oil market was affected and the timeliness of the conclusion was noted, largely due to the interaction of the presidents of Russia and the United States, the new OPEC + agreement, which was launched on May 1 and has already had a practical impact on the stabilization of oil prices. The Russian leader in the conversation also noted that the Russian Federation and the United States are capable of achieving much if they follow the traditions of the Alliance of World War II.

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