Oil prices rise amid expectations of rising demand and tighter supply

The energy sector is poised to start higher, supported by strength in the crude complex and major futures markets. A rebound in growth and bank stocks helped lift Wall Street slightly above bear market territory on Monday, while the euro surged after the European Central Bank said it was likely to pull out its currency. negative territory deposit rate by September.

WTI and Brent crudes are up in early trading on expectations that demand will pick up as we head into the peak of the US driving season and amid tight supply. Markets also reacted to a slightly weaker dollar, making crude cheaper for buyers holding other currencies. Gasoline markets remain tight as Memorial Day approaches, the weekend that traditionally begins the U.S. driving season that ends on Labor Day. Despite soaring fuel prices, mobility data from TomTom and Google showed more people were on the roads in the United States. Crude oil gains were capped by concerns over China’s efforts to crush COVID-19 lockdowns, even as Shanghai aimed to reopen by June 1st.

Natural gas futures fell on forecasts of milder weather and weaker cooling demand over the next two weeks than previously expected.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

Societe Generale downgraded Chevron remember to buy.

INTERNATIONAL INTEGRATED

Rio Tinto and bp agreed to work together on a year-long biofuel trial to help reduce carbon emissions from Rio Tinto’s marine fleet. As part of the trial, bp is supplying Rio Tinto with marine biofuel for approximately 12 months. The fuel will be tested on Rio Tinto’s RTM vessel Tasman on a mix of transatlantic and Atlantic-Pacific routes, in one of the longest marine biofuel trials to date. The results of the trial will help Rio Tinto explore ways to reduce carbon emissions from its shipping fleet and inform its future biofuels strategy.

Enjoy, Eni’s car-sharing service, is going electric, with the introduction of XEV YOYO city cars in its fleet.

FinancialTimes reported that Eni plans to spend at least €2.5bn in the UK over the next four years as the government demands that oil and gas companies drastically increase investment in Britain’s energy system or face a windfall tax on their rising profits.

The latest production postponement at Hammerfest LNG’s Norwegian plant was due to the need for final testing on a compressor that was repaired, the operator Equinesaid Sunday. The plant, which has been offline since a fire in 2020, is now set to restart on May 27, four days later than the previous plan, Norwegian gas system manager Gassco said earlier.

Societe Generale downgraded Equine remember to buy.

Petrobras said Friday evening that its imports of natural gas so far this month from Bolivia’s state-owned oil company YPFB are 30% below what was contractually agreed, posing challenges for its operational planning. the society.

Shell, as part of its global push into renewable energy, has developed a hybrid asset in the Netherlands. The plant consists of a 50 MW photovoltaic power plant and a 50 MW wind farm.

TotalEnergies signed an agreement with Sempra Infrastructure, Mitsui & Co., Ltd. and Mitsubishi Corporation for the development of the Hackberry Carbon Sequestration (HCS) project at Cameron LNG, a natural gas liquefaction and export facility located in southwest Louisiana, USA

CANADIAN INTEGRATED

No significant news.

E&PS United States

Marathon Oil Corporation Executive Vice President and Chief Financial Officer Dane White reveals the sale of 30,300 shares.

western announced the tender results of its cash offers to purchase its outstanding notes in three separate pools. The offers were made on the terms and subject to the conditions set forth in the offer to purchase dated May 16, 2022. In this regard, Occidental has further announced that it is increasing (a) the maximum aggregate purchase price Group 1 Notes which it will accept for purchase, excluding accrued but unpaid interest, in the previously announced amount of $700,000,000 to $725,000,000; (b) the maximum aggregate purchase price of the Group 2 Notes that it will accept for purchase, excluding accrued but unpaid interest, of the previously announced amount of $650,000,000 to $790,000,000; and (c) the maximum aggregate purchase price of the Group 3 Notes that it will accept for purchase, excluding accrued but unpaid interest, from the previously announced amount of $650,000,000 to $2,250,000,000. Capitalized terms used in this release but not otherwise defined have the meaning given to them in the Offer to Purchase.

CANADIAN E&PS

No significant news.

OIL SERVICES

The board of directors of Mineral Compass declared a quarterly cash dividend of $0.15 per share. This dividend is payable on June 20, 2022 to shareholders of record at the close of business on June 10, 2022.

Halliburton announced that it and Aker BP, a Norwegian oil and gas exploration and production company, will jointly develop next-generation field development planning software. The collaboration provides a new cloud application – Field Development Planning (FDP) – from Halliburton. It also expands the scope of the current Digital Wells program, a DecisionSpace 365 cloud application, built on an open architecture to provide integrated well planning and design to increase collaboration and connectivity between drilling activities.

KBR announced that it received a $44 million order to protect US Air Force systems and software from unauthorized access, use, disclosure, disruption, modification or destruction. This effort directly supports the Air Force Life Cycle Management Cyber ​​Systems Engineering Directorate (AFLCMC).

DRILLERS

No significant news.

REFINERS

PBF Energy Inc CFO, SVP Erik Young reveals the sale of 67,000 shares.

MLPS & PIPELINES

Genesis Energy, LP announced that it had repurchased 100% of Alkali’s asset-level preferred shares originally issued in 2019 to finance the expansion of its Granger soda ash plant. Concurrent with the takeover, certain Genesis subsidiaries, which own, directly or indirectly, the trona ore mining and processing assets of Genesis (with the exception of SPV and ORRI), are once again subsidiaries. restricted, which significantly increases credit support for its secured lenders and unsecured bondholders.

MARKET COMMENTARY

U.S. stock index futures rose, with growth slowing and bank stocks rising ahead of a slew of data this week that could shed light on the health of the U.S. economy. Japan’s Nikkei stock rallied to close 1% higher and retake the psychological level of 27,000. Chinese stocks closed after Beijing reported new COVID-19 cases – the highest daily tally in the capital during the current epidemic. European stocks rose on upbeat data on German business sentiment, while Siemens Gamesa jumped on a $4.28 billion takeover bid from its biggest investor. The euro rallied after the president of the European Central Bank said policymakers would likely lift interest rates out of negative territory by September. Gold prices rose, boosted by a slide in the dollar to its lowest level in a month. Oil prices rose with US fuel demand and tight supply.


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Felix J. Dixon