Oil Prices Rise As Another Storm Hits Gulf Coast – OIR 140921
We’re going to take a quick look at some of the critical figures and data in the energy markets.
Next, we’ll take a look at some of the major market players at the start of this week before providing you with the latest analysis of the major current events that have unfolded in the global energy complex over the past few days. We hope you will enjoy it.
Graph of the week
- Setting a historic record for the umpteenth time this year, the main European gas benchmark, the Dutch TTF, has exceeded the threshold of € 60 per MWh and is expected to increase further.
- News that the commissioning of the Nord Stream 2 gas pipeline (which Russian gas giant Gazprom touts as Europe’s main gas-tight solution) could take an additional 4 to 8 months has further worsened the supply shortage. from Europe.
- With LNG spot prices already above $ 20 per mmBtu and wind production below expectations, European utilities must calibrate their purchases as the winter season approaches.
- The combination of high demand and low supply is poised to keep prices under pressure, with only two realistic ways to bring them down: more LNG pegged to oil (unlikely as Asia is making higher profits) or Gazprom reserving higher throughput capacities through Ukraine (also unlikely).
- Colombian National Oil Company Ecopetrol (NYSE: EC) reported two attacks on his La Cora Infantas field, with media reports suggesting bombs were planted to damage key pieces of infrastructure. Ecopetrol stock fell 3% daily on Tuesday.
- American oil company Chevron (NYSE: CVX) pledged to invest $ 10 billion in low-carbon projects through 2028, bringing renewable fuel production to 100,000 bpd and producing 150,000 tonnes per year of green hydrogen.
- British major BP (NYSE: BP) had unexpected internal turmoil after the head of his renewable energy company, Dev Sanyal, left the company to become chief executive of Varo Energy.
Tuesday, September 14, 2021
With nearly half of the United States’ offshore production in the Gulf of Mexico still offline following damage from Hurricane Ida, Tropical Storm Nicholas is now wreaking havoc on the Gulf Coast, bringing back the threat of power outages and widespread flooding. Downside risks to US crude production have pushed crude prices higher, with the past three trading sessions seeing consecutive increases.
Tropical Storm Nicholas hinders Ida’s recovery. With 40% of production still offline in the Gulf of Mexico, U.S. oil producers are preparing for another shot as Tropical Storm Nicholas makes landfall near Texas. Among others, Shell (NYSE: RDS.A) evacuated its Perdido platform which was not affected by Ida.
China will release the first batch of SPR on September 24. Continuing their fight to lower the prices of raw materials, the Chinese authorities have affected the first SPR crude auction for September 24. A total of 7.4 million barrels will be available with terms largely favoring state-owned enterprises Sinopec (SHA: 600028) and Petrochemical (SHA: 601857).
Spain caps gas prices as they spiral out of control. The Spanish government has promised cap gas prices and extract the extraordinary profits energy companies would make to drive down electricity prices, as Spain saw its spot electricity prices climb to 154 euros per MWh on Monday.
Japanese companies outside the UK North Sea. Japanese Marubeni (TYO: 8002) to sell its oil and gas assets in the North Sea for $ 1 billion to Ithaca Energy, a UK subsidiary of Delek Energy (TLV: DLEKG), in a first movement which could encourage other shareholders like JX Nippon to leave the maturation basin.
Phillips 66 might not rebuild the Louisiana refinery. Phillips 66 (NYSE: PSX) maybe not rebuild its Alliance refinery in Belle Chasse, Louisiana, flooded and damaged by Hurricane Ida, a potential move that comes just days after media rumors surfaced that the U.S. refiner was seeking a buyer for the refinery.
Aluminum prices hit 13-year highs. Continuing their uptrend thanks to the reduction in aluminum production by China and the continued decline in global inventories, LME aluminum futures have passed the 3,000 per metric ton mark for the year. first time since 2008.
PDVSA offers new notes under the name Merey Stream Wanes. Venezuelan state oil company PDVSA to start offer its customers have improved heavy grades like Morichal, Zuata Sweet and Hamaca Special Blend from October, as the gradual decline in production rates and the shortage of light grades to use as dilutive make the future of its main rough stream Merey blur.
Valero and Unipec are the largest buyers of US SPRs. American refiner Valero (NYSE: VLO) and Chinese trading company Unipeclanded the highest allocations at the latest strategic US crude inventory auction, buying 6 million and 4 million barrels respectively, to be delivered between Oct. 1 and Dec. 15.
Citgo Deadline extended to 2022. The US Treasury expanded its protection of the American refiner belonging to Venezuela Citgo Petroleum against possible seizure by creditors until January 2022. PDVSA, the former owner of Citgo, has given 50.1% of the company as collateral for its 8.5 bonds % interest maturing in 2020 and has no payments since 2019.
Chile’s Indigenous Place wants the national lithium company closed. Indigenous communities living around Chile’s largest lithium deposits in the Atacama salt flats have deposit a complaint to the country’s regulators, asking SQM (NYSE: SQM) operating permits should be suspended until the company submits an acceptable environmental compliance plan.
Chinese coking coal prices plunge. China coking coal futures fell this week as market participants fear the government will tighten regulatory oversight as it seeks to lower commodity prices, the price of Dalian on January 22 falling more than 5% on Tuesday, to $ 420 a tonne.
Libyan export terminals are again blocked. Following the wave of protests last week in several key Libyan ports which eventually subsided to allow all anchored ships to load and depart, this week saw a resurgence of riots in Es Sider and Ras Lanuf as pressure is mounting on the head of the Libyan NOC to resign.
NGOs are pressuring the Bank of China to abandon coal. A group of 35 non-governmental organizations called on the Bank of China, the world’s largest coal investor that has invested more than $ 35 billion in coal-fired power plants since 2015 alone, to stop funding new coal projects.
1. Oil prices rebound as bullish sentiment returns – OIR 100921
2. Oil prices fall despite supply disruption – OIR 070921
3. Oil remains high after Hurricane Ida damaged supplies – OIR 030921
4. Hurricane Ida harms oil demand ahead of OPECPlus meeting – OIR 310821
5. High Recovery Stages Oil – OIR 270821
6. Oil rebounds after production shutdown in Mexico – OIR 240821
7. Oil price collapse continues – OIR 200821
8. The calm before the storm for the oil markets? – OIR 170821
Oil prices hold up despite doubts about demand – OIR 130821
ten. Oil prices rebound as demand recovers – OIR 100821
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