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Showing posts from May, 2019

The Energy Bulletin Weekly: 15 June 2020 - Resilience

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The Energy Bulletin Weekly: 15 June 2020 - ResilienceThe Energy Bulletin Weekly: 15 June 2020 - ResiliencePosted: 15 Jun 2020 12:00 AM PDTTom Whipple and Steve Andrews, EditorsQuotes of the Week"Losses this year will be the biggest in aviation history. There is no comparison for the dimensions of this crisis." Alexandre de Juniac, Int'l Air Transportation Assoc.'s CEO"It remains unclear if oil demand will ever return to pre-pandemic levels. From the destruction of the aviation industry to the transformation of workplace dynamics reducing daily travel and governmental pushes for renewable energy, oil demand is being attacked on all sides due to COVID-19. The oil majors seem to have recognized this global shift and are determined to make their operations as lean and sustainable as possible. 2020 is shaping up to be the most dramatic year in the history of oil markets, with a decade's worth of change seeming to be taking place in just 365 days." Charles Ke…

Asia's Refining Profits Crushed By Stifled Iranian Oil, Chinese Fuel Glut - OilPrice.com

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Although refiners in Asia are not left without choice for crude after the end of the U.S. sanction waivers for Iranian oil, the higher price of alternative supplies, as well as soaring fuel exports from China, are depressing refining margins across Asia.Asian oil buyers haven’t had problems in procuring alternate supplies of  crude oil to their usual cheap Iranian supplies, but the barrels replacing Iran’s oil come at higher prices that hurt the profits of refiners across Asia, Reuters columnist Clyde Russell wrote on Friday.Adding to the loss of Iranian crude, another factor weighing on the refining margins at Asian refiners is the soaring exports to the region of refined oil products out of China, which has been boosting its refining capacity this year.Last week, reports emerged that persistent pressure on profit margins has forced Asian refiners to start considering a reduction in their run rates as Asia’s refining margins slipped to a 16-year low. Higher international oil prices w…

US Forces Blow Up Three Oil Tankers In Syria Enforcing Oil Embargo | OilPrice.com - OilPrice.com

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US-led forces have blown up three oil tankers in Syria as the United States increases its pressure on Syria by thwarting the oil trade between the PKK/YPG and the Assad regime, according to local sources quoted by several media sources.The strike was carried about by coalition planes, which hit three oil tankers, leaving four dead. The coalition has not yet made a statement about the attack. In the area controlled by Assad, oil consumption stands at around 136,000 bpd. Production, meanwhile, is only 24,000 barrels per day. This means that the regime must import significant volumes of crude oil at an estimated expense of more than $2 billion per year.The attack comes a couple weeks after the EU extended its sanctions on the Assad regime for one year after the Syrian regime upped the ante in repressing the Syrian people, bringing the Syrian crisis to a boiling point.Reports surfaced weeks ago that Iran had resumed oil shipments to Syria in the wake of US sanctions on the former, with a …

Oil Tanks On Fears Of US, Mexico Trade War | OilPrice.com - OilPrice.com

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Oil prices continued to plunge on Friday morning after U.S. President Trump announced new tariffs against Mexico, forcing its southern neighbor to take harsher measures against illegal immigrationInvestor Alert: A new breakthrough – known by only a handful of scientists, researchers and insiders – is about to turn the energy world upside down. And one small company is at the center of it all. Find the full report here.(Click to enlarge)Friday May 31stOil prices are on track for their largest monthly decline in six months. The Trump administration exacerbated the selloff with another threat of trade escalation.Trump threatens Mexico with 5 percent tariffs. President Trump threatened to slap a 5 percent tariff on all goods imported from Mexico beginning on June 10. In a tweet, he said that the tariff would gradually increase over time unless illegal immigration stopped. The announcement is also a serious blow to attempts to pass the NAFTA 2.0 agreement, which needs be ratified in the na…

Downward Momentum Is Building For Oil | OilPrice.com - OilPrice.com

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U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading lower on Friday amid an escalation of geopolitical events that have raised concerns over the strength of the U.S. economy and future demand. Crude oil is in a position to post its biggest monthly loss since November as trade conflicts spread throughout the globe and U.S. crude production returned to record levels.Escalating Global Trade ConcernsThe U.S. trade dispute with the world escalated on Thursday when President Trump vowed to slap tariffs on all goods from Mexico. This news drove U.S. Treasury yields sharply lower and pressured demand for higher risk assets as investors increased bets that we’re headed into a global economic slowdown or perhaps a recession that could lead to a drop in demand for crude oil.U.S. Production RisesCrude oil prices are also being pressured by a much smaller-than-expected decline in U.S. stockpiles. Additionally, the government reported that production returne…

Japanese Yen Soars, Mexican Peso Plummets, Crude Oil Prices Slammed - US Market Open - DailyFX

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MARKET DEVELOPMENT –Mexican Peso Plunge, JPY Soars, Euro Benefits from Month-EndDailyFX Q22019FXTrading ForecastsMXN: The Mexican Peso plunged overnight after President Trump surprised markets through announcing that the US will place 5% tariffs on all Mexican goods, further dampening risk appetite, while Mexican exposed stocks (autos in particular) had also dragged equities lower. That said, the 3% drop in the Peso looks to be somewhat stretched with the move exacerbated by heavy long positioning in the currency (net longs highest since 2014).JPY: The Japanese Yen is the notable outperformer in the G10 space as safe-haven flows support. Subsequently, USDJPY has made a break below the 109 handle with support at 108.50 eyed.EUR: Despite the drop in German inflation, which raises the risk of softer Eurozone inflation, the Euro is managing to hold firm as month-end buying in EURGBP provides support for the currency, while an unwind of the Euro funded carry trades in the Mexican Peso has …

MARKETS LIVE: Indices volatile; Sensex down over 100 pts, Nifty near 11,900 - Business Standard

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After reclaiming the crucial 40,000 and 12,000 levels, respectively in the early deals, the benchmark indices S&P BSE and Nifty50 index turned volatile in the afternoon session.  The S&P BSE was trading 132 points or 0.33 per cent lower at 39,700 levels while the NSE's Nifty50 index was quoting 33 points or 0.28 per cent lower at 11,913 levels. Bank saw a swing of 1,200 points during the session.  Volatility index India VIX was trading over 4 per cent higher at 16.24. 
Sectorally, barring IT and FMCG counters, all the indices were trading in the red with the PSU Bank index taking the hardest knock, followed by media and realty stocks. The PSU Bank index was trading nearly 2 per cent lower at 3,232.50 levels.  In the broader market, the S&P BSE MidCap index was trading flat at 15,070 levels while the S&P BSE SmallCap index was ruling at 14,876, down 88 points or 0.59 per cent. 
BUZZING STOCKSShares of Hindustan Petroleum Corporation (H…

Why Oil Majors Are Going All-In On US Shale | OilPrice.com - OilPrice.com

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Chevron sold off much of its assets in the North Sea, no longer viewing the region as a high priority.Ithaca Energy, backed by Israel-based Delek, agreed to buy Chevron UK’s oil and gas assets in the North Sea for $2 billion, taking over interests in 10 producing oil fields, according to S&P Global Platts. Chevron UK’s holdings including stakes in the Alba, Alder, Britannia, Captain, Elgin/Franklin, Erskine, and Jade fields.The deal in and of itself is not exactly a bombshell news event, but the motivation on Chevron’s part is notable. “Chevron has a deep portfolio of high-return tight-oil opportunities through its leading position in the Permian basin -- this sets a very high bar in the internal competition for capital within Chevron's portfolio, making regions such as the UK now look more peripheral,” oil consultancy Wood Mackenzie said on Thursday, according to S&P. WoodMac said Chevron is down to just one 19 percent stake in the Clair field, so a total exit is “looking…

Crude Oil Prices May Fall Further on Trade Wars, Oversupply Fears - DailyFX

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CRUDE OIL & GOLD TALKING POINTS:Crude oil prices plunge on trade war worries, EIA inventories dataGold prices edge higher but key chart resistance continues to holdSoft US PCE data may slow liquidation, but is unlikely to offset itCrude oilprices put in the second-largest daily drop this year yesterday. The biggest drawdown came a mere four days earlier, hinting at acceleration lower. Worries about the negative impact of trade war escalation on global growth, and thereby demand, coupled withdisappointing inventory flow dataappeared to be the latest catalysts. The selloff continues in APAC trade after the US threatenednew tariffs targeting Mexico.SOFT US INFLATION DATA UNLIKELY TO RESCUE BATTERED CRUDE OIL PRICESBellwether S&P 500 futures are pointing sharply lower, hinting at a risk-off tilt through the rest of the trading week. SoftUS PCE inflation datamay be something a salve for shell-shocked investors. The core rate is expected at 1.6 percent on-year in April, matching the…

WTI Weekly: Sell-Side Continuation To 56.33s - Seeking Alpha

[unable to retrieve full-text content]WTI Weekly: Sell-Side Continuation To 56.33sSeeking AlphaBalance development early week within last week's lower cluster. Sell-side breakdown attempt in Thursday's auction, sell-side continuation to 56.33s. This week.

http://bit.ly/2VYLhq4

Why Trump Won't Use His Ultimate Oil Weapon | OilPrice.com - OilPrice.com

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Last year, ahead of the return of U.S. sanctions against Iran, there was speculation that Washington could use crude oil from the U.S. Strategic Petroleum Reserve to cushion the blow that a loss of Iranian barrels would deal international markets and, more importantly, prices at the pump. Now, there seems to be the same talk again as prices remain excessively volatile.Last year, the SPR speculation was rejected by Energy Secretary Rick Perry who said “If you look at the Strategic Petroleum Reserve and you were to introduce it into the market, it has a fairly minor and short-term impact.”This time once again Washington’s response to higher oil prices for U.S. drivers as driving season begins is unlikely to involve selling crude from the SPR. There are a couple of reasons for this: first, the effect of tapping the SPR to stabilize prices could boomerang, and second, there is simply no need to tap it.The Strategic Petroleum Reserve was formed after the 1973 Yom Kippur war when Arab oil p…

Oil price trend 2019: what to expect from the global oil market? - Capital.com

Oil Slides to 12-Week Low on Small Decline in U.S. Inventories - The Wall Street Journal

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• Oil prices fell to their lowest since March after data showed a very slight decline in U.S. oil inventories that remain near a 22-month high.• West Texas Intermediate futures, the U.S. oil benchmark, ended 3.8% lower at $56.59 a barrel on the New York Mercantile Exchange, marking the lowest closing price since March 8, and the fifth decline over the past seven sessions.•...

https://on.wsj.com/2XiB5KC

Why Oil Majors Are Going All-In On US Shale | OilPrice.com - OilPrice.com

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Chevron sold off much of its assets in the North Sea, no longer viewing the region as a high priority.Ithaca Energy, backed by Israel-based Delek, agreed to buy Chevron UK’s oil and gas assets in the North Sea for $2 billion, taking over interests in 10 producing oil fields, according to S&P Global Platts. Chevron UK’s holdings including stakes in the Alba, Alder, Britannia, Captain, Elgin/Franklin, Erskine, and Jade fields.The deal in and of itself is not exactly a bombshell news event, but the motivation on Chevron’s part is notable. “Chevron has a deep portfolio of high-return tight-oil opportunities through its leading position in the Permian basin -- this sets a very high bar in the internal competition for capital within Chevron's portfolio, making regions such as the UK now look more peripheral,” oil consultancy Wood Mackenzie said on Thursday, according to S&P. WoodMac said Chevron is down to just one 19 percent stake in the Clair field, so a total exit is “looking…

US oil drops 3.8% to $56.59 per barrel on small supply decline, trade war worries - CNBC

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A gas flare on an oil production platform is seen alongside an Iranian flag in the Gulf.Raheb Homavandi | Reuters Oil prices fell sharply on Thursday on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war.The U.S. Energy Information Administration (EIA) said crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.The decline last week reduced crude stocks from their highest since July 2017 seen the previous week, but at 476.5 million barrels, they were still about 5% above the five-year average for this time of year."The oil inventories report has added to the bearish sentiment prevailing in today's trading session," said Abhishek Kumar, head of analytics at Interfax Energy in London, noting "Demand-side concer…

Libya's intensifying conflict could trigger the next major oil 'supply shock,' analysts warn - CNBC

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A fighter loyal to the Libyan internationally-recognised Government of National Accord (GNA) fires a Kalashnikov rifle during clashes against forces loyal to strongman Khalifa Haftar, on May 21, 2019 in the Salah al-Din area south of the Libyan capital Tripoli.MAHMUD TURKIA | AFP | Getty Images Energy market investors are "clearly" underestimating the potential impact of sustained fighting in Libya, analysts told CNBC on Wednesday. It comes as the country's intensifying conflict threatens to almost completely wipe-out the OPEC producer's oil supply.Libya has been gripped by a sustained resurgence of fighting since early April, when rebel forces loyal to renegade General Khalifa Haftar — who effectively controls the country's breakaway east — launched a surprise offensive against the home of Libya's UN-recognized government.The fighting has killed at least 460 people, with more than 2,400 injured and 75,000 others forced out of their homes.Haftar reportedly rul…

What's moving markets today: Live updates - CNN

Crude could drop to $52 as global pressures persist, says top technical analyst - CNBC

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The energy market may be in for more pain.Crude oil prices had their worst weekly performance of 2019 last week, catching some reprieve on Tuesday as flooding in the Midwestern United States restricted supply from several key distribution centers. Overall, this year has been choppy for prices, which are often tied to global macroeconomic developments such as the ongoing U.S.-China trade war.And there could be more weakness ahead for the commodity, warns top technician Louise Yamada, who predicted in April that the crude rally would stop if prices broke below the $60 level.Now that they have, with U.S. West Texas Intermediate crude settling just above $59 on Tuesday, "obviously, the upside is limited," said Yamada, who founded and runs Yamada Technical Research Advisors."It's intriguing if you look at the chart. You can see where it encountered resistance, right at the resistance from the 2018 peak," she said. "Now, it looks as though things have broken dow…

Oil prices log lowest finish since March - MarketWatch

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Oil futures dropped Thursday, with U.S. and global benchmark prices posting their lowest settlements since March, after U.S. government data revealed a weekly decline in domestic crude stockpiles that was much less than expected.The data also showed a further increase in production that was already in record territory.West Texas Intermediate crude for July delivery CLN19, -1.02%  on the New York Mercantile Exchange lost $2.22, or 3.8%, to settle at $56.59 a barrel. Front-month prices settled at their lowest since March 8 and trade down by more than 11% for May so far, according to Dow Jones Market Data.Global benchmark July Brent BRNN19, -1.09% fell $2.58, or 3.7%, to $66.87 a barrel on ICE Futures Europe, the lowest finish since March 12. The contract expires at the settlement on Friday. Front-month contract prices have lost more than 8% month to date.The Energy Information Administration on Thursday reported that U.S. crude supplies edged lower by 300,000 barrels for the week ended …

Why Trump Won't Use His Ultimate Oil Weapon | OilPrice.com - OilPrice.com

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Last year, ahead of the return of U.S. sanctions against Iran, there was speculation that Washington could use crude oil from the U.S. Strategic Petroleum Reserve to cushion the blow that a loss of Iranian barrels would deal international markets and, more importantly, prices at the pump. Now, there seems to be the same talk again as prices remain excessively volatile.Last year, the SPR speculation was rejected by Energy Secretary Rick Perry who said “If you look at the Strategic Petroleum Reserve and you were to introduce it into the market, it has a fairly minor and short-term impact.”This time once again Washington’s response to higher oil prices for U.S. drivers as driving season begins is unlikely to involve selling crude from the SPR. There are a couple of reasons for this: first, the effect of tapping the SPR to stabilize prices could boomerang, and second, there is simply no need to tap it.The Strategic Petroleum Reserve was formed after the 1973 Yom Kippur war when Arab oil p…

The Disconnect Between Oil Prices And E&P Equities - Seeking Alpha

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One area of great frustration to oil and gas equity owners is the lagging response of stock prices to crude futures prices. One might think there should be about a one-to-one relationship in price changes.However, going back to February 2016, when crude prices bottomed following the OPEC induced bid to bankrupt U.S. shale to take market share, crude futures prices have gained 109%, whereas oil equities have gained just 29%. I used the Energy Select Sector SPDR ETF, XLE, as a proxy for energy sector returns.I have read some analysts conclude that this disparity implies that energy equities are undervalued relative to crude prices and that they should therefore “catch up.” However, I believe that such a conclusion misses the underlying reasons why the disparity has developed.Crude Futures Price CurveA snapshot of WTI crude oil futures prices going out to 2027 shows that investors are less enthusiastic about long-term price prospects. Beyond the short-term, futures are priced in the lowe…

US oil drops 3.8% to $56.59 per barrel on small supply decline, trade war worries - CNBC

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A gas flare on an oil production platform is seen alongside an Iranian flag in the Gulf.Raheb Homavandi | Reuters Oil prices fell sharply on Thursday on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war.The U.S. Energy Information Administration (EIA) said crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.The decline last week reduced crude stocks from their highest since July 2017 seen the previous week, but at 476.5 million barrels, they were still about 5% above the five-year average for this time of year."The oil inventories report has added to the bearish sentiment prevailing in today's trading session," said Abhishek Kumar, head of analytics at Interfax Energy in London, noting "Demand-side concer…

Oil prices log lowest finish since March - MarketWatch

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Oil futures dropped Thursday, with U.S. and global benchmark prices posting their lowest settlements since March, after U.S. government data revealed a weekly decline in domestic crude stockpiles that was much less than expected.The data also showed a further increase in production that was already in record territory.West Texas Intermediate crude for July delivery CLN19, -1.06%  on the New York Mercantile Exchange lost $2.22, or 3.8%, to settle at $56.59 a barrel. Front-month prices settled at their lowest since March 8 and trade down by more than 11% for May so far, according to Dow Jones Market Data.Global benchmark July Brent BRNN19, -0.90% fell $2.58, or 3.7%, to $66.87 a barrel on ICE Futures Europe, the lowest finish since March 12. The contract expires at the settlement on Friday. Front-month contract prices have lost more than 8% month to date.The Energy Information Administration on Thursday reported that U.S. crude supplies edged lower by 300,000 barrels for the week ended …