
Oil rig
Oil Prices Under Pressure Despite Bullish Catalysts

The withdrawal of US President Joe Biden from the re-election campaign has left the oil market confused, with oil prices weakening to their lowest in a month as ICE Brent dropped below 82 per barrel. It is not for lack of potentially bullish signals that prices have been lower. Normally, Israel’s attack on Yemen and promises of retaliation as well as China cutting its short-term interest rates would trigger some sort of response, but not now.
The Ceres I VLCC tanker that collided with product tanker Hafnia Nile last Friday fled the collision scene and was found in the South China Sea and detained by Malaysian authorities, along with two tugboats towing the vessel northwards, OilPrice.com reports.
China’s imports of Russian oil have risen by 5% year-on-year to 2.23 million b/d despite lower imports in June, consolidating Russia’s position as the number one crude supplier as demand for Saudi Arabian oil dropped by 13% year-over-year to 1.62 million b/d.
Once a leading producer in Malaysia that has been present for more than 130 years, US oil major ExxonMobil (NYSE:XOM) has agreed to sell its oil and gas assets in the Asian country to state oil firm Petronas, equivalent to 15% of national output.
Extending its initial investigation into Pioneer CEO Scott Sheffield, the US Federal Trade Commission is probing executives from Occidental, Hess, and Diamondback over their communications with OPEC officials, citing potential collusion between the sides.
Australia’s largest oil producer Woodside Energy (ASX:WDS) agreed to buy US LNG developer Tellurian (NYSEAMERICAN:TELL) for $1.2 billion including debt, at a more than 75% premium to its last closing price, taking over the embattled Driftwood LNG project.
Turkey will send its navy to support its exploration effort in Somalia’s offshore sector, deploying the Oruc Reis surveying vessel at the end of September to carry out seismic appraisal after the two countries signed a military pact and Turkey got three exploration blocks.
The European Commission is set to introduce anti-dumping duties on biodiesel and hydrotreated vegetable oil (HVO) from China, with the levies set either at 23.7% or 36.4% depending on the companies’ level of cooperation, although Brussels didn’t include SAF.
The Biden administration has renewed a waiver from US sanctions on Iran to allow Iraq to import natural gas and electricity from its eastern neighbor, the 22nd renewal of the authorization that will be valid until mid-November 2024.
Qatar’s national energy company QatarEnergy signed a deal with US oil major Chevron (NYSE:CVX) to purchase a 20% stake from the latter’s Block 5 production sharing contract in offshore Suriname, the fourth license that Qatar enters in the country.
Hedge funds’ bullish wagers on gold soared to the highest in more than four years by mid-July, with net long positions surpassing the 220,000-contract mark just as the bullion posted an all-time high of $2,483 per ounce last week.
Nigeria’s Parliament has set up a committee to investigate allegations of dirty fuels after the country’s midstream regulator accused the Dangote refinery, the only functional plant in the country now, of not meeting diesel sulfur restrictions.
A 7.4-magnitude earthquake rocked northern Chile last week, triggering power outages across the region where most of the Latin American nation’s lithium and copper production takes place, although the pricing impact remained muted.
Canadian oil pipeline operator Trans Mountain is considering borrowing in the bond market to refinance some of its $18.4 billion outstanding debt before the Canadian government finds a buyer to sell it to, despite the recent launch of TMX.
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