NNPCL
NNPCL calls tenders for P/Harcourt Refinery operator as bullish sentiment dominate oil markets
Nigeria’s state-owned oil company Nigerian National Petroleum Company Limited, NNPCL, has tendered for an operator of its 210,000 b/d Port Harcourt refinery, calling on “reputable operators” to help meet the nation’s fuel supply.
The aim is to restart the plant towards the end of Q1 2024 even as a cold snap in the U.S. and continued attacks on ships in the Red Sea have boosted bullish sentiment in oil markets, although increasing product stocks could counter that narrative, OilPrice.com reports.
Continued attacks in the Red Sea and the U.S. cold snap have been making headlines this week, both indicating a more bullish outlook for oil as ICE Brent continues to hover around $79 per barrel. With up to 500,000 b/d of oil production temporarily shut in across the United States, supply disruptions in the Atlantic Basin might be offsetting the bearish narrative of increasing product stocks. As EIA figures on the United States will only be made available Thursday, smaller macro events such as China’s no-change Central Bank meeting are poised to become the main bearish market narratives.
Houthi forces struck the US-owned dry bulk tanker Gibraltar Eagle with an anti-ship ballistic missile as it sailed some 100 miles off the Gulf of Aden, claiming the attack was done as retaliation for US strikes on Yemen’s Hodeidah airport earlier this week.
The expected 4% drop in US natural gas output due to the extreme freeze taking over the central and eastern parts of the country lifted Pacific Northwest power prices to $1,075/MWh, the highest on record, whilst Waha gas prices soared to $17/mmBtu.
The extreme cold rampaging through the US Midwest has led to a 425,000 b/d decline in oil production from the Bakken shale as operators shut in wells, whilst gas output in the same basin is down almost 50% to 1.1 billion cubic feet per day.
The US Treasury expanded sanctions on Iran-linked entities as it placed two Hong Kong and UAE-based companies and four tankers they operate on its sanctions list for allegedly shipping Iranian crude for the benefit of Iran’s Islamic Revolutionary Guard Corps.
Zinc prices increased by 4% this week to $2,615/mt after Trafigura-controlled metal producer Nyrstar announced that it would place its Budel zinc smelter in the Netherlands on care and maintenance due to high energy costs and weaker regional demand.
The US climate envoy John Kerry is planning to step down as the top climate diplomate over the upcoming weeks, according to media reports, with his departure coinciding with that of his Chinese counterpart Xie Zhenhua, right after the COP28 summit ended.
The Canada Energy Regulator approved a route change proposed by the operator of the 590,000 b/d Trans Mountain expansion pipeline, clearing the last regulatory barrier before TMX starts seeking nominations for line filling, expected to happen in Q2.
Brushing aside the 300,000 b/d Sharara field still being down due to protests, Libya is preparing to launch its first upstream licensing round since 2007, aiming to boost oil production to 2 million b/d within the next five years.
As Baghdad seeks to adhere to its 2024 OPEC+ production targets, it is increasingly pressuring the Kurdish Regional Government to curb crude output as recently restarted projects ramped up supply to more than 200,000 b/d.
Australian gas major Santos (ASX:STO) can continue with the construction of a subsea pipeline that is vital for its $4.3 billion Barossa gas project following a three-month hiatus thanks to a court decision that dismissed a claim from indigenous groups.
The US Environmental Protection Agency proposed new rules for methane emissions, introducing a financial penalty of 900 per metric tonne above a specified amount, expected to raise $750 million this year across 2,000 oil and gas facilities.
Chinese EV Giant Taps Brazil’s Lithium Supply. The largest EV carmaker globally, China’s BYD (SHE:002594) has been holding talks with Brazil’s Sigma Lithium over a potential lithium supply agreement, joint venture, or even outright acquisition, seeking to build EVs in Brazil from mid-2024.
About The Author
