Oil
Oil Prices Recover As Bullish Sentiment Returns
The halting of Kurdish oil exports, keeping some 400,000 b/d of crude from the oil markets, helped to lift oil prices on Monday, with ICE Brent edging closer to the $80 per barrel mark. By Tuesday morning that oil price rally had largely fizzled out, although prices remained in the green.
With an OPEC+ meeting coming up on April 03, Middle Eastern nations might be tempted to casually bring up the prospect of a production cut, adding some impetus to the price recovery. There’s plenty of opportunity for bullish sentiment to increase in the coming week.
One of the most eagerly anticipated new projects in Asia is set to begin. Saudi Aramco (TADAWUL:2222) intends to build a $10 billion greenfield refinery in Panjin, China with a capacity of 300,000 b/d, securing exclusive supply rights to 70% of the refinery’s needs.
After the International Chamber of Commerce ruled in favor of Iraq in its long-standing arbitration with Turkey, the port of Ceyhan stopped shipments of 450,000 b/d of Kurdish oil that Baghdad claims is exported illegally, without the approval of the federal government.
As four French refineries halted production and the remaining two in Feyzin and Lavera are operating at reduced rates, France’s fuel shortage problems are getting out of hand with half of the petrol stations in western regions missing gasoline or diesel.
The International Renewable Energy Agency (IRENA) said that global investments into energy transition technologies should quadruple to 5 trillion annually to meet the Paris accord’s target of capping temperature increase to 1.5° C.
US President Joe Biden said he reluctantly gave a go-ahead for ConocoPhillips’ (NYSE:COP) $8 billion Willow project in Alaska, arguably the last non-shale megaproject, linking the decision to the simultaneous banning of future oil and gas leasing in Alaska’s offshore zone.
As Venezuela’s PDVSA has been cracking down on corruption within the company, the country’s attorney general has pointed to the NOC’s now-arrested vice president of trade and supply Antonio Perez Suarez as the ringleader.
Buoyed by the recent success of the IPO of ADNOC Gas, the national oil company of the UAE is now looking to float its marine and logistics subsidiary ADNOC Logistics & Services, the fifth unit of the Emirati NOC to be listed in the past five years.
Members of the European Union are split on whether to include nuclear energy in their renewable energy targets, as promoted by France, potentially delaying the decision as negotiators meet for the final round of talks Wednesday.
Despite the robust start to 2023, investors have turned net short on the CME copper contract for the first time since last October, implying that even though copper inventories are set for an all-time high soon, short-term plays on falling copper are on the rise.
The Middle Eastern sultanate of Oman launched a new upstream licensing round, the first in 2023, putting three massive onshore oil and gas blocks on offer, with all prospective areas having been explored before to varying degrees of success.
Libya’s state oil company NOC contracted US engineering company Honeywell (NASDAQ:HON) to design a 30,000 b/d oil refinery that would be located near the oasis town of Ubari, in the country’s arid southwest and presumably cost some $600 million.
Accusing Myanmar’s military of indiscriminate air strikes and military shelling against its own population, the US Treasury Department slapped sanctions on several entities connected to the import, storage, and distribution of jet fuel to the junta.
UK-based energy major Shell (LON:SHEL) agreed to offtake an additional 1.1 mtpa of LNG coming from Mexico Pacific’s Saguaro Energia export terminal on a FOB basis for a term of 20 years, adding to a 2.6 mtpa PSA deal with the same company signed last July.
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