Oil ends week on a bullish note as blackouts persist
Hurricane Ida is now officially the most devastating hurricane of all time in terms of disrupting oil production, and experts expect the blackouts to last through September.
Friday, September 17, 2021
The Gulf of Mexico in the United States is gradually bringing back slack production capacity – to date, about a quarter of oil production remains offline – but global anticipation of further U.S. equity levies have weighed on market sentiment and helped Brent prices stabilize at $ 75 a barrel. The supply disruptions triggered by Ida will only exacerbate the tightening of the market in the coming weeks, as the pace of the recovery in global demand outstrips increases in supply, despite the fact that the OPEC + has pushed more barrels into the market.
China’s oil consumption will peak in 2026. China’s oil consumption is expected to peak around 2026 at 16 mbpd, while natural gas will see a much longer path to peak in 2040 (at 620 Gcm or 22Tcf), said the acting chairman of China’s main refiner. Sinopec (SHA: 600028).
Petrobras under pressure as fuel prices rise. Brazil’s national oil company Petrobras (NYSE: PBR) comes under increasing national scrutiny, with the speaker of parliament saying he was dissatisfied with explanations provided by the oil company’s executive on recent fuel price increases in the Latin American country .
Nickel prices are increasing due to supply constraints. Nickel prices are approaching their highest level in 7 years after Indonesia said it was considering an export tax on nickel products containing less than 70% Ni, pushing up the country’s benchmark prices. LME of 3% Friday, to 19,920 dollars per metric ton.
Dangote invites trading majors to the financial refinery. Africa’s richest man, Aliko Dangote, is in talks with the world’s leading oil trading companies Trafigura and Vitol to co-finance the 600 kb / d Dangote refinery, the cost of which has risen from 12 billion to 19 billion dollars. dollars over the years.
BP signs clean energy agreements in Abu Dhabi. UK based oil major BP (NYSE: BP) has signed three agreements with the UAE companies ADNOC and Masdar, aiming to develop 2 GW of low carbon hydrogen production capacity in the United Kingdom and the Emirates, as well as to implement a “low carbon air corridor” between London and Abu Dhabi. Related: US Set To Set Another Solar Record Despite Rising Costs
Saudi Aramco is officially appointed distributor of Guyana. The Guyanese government has confirmed that Saudi Arabia Aramco (TADAWUL: 2222) the ATL commercial branch will receive a one-year contract to market the state’s crude oil right, the contract runs until August 2022.
Fire Halts Key UK Power Interconnector. As electricity prices spiral out of control across Europe, the fire at the IFA1 interconnector between the UK and France has forced 1 GW of key interconnection capacity offline until March 2022 in less. 475 per MWh.
High interest in the licensing cycle in Norway. The most recent licensing round for new acreage on the Norwegian continental shelf attracted bids from 31 oil companies, including regulars at NCS. Equinor (NYSE: EQNR) and Lundin Energy (STO: LUNE), just like the Norwegian election winners, the Labor Party, have reiterated their support for further drilling.
Albemarle ends strike in Chile. The world’s largest lithium producer Albemarle (NYSE: ALB) signed a new 36-month employment contract with the Atacama Salt Plant Workers Union, ending a month-long strike that put its production of battery-grade lithium carbonate at risk.
The EU is reluctant to impose tariffs on Chinese aluminum. Media say EU is set to impose 14-25% import duties on Chinese aluminum as it concludes internal investigations into dumping of flat-rolled products, but Brussels seems inclined to suspend their implementation 9-month-old, suspicious of Beijing’s reaction.
Tullow improves the scope of the project in Kenya. UK based oil company Tullow Oil (LSE: TLW) increased the overall resource estimate for its Turkana project which is now expected to reach a production plateau of 120 kb / d (up 50% from the previous estimate) with a total of 585 million barrels of recoverable oil .
The uranium price craze continues. The Sprott Physical Uranium Trust has continued to buy, having already aligned with an expanded share sale program of up to $ 1 billion in the coming months, pushing uranium prices to a 9-year high of $ 48 the pound of U308.
PEMEX abandons Vitol. Mexico’s national oil company PEMEX has canceled a series of contracts with the world’s largest trader Vitol amid an ongoing corruption investigation that has reportedly uncovered a system of bribes and bribes. wine for land supply agreements with the Mexican company.
Hyundai and LG start work on the Gigafactory in Indonesia. Taking advantage of Indonesia’s vast nickel resources, South Korea Hyundai Engine (KRX: 005380) and LG Energy Solutions has started construction of the Southeast Asian country’s first EV battery Gigafactory, which would have an initial production rate of 150,000 EV batteries.
Australian coal mines could be stranded. A report released by the Australian Central Bank sees the country’s abundant coal resources being stranded in three of the four scenarios it has plotted, stoking fears that the world’s largest coal exporter will be off the market by 2030 .
By Michael Kern for Oil Octobers
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