Power prices in Finland jumped to record-high levels as a deep freeze in Europe began in the Arctic parts of the Nordic countries and is set to move south to northwest Europe in the weekend and next week, creating additional energy demand and leading to higher electricity and natural gas prices. In Finland and Sweden, heavy snow and freezing temperatures have prompted cancelations of some train services on Friday and during the weekend. Day-ahead power prices in Finland hit a record-high and... Читать дальше...
Via Metal Miner HM Treasury recently announced that the UK plans to enact a carbon tax on certain metals and natural resource imports into the country by 2027. The December 19 announcement said that steel, aluminum, and iron ore will be subject to the tax. This tax is currently known as the Carbon Border Adjustment Mechanism (CBAM). “Goods imported into the UK from countries with a lower or no carbon price will have to pay a levy by 2027, ensuring products from overseas face a comparable carbon... Читать дальше...
The world’s third-largest oil importer, India, has approved the signing of a cooperation agreement with the world’s newest oil exporter, Guyana, covering the entire value chain from crude supply to exploration offshore the South American country. India’s government approved on Friday the signing of a Memorandum of Understanding (MoU) between India’s Ministry of Petroleum & Natural Gas and the Ministry of Natural Resources of Guyana on cooperation in the hydrocarbon sector. “The…
The total number of active drilling rigs for oil and gas in the United States fell this week by 1, according to new data that Baker Hughes published on Friday—the first weekly data of the new year. The total rig count fell by 1 to 621 this week. Over the course of 2023, the United States has seen the active rig count for oil and gas fall by 157, while achieving record-breaking production. The end of year rig count was also 452 fewer rigs than the pre-pandemic era—again, all while beating pre-pandemic... Читать дальше...
Asia’s LNG imports jumped in December to a record-high for any month in history as China regained the top importer spot from Japan and lower spot prices incentivized purchases. Last month, imports of LNG into Asia rose to 26.61 million metric tons, per data from commodity analysts Kpler cited by Reuters columnist Clyde Russell. Imports increased from the November level of 23.35 million tons and were also higher than the previous Asian LNG import record of 26.15 million tons set in January 2021... Читать дальше...
2023 has marked a significant shift in the commodities market compared to the tumultuous years of 2021 and 2022, which were characterised by extreme price volatility due to pandemic-induced supply and demand uncertainties. This year, we've witnessed unique trends across various commodities, and in this article, we'll explore the developments and driving factors of five key commodities—Brent Crude Oil, Natural Gas, Copper, Wheat, and Coffee—along with ChAI’s forecasts for 2024. Brent Crude Oil The... Читать дальше...
Iran seeks higher prices for its crude going to its top customer, China, and has been withholding some supply, Reuters reported on Friday, citing trading and refinery sources. China has continued to buy cheaper crude from Iran even after the U.S. re-imposed sanctions on Iranian oil in 2018. But now Iran is reportedly seeking narrower discounts to Brent for its crude supply to China, which has led to a “stalemate” between Iran and its Chinese customers. Iran has sought discounts of $5 to $6 per barrel... Читать дальше...
The Lower 48 and Europe enjoyed a mild start to winter but will be transitioning into a period of colder and possibly even snowier conditions through at least the mid-point of January. This will lead to a surge in heating demand on both sides of the Atlantic. ECMWF and GFS models forecast that after an unusually warm December driven by El Nino, lower 48 temperatures from Thursday through Jan. 15 will trend around a 30-year seasonal average of about 37 Fahrenheit. After the mid-point of the month... Читать дальше...
In a bid to reduce government deficit, India plans to halve the equity support to three state-held oil refiners to help them fund measures to meet their net-zero operations targets, Reuters reported exclusively on Friday, quoting industry and government sources. The three state-owned refiners, Indian Oil Corp, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, were set to receive the equivalent of $3.6 billion, or 300 billion Indian rupees, in equity support for the fiscal year 2023/2024... Читать дальше...
Crude prices are set to close out the first week of the new year with a small gain as tensions in the Middle East continue to provide support. Friday, January 5, 2024Oil prices are set to finish this week with a slight gain after Middle Eastern tensions helped recoup losses after US inventory data. Despite a hefty 5.5-million crude stock draw, believed to be the usual year-end clearing of inventory to minimize ad valorem inventory taxes, the immediate reaction was a slight downward correction after... Читать дальше...
While Israel is now withdrawing forces from Gaza under pressure to pursue lower-level combat operations, external incidents continue to escalate from Lebanon and Iraq to the Red Sea shipping lanes and inside Iran. With respect to Iran, two explosions presumed to be by suicide bombers along the road to the cemetery to mark the 2020 assassination of prominent Iranian general Qassem Soleimani killed as many as 100 people earlier this week. While initially no one claimed responsibility, the Islamic State claimed the attack just a day later... Читать дальше...
Before I started my holiday season vacation a couple of weeks ago, I wrote a couple of pieces looking forward to 2024. Those pieces focused on oil, which is only natural given its importance in the energy space, but as I did my research while on break, I came to the conclusion that my number one pick for 2024 was not in oil, but in an area that was somewhat uninspiring for traders and investors…natural gas. Let’s get one thing out of the way early; I am not saying that natty will necessarily break... Читать дальше...
Politics, Geopolitics & Conflict -Protests in Libya that have led to the shutdown of the Sharara oilfield, the country’s largest, are also putting upward pressure on oil prices. Protesters are demanding better public service and development in southern Libya. The Sharara field has a 300,000 barrel-per-day capacity and has been the target of protests in the past, most recently in July this year. Libya is currently producing around 1.2 million bpd and is targeting a ramp-up to 2 million bpd by 2030. Читать дальше...
Weekly Performance Summary This week witnessed varied movements in the crude oil market, driven by multiple factors. Oil prices dropped lower on Thursday, impacted by significant increases in gasoline and distillate stocks, which overshadowed a larger-than-expected crude stock decline. However, overall, the market is slightly higher for the week as we head into Friday’s action, supported by supply issues in Libya, escalating tensions in the Middle East, and encouraging remarks from the Federal Reserve's December meeting minutes. Читать дальше...
The Organization of the Petroleum Exporting Countries (OPEC) increased its crude oil production in December, collectively pumping 27.88 million barrels per day, according to a new Reuters survey published on Friday. OPEC’s production rose by an average of 70,000 barrels per day (bpd), the survey showed, with production increases seen in OPEC’s 2nd largest producer, Iraq, as well as Angola—accounting for 60,000 bpd of the overage. Nigeria also saw a production increase. The group’s most prolific producer... Читать дальше...
Numbers Report – January 05, 2024In the latest edition of the Numbers Report, we will take a look at some of the most interesting figures put out this week in the energy and metals sectors. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers. Let’s take a look.1. 2024 Should Have Been Canada’s Year, Might Still Be - The long-anticipated launch of the Trans Mountain Expansion (TMX) pipeline has been a rallying call for Canadian upstream producers to ramp up operations... Читать дальше...
Denmark’s Maersk said it will reroute 80% of its ship traffic originally bound for the Suez Canal to the longer route around the Cape of Good Hope following the latest Houthi attack in the Red Sea. On Thursday, the Houthis detonated an unmanned vessel in the area although they did not target any ships. The detonation came a day after a group of countries led by the United States issued a warning that there would be “consequences” unless the attacks stopped. “It came within a couple of miles of ships... Читать дальше...
Exxon will need to write down its California assets by about $2.5 billion as of the fourth quarter of 2023 after it struck a deal with an energy independent to offload these. "Continuing challenges in the state regulatory environment have impeded progress in restoring operations," the company said in a filing, referring to oil production at its Santa Ynez field in California. Exxon agreed a year ago to sell the California operations to a company called Sable Offshore, which was set up in 2020. The price tag of the deal was $643 million... Читать дальше...
The first week of the new year looks set to end with a moderate gain for oil benchmarks fueled by escalating tensions in the Middle East and supply disruptions in Libya. In the Middle East, Yemen’s Houthis continue to attack ships in the Red Sea, and this week also saw a bomb attack kill some 100 people in Iran. The attack was claimed by the Islamic State although Iran itself said it was a response to its stance on the war between Israel and Gaza. Across the Red Sea, meanwhile, in Libya, a fresh... Читать дальше...
Despite a decline in the number of drilling rigs, U.S. crude oil production jumped to record-high levels last year to blunt the impact of OPEC’s oil supply-management policies. The growth in U.S. shale over the past year was one of the biggest surprises on the market; while everyone expected production to increase, few had predicted that the rise in output would be so fast and so high. The year 2023 saw the U.S. hit a record crude oil production level of over 13.2 million barrels per day (bpd)—more... Читать дальше...
Angola is planning to maintain oil production above 1 million barrels daily, which is why it left OPEC, the natural resources minister of the West African country has revealed. The second-largest OPEC producer on the continent quit the cartel at the end of last year, surprising many observers of OPEC policies. "This organization no longer aligns with Angola's values and interests," Diamantino Azevedo, minister of natural resources, said this week, as quoted by Bloomberg. He added that OPEC had assigned... Читать дальше...
In a shocking development, political outsider Javier Milei won Argentina’s November 2023 presidential election, taking 56% of the vote, with leftist opponent Sergio Massa receiving 44%. The television personality and economist, who is a self-described anarcho-capitalist, campaigned on a radical far-right platform which saw him compared to former U.S. President Donald Trump. Key among Milei’s controversial proposals to fix Argentina’s badly distorted economy is dollarization, slashing excess fiscal... Читать дальше...
Just as EV demand appeared to be nearing super-saturation, incentives for buying electric vehicles are starting to fall by the wayside. There are now just 13 EV models that are eligible for a consumer tax credit of as much as $7,500 thanks to new Biden administration rules that took effect on January 1, according to Bloomberg. Previously, the number had stood closer to 24 models, but for the new year the tax credit excludes vehicles that use battery components manufactured by Chinese companies, the report says. Читать дальше...
Josef McConnell, a tennis coach from Southern California, had been unemployed for a year after the government response to the pandemic destroyed his business. Then, in 2021, a friend told him that there were good-paying jobs to be had in North Dakota’s Bakken oilfield. He knew nothing of oilfields, never heard of the Bakken Basin, nor, for that matter, could he say much about North Dakota other than he believed the state to be a cold, flat flyover tundra with corn and cows somewhere near Canada that... Читать дальше...
Houston-based petroleum refinery Phillips 66 (NYSE:PSX) is actively discussing the sale of some of its assets, according to a Thursday statement made by the company's CEO. The plan to sell $3 billion of its non-core assets this year was hatched last year when the company said it would look to cut costs and assets in order to boost returns. According to Mark Lashier, there is no fixed timeline as to when a sale of these assets may occur. "We don't have (a) sense of urgency... It's really going to... Читать дальше...
