Brent crude jumped above $80 a barrel again on Friday morning following the ECB’s rate decision on Thursday.
Friday, June 7, 2024
Oil markets caught their breath after Monday’s sell-off that saw WTI fall to $73 a barrel, with Saudi Arabia and Russia insisting that crude’s gradual return to markets should be seen as a positive sign in place of a bassist. The European Central Bank’s interest rate cut has provided some macroeconomic boost to prices, raising expectations of the Federal Reserve’s interest rate cut in September.
OPEC+ Ministers Defend Extension of Supply Cuts. The energy ministers of Saudi Arabia, the United Arab Emirates and Russia have defended the extension of OPEC+ production cuts into the third quarter, indicating they could pause or reverse the policy if necessary and criticizing at Goldman Sachs for calling the new deal ‘bearish’.
Texas Revives Big Plan for New Refinery. Element Fuels Holdings, a new Dallas-based company, has revived plans to build a 55,000 b/d capacity refinery in Texas, the first completely new refinery built in the US in almost 50 years, with the goal of processing naphtha into gasoline.
US Could Accelerate SPR Replenishment. US Energy Secretary Jennifer Granholm stated that the United States could accelerate the rate of replenishment of the Strategic Petroleum Reserve as underground storage sites return from a year-long maintenance and the WTI it remains below $79 per barrel.
Related: Algorithm Trading Worsen Fall in Oil Prices After OPEC Decision
Exxon’s LNG Megaproject Delayed. The official launch of the $11 billion Golden Pass LNG project, co-developed by the US oil major ExxonMobil (NYSE:XOM) and QatarEnergyhas been postponed at least six months until mid-2025 due to the bankruptcy of Zachry Holdings.
Brazil Seeks Billions from Major Iron Mining Companies. The Brazilian government has presented a lawsuit against the iron ore giants BHP (NYSE:BHP) and Vale (NYSE:VALE)demanding that their Samarco joint venture pay $20.75 billion as reparations to be paid over 12 years for the collapse of the Brumadinho dam in 2015.
Taiwan Wants a Share of Qatar’s LNG Expansion. Taiwan CPC Corporation signed an agreement with QatarEnergy to acquire a 5% interest in one of the 8 mtpa trains of the North Field East expansion project, while concluding an agreement to supply 4 mtpa of LNG over a period of 27 years ±os.
Suriname Prepares for Its First Oil Project. The South American nation of Suriname could finally see its first FID after TotalEnergies (NYSE:TTE) and APA Corp (NASDAQ:APA) they promised make a final investment decision in the fourth quarter of 2024 on the 700 million barrel Sapakaru-Krabdagü production center.
India Aspires for a Greater Role in Maritime Transport. India has big plans to establish a new shipping companywhich would be jointly owned by state oil companies, allowing it to expand its maritime fleet by at least 1,000 ships in the next decade and capture a larger share of the commodity trade.
Sudan Refinery Bombed by Rebel Militia. Sudan’s 100,000 b/d Khartoum refinery has been bombed again following heavy clashes between the government army and Rapid Support paramilitary forces, weakening the country’s supply of products as Sudan relies on South for diesel.
Venezuela’s Oil Production Growth Defies Sanctions. Thanks to abundant condensate and improved drilling activity, Venezuela reported a 4% increase in month-over-month crude oil production to reach 911,700 b/d, defying the recent reinstatement of US sanctions.
BHP Struggles to Control the Threat of a Strike in Chile. Australia’s mining giant BHP (NYSE:BHP) ha initiated government-mediated talks aimed at preventing a strike by more than 1,100 workers at its Spence copper mine in Chile, which represents slightly more than 1% of global supply.
Citgo Assets Could Be Close to Foreclosure. As the final round of Citgo Petroleum’s marketing process takes place next week in a US court in Delaware, several candidates have set their sights on its 167,000 b/d refinery in Corpus Christi. Texaswith reports of interest from ConocoPhillips and Koch Industries.
Clean Energy Investment Soars to All-Time Highs. The International Energy Agency foresees Global investment in clean energy technology and infrastructure is expected to reach $2 trillion this year, double the investment in fossil fuels in 2024, with China responsible for $675 billion of that figure.
By Michael Kern for Oilprice.com
More Oilprice.com Top Reads:
