Oil prices have risen over the past three weeks as geopolitical tensions have escalated, although worrying economic data in the US could drag prices back down.
Friday, June 28, 2024
All eyes are on US inflation data as crude oil prices have maintained their bullish streak and are set to end this week with a third weekly increase. Rising geopolitical tensions around Israel and Lebanon have overshadowed weakening US economic data in May, with each day this week recording a daily increase and Brent expected to end the week at $87 per barrel.
Calcasieu Pass 2 Receives Green Light. The US Federal Power Commission (FERC) voted 2-1 to allow the construction and operation of the 20 mtpa Calcasieu Pass 2 liquefaction plant in Louisiana, paving the way for operator Venture Global to become the second-largest US LNG exporter.
Not All M&A Can Impress Oil Investors After the company focused on Eagle Ford, SM Energy (NYSE:SM)to buy private equity-backed XCL Resources’ shale assets in Utah’s Uinta region for about $2 billion, its shares fell an impressive 10% in Thursday’s trading session.
Hedge Funds Backtrack on Oil Futures Hedge funds and other investment managers have increased their exposure to Brent futures and options, buying the equivalent of 69 million barrels in the week ended June 18, the fourth-biggest weekly increase since 2013.
Nigeria’s Refining Dreams Crushed by Fire Nigeria’s 650,000 b/d Dangote refinery has suffered a fire this week with the effluent treatment plant sending dense plumes of smoke over the port of Lekki, while gasoline deliveries from the refinery were delayed until at least July.
Norway to Launch Seabed Mining in 2025. Norway’s government said it will open up vast areas of its Arctic in its first round of seabed mining licenses, which will take place in the first half of 2025, offering 386 blocks across 280,000 km2 as two companies have already applied for licenses.
Dallas Fed Sees Little Improvement in U.S. Upstream The Federal Reserve Bank of Dallas’ quarterly survey showed that oil and gas activity in Texas, Louisiana and New Mexico increased only slightly in the second quarter, with most upstream executives surveyed expecting a sideways trend. in the near future.
Russia Aims to Deliver Gas to Iran via Pipeline Russian natural gas giant Gazprom has signed a memorandum of understanding with Iran’s national gas company NIGC to supply gas via pipelines to Iran, despite Tehran having the world’s second-largest gas reserves after Russia.
European Airlines Start Charging for Clean Fuel. Europe’s largest airline group, Deutsche Lufthansa (FRA:LHA) will introduce an additional charge of up to $77 per flight from early 2025 to cover the rising costs of alternative fuels, coinciding with the EU requirement to use at least 2% SAF from next year.
Investment Appeal in Alaska’s Coastal Waters Fading. Italy’s major oil company, ENI (BIT:ENI)has agreed to sell its Alaskan offshore oil operations to US producer Hilcorp for an undisclosed fee, increasing the latter’s production to 135,000 boe/d, two months after the Biden administration limited drilling in Alaska.
Argentina Still Does Not Find Oil on the High Seas. Norway’s state-owned oil company, Equinor (NYSE:EQNR)revealed that the first offshore well drilled in Argentina’s territorial waters, the Argerich-1 exploration well, found no clear signs of hydrocarbon deposits.
Saudi Aramco in Search of More LNG. Saudi Arabia’s national oil company has signed a non-binding agreement with the US energy developer Sempra (NYSE:SRE) to supply 5 mtpa of LNG over 20 years and is preparing to invest 25% in Phase 2 of the Port Arthur LNG project.
TMX Desperately Needs Freight Forwarders. The recently launched TMX pipeline in Canada could take years to become profitable, as the operator needs full utilization of spot tolling, equivalent to 20% of nominal capacity, for equity to turn positive in 2026; In the worst case, it could take 8-9 years.
Trafigura Seeks to Replace Glencore in Congo. Global trading giant Trafigura has secured a supply deal with the Kipushi zinc mine in the DRC, operated by Ivanhoe Mines (TSE:IVN)consolidating its position in zinc concentrates after rival Glencore refused to extend its exclusive buying rights.
By Michael Kern for Oilprice.com
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