Oil prices have risen over the past three weeks as geopolitical tensions rose, although troubling economic data in the US could drag prices down.
Friday, June 28, 2024
All eyes are on US inflation data as crude oil prices maintained their hot streak and are set to end the week with a third weekly gain. Rising geopolitical tensions around Israel and Lebanon have overshadowed weak economic data from the US in May, with each day this week posting a daily gain and Brent to end the week at $87 a barrel.
Calcasieu Pass 2 Given the green light. The US Federal Energy Regulatory Commission voted 2-1 to allow 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 every M&A can impress oil investors. Behind the upper signature of the Eagle Ford SM Energy (NYSE:SM) bought private equity-backed XCL Resources’ shale assets in Utah’s Uinta region for about $2 billion, its shares fell a whopping 10% in Thursday’s trading session.
Hedge Funds Make U-Turn on Oil Futures. Hedge funds and other money 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-fastest week-on-week increase since 2013.
Nigeria’s refining dreams are extinguished by fire. Nigeria’s 650,000-barrel-a-day Dangote refinery caught fire this week with the effluent treatment plant sending dark plumes of smoke across Lekki’s port, while shipments of gasoline from the refinery were delayed until at least July.
Norway to start seabed mining in 2025. Norway’s government said it will open up vast areas of its Arctic in the first round of seabed mining licensing, to be held 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 upstream US. The Federal Reserve Bank of Dallas’ quarterly survey showed oil and gas activity in Texas, Louisiana and New Mexico rose only modestly in the second quarter, with most upstream executives surveyed expecting a sideways trend. Further.
Russia eyes gas shipments to Iran. Russian natural gas giant Gazprom has signed a memorandum of understanding with Iran’s national gas firm NIGC to supply pipeline gas to Iran, despite Tehran holding the world’s second-largest gas reserves after Russia.
European airlines start charging for clean fuel. Europe’s largest airline group Lufthansa (FRA:LHA) will introduce a surcharge of up to $77 per flight from early 2025 to cover the rising costs of alternative fuels, coinciding with the EU’s requirement to use at least 2% SAF from next year.
The appeal of Wanes’ offshore Alaska investments. The main oil in Italy ENI (BIT:ENI) has agreed to sell its upstream Alaska oil operations to US producer Hilcorp for an undisclosed fee, boosting the latter’s output by 135,000 boe/d, two months after the Biden administration restricted drilling in Alaska.
Argentina has yet to find offshore oil. Norwegian State Oil Company Equinor (NYSE:EQNR) found that the first offshore well drilled in Argentina’s territorial waters, the Argerich-1 exploration well, failed to find any clear signs of hydrocarbon deposits.
Saudi Aramco in search of more LNG. Saudi Arabia’s national oil firm 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 make a 25% equity investment in phase 2 of the Port Arthur LNG project.
TMX desperately needs potential consignors. The recently launched TMX pipeline in Canada may take years to turn a profit as the operator needs to fully utilize the local tariff, equivalent to 20% of the table capacity, to turn equity positive in 2026; at worst, it may take 8-9 years.
Trafigura wants to relocate Glencore to Congo. Global trading giant Trafigura has entered into a supply agreement with the Kipushi zinc mine in DR Congo, operated by Ivanhoe Mining (TSE:IVN)cementing its position in zinc concentrates after rival Glencore refused to extend its exclusive taking rights.
By Michael Kern for Oilprice.com
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