Oil prices rebound as bullish sentiment returns
Bullish sentiment appeared to return to markets on Friday morning as a combination of supply disruptions and an apparent easing between the US and China gave hope to oil markets.
Oil price today: Friday, September 10, 2021
With three-quarters of crude production still closed in the Gulf of Mexico, Hurricane Ida remained one of the main factors driving price movements this week. In addition to tight supplies in the United States, the EIA reporting a 1.5 million bpd drop in total production week-over-week on Friday sparked further bullish sentiment as Xi-Biden’s phone call raised hopes for a more harmonious US-China relationship, offsetting downside factors like the auction of strategic Chinese stocks. To date, Brent has traded around $ 73 a barrel, while WTI has been trading just south of $ 70 a barrel.
China releases strategic crude reserves.
For the first time, the Strategic Reserves Administration of China will hold an auction on the volumes of SPR to be supplied to integrated refiners and chemical plants (i.e. state-owned enterprises) with the aim of controlling the increase in commodity prices.
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US Natgas futures hit $ 5 / mmBtu for the first time since 2014.
U.S. natural gas futures have soared this week as expectations for warmer-than-expected weather coincided with production disruptions induced by Hurricane Ida, with delivery prices in October breaking the 5 mark. $ per mmBtu for the first time since February 2014.
Saudi Aramco goes into steel.
Beyond its traditional field of activity, the world’s largest oil producer Saudi Aramco (Tadawul: 2222) signed an agreement with Chinese steelmaker Baoshan (600019) to build a steel sheet plant in Saudi Arabia, marking the second metals-related company of the Saudi NOC.
Libyan export terminals blocked by protesters.
Libyan terminals at Es Sider and Ras Lanuf were blocked by protesters who forced ships to halt loading operations as calls for the dismissal of NOC chief Mustafa Sanalla intensified, potentially triggering another prolonged period of internal strife in this North African country.
Gazprom is awaiting the German nod on Nord Stream 2.
After completing the construction of the Nord Stream 2 gas pipeline, the Russian gas giant Gazprom (MCX: GAZP) now awaits approval from the German regulator, a process that could take several months.
LyondellBasell is considering the exit of the Houston refinery.
American chemical company LyondellBasell (NYSE: LYB) would try to sell its 265 kbpd Houston refinery as soon as possible. This is the second time LyondellBasell has attempted to sell after 2016 talks with Saudi Aramco failed to produce any results.
Papua New Guinea could derail the Santos merger.
Concerned that the ongoing merger between Australian energy companies Santos (ASX: STO) and Oil search (ASX: OSH)could give the company too much control over PNG’s oil and gas, the Papua New Guinea government is considering its options to veto the deal.
India is speeding up the ethanol blending target.
The Indian government has advanced its 2030 target of seeing 20% ethanol blended into gasoline within five years until 2025, requiring an effective tripling of its ethanol production and reviving its ethanol grain production which has been virtually non-existent. so far relying mainly on sugar cane.
Nigeria’s NNPC is considering IPO options.
Nigeria’s state-owned oil company NNPC, due to become a limited liability company under the country’s new petroleum code, may consider an initial public offering within three years, supported by news that the company has registered its all. first profit last year, Reuters reports. .
Exxon is trying the methane integrity classification.
Under increasing pressure from environmental groups, the American major ExxonMobil (NYSE: XOM) will offer part of its gas assets in the Permian Basin for a third party assessment on potential methane leaks from its production sites.
Colombia is desperate for a new upstream investment.
The Colombian government is basing its hopes on a licensing round in November that will see the National Hydrocarbons Agency offer 28 areas of potential interest, desperate to breathe new life into its declining production rates. Colombia’s oil reserves have fallen to the equivalent of 6 years of production.
PEMEX hit by the KMZ explosion after all.
Although PEMEX claims to have fully recovered from the explosion of the Ku-Maloob-Zaap platform at the end of August, the Mexican Ministry of Finance has revised its crude production estimate downwards for 2022 by some 50,000 b / j to 1.826 million bpd. Mexico’s draft 2022 budget also calls for PEMEX’s profit-sharing requirement to drop from the current rate of 54% to 40%.
BHP partners with billionaire backed company.
Australian miner BHP (NYSE: BHP)signed a partnership agreement with Kobold Metals, a recently launched AI exploration company backed by Bill Gates, Michael Bloomberg and Jeff Bezos, with the goal of finding more battery metals like copper and nickel in Australia .
Hyundai will showcase next-generation hydrogen technology.
The South Korean manufacturer Hyundai Engines (KRX: 005380) pledged to showcase its new hydrogen transmission in 2023, with the goal of applying fuel cell systems to all commercial models by 2028, saying overall costs would be around 50% lower than currently existing technologies .
Nickel prices soar despite Chinese equity releases.
Nickel prices hit their highest level in 7 years – topping $ 20,200 per metric tonne – as still strong demand began to squeeze global inventories. In particular, Shanghai warehouse inventories were down 80% year over year to less than 6,000 tonnes.
By Tom Kool for Oil Octobers
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