The oil sell-off continued on Friday, with WTI prices falling more than 5% as China reportedly asked the Saudis to ship less crude in December.
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Friday, November 18, 2022
One could hardly ask for a week of more action – the prospect of the start of World War III, a drone missile attack on an oil tanker in the Middle East, market optimism. The market from improving inflation data was quickly tempered by an ever-worsening coronavirus outlook in China. There, things got so bad that Chinese refiners asked Saudi Arabia to cut their specified volume for December, while also cutting other purchases. China’s return has been a very important part of the recent bull run, so ICE Brent’s slide below $90 a barrel again is not a surprise.
SPR cave needs refurbishment. White House asks Congress for $500 million modernization Salt caves contain strategic petroleum reserves in the United States, located on the coasts of Texas and Louisiana, as SPR oil transportation operations corrode pumps and steel equipment due to salt involvement.
The Black Sea grain trade lasted for 4 months. The UN-brokered agreement to create a protected maritime corridor for grain exports out of Ukraine is extend for 120 days there was no change, causing the price of agricultural products to drop as the main bearish factor in the market was temporarily removed.
Related: Biden administration calls for immunity over Saudi crown prince’s cost in Khashoggi case
Saudi Aramco doubled South Korea. S-Oil (KRX:010950), the Korean refining subsidiary of Saudi Aramco (TADAWUL:2222) is set to invest The $7 billion oil-to-petchem project marks the first commercial use of a technology that Saudi Arabia’s NOC co-developed with Lummus.
COP27 is destined for failure. When the United Nations climate agency announced a first draft on the alleged communiqué of the COP 27 climate summit in Egypt, calling for a “gradual reduction” of all fossil fuels rather than their complete elimination, the response of climate activists was The disappointment did not abate.
The United States will ban fossil fuel-powered heavy-duty cars by 2040. Speaking at the COP27 climate summit in Egypt, US Secretary of Energy Jennifer Granholm stated The White House intends to sell only zero-emissions medium and heavy-duty vehicles such as buses, delivery vehicles or trucks by 2040.
The Norwegian Blaze Stokes is concerned about lower supply. Production from the semi-submersible Asgard B platform operated by Equinor (NYSE:EQNR) on Norway’s continental shelf remains close the door after a fire broke out last Sunday, cutting about 7% of the country’s total gas exports of 300 MMcmd.
Mexico seeks US investment in Lithium. Mexican President Lopez Obrador has call However, as US and Canadian companies enter the country’s nascent lithium market, it could be a long time with all lithium nationalized and investors forced to do so. work with the national lithium company.
Diamondback strengthens the Permian portfolio. US oil producer Diamondback Energy (NYSE:FANG) agreed to purchase all of Lario Permian’s rental income and assets for approximately $1.5 billion in cash in stock, adding approximately 25,000 acres in the Northern Midlands Basin in Texas, or the equivalent of 18,000 barrels /day additional output.
Back to the cool LNG appetite of French nuclear. After a year of reactor shutdowns and strikes, France’s nuclear power industry is slowly returning, leap 11% month-on-month in October to nearly 40 TWh, which has caused a marked slowdown in French LNG purchases from the market.
Environmentalists pursue a global LNG venture. Three environmental groups have sued The Louisiana Natural Resources Authority has exempted Plaquemines’ 13mtpa liquefaction capacity, one of four LNG projects currently under construction, that does not require an environmental permit to build an LNG terminal.
Time for more Polymers in Texas. Chevron Phillips Chemical, a petrochemical-focused company jointly owned by Chevron (NYSE:CVX) and Phillips 66 (NYSE:PSX), has obtain final investment decision to build an $8.5 billion polymer facility in Orange, TX, along with national oil company QatarEnergy.
Italy insists on the imposition of a personal income tax. An Italian administrative court has rejected an appeal by energy companies against a 25% irregular income tax imposed by the government, while the Meloni government admits that the bill needs to be rewritten because turnover prove much lower than expected.
Guyana-Venezuela border hearing begins. The International Court of Justice has begun hearing This week to settle a centuries-old maritime dispute between Venezuela and Guyana, covering nearly 160,000 square kilometers of disputed territory in the province of Essequibo last demarcated in 1899.
Unexpected utility of platforms removed. Several abandoned Chevron (NYSE:CVX) offshore rigs in the Gulf of Thailand now serve as artificial coral reef for species that breed in an overfished area, creating a new trend that goes against the practice of decommissioning.
By Tom Kool for Oilprice.com
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