Oil prices recover after Manic Monday
Despite a major oil price crash on Monday, oil prices are now on track to end the week more or less unchanged.
Friday 23 July 2021
The announcement of the return of production suspended by OPEC + in August 2021, followed by monthly increases of 400 kbpd for the rest of the year, triggered a dramatic drop in oil prices at the start of the week. Despite the surge in pandemic risks in Southeast Asia and the increase in crude inventories in the United States for the first time since May, the second half of the week saw a surprising rebound as the market s ‘is developed to realize that the additional supply of OPEC + would be offset by the recovery in global demand.
Venezuela is buying diluents again. VLCC Rene unloaded a cargo of condensate at JosÃ©’s main Venezuelan export terminal, previously used by PDVSA to dilute extra-heavy Orinoco barrels to create transportable and refinable blends. The origin of the cargo is unknown, the last stop of the supertanker was in Sri Lanka.
Iberdrola could start a wind business. The Spanish wind power giant Iberdrola (BME: IBE) is considering a split of its wind business to raise funds, he said during the presentation of the first half of 2021 results this week. Beyond its traditional markets in Europe, Iberdrola has strengthened its presence in the Asia-Pacific region, to conquer new markets such as Vietnam, Korea and Vietnam.
Germany and the United States agree on the Nord Stream-2 agreement. The White House will lift sanctions on the near-completed Nord Stream 2 pipeline that would bring Russian gas to Germany, in return for Berlin’s pledge to ensure Gazprom (MCX: GAZP) does not completely cut off transit through Ukraine.
Coal prices are at their highest level for more than ten years. Declining Chinese domestic production, unrest in South Africa and weak hydropower generation on the continent pushed Asian coal prices to their highest level in 13 years, with Newcastle’s FOB thermal coal prices flirting with the threshold of $ 150 per metric tonne, double what it was. may’s beginning.
Tesla patents a new method of extracting lithium. Tesla Motors (NASDAQ: TSLA) has filed a patent on a new method of extracting lithium from the ore using sodium chloride, a more environmentally friendly way to obtain lithium, avoiding the need for acid leaching. According to Tesla officials, the new method could lead to a 33% reduction in the cost of lithium.
India is seeking to market stocks of crude. India decided to market half of its strategic reserves to encourage private participation in its SPR – companies would have the option of re-exporting 1.5 million tonnes of crude stored at SPR sites if Indian companies refused to l ‘to buy. ADNOC remains the only oil major to commit to participating in SPR in India.
TAP fails the extension test. The 10 billion cubic meters per year TAP pipeline that carries Azeri gas to Turkey and Europe has not aroused any interest in maritime transport, as no binding offers have been submitted for potential capacity reservations, raising concerns that the European dossier for new gas lines was overblown.
Iran inaugurates the Jask terminal. Iranian officials have claimed that the new crude export terminal at Jask began operations on Thursday, although no vessel tracking data was able to spot a vessel along the jetties. Jask’s 300 kb / d capacity will complement Iran’s main export port on Kharg Island.
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US Natgas Futures Highest level in almost 3 years. U.S. natural gas futures reached their highest level since December 2018 following warmer-than-expected weather and higher demand for air conditioning power, writes Reuters. NYMEX Henry Hub futures for the month of August broke the $ 4 per mmBtu mark, rising over 55% this year to date.
Data stolen from Saudi Aramco. Saudi Arabian National Oil Company Saudi Aramco (TADAWUL: 2222) confirmed media reports that there was a data breach on company data (which would amount to 1 terabyte) but declined to comment on whether the data was used in a cyber extortion attempt . Media reports say the ransom has been set at $ 50 million.
India is considering mandatory green hydrogen. The Indian government is considering the introduction of the compulsory use of green hydrogen in certain industries, with the petroleum, steel and chemical industries listed as the main candidates to fall under the effect of such measures. No details were provided on the alleged delays.
BHP is looking for an oil outlet. australia BHP Group (NYSE: BHP) is considering a complete exit from the oil sector, with its assets estimated at $ 15 billion or more, seeking to focus on its giant iron ore and copper businesses. Media reports suggest Woodside Petroleum would be the prime candidate to take over BHP’s oil and gas portfolio.
Cooling outlook of the Barents Sea. In another blow to Norway’s strategic quest to tap into the alleged bounty of Barents Sea hydrocarbons, Aker BP (AKRBP.OL) made only a minor discovery with its wildcat in license block PL858, undermining hopes that the Arctic shelf could maintain the European country’s production profile.
France softens the narrative of China’s nuclear woes. French EDF (EPA: EDF) suggested he would shut down the Taishan nuclear reactor if similar rod fuel sealing issues were to occur in France. Taishan, the first EPR-type reactor to go into operation, reported accumulations of inert gases, forcing nuclear watchdogs to monitor radiation levels.
Rwanda is looking for its place under the sun. Rwandan authorities have reportedly allocated funds to start a 2D seismic survey around Lake Kivu, in the hope of finding hydrocarbon reserves similar to those TotalEnergies (EPA: TTE) is developing at Lake Albert in Uganda, which will soon be a new 200 kb / d production hub in East Africa.
By Tom Kool for Oil Octobers
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