In this week’s newsletter, we are going to take a fast have a look at a number of the critical figures and data within the energy markets. we are going to then examine a number of the key market movers early on before providing you with the newest analysis of the highest news events going down within the global energy complex over the past few days. We hope you enjoy.
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- With ICE Brent spiking above $90 per barrel earlier on, the main target of the industry is increasingly on stock changes across the world as inventories in OECD nations plunged to a 7-year low.
- Commercial crude stocks within the US have seen some optimism lately with another stock build expected on, but combined crude and merchandise stocks are still some 100 million barrels below the 5-year range.
- The historically below-average levels of crude inventories are in an exceedingly large part a consequence of OPEC undershooting its supply commitments.
- in keeping with Reuters data, OPEC+ missed its production target by a mean rate of 800,000 b/d last year as most countries have hit their spare capacity limits.
Market Movers
- Following a cyberattack on German logistics firm Marquard & Bahls on Tuesday, UK major Shell (NYSE:RDS.A) saw the operations of fuel stations across Northern Germany debilitated and was forced to reroute oil supplies.
- US major ExxonMobil (NYSE:XOM) announced plans to restructure its operations - combining its refining and chemicals units into one, elevating its energy transition to a main product line and moving its headquarters to a replacement campus north of Houston.
- French oil firm TotalEnergies (NYSE:TTE) will seek to restart its $20 billion Mozambique LNG project off the African country’s coast this year, one year after an Islamic State-linked insurgency devastated the adjacent regions.
OPEC+ Expected to Continue Adding Crude. OPEC+ is anticipated to stay with its monthly 400,000 b/d increments because it reconvenes for a ministerial meeting on the second of February, with the oil group thus far resisting external pressure to build production more quickly.
Iran Claims Significant Headway Made in Nuclear Talks. Iran’s Foreign Ministry stated that the eighth round of Vienna talks that seek to revive the 2015 nuclear deal made ‘significant progress’, with parties returning to their countries for consultations after drafting a road-map for sanctions relief and therefore the prospective deal’s verification schemes.
EU Reconsiders Nord Stream 2 Amid Ukraine Tensions. the ecu Commission has put Gazprom’s (MCX:GAZP) Nord Stream 2 pipeline on hold as Brussels is repeatedly looking into the project’s compliance with Europe’s energy policy.
Oklahoma Earthquake Triggers Regulator Probe. Oklahoma’s oil and gas regulator announced it might shut several saltwater disposal wells following a 4.5 magnitude earthquake in a region previously susceptible to quakes, with more measures expected as higher drilling activity triggers more tremors.
Cold Weather Forecasts Push US Natgas Higher. even as US gas futures netted their first monthly gain since September, the Henry Hub March-delivery contract rose further in the week, trading around $4.9 per mmBtu on the rear of colder-than-usual forecasts for the subsequent fortnight.
Get Ready for a Zinc Price Storm. Following a recent announcement by zinc smelter Nyrstar (EBR:NYR) that it'd place in Auby smelter in France on care and maintenance thanks to high power prices, spiking prices indicate an enormous gap in Europe’s supply and increasing its dependence on Asian imports.
Norway LNG Delay Jeopardizes Europe Supply. Norway’s Hammerfest LNG is due for one more delay because it remains yet to restart production after a hearth in September 2020, with operator Equinor (NYSE:EQNR) announcing that it expects to resume output in May 2022, two months later than previously assumed.
Iran Supplies Condensate to Venezuela Again. in the week will see the arrival of Starla, another Iranian VLCC tanker carrying condensate from the center Eastern producer to Venezuela’s main port of José, providing PDVSA with a key diluent for its heavy grades because it gradually ramps up production.
Top UK Geologist Warns Against CO2 Storage. The UK’s leading geologist John Underhill warned that large-scale CO2 injection plans have to be reviewed over leakage which many areas where storage is to overlap with offshore wind farms would see marine monitoring obstructed.
Libya Wants to Tap into its Renewables. Still captivated with crude burning and domestic fossil fuel for electricity generation, Libya’s NOC wants oil fields to run on alternative energy – a development that might save to twenty of the country’s budget, though Tripoli lacks funding to speculate in renewables properly.
Kuwait and KSA Want More Neutral Zone Production. Riyadh and Kuwait are pressing ahead with plans to work up production from the jointly developed Neutral Zone, with output currently trending some 300,000 b/d, some 200,000 b/d below nameplate capacity - this can be excellent news for Chevron (NYSE:CVX), operator of the onshore Wafra field.
Germany Wants to Scrap Clean Energy Levy. With German base power prices still trading around 150 per MWh ($170/MWh), the govt. in Berlin is mulling the cancellation of a levy on electricity bills used as a cross-subsidy of renewable projects, as households are set for a 60% power price hike this year.
China Goes ‘Scientific’ on ore Prices. Following a 60% rise in ore prices since November, China’s economic planning body NDRC said it'd supervise the pricing of iron as there are ‘many abnormal fluctuations’ over the past weeks, depressing the stock value of main ore producers.
See you next week w/ more current facts and figure from The Mumbai Multimedia Studio