In this our week’s newsletter, we'll take a fast study a number of the critical figures and data within the energy markets. we are going to then have a look at a number of the key market movers early in the week before providing you with the most recent analysis of the highest news events happening within the global energy complex over the past few days. We hope you enjoy. - Russian crude exports have reached post-pandemic highs despite falling production rates, with robust buying forthcoming the rear of heavily discounted barrels. - the most export grade of Russia, the medium sour Urals, has been trading at discounts below -$30 per barrel to Dated Brent, becoming arguably the most cost effective major crude stream on the market. - Crude exports out of Russia’s terminals averaged 5.03 million b/d in April, spearheaded by an unlimited uptick in Indian buying, quadrupling to 900,000 b/d compared to February numbers. - That being said, flows might drop after May 15 when EU sanctions barring transactions with Rosneft and Gazpromneft acquire effect. Market Movers - Norway’s national company Equinor (NYSE:EQNR) sold its stake in Norway’s giant legacy Ekofisk field to non-public equity-backed Svar Energi, together with a 19% within the Martin Lange field, for a complete of $1 billion. - The Canadian government has fast-tracked talks with Spain’s Repsol (BME:REP) and Canadian Pieridae Energy (PEA) to create two LNG terminals on the country’s geographical region, simultaneously negotiating with potential European buyers. - Shareholders of Occidental Petroleum (NYSE:OXY) vetoed a proposal by Dutch activist investor group Follow This to increase the oil firm’s current carbon emissions reduction targets. Fears of economic slowdown are bleeding into the oil market. Oil demand is being threatened by extended lockdowns in China, inflation-driven rate hikes, and fears of Europe potentially dropping into recession if the Russia-Ukraine war continues to escalate. Ebbing inventories, with the US poised to determine stock draws across the crude/product spectrum, contributed some support but did not halt ICE Brent futures from falling towards the $100 per barrel mark. Saudi Arabia Blames High Fuel Prices on Lack of Investment. Insufficient investment in global refining capacity has been one among the key drivers in soaring product prices, in step with Saudi Arabia’s energy minister Prince Abdulaziz bin Salman, reiterating the claim that lack of investment is keeping oil markets from rebalancing. EU to supply Defiant Countries More Funds. the ecu Commission plans to supply Eastern European EU nations that have thus far objected to an embargo on Russian oil (Hungary, Slovakia, and also the Czech Republic) extra money to upgrade oil infrastructure, though their sanctions waivers are still to be arranged. US NatGas Futures Plunge. With meteorologists moderating their forecasts for a milder-than-expected May and European demand weakening amidst high rates of gas inventory replenishment, front-month Henry Hub gas futures have dropped some 15% to $7 per mmBtu. EU to Drop Shipping Sanctions Against Russia. the eu Union is predicted to drop a proposed ban on EU-owned vessels from transporting Russian oil anywhere within the world, with Greece, the continent’s leading shipping nation, threatening to veto the sanctions proposal if it were maintained. Venezuela Starts Refining Heavy Iranian Oil. Venezuela has begun importing Iranian heavy crude to feed its domestic refineries, widening the swap agreement between the 2 countries that first saw PDVSA importing condensate to dilute its heavy waxy crude. Germany Hits Negotiation Roadblock with Qatar. per media reports, Germany and Qatar have hit difficulties in talks over their LNG deal, with emissions-cutting Berlin remaining wary of committing to 20-year contracts whilst Qatar opposes any type of reselling clause. Iraq Goes Hard on Kurdish Crude. Federal Iraqi authorities said they might start bringing drilling from the semi-autonomous Kurdistan region under their control after talks with the regional government in Erbil ran aground, with the allocation of oil revenues remaining the key point of contention. US Mulls Revival of Oil Spill Tax on Crude Exports. The Biden Administration is appealing a 2019 court ruling that found US crude exporters should be exempt from a 9 cent per barrel oil spill cleanup tax, saying the choice blocks a critical source of funding. South Sudan Wants to Nationalize its industry. the govt. of South Sudan intends to require over the operations of international oil firms within the country after respective production-sharing contracts expire, impacting primarily China’s CNPC (SHA:601857) and Malaysia’s Petronas. Petrobras Vows to stay Fuel Pricing Market-Based. Newly appointed top executives at Brazil’s national company Petrobras (NYSE:PBR) stated they might follow market-oriented pricing policies, hiking diesel prices by 9%, despite public criticism coming from President Jair Bolsonaro who wants to determine fuel prices capped. Israel Sees Another Off
shore Gas Discovery. Mediterranean-focused gas producer Energean (LON:ENOG) announced it had made another commercial gas discovery off the coast of Israel, although the 8 bcm of recoverable gas reserves was just a fraction of the pre-drilling 21 bcm resource estimate.
Indonesia’s President to satisfy Elon Musk over Nickel Deal. Indonesian President Joko Widodo is predicted to fulfill Elon Musk during an officer US visit, with EV car maker Tesla (NASDAQ:TSLA) reportedly closing in on a nickel supply deal that would see a bigger a part of the availability chain remain within the country.