While sentiment in oil markets has been decidedly bearish in recent weeks, the chance of Russia escalating its war with Ukraine and news that China is finally opening up mean there's many upside risk in oil markets.
Delivering on its promise to aggressively tackle inflation, the US FRS brought interest rates to their highest level since 2008 with a 75-basis-point hike, confirming analysts’ fears that its primary target of curbing inflation will override any oil-related concerns. However, this week’s escalation within the Russia-Ukraine war has renewed fears of Russian supply cuts which, combined with news of China finally opening up its cities after several months of lockdowns, have counteracted the downside pressure, a minimum of for the present.
EU Prepares Eighth Russia Sanctions Package. With Russia expected to annex parts of east Ukraine after next week’s referendums, EU is looking to place together another sanctions package that will put tighter curbs on high-tech exports and implement a group-wide oil price cap.
Iran and US disaffect from Deal. Tehran and Washington had the chance of getting closer to a nuclear deal at the UN General Assembly, but President Ebrahim Raisi demanded guarantees on any prospective agreement and decried the double standards of Western countries when managing Iran.
UK Lifts Shale Gas Ban. The new UK government lifted a moratorium on fracking for shale gas within the country, in situ since 2019, with Business and Energy Secretary Jacob Rees-Mogg claiming the practice is safe which limits on seismic activity should be re-assessed despite fears of drilling-induced tremors.
EPA to Toughen Emissions Rules for Trucks. The US Environmental Protection Agency is considering adopting more stringent greenhouse emission emission rules for heavy trucks inbuilt model years 2027-2029, arguing that the IRA bill requires more assertive regulatory measures.
Paris Sues Its Own Oil Major. The cities of Paris have joined a network of environmental organizations that are suing French energy major TotalEnergies (NYSE:TTE) for failing to adequately fight global climate change, seeking a choice adore the landmark 2021 Dutch court ruling on Shell (LON:SHEL).
ADNOC Eyes Purchase of Oil Trader. The UAE national company ADNOC is reportedly in early-stage talks to accumulate or take a stake within the world’s fourth-largest energy trading firm Gunvor, with the latter’s majority owner stating its company value rose to $4 billion in H1 2022.
EU Could Exempt US from Carbon Rules. EU might exempt the US from its carbon border levy, which is predicted to begin in 2026, providing the US has “the same trajectory in terms of emission reduction”.
Court Scraps $3.6 Billion Gas Project Permit. Australia’s judicature ruled in favor of an indigenous group that has asked to overturn the drilling permit for the three.6 billion Barossa project off the country’s northern coast, arguing that project operator Santos (ASX:STO) didn’t consult them about the drilling.
Cheniere Vows to mend Polluting Equipment. Having detected increased emissions at its Sabine LNG facility, US LNG exporter Cheniere (NYSEAMERICAN:LNG) pledged to exchange a dysfunctional generator turbine, several months after the corporate asked for an exemption from EPA emission rules.
Another Gas Discovery in Malaysia. The UAE-based Mubadala Energy has made a major gas discovery offshore Malaysia, with the Cengkih-1 exploration well hitting a gas column of quite 110 meters, boosting the long-term prospects of Malaysian LNG volumes.
Europe Mulls New Taxes for Coal. Brussels is now looking into ways to subject coal plants to the EU’s recently announced €180 per MWh cap on power generators’ revenues, although initially they were established for non-fossil-fuel sources as initially coal was thought to possess running costs above the given threshold.
US Refiners able to Buy Canadian Again. Once the US SPR release grinds to a halt, US refiners are expected to double down on cheap Canadian heavy sour grades from Alberta as pipeline operator Enbridge (TSE:ENB) started apportioning pipeline capacity after months of unrestricted supply.
AMLO Considers Dissolving Mexico’s Oil Trading Unit - per media reports, Mexican President Andres Manuel Lopez Obrador is readying to dissolve PMI, the trading arm of national company PEMEX, saying that beyond 2023 most of the country’s crude would be used domestically.
Chinese Oil Major Double Down on Batteries. China’s leading oil producers PetroChina (SHA:601857) and Sinopec (SHA:600028) have joined the world’s biggest battery maker CATL and carmaker SAIC during aventure to produce swappable batteries for electric vehicles
