Crude prices bounced on Saturday, recuperating some losses as China's COVID lockdowns become the most narrative in oil markets again.
Chinese weakness has become the key point of the past week. First, the country’s PMI index for August recorded a mere 49.4, roughly in line with July, indicating that the much-anticipated economic activity rebound continues to be far away from becoming real. Second, the return of lockdowns in multi-million megapolises like Shenzhen or Chengdu will inevitably weigh down oil demand as (once again) nobody really knows how long the restrictions will last. Political instability in Iraq has did not achieve any bullish trend, even as the prospect of an Iran nuclear deal keeps on lingering around without anyone seeing the smaller picture of political guarantees. Until OPEC+ meets on September 05, China-driven demand fears will lead the market narrative, seeing ICE Brent down at $92 per barrel.
EU Tries Its Luck with Power Price Cap. Brussels is functioning on an electricity price cap that will limit the utmost price for generators who run on wind, solar or nuclear – under current EU rules the market value is ready by the last power station needed to satisfy demand, most frequently a gas one, allowing lower-cost generators to make the most.
Germany Charters Fifth FLNG Terminal. The German government intends to charter another floating LNG terminal for the winter season of 2023/24, about to place the 5 bcm annually FSRU off the northern coast in Wilhelmshaven and have it operated by E.ON (ETR:EOAN), Engie (EPA:ENGI) and Tree Energy Solutions.
Iran Demands Stronger U.S. Guarantees. Iran’s secretary of state Hossein Amir abdollahian said that Tehran is seeking stronger guarantees from the U.S. to create the nuclear deal work, including a definite no-snapback clause from Washington yet as a halt to IAEA probes into its nuclear program.
Gazprom Savors the Turbine Blame Game. With Russia’s Gazprom (MCX:GAZP) halting gas flows via Nord Stream 1 for one more round of maintenance, the corporate CEO took to the media, saying that ‘sanctions confusion’ resulted in Siemens Energy not having the ability to service the pipeline’s turbines, potentially pointing towards further disruptions.
Qatar to make World’s Largest Blue Ammonia Plant. Qatar Energy announced it'd build a 1.2mtpa blue ammonia plant expected to be commissioned in early 2026, becoming the biggest such project worldwide, with some 1.5mtpa of greenhouse gas stored and sequestered within the process.
Kazakhstan Production Hamstrung by Kashagan Woes. Output at Kazakhstan’s giant Kashagan oilfield will remain around 100,000 b/d (approximately 20% of nameplate capacity) a minimum of until the top of September, following a gas leak discovered in early August.
Global Warming Hinders Iranian Nuclear Generation. With water temperatures exceeding 35 C (95 F) this summer, Iran’s only atomic power plant in Bushehr is struggling to take care of its production capacity because the seawater within the gulfis simply too look at calm down reactors.
The Philippines Wants to mix Forces with China on Exploration. Trying to beat territorial disputes with China, aggravated by a 2016 arbitration ruling that backed Manila, the Philippines’ government has voiced its readiness to open new talks with Beijing on joint oil and gas exploration within the South China Sea.
Chilean State Hints at Lithium Compromise. Despite coming into office with an agenda of nationalizing Chile’s lithium industry, the Chilean President Gabriel Boric said the country’s new law draft remains up for debate with lithium producers because the legislative motion is about to be voted upon next week in Congress.
U.S. Majors Flee California. Both ExxonMobil (NYSE:XOM) and Shell (LON:SHEL) have sold their stakes within the Aera venture that they operated in California’s San Joaquin Valley, with drilling at 125,000 b/d, to German asset manager IKAV for $4 billion.
Saudi Aramco Mulls Automotive Investments. As French carmaker Renault intends to separate its fossil-fuel engine business unit from its EV division, it seems that the mystery company that's mulling to require a stake within the thermal engine business alongside Chinese firm Geely (HKG:0175) is that the Saudi state company Saudi Aramco (TADAWUL:2222).
Thanks for reading and we’ll see you next week.