Despite reports from the IEA and OPEC that emphasized a decline in oil demand, oil prices jumped on Friday because of fears of Europe implementing a Russian oil ban.
Falling demand has been the news of the week for oil markets, with several reports (most notably from the IEA and OPEC) slashing 2022 demand forecasts as soaring inflation and provide chain disruptions take their toll. Meanwhile, neither the EU oil ban on Russia nor China’s Covid lockdowns provided any new developments - both of which is able to still hang over oil markets within the coming days.
Saudi Aramco Becomes World's most beneficial Company. Saudi Aramco (TADAWUL:2222) overtook Apple because the world’s most beneficial company, with its market capitalisation hitting $2.4 trillion in the week, whilst that of its closest competitor Apple has dropped by nearly 20% since the start of the year.
Hopes For Iran Nuclear Deal Fade. With the ecu Union’s designated negotiator Enrique Mora in Teheran in the week, in an exceedingly last-ditch effort trying to revive the 2015 JCPOA deal, hopes that a negotiated settlement will be found still wane as U.S. Congress opposes the thought of lifting sanctions on the IRGC.
Texas Readies for Heatwave Grid Test. The Texas installation are tested next week as this year's first major heatwave is about to hit the state, with daily high temperatures assumed to climb to 98° F and day-ahead power prices jumping to a six-month high of $195/MWh.
OPEC+ Misses The Mark all over again. Dragged down by plummeting Russian production, continuous underperformance in Angola and Nigeria, and port disruptions impacting Kazakhstan, the collective output of OPEC+ countries was 2.7 million b/d below the targeted level, marking the worst month in terms of production discipline within the oil group’s post-pandemic history.
Gazprom Sanctions Former Subsidiaries in Europe. Russia’s Gazprom (MCX:GAZP) has imposed sanctions on its former German unit furthermore as on the owner of the Polish a part of the Yamal pipeline, during a move that may trigger another escalation of tensions in a very segment that the EU has to date avoided sanctioning.
Venture Global Supply Deals Make Second Terminal Reality. Having signed two LNG supply deals with ExxonMobil (NYSE:XOM) and Petronas, liquefied gas developer Venture Global LNG managed to secure buyers for 80% of the planned 20 mtpa Plaquemines liquefaction plant, bringing an FID closer.
Petronas and Saudi Aramco Restart Refinery. Malaysia’s national company Petronas and Saudi Aramco (TADAWUL:2222) announced the 300,000 b/d jointly operated Pengerang refinery will resume operations soon, coming from a 2-year hiatus caused by a deadly fire in March 2020.
Bolsonaro Fires Energy Minister Amid Diesel Row. Only days after Brazil’s national company Petrobras (NYSE:PBR) hiked road fuel prices to remain in line with global levels, President Bolsonaro replaced his energy minister Bento Albuquerque, allegedly for failing to stay transportation fuel prices unfree.
Alberta Court Moves Against Federal Environment Law. Alberta’s highest court ruled that the federal Canadian law assessing how major infrastructure projects like pipelines impact the environment is unconstitutional because it interferes with provincial powers, setting the scene for a protracted row with Ottawa.
IEA Maintains Renewable Growth Forecast. The International Energy Agency forecasts that despite energy security issues persisting globally, renewable additions in 2022 will still reach an all-time high of 320 GW capacity, driven primarily by solar energy while feedstock prices have soared this year.
Libya’s Vying Governments Want Embargo to finish. Libya’s Haftar-backed prime minister Fathi Bashagha stated that closed oil fields and ports might soon reopen after production within the country halved to 600,000 b/d in April, though there seems to be little progress in talks between the rival governments.
PEMEX may well be sure Another Shared Field. Mexico’s authorities indicated that ENI’s (NYSE:E) Mizton well can be a component of a shared reservoir with PEMEX’s shallow-water Uchukil, potentially paving the way for a forced unitization deal along the lines of last year’s Zama agreement.
India’s Rail Bottlenecks Aggravate Coal Shortage. India’s distributed coal stocks remain acutely low, with powergen companies’ inventories standing at a mere 8 days of consumption, as rising domestic production couldn't be shipped around swiftly – the quantity of coal trains India wields now's no different than a year ago.
China Ramps Up Metals Exports as West Falters. China exported the best monthly volume of aluminum since 2010 last month (45.3kt), with its Q1 zinc exports already eclipsing last year's total, during a sign that low-cost Chinese smelting has been getting a tangible competitive edge over its Atlantic Basin counterparts.
Thanks for reading and we’ll see you next week.
