In this week’s our newsletter, we'll take a fast examine a number of the critical figures and data within the energy markets. We will then observe a number of the key market movers early in the week before providing you with the most recent analysis of the highest news events going down within the global energy complex over the past few days. We hope you enjoy. - After over 2 years of coordinated production cuts, OPEC+ has reached the purpose when it now not must increase production targets and desires to rethink the long run of the 18-member oil group. - Most analysts expect no or simply very moderate changes to the OPEC+ September 2022 production guidance – with June figures already reaching a hefty 320% compliance rate, incremental supply remains the most challenge for members. - The worsening demand outlook will play part in OPEC+ higher cognitive process because the group wants to stay oil prices high enough to get bumper profits without stymieing adequate supply to the market. - With Russia facing a series of sanctions from 2023 onwards and thus vulnerable to production drops, Kingdom of Saudi Arabia is seeking to stay OPEC+ because the oil market’s coordination force, preferring to avoid sudden market shocks as Riyadh has finally grown to enjoy a protracted windfall period. Market Movers - Saudi Aramco (TADAWUL:2222) has reportedly bought US lubricants producer Valvoline (NYSE:VVV) because it seeks to expand its foothold within the downstream business, for a reported sum of $2.65 billion. - The world’s largest EV battery maker, the Chinese CATL (SHE:300750) has seen its chairwoman Huang Shilin resign on, with founder and chairman Zeng Yuqun taking on the concurrent role of chief, sending the extra service 5% on Monday alone. - one among the biggest turbine producers globally, Siemens Gamesa (BME:SGRE) is considering cutting some 10% of its current workforce or 2,500 jobs, on the rear of one more 2022 guidance decrease. One oil major after another is announcing phenomenal quarterly earnings and revved-up share buyback programs, with the likes of BP, Marathon, and Devon Energy joining the list in the week. Meanwhile, Brent prices are slowed down at round the $100 per barrel mark up to now in the week. Should tomorrow’s OPEC+ meeting devolve into another campaign of smoke and mirrors, the structural weakness in demand coming from weak global manufacturing data and Europe’s ongoing struggle to contain Russia’s energy blackmail might reappear again, pushing oil further down into double-digit territory. US Targets Iranian Oil Trade Again. The US Treasury and State Department imposed sanctions on an additional six companies, based in port, Singapore, and also the UAE, for allegedly facilitating exchange Iranian oil and petrochemical products, the third round of blacklisting within the last two months. OPEC Woos Russia to remain in Oil Group. Haitham al-Ghais, OPEC’s new executive, stated Russia’s participation in OPEC+ is important for the success of the agreement, adding that the group doesn't control oil prices but finetunes the market in terms of supply and demand. Nord Stream Blame Game Never Stops. With markets still having no idea where the ominous Nord Stream 1 turbines are, Russia has said that there's little it can do to revamp pumping along the pipeline because it continues to produce only 20% of nameplate capacity with only 1 turbine working. Iran Signals Readiness for brand new Round of Talks. With the ecu Union still proposing new initiatives to breach the gap between the US and Iran, with Brussels submitting a brand new draft text on the JCPOA revival, Tehran said it's able to set new talks provided they cause a “sensible and stable” deal. Australia Wants to stay Its Gas reception. Australia is considering curbing exports of its LNG after a national watchdog that more fossil fuel is required to satisfy the requirements of its geographic region amidst dramatically declining onshore production, with some restrictions likely even looking into 2023. Luxembourg Moves to Freeze Ecuador Assets. Banks in Luxembourg were ordered to freeze assets held by Ecuador after the Latin American didn't honor a $391 million payment towards Anglo-French oil firm Perenco, a results of its unlawful ending of a production-sharing agreement. ADNOC Finds Offshore Gas. UAE national oil firm ADNOC, together with block operator ENI (NYSE:E) and PTTEP, discovered a second gas play in Offshore Block 2, adding 1-1.5 TCf to a shallower target appraised earlier this year, all this only three years after the acreage was awarded in Abu Dhabi’s first-ever block bid round. Nigeria’s Main Export Grade Halted Amidst Leaks. The Shell (LON:SHEL)-operated Forcados terminal has been out of operation since July 17 after a leak was found from a subsea hose, with August cargoes already deferred into September because the 200,000 b/d stream remains marred by cataclysm events. US Diesel Becomes Hedge Funds’ New Favorite. per CFTC figures, hedge funds and other money managers purchased the equivalent of 9 million barrels in US diesel futures within the week to July 26, an indication that slow stock builds of middle distillate spell trouble for diesel prices ahead. Copper In Jitters After Giant Chilean Sinkhole. Chilean authorities started an officer investigation into a large sinkhole at the Alcaparrosa mine operated by Lundin Mining (TSE:LUN), 82 feet in diameter, potentially spelling trouble for copper production in Chile’s northern regions, home to almost 30% of worldwide copper production. China Pioneers Offshore oil Drilling. With China’s upstream segment increasingly that specialize in shale plays, state-controlled oil firm CNOOC (HKG:0883) successfully tested production at the Weiye-1 well, the country’s first-ever offshore oil well. Texas Struggles With Unbearable Heat. the electrical Reliability Council of Texas (ERCOT) issued a warning that power use within the Lone Star State will break records in the week again, with peak demand expected to return on Wednesday at 80,076 MW (the previous all-time high was reached fortnight ago, at 78,828 MW).
