In this week’s newsletter, we'll take a fast observe a number of the critical figures and data within the energy markets. we'll then examine a number of the key market movers early in the week before providing you with the newest analysis of the highest news events going down within the global energy complex over the past few days. We hope you enjoy the review. Investor Alert: With oil prices on the brink of breaking $100 and Russia sending troops into Ukraine, it's never been more important to remain earlier than energy markets. - Oil prices rose to their highest level since 2014 after Moscow recognized the independence of the breakaway regions of Donetsk and Luhansk and moved its troops into eastern Ukraine, aggravating European supply concerns. - Spot Brent prices are trading above the $100 per barrel since last week, now even ICE Brent futures seem to be climbing increasingly closer thereto threshold. - Backwardation in ICE Brent prices is at the best in additional than a decade, with the 1-month spread between the April and will contracts rising to $2.40 per barrel. - The backwardation doesn't only impact oil markets, gasoil futures are even as tight amid globally low inventories. Market Movers - US oil major ExxonMobil (NYSE:XOM) signed a house the Papua island government on the event of the long-stalled P’nyang gas field, agreeing on a 63% government take. - As elevated crude prices have provided Saudi Aramco (TADAWUL:2222) with windfall profits, the Saudi national company is in talks with Chinese companies to further invest in its downstream sector. - US oil major Chevron (NYSE:CVX) is reportedly looking to sell its assets in African country, acquired as a part of its $13 billion takeover of Noble Energy in 2020, seeking to garner $1 billion from the sale. Just as refining industry CEOs have gathered in London for the International Petroleum Week, reiterating their bullish vision for oil prices, Russia’s policy took center stage and added another layer of upside risks by moving its army into eastern Ukraine. Gas prices shot up in Europe and oil prices followed, driven by concerns that provide disruptions from Russia or potential sanctions packages could make oil markets even tighter than they're today. Brent crude hit $99 early Friday morning before falling back. Germany Halts Nord Stream 2. The German government halted the certification process of Nord Stream 2 on the rear of Russia’s incursion into Ukraine, sending TTF spot prices up by 10% on the day, to €80 per MWh ($29 per mmBtu). OPEC+ Compliance Continues To Be an issue. in step with media reports, OPEC+ compliance with its production targets rose to 129% in January, up 7 percentage points from December 2021, with underperformance being even more prevalent for the OPEC-10, standing at 133% last month. US LNG Feedgas Flows Hit Record Highs. even as Venture Global’s Calcasieu Pass is about to start out commercial production, though only 4 out of 18 liquefaction trains are operational, US LNG feed gas flows are trending at record levels of 13 bcf per day. EU Mulls Compulsory Gas Storage Fill. the ecu Union is considering whether to mandate member states to fill their gas storage capacities as Brussels wants to determine minimum gas storage requirements to avoid this year’s inventory tightness amid low Russian gas supplies. Total Energies Marks Another Major Suriname Discovery. French major TotalEnergies (NYSE:TTE) and its partner APA Corporation (NASDAQ:APA) have made a major oil discovery in Block 58, offshore Suriname, with its Krabdagu-1 well encountering a net pay of 90 meters, the fifth major find within the South American country. Qatar Confirms Little Maneuvering Capacity. per the Qatari energy minister Saad al-Kaabi, Qatar can divert only 10-15% of its exports to customers without contracts, saying that it's ‘almost impossible’ to supplant Russian gas supplies into Europe. Beaumont Refinery Lockout Finally Ends. Union workers locked out of their jobs for 10 months voted to just accept an updated offering from ExxonMobil (NYSE:XOM), allowing the 370,000 b/d Beaumont, TX refinery to avoid a strike and return to normal operations. Canada Stops Funding Trans Mountain Amid Ballooning Costs. Canada’s government announced that it'd stop further public funding for the possible 890,000 b/d Trans Mountain line after its costs had surged 70% to $17 billion and its completion date shifted nine months to Q3 2023. Somalia isn't Yet Ready for Exploration. Somalia’s Prime minister clashed along with his own Energy Ministry and disavowed an oil exploration deal signed with US-based upstream firm Coastline Exploration, arguing that no deals may be signed within the pre-election period. Kuwait Launches LNG Terminal. Kuwait has finally started full operations at its 22 million tons per annum Al-Zour LNG import facility, eight months after it received its first cargo there, helping the country deal with increasing electricity demand. Pentagon to create Up Lithium and Rare Earths Stockpiles. The US Department of Defense is reportedly attending to boost its strategic stockpiles of grouping minerals, lithium, and cobalt to cut back its dependence on China, with domestic production remaining rudimental. Sri Lanka Runs Out of Fuel. Attesting to the continuing travails of emerging economies with little interchange reserves, country has launched an emergency diesel tender because the country is left with only three days worth of gas-oil consumption. Nickel and Aluminium Feel the Russian Heat. Prices of nickel and aluminum soared to multi-year highs on concerns over supply disruption from Russia, with the latter reaching a ten-year high, trading at $24,500 per metric tonne on Tuesday..
