Despite the devastation caused by Hurricane Ian, oil markets are relatively unaffected by hurricane season this year. the subsequent real catalyst for oil prices, wanting a major geopolitical development involving Russia over the weekend, are going to be next week's OPEC meeting, which has the potential to send oil prices climbing again.
It is common place to work out oil prices spike in late September as hurricanes ravage the US Gulf of Mexico, yet, despite the horrendous damage done to Florida and other south-eastern states, Hurricane Ian has did not become a notable factor for crude. And whilst some pricing upside came from US stock draws, a brand new batch of Iranian sanctions, and marginal weakening of the US dollar, the following big catalyst for oil prices are the OPEC+ meeting going down on October 5th. With production cuts being discussed as a way of maintaining palatable prices, an upward run towards $100 per barrel may well be on the cards for ICE Brent.
OPEC+ Seems to Be Serious About Cuts. consistent with OPEC+ sources, members of the oil group have started talks about potential boring cuts in November 2022 as Russia has already suggested a 1 million b/d target reduction for the October 5th meeting.
Russia Calls Nord Stream Leaks State-Backed Terrorism. After four separate leaks within the Nord Stream 1 and a pair of pipelines still spout methane into the Baltic Sea, Russia’s government called the still unidentified attacks an act of “state-sponsored terrorism”, a thinly veiled allusion to the US.
EU Finalizes Eighth Batch of Russia Sanctions. the EU Commission has formally proposed an eighth round of sanctions against Russia, with new measures starting from individual blacklisting, further restrictions on technology exports still as a ban on EU citizens sitting on boards of Russian companies.
Australia Strikes cope with Gas Exporters. Australia’s government won't limit gas exports from its three geographic region LNG projects (Queensland Curtis LNG, Australia Pacific LNG, and Gladstone LNG) reciprocally for his or her pledges to supply an additional 157 petajoules of gas to the domestic market in 2023.
US Slaps Further Sanctions on Iran Oil Trade. The Biden Administration targeted 6 companies in India, Hong Kong, China, and therefore the UAE for allegedly enabling the sale of Iranian crude and products into South and East Asia, as most Iranian exports still sail towards Chinese buyers.
IEA Warns of LNG Tightening in 2023. the top of the International Energy Agency (IEA) Fatih Birol warned that LNG markets in 2023 may well be even tighter this year amidst higher demand from China, India, and other parts of Asia, as stronger Asian growth ramps up the necessity for more gas.
A Caveat Appears within the UK Licensing Drive. the united kingdom industry group Offshore Energy UK claimed that projects arising from the upcoming 33rd oil and gas licensing round, to be launched during a week, won't compromise the country’s climate plans and can must accommodates existing emissions reduction targets.
China Hints at Product Export Flexibility. because the Asian markets are widely expecting the discharge of this year’s fifth batch of Chinese fuel export quotas of up to fifteen million tons, sources indicate Beijing can be receptive extending the export allowance into 2023 to spice up domestic demand.
Europe’s Industry Shut-Ins Now Move to steer. Commodity giant Glencore (LON:GLEN) is considering shutting its lead operations at its Portovesme plant in Italy after high electricity prices made production commercially unsustainable, potentially seeking to develop an EV battery works there.
Warren Buffett Really Likes Occidental. Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) bought another 5.99 million shares of Occidental (NYSE:OXY) worth 352 million in the week, boosting its stake to twenty.9% after the US energy regulator gave Berkshire the permission to shop for up to 50% of the firm’s ordinary shares.
Taliban Signs Fuel cope with Russia. in line with the pinnacle of Afghanistan’s Industry Ministry, the Taliban have signed a provisional cope with Russia for the provision of 1 million tons each of gasoline and diesel further as 2 million loads of wheat, to be delivered by road and rail.
Enbridge Sells Pipeline Stakes to Indigenous Groups. the biggest pipeline operator in North America Enbridge (TSE:ENB) sold 11.57% minority stakes in seven Alberta oil pipelines to a bunch of Indigenous communities for a few $820 million.
EU Dissatisfied With Its Gas Benchmark. Seeking to supplant TTF because the main spot gas trading benchmark, the EU is functioning on a brand new transaction-based benchmark for LNG that may now not reflect pipeline gas developments, with Brussels saying the new index is to be used voluntarily.
LME Might Ban Russian Metals. The London Metal Exchange (LME) is considering a consultation with market participants on whether it should continue trading Russian metals like aluminum, copper, and nickel in 2023 amidst fears that Russian firms might just offload their production into LME warehouses
the crude is climbing high