Crude oil prices began falling on Friday after Federal Reserve Chairman Jerome Powell spoke for only 8 minutes, warning there was pain ahead.
Friday, August 26, 2022
Oil prices remained in limbo this week, with ICE Brent trending around $100 a barrel as the market zoomed in on the prospects of an Iran deal. While the Biden administration relayed its response to the European Union, acting as an intermediary between the two parties who refuse to negotiate directly, rumors seem to indicate that the terms offered do not correspond to what Tehran expected, creating thus a “take it or leave it”. dilemma for Iranian leaders. Unless there is a sudden breakthrough on Iran, it will be the Fed’s Jackson Hole symposium that will determine oil prices.
The White House wants US refiners to cut exports. In a letter sent to major U.S. refiners, U.S. Energy Secretary Jennifer Granholm called on U.S. refiners to curb exports to Europe and South America and start building stockpiles, despite the firm decline in the gasoline and diesel curves.
Iraq threatens Kurdish sellers and buyers. Iraqi authorities are threatening legal action against anyone who buys or sells crude from the breakaway Kurdistan region and its government, using the Baghdad Supreme Court’s February ruling as confirmation that Kirkuk’s sales are “unlawful”.
Prelude FLNG breaks strike deadlock. After a production interruption of almost two months, the British energy major Shell (LON:SHEL) managed to strike a pay deal with unions at Australia’s 3.6 mtpa Prelude FLNG project, potentially opening up a temporarily idle source of liquefied gas.
Peru takes the Spanish Repsol to justice. Peruvian consumer protection agency Indecopi acquires Spanish oil company Repsol in court in a $4.5 billion lawsuit, arguing that the January oil spill caused $3 billion in environmental damage and $1.5 billion in damage to residents, a claim Repsol denies, attributing the spill to a volcanic eruption.
Texas decides to ban aggressive ESG investors. Texas Comptroller Glenn Hegar has claimed the state could ban firms like BlackRock (NYSE:BLK) and a slew of European banks like Credit Suisse (SWX:CSGN) Where BNP Paribas (EPA:BNP) to do business in the state, due to their boycott of investments in the oil and gas industry.
Germany reports coal supply problems. According to Reuters, the German government has expressed concern about the sustainability of coal supplies to power stations along the Rhine in the fall, as low water levels continue to hamper river navigation and thus slow down the coal storage before winter.
US majors find common ground with Nigeria. American oil majors ExxonMobil (NYSE:XOM), Chevron (NYSE: CVX) as well as European energy companies Shell (LON:SHEL) and Equinor (NYSE: EQNR) have agreed to end their US lawsuits against Nigerian state oil company NNPC after successfully renewing their respective PSA deals. Related: Oil rig count increases as Permian drilling resumes
Japan is coming full circle to support nuclear again. The Japanese government will restart more inactive nuclear power plants (there are currently only seven reactors in operation) and consider building new next-generation nuclear capacity, as soaring fuel prices have changed public opinion in the country. .
An Indian refiner is feeling the pressure of Russian sanctions. Indian refiner Nayara Energy, 49% owned by Russian oil company Rosneft, has seen many major international banks and oil companies refuse to do business with it for fear of sanctions, most likely pushing it to source even more oil in Russia.
The energy transfer makes another abduction deal. American pipeline operator Energy Transfer (NYSE: ET) signed an agreement with a British energy major Shell (LON:SHEL) for the supply of 2.1 million tonnes of LNG from its Lake Charles LNG plant project for 20 years, with first deliveries as early as 2026.
Another discovery buoy from Suriname, offshore drillers. Upstream US company Apache (NASDAQ:APA) announced an oil discovery off Suriname with its Baja-1 well, encountering light oil in good quality reservoirs, adding to the 180 million barrels of reserve from the Krabdagu prospect, drilled in April.
Mexico creates a national lithium company. After nationalizing all lithium resources in April 2022, Mexican authorities established a state-controlled company (Litio para Mexico) to produce the metal, which is expected to become operational within the next six months.
Freeport’s delays are limiting the surge in LNG exports to the United States. US 15 mtpa liquefaction terminal Freeport LNG has delayed its restart target by a month, hoping to resume partial production, shut down following an explosion in June, from early to mid- November and reach full export capacity by March 2023.
A French major sells its Russian subsidiary. After the French newspaper Le Monde published an article on TotalEnergies’ (NYSE: TTE) A Russian joint venture Terneftegaz selling kerosene to the Russian army, the French major almost immediately sold its stake to its Russian partner Novatek.
By Tom Kool for Oilprice.com
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