A week of mixed signs for the oil market, with a big rise in crude oil inventories partially offset by a cut in diesel, battling inflation data and forecasts of demand destruction that threaten to tighten supply. was.
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Friday, October 14, 2022
There were many conflicting signals for oil markets to digest this week. The bearish news included an increase in crude oil inventories of around 10 million barrels, a major week-to-week change. US inflation data is also a concern for oil, with the core consumer price index hitting its 40-year high in September. Meanwhile, U.S. diesel stocks are down by 4.9 million barrels of his, with a severe shortage expected heading into winter. In Europe, strikes in France have heightened concerns over fuel supplies, and today one union withdrew from negotiations after rejecting an offer to raise wages. There are two other bullish factors looming over the market. Overall, oil prices fell this week, with both Brent and WTI set to record weekly declines after his two-week rise.
OPEC cuts demand growth for 2022-2023. Less than a month after pledging to cut production by 2 million barrels per day, OPEC has cut its demand growth for both 2022 and 2023 to 2.64 million barrels and 2.34 million barrels respectively.
No more sword dancing in riads. The war of words between the US and Saudi Arabia is gearing up this week, with the White House claiming Riyadh has forced other OPEC+ nations to jointly cut production, while simultaneously enacting a law to halt arms sales to the Middle East kingdom. proposed.
The United Nations grain trade creaking at the seams. Russia has raised concerns with the United Nations about the implementation of the Black Sea grain export deal and has promised to abandon the deal next month if the guarantees given are not met, in what could spark a new agricultural price storm. .
EIA cuts US production growth. The US Energy Information Administration has cut its 2023 US oil production forecast to 12.4 million b/d from this year’s 11.7 million b/d.
Suriname’s surge is plagued by seismic chaos. 3 years have passed since then Apache (NYSE:APA) When Total Energy (NYSE:TTE) They claimed to have discovered a world-class oilfield at Maca Central off the coast of Suriname, but recent assessments have revealed major discrepancies between seismic and exploration drilling data, prompting work to locate the oilfield. It became much more difficult.
Iraq may finally have a new government. The Iraqi House of Representatives has elected Abdul Latif Rashid as the country’s new president, paving the way for a new government after a prolonged political paralysis and giving a major boost to a stalled oil project.
The White House announces plans to cut gas prices. As the national average US gas price continues to hover around the 3.9/USG mark, President Biden has announced that prices remain too high and the White House will announce new measures next week to bring fuel prices down. Announced.
Putin wants a big gas hub in Turkey. Russian President Vladimir Putin has accused the US of “sabotage” of the Nord Stream 1 and 2 pipelines, accusing Russia of redirecting the Baltic Sea flow to the Black Sea and building a new European gas hub in Turkey. suggested to make
US nuclear power plant finds new owner. Canadian uranium miners Cameco (NYSE:CCJ) and Brookfield Renewable Partners have agreed to acquire nuclear plant equipment maker Westinghouse Electric in a $7.9 billion deal, including debt, as the future of nuclear power in the Americas is significantly improved.
ExxonMobil Partners on Carbon Storage. US oil giant ExxonMobil (NYSE:XOM) signs first commercial carbon storage contract with world’s largest ammonia producer CF Industries (NYSE:CF)aiming to store 2 million tonnes of CO2 per year underground from 2025.
Oil M&A activity has peaked in the US. Mergers and acquisitions in the U.S. oil sector surged to 16 billion in Q3 2023. .
Term buyers are feeling the pain of soaring coal prices. According to the market report, the leading global trading Glencore (LON:GLEN) signed a contract to supply scheduled coal with Japanese utility Tohoku Electric Power from October 2022 to September 2023 at a record price of $395 per tonne on an FOB basis, tripling year-on-year Did.
Russian copper is stacked in LME warehouses. Large amounts of Russian-origin copper are reportedly piled up in London Metal Exchange-approved warehouses in Germany, the Netherlands and Taiwan as the exchange considers banning Russian aluminum, nickel and copper. increase.
India launches another oil auction. India, one of the world’s most import-dependent major oil buyers, has launched a new licensing round with 26 oil and gas blocks (mostly deepwater, only 3 onshore lots) and 16 of coal bed methane blocks and is looking to attract Western majors for drilling. know how.
Michael Kahn of Oilprice.com
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