Brent Oil Falls After Hitting $75 for First Time in Two Years
SECTOR COMMENTARY:
Energy stocks are flat along with U.S. futures as investors weighed prospects for economic growth against inflation worries ahead of testimony from Federal Reserve Chair Jerome Powell.
Brent oil fell after climbing to $75 a barrel for the first time in more than two years as traders awaited cues from OPEC+ on its response to a rapidly tightening market and on strength in the U.S. dollar. WTI also fell on profit-taking from four straight weeks of gains. BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and recovering demand could push oil briefly to $100 per barrel in 2022. Trafigura made similar comments today following several of the other commodity trading houses last week. Meanwhile, OPEC+ discussed raising output to prevent overheating while Iran raised the prospects of more delays to its nuclear deal.
U.S. natural gas futures edged up on Tuesday on expectations the increase in global gas prices to their highest in years would boost U.S. liquefied natural gas (LNG) exports to fresh record highs this summer.
Exxon Mobil is preparing to cut its U.S. office workforce by between 5% and 10% every year for the next three to five years, Bloomberg News reported on Monday citing people familiar with the matter. The job cuts will target the lowest-rated employees relative to peers as part of a performance assessment program and will therefore not be classified as layoffs, the report said.
BP ventures invested $7million in smart electric vehicle charging firm, IoTecha, leading a $13.2 million investment round. IoTecha's easy-to-use technology connects EV chargers with the electricity grid using the IoT, optimising the charging process by automating payments and delivering cost and potential energy savings to customers.
BP will be in the hydrocarbons business for decades and high oil prices are set to make its asset sales and the energy transition easier, Chief Executive Bernard Looney told Reuters. "As people understand we're going to be in the hydrocarbons business for decades to come that concern has gone away a little bit," Looney said in an interview at the Reuters Events: Global Energy Transition conference, referring to BP employees.
TotalEnergies and Stellantis announced the renewal of their partnership for the next five years for the Peugeot, Citroën and DS Automobiles brands. The two Groups are also opening a new chapter with its expansion to include Opel and Vauxhall.
Callon Petroleum announced that it has priced $650 million aggregate principal amount of its 8.00% senior unsecured notes due 2028 in a private offering that is exempt from registration under the Securities Act of 1933, as amended. The sale of the notes is expected to close on July 6, 2021, subject to customary closing conditions.
Crescent Point Energy announced the release of its 2021 Sustainability Report. The Report is highlighted by the Company's increased target for emissions intensity reduction, an increase from 30 to 50 percent by 2025, including a 70 percent reduction in absolute methane emissions. The Report also outlines the Company's latest progress and commitment to strong environmental, social and governance performance throughout its operations. In addition, the Company also released updated disclosure in reference to the Task Force on Climate-related Financial Disclosures underlining its effective risk management practices.
Touchstone Exploration announced that we have executed ten-year Lease Operatorship Agreements with Heritage Petroleum Company Limited for our CO-1, CO-2, WD-4 and WD-8 Blocks effective January 1, 2021. The LOAs governing our core legacy oil producing properties expire December 31, 2030 and were renewed under substantially similar terms to the previous arrangements. In conjunction with the execution of the LOAs, the Company's Board of Directors has approved the drilling of one well on each Block in the second half of 2021.
Baker Hughes and Borg CO2 AS announced a memorandum of understanding to collaborate on a carbon capture and storage project to serve as a hub for the decarbonization of industrial sites in the Viken region of Norway.
CGG has been awarded a major project by Lundin Energy Norway AS for the seismic imaging of an innovative simultaneous node and streamer 3D survey currently being acquired over a 3700 km2 area of the Nordkapp basin in the Barents Sea.
Schlumberger announced its commitment to achieve net-zero greenhouse gas emissions by 2050. Guided by climate science, Schlumberger has spent 18 months conducting extensive analysis and working with experts to produce a decarbonization plan. With minimal reliance on offsets, the plan is focused on reducing Scope 1, 2 and 3 emissions across the oil and gas value chain—including the introduction of its Transition Technologies portfolio to assist its customers and the wider industry in their decarbonization commitments.
Goldman Sachs upgraded Delek US Holdings to Neutral from Sell.
Enbridge announced the resignation of Gregory J. Goff as a director of the Corporation, effective June 21, 2021. Mr. Goff's decision to resign from the Board of Directors was not the result of any disagreement relating to the Corporation's operations, policies or practices.
Brookfield Infrastructure Partners filed a second notice of variation and extension in respect of the offer commenced on February 22, 2021, as varied pursuant to a notice of variation, change and extension date June 4, 2021 to acquire all of the outstanding common shares of Inter Pipeline.
Wall Street futures were muted as investors braced for Federal Reserve Chair Jerome Powell's remarks for clues on how the central bank is balancing inflation risk with its promise to ensure a full jobs market recovery. European shares fell, with growth-linked technology and healthcare stocks leading declines. Japan’s Nikkei ended higher, boosted by shipping stocks after Mitsui OSK Lines more than tripled its half-yearly net profit forecast. The dollar rose, while gold prices steadied. Oil prices dropped, as OPEC+ began discussions on raising oil production. Existing home sales data is due later in the day.
NASDAQ ENERGY TEAM THOUGHT LEADERSHIP
- 5/19/21 –VIDEO: Energy Sector Catalysts
- 5/17/21 – VIDEO: Oil prices could become ‘a little disjointed’: Nasdaq Analyst
- 2/18/21 – VIDEO: Why the Texas energy crisis may send gasoline prices higher
- 2/17/21 – VIDEO: Texas Freeze Hits Oil Supply
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