Oil Steadies as Investors Keep an Eye Out for Tropical Storm Idalia
SECTOR COMMENTARY:
The energy sector is set for a higher start, supported by strength in the major equity futures which are kicking off the final trading week of August higher ahead of key inflation data this week.
WTI and Brent crude oil futures steady as investors keep an eye out for Tropical Storm Idalia and assess whether China’s measures to stimulate their economy is enough to fuel demand. Earlier today, China halved the stamp duty on stock trading in an attempt to boost investor confidence. Additionally, S&P Global reports that nation has also issued new product export quotas in an effort to bolster industrial activity. Market sources said oil companies are set to export about 3.5 million mt of clean oil products in September, comprising about 800,000 mt of gasoline, 1.1 million mt of gasoil and 1.6 million mt of jet fuel. The volume is likely to be 10% higher than in August. Both measures are part of China’s latest economic policies to revitalize their economy after cutting their COVID-19 measures. Meanwhile, Tropical Storm Idalia is expected to strengthen into a hurricane today and reach the Florida coast on Wednesday which could pose risk to oil and gas output in the U.S. gulf. A stronger dollar and the prospect of further interest rate hikes is also dampening investor sentiment.
Natural gas futures are higher on forecasts for warmer weather and pending supply disruptions from Australia LNG strikes which are set to begin on September 7th.
BY SECTOR:
Reuters reported that Chevron Australia received notices for protected industrial action at Gorgon, Wheatstone facilities for activities commencing 7 September.
Cyprus rejected Chevron's plan to develop the island nation's offshore Aphrodite natural gas field, Bloomberg reported on Friday, citing Energy Minister Giorgos Papanastasiou.
Chevron announced that a new solar field is now producing lower carbon energy for its operations in Hayhurst, New Mexico. This is the first project in Chevron’s renewable power agreement with Algonquin Power & Utilities Corp.
INTERNATIONAL INTEGRATEDS
BP said the world must invest in the production of oil and gas to avoid sharp price spikes while accelerating the energy transition to combat greenhouse gas emissions. BP CEO Bernard Looney said his company would invest 40% of its capital on energy transition projects by the middle of this decade and 50% by the end of the decade. BP, investing in energy projects in India along with its partner Reliance Industries, has set up about 3,000 electric vehicle charging points to date, up from 750 in January. The two have set up 300 battery swapping stations.
Eni has started production of oil and gas from the Baleine Field, located in the waters offshore Côte d'Ivoire.
Equinor has acquired a 25 percent interest in Bayou Bend CCS LLC, positioned to be one of the largest US carbon capture and storage projects located along the Gulf Coast in Southeast Texas.
Sinopec is not interested in acquiring Shell's refinery or petrochemical plant in Singapore although it is keen on participating in a shale gas project in Saudi Arabia, the Chinese company's president said.
Sarawak Shell Berhad, a subsidiary of Shell plc, has announced that gas production has started at its Timi platform in Malaysia under the SK318 production sharing contract (PSC).
Shell India announced the appointment of Mansi Madan Tripathy as the new Country Chair of Shell India, effective from October 1, 2023. Mansi will succeed Nitin Prasad who has been Country Chair since 2016.
France's CRE regulator fined TotalEnergies Electricite Gaz France 80,000 euros over EU market transparency rules.
TotalEnergies said it would set up some new service stations in France's rural areas and stick to its pledge to cap French pump prices at 1.99 euros ($2.15) per litre this year.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
Expro announced it had entered into a definitive agreement (subject to customary closing conditions and working capital adjustments) to acquire offshore services provider, PRT Offshore. Total consideration to be paid at closing is approximately $106 million, including $62 million of cash and $44 million of newly issued Expro shares.
As per SEC filing, on August 22, 2023, Elo Omavuezi resigned as Chief Accounting Officer of ProPetro Holding Corp. effective as of September 5, 2023. David S. Schorlemer, currently the Chief Financial Officer and principal financial officer of the Company, will also assume the role of principal accounting officer of the Company, effective as of the Separation Date.
DRILLERS
REFINERS
A storage tank fire at a Marathon Petroleum oil refinery that had triggered a temporary evacuation of area residents a day ago continued to smolder on Saturday, a spokesperson said. The 596,000 barrel-per-day (bpd) oil processing plant is the third largest in the U.S. It is located about 38 miles (67 km) west of New Orleans and produces gasoline, diesel, jet fuel, asphalt, and plastics. The company said it was evaluating a return to operation of affected units but did not say when that might occur. Investigators will start probing the cause of the blaze once conditions allow.
Tivoli Midstream LLC announced the closing of an acquisition of a crude oil pipeline system in Northern Texas from affiliates of Phillips 66. The acquisition will be made through Tivoli Services LLC, a subsidiary of Tivoli.
As per SEC filing, on August 24, 2023, ONEOK completed its previously announced underwritten public offering of $750 million aggregate principal amount of its 5.550% notes due 2026, $750 million aggregate principal amount of its 5.650% notes due 2028, $500 million aggregate principal amount of its 5.800% notes due 2030, $1.50 billion aggregate principal amount of its 6.050% notes due 2033, and $1.75 billion aggregate principal amount of its 6.625% notes due 2053.
MARKET COMMENTARY
U.S. stock index futures were up ahead of key inflation data and employment readings due this week. Technology stocks led gains in European bourses. The dollar fell after Fed Chair Jerome Powell left open the possibility of further rate hikes, while the China-sensitive euro edged higher in the wake of Beijing halving its stamp duty on stock trading. In Asia, Japan's Nikkei recorded its sharpest daily gains in two months and China stocks also advanced. Oil was little changed and gold held steady.
Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Rich Pontillo.
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Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts.
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