OilPrice

Why Norway Won’t Give Up On Oil & Gas

Norway doesn’t have any second thoughts about oil exploration and investment in light of the International Energy Agency’s (IEA) report suggesting that no new fossil fuel exploration would be needed for a net-zero world.  Western Europe’s biggest oil and gas producer is doubling down on oil development and continues to consider oil exploration and production a critical part of its economy and income for the state.  Norway, the country with the highest electric vehicle (EVs) share of new car sales anywhere in the world,…

Controlling The Weather Could Have Serious Global Implications

As the world gets warmer, regions around the world are experiencing sweltering heat waves and setting records for high temperatures almost every passing year. This week the Middle East has been suffering from soaring temperatures reaching a truly hellish 125 degrees. These dangerously high temperatures come as the Arabian Gulf countries continue to experience the longest recorded meteorological drought, clocking in at a whopping twenty years.  “The general pattern of the climate in the region is warming. There is warming over the seas…

The Tech Boom Is Sending Tin Prices Into The Stratosphere

Tin prices have soared to a record high on the LME, closing last week at $34,177 per metric ton. The closing price marked an increase of 12.56% month over month. As we’ve noted in previous reports, increasing consumer demand for electronics has supported the tin price. Tin is also used as solder for joining pipes and electric circuits. Balanced market as tin prices rise Prices have surged amid a balanced global tin market. According to the World Bureau of Metal Statistics (WBMS), the global tin market posted a minuscule deficit of 1,400 tons…

Renewables Will Play A Vital Role In Energy Security For The U.S.

The United States’ energy independence is under threat. For decades, the gush of cheap and abundant shale oil and gas out of the West Texas Permian Basin has allowed the U.S. a large degree of energy security and sovereignty, as well as giving the nation a great deal of sway in global energy markets. But U.S. energy titans and politicians have gotten complacent. As the country has doggedly stuck to the status quo, the rest of the world has been investing heavily in clean energy infrastructure, research, and development. And the United States…

Top Investors Back $5.4 Billion TPG Rise Climate Fund

Alternative asset firm TPG announced this week the first close of $5.4 billion in subscriptions to its TPG Rise Climate fund, which attracted some of the world's largest institutional investors and multinational corporations. TPG Rise Climate, the climate investing strategy of TPG's global impact investing platform TPG Rise, has set a hard cap of $7 billion in total capital commitments and expects to hold a final close in the fourth quarter of 2021.  The fund's first close received subscriptions from some of the world's largest institutional…

Here’s Why Analysts Expect Record-High Earnings For ExxonMobil

Surging prices for plastics are likely to help Exxon's petrochemicals division post record-high earnings this week when the company reports its earnings. Items like flooring, roofing and packaging all saw demand remain firm throughout the pandemic. This helped keep a bid under the price of the commodity while the "lockdown trade" pulled the rug out from under the bid of other items, like vacations and corporate real estate. Chemical ingredients like polyethylene and polyvinyl chloride used to make plastics have seen record-high prices this year.…

Top Three U.S. Refiners Set For First Profits Since Pandemic Started

The largest U.S. oil refiners are expected to report in the coming days profits for the second quarter—their first earnings since the pandemic crushed demand in early 2020, according to estimates from Reuters. Since the first quarter of 2020, refiners have struggled with low fuel demand amid lockdowns and mobility restrictions, which led to low capacity utilization rates and very low refining margins. The second quarter of this year, however, will likely see decent earnings results from all three largest refiners in the U.S.—Valero…

Top Three U.S. Refiners Set For First Profits Since Pandemic Started

The largest U.S. oil refiners are expected to report in the coming days profits for the second quarter—their first earnings since the pandemic crushed demand in early 2020, according to estimates from Reuters. Since the first quarter of 2020, refiners have struggled with low fuel demand amid lockdowns and mobility restrictions, which led to low capacity utilization rates and very low refining margins. The second quarter of this year, however, will likely see decent earnings results from all three largest refiners in the U.S.—Valero…

The Most Important Oil Project Of The Year Is Set To Go Live

Iran’s Jask oil terminal is now fully set to start loading vast quantities of crude to any major buyer in the world via the Gulf of Oman, with the first shipment of 100,000 metric tons of oil set to dock, load, and sail again within days. The significance of this new terminal can barely be overstated, as it will allow Iran to transport oil and petrochemicals from its major oil fields via Guriyeh in the Shoaybiyeh-ye Gharbi Rural District of Khuzestan Province 1,100 kilometers to Jask Port in Hormozgan province. In short, this 42-inch Guriyeh-Jask…

Value Of Saudi Oil Exports Jumps 147% In May

Higher oil prices and higher exports resulted in a 147-percent jump in the value of Saudi Arabia’s oil exports in May 2021 compared to May 2020, data from the Kingdom’s General Authority for Statistics showed on Wednesday. The value of oil exports increased by US$9.5 billion (35.8 billion Saudi riyals)—or by 146.7 percent year over year—to stand at US$16.1 billion (60.5 billion riyals) in May 2021, the official data from the world’s top oil exporter showed. The jump in oil exports was the main driver of the rise in…

Exxon Makes Another Major Oil Discovery Offshore Guyana

ExxonMobil and its partner Hess Corporation have made another significant crude oil discovery offshore Guyana, the U.S. supermajor said on Wednesday. The Whiptail discovery in the Stabroek Block adds to more than a dozen discoveries on the block and the previous recoverable resource estimate of approximately 9 billion oil-equivalent barrels. Whiptail, located southeast of Uaru and west of Yellowtail discoveries, could form the basis of another future development in the Stabroek Block, Exxon and Hess said. “Whiptail is a significant new oil…

Russia Was World’s Second-Largest Oil Producer In H1 2021

Russia was the world’s second-largest producer in the first five months of this year after the United States, data from Rosstat, the state statistics bureau, has revealed. The country produced an average of 10.18 million barrels daily between January and May, TASS reported, citing Rosstat data. This compared with 11.18 million bpd for the United States. Saudi Arabia remained third, producing consistently below 9 million barrels daily over March, April, and May. Russia was one of the big winners from the latest OPEC+ deal adjustments, which…

Russia Was World’s Second-Largest Oil Producer In H1 2021

Russia was the world’s second-largest producer in the first five months of this year after the United States, data from Rosstat, the state statistics bureau, has revealed. The country produced an average of 10.18 million barrels daily between January and May, TASS reported, citing Rosstat data. This compared with 11.18 million bpd for the United States. Saudi Arabia remained third, producing consistently below 9 million barrels daily over March, April, and May. Russia was one of the big winners from the latest OPEC+ deal adjustments, which…

Oil Prices Boosted By Falling Crude Inventories

Crude oil prices rose today after the Energy Information Administration reported an inventory draw of 4.1 million barrels for the week to July 23. This compared with a build of 2.1 million barrels reported for the previous week and a draw of 4.728 million barrels reported by the American Petroleum Institute for the week to July 23. Analysts had expected the EIA to report a crude oil inventory draw of 3.43 million barrels for the week to July 23. In gasoline, the EIA estimated an inventory draw of 2.3 million barrels for last week, with production…

Senators Accuse Interior Dept Of Deliberately Delaying Restart Of Oil Leasing

Republican Senators have accused Interior Secretary Deb Haaland of defying a ruling by a federal judge to restart oil leases, issued in response to a temporary suspension—a pause, as it was termed—of these leases by President Biden earlier this year. “The pause is effectively defying the federal judge’s order to continue,” said Louisiana Senator Bill Cassidy, member of the Energy and Natural Resources Committee, as quoted by Bloomberg. “Technically, I suppose, you could say the pause is still in place,”…

Global Gasoline Demand Could Flatten As Delta Variant Spreads

Resurging COVID infections in many major oil-consuming markets, including the United States, Europe, and Southeast Asia, could stagnate the recovery in road fuel consumption globally in the coming weeks, analysts tell Reuters. Estimates from the United States point to record gasoline consumption for 2021 this past week, but analysts fear that the rising number of Delta variant infections could put the brakes on the demand rebound well before the summer travel season ends. According to GasBuddy data, weekly U.S. gasoline demand in the week to July…

The Best Risk-Reward Plays In Oil

Oil prices have been ticking upwards after OPEC+ reached an agreement on Sunday that will see the group start adding 400,000 bpd production each month from August. Goldman Sachs says the agreement is modestly bullish and has forecast that Brent will hit $80 per barrel this summer. Piper Sandler says that whereas the backdrop of tighter monetary policy, the trajectory of the economic recovery, and the sustainability of inflation are likely to create some volatility curveballs, they will not be enough to derail the secular bull market. Meanwhile,…

5 Reasons Why The Next Gold Rush Will Happen In Canada

A new gold exploration in Quebec may be starting to ping radar because it keeps on hitting new mineralization and reports say it’s gone beyond gold. Junior explorer Starr Peak Mining Ltd. (TSX:STE.V; OTC:STRPF) is aiming to pick up where another big gold discovery right next door by Amex Exploration left off … The Amex discovery earned shareholders up to 7,000% returns at its height, and now we think Starr Peak is looking to do something even bigger because its maiden drill hasn’t just shown gold … It’s shown…

Refiners Face Huge Long-Term Challenges

The global refining industry has not recovered yet from the impact of the pandemic, but it is already facing longer-term challenges with the energy transition. Over the next decade and a half, global fuel demand will likely decline, leading to an overcapacity in the refining market, lower margins, and lower utilization. The outlook varies across regions. Generally speaking, however, some less efficient refineries will have to close because of downward pressure on profits amid lower demand and unnecessary high global capacity, McKinsey & Company…

The Case For Washington To Remove Sanctions On Venezuela

By the 1990s, founding OPEC member Venezuela had become a true petroleum power pumping over two million barrels of crude oil per day. This saw the Latin American country ranked as OPEC’s third-largest oil producer, behind Saudi Arabia and Iran, and among the top-10 petroleum-producing nations globally. By 1998, the year that Hugo Chavez democratically won the presidency, Venezuela pumped a record average of 3.1 million barrels of crude oil per day. Since then, the now crisis-riven Latin American country’s petroleum output has rapidly…

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