Saturday, August 07, 2021
/08:00 AM / by Michael Kern of Oilprice.com / Header Image
Oil market sentiment is decidedly cautious this week as covid
cases climb and U.S. crude inventories increase.
Friday, August 6th, 2021
Despite the Friday trading session recovering
somewhat from this week's aggregate declines, the overarching sentiment on the
oil markets is still that of caution, seeing China and the United States
confronting COVID-19 case surges. Whilst tensions in the Persian Gulf added a
new layer of geopolitical upside risk for prices, this was largely counteracted
by the week-on-week hike in US crude inventories.
Administration Mandates 50% EV Goal by 2030. The White
House put forward a non-binding
executive order stipulating that half of cars and trucks sold in the United
States by 2030 should be an EV, PHEV or a fuel cell vehicle. Simultaneously,
fuel economy standards are expected to be twice as aggressive as they are now.
Stock Surges on Surprise Results. Buoyed by rising gas
sales and high Brent prices, Brazil's national oil company Petrobras
(BVMF:PETR4) posted better-than-anticipated
Q2 results this week, with $6.15 billion earmarked for extraordinary dividend
payments, sending its stocks flying.
Wants Share of World's Largest Wind Farm. In a bid to
boost its renewables portfolio, the French major TotalEnergies
(NYSE:TTE) wants to take a stake
in the 3.6 GW Dogger Bank wind farm, the largest globally, that has been
developed by SSE (LON:SSE) and Equinor
Investigates Vitol for Tax Evasion. Mexico's government opened an investigation
into alleged irregularities in the documentation of products supplied by top
trader firm Vitol, claiming the company was unable to clear up the contentious
issues and might face criminal charges for illegal trafficking.
Domestic Coal Prices Hit 10-Year High. Constrained by
crimped domestic production capacity, China's benchmark Qinhuangdao 5500kcal
coal prices rose to their highest in more than 10 years, edging increasingly
closer to the CNY 1100 per tonne mark (twice as high as the upper limit of the
so-called "green zone").
Prices in Asia Hit 8-Year High. Amidst increasing
demand coming from higher-than-average temperatures, spot LNG prices for
September delivery have risen to almost $17 per mmBtu, marking an almost $1.50
per mmBtu week-on-week increase.
Talks start Next Week amid Tacit Optimism. Negotiations
between the Maduro-led government and Venezuelan opposition are set to start
August 13, Reuters reports, kindling hopes that
a more diplomacy-focused Biden administration might ease PDVSA sanctions.
Sells First-Ever Blue Ammonia Cargo to Japan. The
Emirati national oil company sold its first-ever
cargo of blue ammonia produced from hydrogen to Japan's Itochu
(TYO:8001), making ADNOC a first mover in low-carbon ammonia
fertilizers in the Middle East.
Zealand Approves Refinery Closure. New Zealand will
close its 135kbpd Marsden Point refinery as shareholders of the operator Refining NZ
(NZE:NZR) voted in favor of converting
it into a products import terminal. BP and ExxonMobil are assumed to supply the
country beyond 2022.
Stream 2 Likely to Start Later This Year. Russian gas
giant Gazprom (MCX:GAZP) is finishing works on the feeder
lines of Nord Stream 2, aiming to commission the final six compressor stations
along the route later this year, making a 2021 launch of the entire pipeline
even more realistic.
IOC Plans Refinery Expansion. India's state-owned
refiner IOC (NSE:IOC) is seeking to expand its throughput
capacity by some 350kbpd over the next four years amid prospective demand
increases, to be carried out through a series of refinery expansions. India's
aggregate refining capacity is expected to grow 1mbpd by 2025, reaching 6mbpd.
Korea Doubles Rare Metals Stockpiles. The government
of South Korea seeks to double its
strategic stocks of cobalt, nickel, and other rare metals (to cover 100 days of
consumption), in a sign that supply of these key feedstocks for electric
vehicle batteries might become contentious in the future.
Aims for Zero Upstream Emissions by 2050. Oman's
latest ambition is
to reach zero emissions in its upstream sector, building on the Sultanate's
previous commitment to achieve zero routine flaring by 2030. A large part of
the emissions-cutting drive should come from renewables supplanting crude
burning (currently 65% of electricity generation).
Might Ban Gasoline Exports. Confronted with a double
whammy of increasing domestic demand and lower refinery production due to
prolonged maintenance, Russia is mulling a three-month export ban on gasoline.
ETS Fails to Impress. Ever since the launch of China's
emissions trading scheme, weekly traded volumes have been falling, dropping to a mere
187 thousand of CO2 equivalent this week, a 75% decline week-on-week.
The post Caution
Overtakes Oil Markets As Covid Cases Climb first appeared in Oilprice.com on August 06, 2021.
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