Saturday, October 02, 2021 /06:00 AM / by Tom Kool of
Oilprice.com / Header Image Credit: Reuters
After charging to $80 per barrel on
Tuesday, oil prices fell back on news of inventory builds and extra supply, and
now markets are nervously waiting for the OPEC+ meeting.
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October 1st, 2021
As OPEC+ meets once again next Monday, speculation has been rife regarding the
oil group's intentions to bring more crude into the market. Whilst prices are
still close to the $80 per barrel mark, with Brent trading around $78 per
barrel and WTI trending around $74.5 per barrel, the first US inventory stock
build since late July and news of OPEC+ laggards (Russia and Kazakhstan)
ramping up supply has provided some downside for prices. At the same time,
exorbitantly high gas prices driving gas-to-oil switching in Asia and the US
dollar weakening are largely offsetting those factors.
LNG Price Surge Continues. Increasing purchasing activity
in East Asia amid China's power demand crunch and continuing supply tightness
have pushed spot LNG prices to $34.5 per mmBtu in Asia, the highest on
Merges Gas Trading Hubs. Germany launched a nationwide gas
trading hub called THE (Trading Hub Europe), having merged
two of its hubs - Gaspool and NetConnect - to be able to compete with the Dutch
TTF and British NBP.
and indebted, PEMEX Raises Oilmen Salaries. Following a
series of negotiations with its oil workers union (to which most PEMEX
employees belong), the Mexican national oil company indicated it agreed to increase oil workers' wages by 3.4%
and their benefits by 1.76%, despite its debt spiraling out of control.
Buys into China's Processing. US-based lithium producer Albemarle
(NYSE:ALB) agreed to buy China's Guangxi Tianyuan New
Energy Materials for $200 million, a lithium converter that is on the verge of
launching its 25,000 tons per annum processing plant, in a bid to increase its
foothold in the world's largest demand center.
LUKOIL Wants More Azerbaijan. Longtime interested in
expanding within Azerbaijan, Russia's largest private oil producer LUKOIL
(MCX:LKOH) agreed to buy a 25% stake in the Shallow Water Absheron
Peninsula (SWAP) project from BP, only several weeks after the UK-based firm
spudded its first exploration well at North Khali.
Blows Again in the North Sea. Despite European gas prices
hitting several consecutive all-time highs and nearing 100 Euros per MWh, coal-fired
generation has decreased w-o-w in Germany as wind generation moved back into
its normal range, averaging 11 GWh so far this week, a 10% increase
to Boost Ownership of Buzios Field. Brazil's national oil
company Petrobras (NYSE:PBR) is in talks with China's CNOOC (HK:0883) for a
deal that would see the Chinese firm buy another 5% stake in the Latin American
country's second-largest Buzios field for $2.08 billion.
Court Sets Exxon Hearing Date. Guyana's High court has scheduled a June 2022 hearing dealing with the
environmental impact of ExxonMobil's (NYSE:XOM) production
offshore Guyana, with local NGOs claiming the oil industry threatens the rights
of locals to a clean environment.
Aramco Gets Footing in India's Largest Private Refiner. Reliance Industries
(NSE:RELIANCE), operator of the world's largest refinery in
Jamnagar, India, stated the candidature of Yasir Al-Rumayyan, chairman of Saudi
Aramco, meets all regulatory criteria to become independent director, in a move
that is seen as a harbinger of Aramco's buying-in into the Indian firm's
LNG Disrupted Again by Fire. Malaysia's LNG terminal in
Bintulu, wielding 30 million tons of LNG per annum capacity, caught fire this
week however the operator Petronas claimed operations were unaffected.
Asks for More Russian Electricity. Attesting to China's
ongoing issues with nationwide power cuts, Russian state-owned power company Inter RAO
(MCX:IRAO) claimed it had received a request from Chinese
authorities to ramp up electricity exports. The current transmission lines
could be delivering up to 7 billion KWh.
Tinto Still Not Progressing with Resolution Copper. The
controversial Resolution Project, a prospective copper mine in Arizona to be
operated by Rio Tinto (NYSE:RIO) that could meet 25% of the United
States' total demand for the red metal, has still seen no progress after the
company's CEO failed to meet the head of the San Carlos Apache tribe that
and ENI Seek $2 Billion for Angola JV. UK major BP (NYSE:BP) and
Italian firm ENI (ETS:ENI) are seeking to raise $2 billion for their
oil and gas joint venture in Angola, as both companies seek to spin off
carbon-emitting subsidiaries into separate entities.
Wants More Term LNG Deals with Qatar. CNOOC (HKG:0883)
signed a new supply deal with Qatar's QP for a period of 15 years starting from
January 2022, adding 3.5mtpa LNG to the country's aggregate contracted
Alumina Refinery Out For At Least One Year. The Jamalco
alumina refinery, operated by Noble Group with a production capacity of 1.4
million tons per annum, will not be back until September 2022 on the back of a
fire last month, putting additional pressure on aluminum prices.
The post Oil Markets On Edge As OPEC+ Meeting Looms first appeared in Oilprice.com on October 01, 2021.
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