Saturday, April 10, 2021
/07:00 AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice.com
Oil prices are set to post a loss this week as demand fears
and Covid lockdowns counteract optimism over a tightening market.
Friday, April 9th, 2021
Oil prices are set to post a loss this week, following several days of
up-and-down trading. The story is the same - a jockeying between market
tightness and concerns about demand amid spreading Covid cases and lockdown
admin to decide DAPL's fate. The Army Corps of
Engineers is scheduled to
appear in a U.S. court on Friday to decide the fate of the Dakota Access
Pipeline. Last year, a court vacated a critical permit issued by the Army Corps
during the first days of the Trump administration. The pipeline was allowed to
remain online despite lacking the permit, but the court ordered the Army Corps
to conduct a more thorough environmental assessment and come up with a new
justification for continued operations of the pipeline, or to shut it down. The
Army Corps, now under President Biden, has been silent on the issue but will
make a decision on Friday.
output to rise. "The number of completed wells in the
Permian basin during the first quarter of 2021 exceeded the required output
maintenance level, so oil production is set to rise in the current quarter - but will likely slow again later in the year," Rystad Energy said in a note.
explores the sale of its polymer business. ExxonMobil
(NYSE: XOM) is exploring a
sale of its Advanced Elastomer Systems division for as much as $800
to furlough refinery staff on energy transition concerns. Repsol (BME:
REP) plans to furlough 830
workers at two refineries citing lower demand and uncertainty regarding the
threatens to leave API and other industry groups. Royal Dutch
Shell (NYSE: RDS.A) is threatening to
leave the American Petroleum Institute, the Texas Oil & Gas Association and
the U.S. Chamber of Commerce unless they take a stronger stance on climate
change. API and the Chamber are the most powerful oil and business lobby groups
in the country, respectively. Earlier this year, Total (NYSE:
TOT) left API for similar reasons.
to turn an upstream profit. Royal Dutch
Shell (NYSE: RDS.A) said that its
upstream unit would return to profitability in the first quarter for the first
time since the start of the pandemic.
weighs pipeline sale for $10 billion. Saudi Aramco
(TADAWUL: 2222) is in advanced talks to
sell up to a 49% stake in its oil pipelines to a consortium of U.S., Chinese
and local investors.
majors' rush for offshore wind crowds sector. Oil majors are rushing into offshore wind auctions in the North
Sea, pushing up auction prices and crowding out big developers.
fuel demand showing signs of life. Jet fuel demand
is picking up,
according to refiners.
to propose new auto rules by July. The EPA said it
would propose new fuel economy
standards for cars and light-duty trucks by the end of July. The agency is
rewriting Trump-era rules that weakened fuel efficiency.
cuts oil production forecast. U.S. oil output may
average 11.04 million barrels day this year, according to the EIA, down from
last month's forecast at 11.15 million after the Texas grid crisis. The agency
lowered its 2022 forecast by 100,000 bpd.
sovereign wealth fund invests in clean energy. Norway's
$1.3 trillion wealth fund made its first
investment in clean energy infrastructure, buying 50% of a 752-MW offshore wind
make an electric pickup. GM (NYSE: GM) said it would make an
electric version of its Chevy Silverado pickup truck.
House considers 50% climate target. The Biden
administration is considering announcing
a goal of a 50% reduction in GHG emissions by 2030 (from a 2005 baseline),
which would double the previous commitment made under the Obama administration.
The U.S. is set to host an international summit later this month, so the
announcement could occur in advance of those talks.
refinery explosion. A massive fire erupted on Wednesday
evening at an oil refinery operated by Petroleos Mexicanos (Pemex) in the city
of Minatitlan in the eastern Mexican state of Veracruz
rush back to oil stocks. Despite the surge of
ESG-related equities, investors are flocking back
to oil and gas stocks, at least for now.
66 cancels Bakken/Rockies pipeline. Phillips 66
Partners LP (NYSE: PSXP) canceled the
Liberty Pipeline, a proposed oil pipeline that would have carried Bakken and
Rockies oil to Cushing, OK. The company took a $180 to $210 million impairment.
and SSE plan the first hydrogen plant in the UK. Equinor (NYSE:
EQNR) and SSE Plc are working to develop the world's
first hydrogen power plant in the UK.
House considers Tellurian executive for Nord Stream negotiations. The
Biden administration is considering appointing
Amos Hochstein as a special envoy to negotiate the halting of the Nord Stream 2
pipeline. Hochstein was formerly in the State Department under the Obama
administration before leaving to work for Tellurian (NASDAQ: TELL).
raises $4.8 billion for renewables. BlackRock Inc.
has raised $4.8 billion to
invest in renewables, double its initial target. Meanwhile, Bank of
America said it increased to
$1 trillion its goal of financing low-carbon projects.
to announce climate disclosure rule. U.S. climate
envoy John Kerry said at an IMF event
on Wednesday that the Biden administration "is poised to issue an executive
order that will require disclosure" of climate change-related risks by publicly
traded companies. "It's going to change allocation of capital," he said.
Bloomberg reports some details on
that executive order.
Intelligence: Climate change to drive instability. A
new report from the U.S.
National Intelligence Council says that climate-driven chaos will fuel global
instability and migration in the future.
The post Oil Prices
Post Weekly Loss As Covid Concerns Return first appeared in Oilprice.com on April 09, 2021.
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