Oil Markets Unfazed By Falling Imports From China - OIR 151021

Proshare

Saturday, October 16, 2021   /07:30 AM / by Micheal Kern of Oilprice.com / Header Image Credit: Reuters

 

Oil prices are continuing to climb despite fears of demand destruction and falling imports from China. According to the IEA, oil demand could increase to the tune of 500,000 bpd due to the energy crisis driving gas-to-oil switching.

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Friday, October 15th, 2021 

The ongoing rally in natural gas prices continues to drive gas-to-products switching and driving oil prices higher. In Asia, there is a counter-seasonal mini-renaissance of HSFO utilization. Concurrently, demand for crude remains strong, with OECD stockpiles recording a week-on-week decline. Oil prices did come under pressure on Thursday from data that showed weakening Chinese imports, but bullish sentiment retook markets on Friday. 

China Drops Independent Import Quotas for First Time Since 2015. Having 
issued the much-anticipated fourth batch of import quotas for independent refiners, Chinese authorities have reduced the total volume of crude to be imported for the first time in six years, despite at least 1 million b/d capacity coming online this year. The 2021 total of import allowances, at 177 million tons, is 7.4 million tons lower than that of 2020. 

India's Worst Power Shortage in More than 5 Years. India's crippling power shortage triggered by an acute shortage of coal has been the worst since March 2016 in terms of its severity, with power supply falling short of demand by a whopping 750 GWh in the first 12 days of October. 

Chinese Majors Woo US LNG Exporters. Several Chinese majors including Sinopec (SHA:600028) and CNOOC (HKG:0883) are in talks with US LNG exporters, mainly Cheniere and Venture Global, to 
conclude long-term supply contracts as current LNG prices highlighted the deficiencies of spot trades. 

Brazilian President Wants to Privatize Petrobras. Unable to control runaway fuel prices, Brazilian President Jair Bolsonaro 
stated he is inclined to privatize the state oil company Petrobras (NYSE:PBR), following the 2019 privatization of the Vibra fuel distribution company and the upcoming 2022 Eletrobras denationalization. 

US Department of Energy Picks Shell Consortium for Hydrogen Storage Pilot. The US Department of Energy 
picked a consortium of companies led by Royal Dutch Shell (NYSE:RDS) to carry out testing with the aim of gauging whether a large-scale hydrogen tank could be viable at import and export terminals. 

Turkey Seals New Gas Supply Deal with Azerbaijan. Turkey has signed a three-year gas supply contract with Azerbaijan that would see the delivery of 11 billion cubic meters until the end of 2024, coming 6 months after the expiry of the erstwhile Shah Deniz-1 deal. 

Volvo Produces First Fossil-Free Vehicle. Chinese-owned truck maker AB Volvo (STO:VOLV-B) 
claimed it produced the world's first fossil-free steel vehicle as it seeks to become climate-neutral by 2040, hoping for prototype production this year and small-scale series production by 2022. 

Chevron Joins Suriname Offshore Spree. US major Chevron (NYSE:CVX) 
signed a 30-year production-sharing contract for the Block 5 shallow-water license offshore Suriname, to the south of Block 58 operated by TotalEnergies (NYSE:TTE) that already saw four discoveries, that would see it assume operatorship with a 60% stake. 

Tesla Lands New Caledonian Nickel Supply Deal. US carmaker Tesla (NASDAQ:TSLA) 
signed a multi-year deal with New Caledonian miner Prony Resources that would see some 42,000 metric tons of nickel supplied to cater for Tesla's battery supply chain in Asia, the second metal supply contract that the US firm clinched recently. 

PEMEX Sticks to HQ Relocation. As Mexico's authorities seek to decentralize policy planning and boost economic development, the state oil company PEMEX still wants to relocate its headquarters to Ciudad del Carmen, Campeche, a long-time exploration hub. 

China Approves New Import Terminal for Sinopec. China is already the world's largest LNG importer, and inflows there should increase further as Chinese authorities 
approved the construction of a 6.5mtpa capacity LNG terminal in Longkou, Shandong, to be operated by state oil company Sinopec (SHA:600028)

US Wants to Hold 7 New Wind Lease Sales by 2025. In a bid to reach the Biden Administration's plan to reach 30 GW of offshore wind capacity by 2030, the US Secretary of Interior Deb Haaland 
stated that the US would hold lease sales in the Gulf of Maine, New York Bight, Central Atlantic, Gulf of Mexico and off the coasts of Carolinas, California, and Oregon in the upcoming four years. 

France Wants to Build Nuclear Plants in Poland. France's EDF (NYSE:EDF) has 
submitted an offer to build 4-6 nuclear reactors in Poland, the only European country wanting to join the nuclear club, with its non-binding offer providing for 6.6-9.9 GW of capacity depending on Warsaw's ambitions. 

EU Seeks to Ban Oil and Gas Exploration in the Arctic. The European Union is 
intent on banning oil, gas, and coal exploration in the Arctic, a region arguably most impacted by climate change as it has warmed three times as fast as the global average in the past 50 years, though none of its members have a sizeable footprint there.

Rio Tinto Cuts 2021 Iron Ore Forecast. The UK-headquartered mining giant Rio Tinto (ASX:RIO) cut its 2021 iron ore shipments 
forecast to 320-325 million tons on the back of a tighter labor market in Australia and by project completion delays elsewhere, putting it on course to lose its spot as the world's largest iron ore producer to Brazil's Vale. 



Credit:

The post Oil Markets Unfazed By Falling Imports From China first appeared in Oilprice.com on October 15, 2021.  

 


Proshare Nigeria Pvt. Ltd.



Related News - Previous Oilprice Intelligence Report 

1.       Is $80 The New Normal for Oil? - OIR 121021

2.      Prepare for a Prolonged Period of High Energy Prices - OIR 081021

3.      Oil Prices Charge Higher as Bullish Sentiment Builds - OIR 051021

4.      Oil Markets On Edge As OPEC plus Meeting Looms - OIR 011021

5.      Brent Temporarily Breaks the $80 Mark - OIR 280921

6.      Oil Prices Continue to Climb on Supply Disruptions - OIR 240921

7.      Oil Prices Under Pressure from China's Evergrande Crisis - OIR 210921

8.     Oil Ends Week on Bullish Note as Outages Persist - OIR 170921

9.      Oil Prices Climb as Another Storm Hits the Gulf Coast- OIR 140921

10.  Oil Prices Bounce Back as Bullish Sentiment Returns - OIR 100921

11.   Oil Prices Slide Despite Supply Disruption - OIR 070921


Proshare Nigeria Pvt. Ltd.

 

Related News - Oil and Gas 

1.       OPEC Monthly Market Report: Nigeria Reports Marginal Production Uptick in September 2021

2.      NBCC Forum: Experts Examine PIA and the Opportunities for Nigeria's Economic Growth

3.      NBCC Forum: Experts Examine PIA and the Opportunities for Nigeria's Economic Growth

4.      Coronation Economic Note: USD80 per Barrel - Relatively Healthy

5.      Crude Oil Price Continues to Rise

6.      Gas for Good: How Gas Can be Used for the Social and Economic Good of Africa

7.      A Just Energy Transition for Nigeria and it's Oil and Gas Sector Will Attract Investment

8.     High Crude Oil Price; Double Edge of Wealth and Penury?

9.      Oil Price Sustains Momentum: All That Glitters...

10.  First ''Under-Recovery'', Now ''Value Shortfall''; Can Nigeria Bite the Bullet on Subsidies?

11.   President Buhari Directs Incorporation of NNPC Ltd, Appoints Board

12.  Average Prices of PMS, AGO, HHK and Cooking Gas - August 2021

READ MORE:
Related News
SCROLL TO TOP