Saturday, May 01 , 2021
/07:00 AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice.com
It was a big week for
oil markets as demand optimism sent oil prices beyond $65 and oil majors
reported promising earnings, but prices pulled back on Friday morning as covid
concerns in India grew.
Friday, April 30th, 2021
Oil prices posted gains for much of this week but traded down on Friday. A bit
of profit-taking after strong gains, combined with concerns about the worsening
outlook in India, likely contributed to the move down.
and Chevron report big boost in profit. ExxonMobil
(NYSE: XOM) reported a $2.7-billion
profit in the first quarter, and Chevron (NYSE: CVX) said it
earned $1.4 billion.
CEOs stick with restraint, mostly. Ovintiv (NYSE:
OVV) CEO Doug Suttles told Bloomberg that the
industry is maintaining capital discipline. At the same time, Continental
Resources (NYSE: CLR) said that it would
ramp up activity in the Bakken this year.
prices rose to a 6-week high. Oil prices rose early on
Thursday to their highest level in six weeks as a brighter outlook on the
American economy and oil demand offset bearish demand prospects from the COVID
crisis in India.
announces $8.25 billion in loans for transmission. The
Department of Energy announced the availability
of $8.25 billion in loan guarantees for new long-distance transmission
projects. Transmission is seen as a key bottleneck to a faster transition to
â€œcarbon neutralâ€ oil cargo sold. Sweden's Lundin Energy said it sold the
world's first oil cargo certified to be â€œcarbon neutral.â€ The carbon offsets
were done via tree-planting in Mexico.
refineries vs. ethanol reaches Supreme Court. The U.S.
Supreme Court heard oral arguments on a case that put the Trump-era waivers to
oil refineries related to a federal mandate on biofuels to the test. Bloomberg reports that the
judges seemed skeptical of refiners' claims that they should be allowed to extend
lapsed waivers. If refiners lose, the EPA waiver program could be constricted,
meaning that only in rare instances could refiners get out of biofuel
purchasing requirements. HollyFrontier Corp. (NYSE: HFC) and CVR Energy
Inc.'s (NYSE: CVI) and Wynnewood Refining Co. are
participants in the case.
sees no room for more upstream. Eni (NYSE:
E) sees no room for new large
outbreak in Canada's oil sands. 12 oil sands
production sites have been listed for outbreaks of
Covid-19, which has delayed maintenance at some facilities and disrupted
reports profit, boosts dividend. Royal Dutch
Shell (NYSE: RDS.A) reported a $3.23 billion
profit in the first quarter and hiked its dividend by 4%. The gains came from
asset sales, and higher oil and LNG prices.
posts profit. Total (NYSE: TOT) saw its profit jump
to $3 billion. The company said a quarter of its capex will go to renewables
Senate rescinds Trump methane rule. The Senate voted to repeal a
Trump-era rule that weakened methane regulations. If signed into law as expected,
the move will restore Obama-era regulations.
investors in talks with Aramco. Chinese investors are
in talks to buy a stake in Saudi Aramco (TADAWUL: 2222),
according to Reuters.
carbon prices put pressure on border tariff. EU carbon
prices have shot up close to 50 euro per ton, imposing higher costs on
polluting industries. European industry is now calling on the EU to
look at carbon border adjustments, a tariff on imported products that originate
in places with weak climate policy.
shale industry faces challenges. China has bet on
developing its vast shale gas resources to boost its natural gas supply as
demand surges. Despite recent shale production surprises to the upside, China
still has several major
challenges to overcome if it wants to replicate, at least
partially, the American shale boom.
Energy looking to sell South Texas assets. Chesapeake
Energy (NASDAQ: CHK) is aiming to sell assets
in South Texas, hoping to raise $2 billion.
and Saudi Arabia negotiate dÃ©tente. Iran and Saudi
Arabia have held direct talks in Iraq this
month, and both sides have expressed a desire to improve relations, a dramatic
turn of events after decades of open hostility.
presses U.S. on Line 5, Line 3. The Canadian
government is warning the U.S. against
interrupting oil flows on Line 5 or construction of the Line 3 replacement.
oil falls by 12%. UK oil production declined by 12% in the
first two months of 2021 compared to a year earlier, dipping to 997,000 bpd.
wind spending to explode. The offshore wind industry's
global installed capacity is set to exceed 250 gigawatts
(GW) by 2030, driven by a surge in coming projects, a Rystad Energy report
shows. The combined capital and operational expenditure for the decade is set
to add up to an eye-popping $810 billion, signaling an increasing shift of
investments from oil and gas to renewable energy technologies.
EV sales soaring. Worldwide sales of electric vehicles
(EVs) jumped by 41 percent
last year while the total global car sales fell in the pandemic-related
downturn, the International Energy Agency (IEA) said on Thursday, expecting a
further surge in EV sales, especially if governments encourage higher adoption
with strengthened policies.
high court orders more climate action. Germany's
highest court ordered the government
to expand a 2019 law aimed at net zero emissions by 2050, ruling that future
generations are entitled to protection from climate change.
may purchase Hunt Oil in Permian. Oil trader Vitol Group is nearing the purchase
of Hunt Oil Co.'s Permian basin oil wells for $1
covid crisis could lead to a global oil surplus. India's worsening COVID outbreak
is set to disturb the nearly balanced global oil market, which will show a
surplus of oil supply of as much as 1.4 million barrels per day (bpd) next
month amid a sizeable loss of demand from the world's third-largest oil
importer, Rystad Energy says.
The post Oil Prices Pull Back
After A Big Week first appeared in Oilprice.com on April 30, 2021.
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