Saturday, June 12, 2021 /06:00 AM / by Tom Kool of
Oilprice.com / Header Image Credit: Oilprice
Oil prices climbed on Friday as the IEA boosted optimism
about global oil demand recovery.
Friday, June 11th,
Oil prices showed
modest gains on Friday, after a selloff on Thursday.
prices drop after U.S. lifting sanctions on Iranian officials. The
U.S. Department of the Treasury said on Thursday it is removing several Iranian
officials from its list of designated persons, including three directors of the
National Iranian Oil Company (NIOC). Oil prices declined on the news.
OPEC+ will have to loosen output limits. In early
trading Friday, oil was back up, on positive economic news in the U.S. and
accelerating global vaccination campaigns, according to Rystad Energy. But the
firm warned that there is going to be rising pressure on OPEC+ to loosen
production constraints in order to avoid the oil market overheating.
OPEC+ should "open the taps." The IEA said that global oil demand will rebound past pre-pandemic
levels by the end of 2022. After declining by 8.6 mb/d in 2020, oil demand will
rebound by 5.4 mb/d this year, and by another 3.1 mb/d next year. The agency
reiterated that OPEC and its allies needed to "open the taps2 to boost oil
production and keep the world well supplied.
EV SPAC running out of cash. Lordstown Motors
(NASDAQ: RIDE), a SPAC aimed at manufacturing EV pickups out of
an old GE plant in Ohio, disclosed that it does not have sufficient cash to start
commercial production and issued a going concern warning through the end of the
year. Lordstown was one of several EV SPACs that went public in the last
looks at offshore wind in Gulf of Mexico. The Interior
Department said on
Tuesday that it will examine potential areas of the Gulf of Mexico that are
suitable for offshore wind.
industry's costs are rising. Rising costs for labor,
freight, steel and aluminum are pushing up the cost of solar power, ending more than a decade of
steady cost declines, at least temporarily. Contract prices for solar were
already up 15% in the United States in the first quarter compared with last
year due to higher interconnection and permitting costs. There is uncertainty
over how long the cost increase will last.
Solar to build Ohio plant. First Solar
(NASDAQ: FSLR) said it
would build a $680 million factory in Ohio to manufacture solar panels. The
move is highly significant as the U.S. has largely ceded manufacturing
capabilities to China - the U.S. relies on imports for 85% of the panels used
in domestic projects.
LNG set for export record. U.S. exports of liquefied
natural gas (LNG) are set to surge this
year from the already record levels in 2020 as demand in Asia and Europe is
high, even in the off-peak season.
announces another Guyana discovery. Exxon has made yet
another in a long string of discoveries offshore Guyana in the Stabroek block, the company said
oil sands be banned? The oil sands of Athabasca seem
to be at an especially vulnerable crossroads â€“ just when oil sands production could
finally surge unimpeded with new pipelines allowing for higher exports abroad.
could hit $80 this summer, but there's a catch. There
is more room to
run for oil. "There's an incredible case where the oil price could get to $80,
but there would be a reaction to that. That would start to affect demand, and
also there would be a political reaction to that."
shakeup could result in capex changes for Exxon. Investors
want a "fundamental rethink on strategy," Anne Simpson, investment director at
shareholder California Public Employees' Retirement System, told Reuters "The
big measure" being its $16 billion-$19 billion annual project spending, she
banks face huge financial threats from energy transition. A
rapid and chaotic energy transition would leave Europe's biggest banks in financial
peril comparable to the subprime crisis that U.S. lenders faced in 2008,
according to Bloomberg.
downgrades Callon Petroleum, upgrades Marathon. RBC downgraded Callon Petroleum (NYSE: CPE) and Continental
Resources (NYSE: CLR), saying their stock has strengthened far
enough. The bank upgraded Marathon Oil (NYSE: MRO) and
Range Resources (NYSE: RRC) on a more bullish outlook for crude oil and natural
pipeline building spree at an end. The years-long
building spree of long distance natural gas pipelines in the U.S. is coming to
an end, as political and financial barriers turn against the industry,
according to S&P Global Platts.
considers relief for refiners on biofuels. Under
pressure from labor unions, the Biden administration is considering providing relief to oil refiners related to their
biofuels blending requirements.
basin gas pipeline connections increase. The recent
completion of a handful of gas pipelines has connected Permian basin gas to the Gulf Coast, and also to
Mexico, boosting Waha Hub prices.
prices see upside. LNG prices could continue to rise
due to strong demand in China. Spot prices have already posted strong gains in
recent weeks. We believe this has been driven by a tightening of Asian LNG
balances led by strong generation demand in southern China at the same time
that South Korea reached peak nuclear maintenance, while Covid-hit India LNG
demand has stabilized," analysts from Goldman Sachs said in
a note earlier this week.
The post IEA Tells OPEC To "Open The Taps" first appeared in Oilprice.com on June 11, 2021.
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