December 03, 2019 /08:25PM / By Tom Kool of Oilprice.com
/ Header Image Credit: Oilprice.com
Today, we will take a quick look at some of the
critical figures and data in the energy markets this week.
We will then look at some of the key market movers early this week before
providing you with the latest analysis of the top news events taking place in the
global energy complex over the past few days. We hope you enjoy.
Chart Of The Week
- U.S. energy-related CO2 emissions rose in 2018 by 2.7
percent, rising to 5.27 billion metric tons. It was the first increase since
- The EIA says the increase was
related to higher natural gas-related emissions because of extreme warm
temperatures in the summer and cold temperatures in the winter.
- Also, transportation emissions increased, due to robust
- Coal emissions fell by 4 percent.
- Gazprom's (OTCPK: OGZPY) saw its
net profit fall by 43 percent
year-on-year, due to lower export volumes and lower natural gas prices in Europe.
- Saudi Aramco (ARMCO) has
reportedly brought in $44.3 billion in bids for its IPO. The company is on
track for a valuation between $1.6 and $1.7 trillion.
- Williams Cos. (NYSE: WMB) is
suing the Texas Railroad Commission because it says the regulator has
essentially given oil companies a blank check to flare gas.
Tuesday, December 3, 2019
Broader financial markets saw some downward pressure on concerns of new trade
conflicts, but oil markets are holding out some hope for deeper OPEC cuts. JP
Morgan said that the group may increase the reductions from 1.2 to 1.5
of deeper OPEC+ cuts. The rumor mill says that OPEC+ may
look at a deeper production cut in
the neighborhood of 400,000 bpd, but with so many obstacles standing in the
way, the odds still seem remote. Most analysts see an extension as the most
on track for 3-5C warming. The world is on track for 3 to 5
degrees Celsius warming by the end of the
century, a faster pace than previously thought, according to the World
Aramco on target for $1.6-$1.7 trillion IPO. Saudi Aramco attracted bids worth around
$44.3 billion as of last Friday, putting it on track for a $1.6 to $1.7
trillion valuation. Most of the subscriptions come from Saudi investors, while
major international investors have largely stayed away.
pipeline to start up. The "Power of Siberia" pipeline is
set to open on Tuesday, a
long-distance, 3,000-km natural gas pipeline connecting Russia and China. The
project was initially inked back in 2014, and the contract lasts for 30 years.
The pipeline could knock out coal demand, as well as LNG imports, in
consumption declines, but China builds more. Global coal
consumption is set to fall this year, but China also has plans to build 121 GW of
new coal-fired power plants and also open new mines, hurting global efforts to
cut greenhouse gas emissions.
rocked by protests. Iran said that 200,000 people took part
in protests last week,
arguably one of the biggest anti-government protests in decades. The protests
were initially sparked by a hike in fuel prices, which itself was a symptom of
the weakening economy, largely because of U.S. sanctions. The Wall Street
Journal reports that Iran is in a deeper financial crisis
than most analysts previously thought.
protests take another violent turn. Iraqi security forces
reportedly killed at least 45 people
on Thursday, after protesters burned an Iranian consulate. It was one of the
bloodiest days since the protests began a month and a half ago.
offers to pay transactions in China. In an effort to work
around U.S. sanctions, PDVSA has reportedly offered to pay suppliers and
contractors in yuan into accounts in China, according to Reuters.
drillers cast doubt on growth forecasts. While the EIA and
IEA, among others, predict strong U.S. oil production growth lasting through
2020, the drillers themselves are more pessimistic. "I can't remember another
time when oil was $55 and the industry was in such shambles," Frank Lodzinksi,
an industry veteran, told Bloomberg. There is a wide gap between the bullish and
bearish forecasts for U.S. oil production growth for 2020, ranging from 1 mb/d
down to almost nothing. OPEC+'s likely decision to extend cuts rather than
deepen them suggests the group also sees U.S. shale slowing down.
and Arab states inch towards "cold peace." Two years of a
U.S.-backed "maximum pressure" campaign has only pushed the region closer
towards war, with little sign that any strategic policy gain is close at hand.
Meanwhile, the Abqaiq attack and the on-again, off-again interest from
Washington has helped spark a rethink in Saudi Arabia and the UAE regarding its
Iran posture. Now, there are signs of a quiet move towards diplomacy as a way
of trying to reduce the threat of war, according to Bloomberg.
renewable energy to surpass coal by 2021. Electricity
generation from renewable energy will surpass coal on an annual basis beginning
in 2021, according to IEEFA. "The data clearly shows that this is happening
already, and that there is no longer any reason to hesitate: renewables are
surpassing coal," IEEFA wrote.
Kong bill complicates trade war. President Trump signed into law a piece of
legislation that supports protestors in Hong Kong, a move that could complicate
trade negotiations with China.
tariffs from U.S. President Trump threatened to slap 100
percent tariffs on $2.4 billion of French imports. He also announced steel
tariffs on Brazil and Argentina, accusing the two countries of manipulating
their currencies, a bizarre claim, particularly in the case of Argentina, where
the government has scrambled to prop up the falling currency amid economic
at 350,000 bpd. Norway's new Johan Sverdrup offshore oil
field has increased production to 350,000 bpd, according to Reuters.
losses in Permian. The Permian has lost about 400 jobs in the
first 10 months of 2019 as drillers slow the pace of development. In 2018, the
region added 16,700 jobs.
sets 2050 net-zero carbon target. Spanish oil company Repsol (BME:
REP) set a 2050 target for
net-zero emissions, arguably the boldest goal within the industry to date. The
company aims to use clean energy for its refineries, add biofuels to its mix,
cut flaring, and use offsets such as carbon-capture and tree planting. The
company also plans to take a 4.8-billion-euro impairment charge in the fourth
quarter on some of its oil assets.
shares plunge on Suriname results. Apache (NYSE:
APA) saw its shares plunge by more than 12
percent on Monday after the company's vague report on its offshore drilling
operations in Suriname spooked investors.
- Oil Inches
Higher As OPEC Optimism Returns To Markets - OIR 261119
- IMO 2020
Fuel Sulphur Regulation Comes Into Effect From Jan 01, 2020
Bounces Back On New Round Of OPEC Rumors - OIR 220919
Worst Is Over For Oil Markets
Sinks As Sentiment Turns Sour - OIR 190919
Prices Of PMS, AGO, HHK and Cooking Gas - October 2019
- Five (5)
Steps To Subscribing To Saudi Aramco Initial Public Offer; Sets A
Valuation of $1.7trn
Isn't Winter Pushing LNG Prices Higher?
Markets Ignore Worrying OPEC Projections
Litres of PMS Imported Into Nigeria in Q3 2019 - NBS
- The EIA
Is Grossly Overestimating U.S. Shale
- The One
Factor Driving Today's Oil Markets
- Why 2020
Could Be A Crisis Year For Refiners
Saudi Arabia Hold OPEC Together?