Oil prices rise as bullish sentiment increases | OilPrice.com

While it may still be too early to say whether sentiment in the oil markets has completely changed, signs that the US will avoid a default and that oil markets are beginning to tighten have put oil prices on course for their first weekly gain in the past. Month.

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Friday, May 19, 2023

After a month of negative pressures and increasing bearish tendencies, oil prices have finally broken the vicious cycle and are poised for their first weekly gain in a month. Much of this optimism was provided by the US, with debt ceiling talks now likely to lead to a negotiated settlement and gasoline demand showing real strength with another drop in inventories week after week.

Invite Western countries to supervise oil transfers. A group of Western countries that includes the United States and the United Kingdom has called for increased scrutiny of the ever-increasing practice of ship-to-ship transfers of crude oil, which carry Iranian or Russian oil, claiming that such transfers increase the risk of marine oil spills.

Extension of the Black Sea Grains deal. Thanks to Turkish mediation, the UN-brokered Black Sea grain deal was extended by two months to mid-July despite Russian objections that the sanctions were hampering its exports, immediately sending global wheat and corn futures down 3-4%.

Alberta wildfires approaching the oil sands. Renewed heat in the Canadian province of Alberta has brought wildfires closer to oil sands production centers ConocoPhillips (NYSE: COP) Evacuated 150,000 barrels per day from the Surmont project south of Fort McMurray, bringing the total outages to 400,000 barrels of oil equivalent per day.

The White House approves the main gas pipeline. The Biden administration has given the green light Equitrans Midstream’s (NYSE: ETRN) The $6.6 billion Mountain Valley Pipeline is set to carry gas from the Appalachia Basin to southern Virginia, previously halted by environmental protests as it passed through the Jefferson National Forest.

Russia claims to fulfill the pledge made. Russian Deputy Prime Minister Alexander Novak stated that Russia has reached its goal of reducing crude oil production by 500,000 barrels per day compared to February 2023 levels, despite pledging to cut production by March already, at the time when OPEC + begins preparing for the June 4 meeting.

Saudi Aramco halts the expansion of a giant gas field. Saudi National Oil Company Saudi Aramco (Trading: 2222) Bidding processes for the $10 billion expansion of the Safaniya oil field, believed to be the world’s largest offshore field, have been postponed for the second time, already in 2023.

Chinese companies are looking to invest in Australian LNG. Australian oil producer Woodside Energy (AUX: WDS) It announced its willingness to hold talks with Chinese companies to invest in the $12 billion Scarborough LNG project, which is currently 30% complete and expected to see first production in 2026.

Brazil Bans Petrobras From Amazon Drilling. Brazil’s Environmental Protection Agency Ibama rejected a request from the country’s national oil company Petrobras (NYSE: PBR) to drill an exploratory well at the mouth of the Amazon River, near the Guyana border, under the pretext of insufficient safeguards for the local population and wildlife.

Lebanon wants more Iraqi oil. Struggling to restart economic activity at home, the Lebanese government has turned to Iraq for oil products and crude supplies, and signed an agreement to buy 1.5 million tons annually of fuel oil for power generation and two million tons of oil for refining.

South Africa adheres to the U-turn policy. After recovering from its worst ever energy crisis, South Africa has moderated its opposition to shale gas exploration, which had been suspended for a decade over farmers’ protests, and is preparing to auction off at least 10 new onshore blocks for gas exploration in the Karoo region.

Pakistan faces 18 billion huge lawsuits. The cash-strapped government of Pakistan faces penalties of up to 18 billion because it failed to build gas pipeline infrastructure as per an agreement signed with Iran and has to complete its part of the 750 million cubic feet per day pipeline by next year, 5 already. years delay.

Mexico’s largest refinery on fire. Pemex’s only refinery on the West Coast and the largest in the country, the 330,000-bpd Salina Cruz refinery, suffered the explosion and subsequent fire in its hydroprocessing unit, the second fire reported in Mexico this week after a small fire broke out. Madero refinery.

Major US oil companies are collaborating on carbon capture. While Australia has announced its ambitious plans to increase carbon capture capacity at home, two of the country’s major producers Chevron (NYSE: CVX) And Exxon Mobil (NYSE: XOM) He said Canberra would need to increase policy support and economic stimulus.

India wants to refill the Strategic Petroleum Reserve, too. India plans to replenish a quarter of its strategic petroleum reserves, which are only 39 million barrels which are far less than those of the United States or China, however, media reports indicate that they will buy about 9.2 million barrels in the coming months.

By Michael Kern for Oilprice.com

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