Business

Oil prices rise due to supply constraints and growing geopolitical tensions with Russia


The energy sector should start higher, supported by the strength of the underlying commodities. US stocks edged higher as investors prepare for today’s Federal Reserve policy meeting, where a sharp rise in interest rates is expected.

WTI and Brent crude oil futures are up in early trading due to supply constraints and geopolitical risks. OPEC+ reported that its production shortfall hit a record 3.58 million bpd or 3.5% of global demand, putting supply concerns back in the spotlight. Overnight, Moscow said it would call up 300,000 new troops and hinted at the use of nuclear weapons, raising the risk of further sanctions against Russia. Moreover, at the United Nations General Assembly this week, the United States said it does not expect to reach an agreement to bring Iranian oil back to markets anytime soon.

Natural gas futures rose this morning, benefiting from high gas prices in Europe and expectations of stronger than expected demand.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

Liquid air, Chevron, Keppel Infrastructure and PetroChina announced that they have signed a memorandum of understanding to form a consortium that will aim to evaluate and advance the development of large-scale carbon capture, utilization and sequestration (CCUS) solutions and integrated infrastructure in Singapore. The consortium intends to research, test and develop technological, logistical and operational solutions for CCUS in Singapore.

The strike action reduced production to Exxon Mobil’s 240,000 barrels per day (bpd) Port Jerome-Gravenchon oil refinery and Notre Dame de Gravenchon (NDG) petrochemical site in France, the company said.

INTERNATIONAL INTEGRATED

BP said it closed its 150,800 barrel-per-day refinery in Toledo, Ohio, after a fire injured two.

Eni The UK has announced that it has submitted through the North Sea Transition Authority (NSTA) system an application for a carbon storage license for the depleted Hewett gas field in southern North Sea for the development of a CCS project aimed at decarbonising the Bacton and Thames Estuary region.

Petrobras informed that it has paid the 2nd installment of the shareholders’ compensation approved by its Board of Directors at the meeting of 07/28/2022. The gross amount distributed corresponds to dividends of R$3.366001 per outstanding common share.

TotalEnergies expects to pay around $30 billion in taxes and levies on production worldwide this year, its chief executive Patrick Pouyanne told a French parliamentary committee hearing. Pouyanne said that compared to the $16 billion paid in 2021 and $6 billion in 2020.

Reuters reported that TotalEnergies is expected to pay around 8 billion euros in dividends this year, according to the CEO.

CANADIAN INTEGRATED

No significant news.

E&PS United States

EQT announced that it has priced a $1.0 billion aggregate principal amount bought deal public offering of senior notes, comprised of $500 million in aggregate principal amount of its 5.678% Senior Notes due 2025 and $500 million in aggregate principal amount of its 5.700% Senior Notes due 2028 EQT expects the offering to close on October 4, 2022, subject to the satisfaction of customary closing conditions.

Magnolia oil and gas announced that Christopher Stavros, the company’s current executive vice president and chief financial officer, has been named president and chief executive officer and has been appointed to the board of directors, effective immediately. Stephen Chazen, who served as chairman, president and chief executive since 2018, will no longer be able to hold office due to serious health issues. Mr. Stavros will continue to serve as the company’s chief financial officer until a permanent successor is appointed.

MKM Partners assumed the cover on Matador Resources with a buy rating.

SilverBow Resources, Inc. adopted the Rights Plan in response to recent large accumulations of portions of SilverBow’s outstanding common stock. The Rights Plan is similar to other rights plans adopted by public companies and is intended to promote the fair and equal treatment of all shareholders. The rights plan is designed to enable all shareholders of the company to realize the long-term value of their investment and is intended to protect SilverBow and its shareholders against the efforts of a single shareholder or a group to obtain control. of the company without paying a control premium.

CANADIAN E&PS

No significant news.

OIL SERVICES

Granite announced that it had been awarded two construction contracts worth approximately $107 million on State Highway 288 near Houston, Texas. Combined with the previously announced $40 million contract on a different segment of SH 288, the additional segments give Granite more than $145 million worth of work on SH 288. The contracts have been awarded and will be funded by the Texas Department of Transportation. They are expected to be included in Granite’s third quarter CAP.

Schlumberger and Aramco announced their intention to collaborate and develop a digital platform that will provide sustainable solutions to hard-to-reduce industry sectors. The proposed platform will enable companies in sectors such as oil and gas, chemicals, utilities, cement and steel to collect, measure, report and verify their emissions, while assessing different decarbonization pathways.

Schlumberger announced the commercial release of the Schlumberger enterprise data solution, which is powered by Microsoft Energy Data Services. Developed to provide the most comprehensive capabilities for underground data, in line with the emerging requirements of the OSDU Technical Standard, a new open industry standard for energy data, the enterprise data solution makes data accessible at scale unprecedented for the global energy industry.

Exane BNP Paribas upgraded TechnipFMC PLC to outperform from neutral.

DRILLERS

No significant news.

REFINERS

Wells Fargo Securities downgraded H. F. Sinclair Society to equal the weight of an overweight rating.

JPMorgan updated PBF Energy to Overweight from Neutral.

Valero Energy and Marathon Oil are the biggest beneficiaries of U.S. government oil reserve releases, taking nearly half of the crude on offer, according to a Reuters analysis of Department of Energy data.

A power outage on Tuesday resulted in flaring at Valero Energy 225,000 barrel per day (bpd) refinery in Texas City, the city’s Emergency Management Department said on Twitter.

MLPS & PIPELINES

Energy Cheniere and Cheniere Energy Partners, LP announced the promotion of Corey Grindal to Executive Vice President and Chief Operating Officer, effective January 2, 2023. As Executive Vice President and Chief Operating Officer, Grindal will lead Operations, Engineering & Construction, Shared Services and Global Commercial Organizations within Cheniere. In his new role, he will continue to report to Jack Fusco, President and CEO. Grindal will also serve as Executive Vice President and Chief Operating Officer at Cheniere Partners.

North American tankers said: “One of our suezmax tankers (built in 2010) today commenced a one year time charter contract with one of the largest energy companies in the world at a rate in excess of $30,000 per day. The NAT fleet includes 20 suezmax vessels. The uniform fleet of suezmax tankers only is a registered trademark of NAT. Our vessel operating expenses average $8,000 per day.

Allseas has been awarded a major construction contract by TC Energy for a major offshore gas pipeline delivering natural gas to southeastern Mexico.

MARKET COMMENTARY

U.S. stock index futures were little changed as investors awaited another likely aggressive interest rate hike from the Federal Reserve. European stocks edged higher, although gains were limited after Russian President Putin ordered a rally against Ukraine, which helped the dollar hit a new two-decade high. Asian stocks ended in the red, with the Nikkei closing at a two-month low. Gold prices rose on safe havens. Oil jumped more than 2% on fears of tight oil and gas supplies.


The Nasdaq Advisory Services Energy Team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


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