The energy sector is poised to start higher, recovering from yesterday’s fall on the back of a spike in the underlying commodities, while futures were little changed as traders assessed earnings reports from two key retailers.
WTI and Brent crude oil futures edged higher this morning after two straight days of steep declines, but conviction was low as traders continued to digest weak economic data from China, updates on the Iran nuclear deal and an EIA report predicting production in key US shale oil basins will increase. Iran responded on Monday to the European Union’s “final” draft text to salvage a 2015 nuclear deal, an EU official said without providing details. Iran’s foreign minister called on the United States to show flexibility in resolving the remaining three issues. The EIA released a report forecasting that production in major U.S. shale oil basins will hit 9.049 million bpd in September, the highest since March 2020 and in the Permian, production will reach a record 5.408 million bpd. Traders will look to industry supply data later today ahead of tomorrow’s EIA report. Analysts polled expect the report to show a drop in oil and gasoline inventories and an increase in distillate inventories.
Natural gas futures rebounded from their recent run of declines, bouncing off weaker production expectations, bolstering European prices and extending forecasts of warmer weather in key consuming regions, this which should stimulate additional demand.
INTEGRATED IN THE UNITED STATES
No significant news.
Solar developer Lightsource bp is expected to reach financial close later this year on two new solar farms in Australia at a total cost of 800 million Australian dollars ($560 million), the company half-owned by BP S.A. said.
Bloomberg reported that BP S.A. is seeking to divest itself of its oil assets in Mexico amid a reorientation of its business strategy towards renewable energy and a difficult political climate in the country’s energy sector.
Solstad Offshore ASA announced that Equine declared an option to extend the contract of AHTS Normand Ferking for an additional year until November 2023. Equinor has the option to extend the contract for an additional year thereafter. Normand Ferking has been under contract with Equinor since 2007 and will continue to support their activities on the Norwegian continental shelf.
Petrobras informed that it has received an official letter from the Ministry of Mines and Energy, ratifying the appointment by the majority shareholder of Mr. Jônathas Assunção Salvador Nery de Castro to the Board of Directors of the Company, to be submitted to the Extraordinary General Meeting convened on 08/19/2022.
Total Eren, the renewable energy branch of TotalEnergiesplans to develop a green hydrogen hub in Darwin, the capital of the Australian Northern Territory, to produce more than 80,000 t/year of green hydrogen.
TD Securities Upgrade Imperial Oil to buy pending.
E&PS United States
Coterra Energy announced the current and pending retirements of three members of the Company’s senior management, as well as the promotion of three individuals to executive positions. Effective September 30, 2022, Steven W. Lindeman, Senior Vice President – Production and Operations, and Phillip L. Stalnaker, Senior Vice President – Marcellus Business Unit, will step down. Francis B. Barron, Senior Vice President and General Counsel, has also indicated his intention to retire in the first quarter of 2023 and will leave his current position also effective September 30, 2022. Blake Sirgo has been promoted to Senior Vice President – Operations from October 1, 2022, replacing Mr. Lindeman. Gary Hlavinka has been promoted to vice president of the Marcellus business unit, replacing Mr. Stalnaker. Additionally, Adam Vela was promoted to Vice President – General Counsel effective October 1, 2022, replacing Mr. Barron.
No significant news.
hugue baker expands its presence in Asia by opening a new oilfield services chemical manufacturing facility in Singapore, enabling manufacturing optimization and faster delivery of tailored chemical solutions. The facility, spanning approximately 40,000 square meters, will manufacture, store and distribute chemical solutions for upstream, midstream, downstream and adjacent industries to support regional customers and boost Baker’s localization efforts Hughes.
Mining vehicle operators represented by Teamsters Local 104 voted unanimously to approve a new contract with Vulcan Materials after a two-year struggle to prevent the country’s largest construction aggregate producer from gutting its collective bargaining agreement.
No significant news.
No significant news.
MLPS & PIPELINES
LP Energy Transfer announced the completion of the sale of its 51% interest in Energy Transfer Canada ULC to a joint venture that includes Pembina Pipeline Corporation and global infrastructure funds managed by KKR. The sale of these assets allows Energy Transfer to further deleverage its balance sheet and redeploy capital within its US footprint, which consists of a portfolio of energy assets with exceptional geographic and product diversity.
New Fortress Energy and Apollo announced that they have completed the previously announced joint venture, establishing a platform that now owns and operates 11 liquefied natural gas infrastructure vessels comprising floating storage and regasification assets, floating storage vessels and LNG carriers . The platform has been named Energos Infrastructure and is owned approximately 80% by funds managed by Apollo and 20% by NFE.
Scorpion Tankers announced that the Company had repurchased 1,293,661 of its common shares at $38.65 per share for a total of $50 million from Eneti, a related party.
U.S. stock index futures fell slightly as investors assessed results from retailers Walmart and Home Depot, while signs of a slowing global economy continued to keep investors nervous. In Asian equities, Chinese stocks ended lower on COVID-19 concerns, while the Japanese Nikkei ended flat. European equities advanced, supported by the mining sector. The dollar rose, while gold prices slipped. Oil prices fell due to a gloomy economic outlook.
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