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Oil costs posted their biggest loss in 18 months on Friday, with WTI falling $10. 2 a barrel to $70 as Omicron fears rattled markets.
The January 2022 WTI contract recorded the number of trading volumes since April 2020, well above 800,000, as the drop in oil costs crossed key technical grades and triggered algorithmic trading.
The immediate backlog of instances of Omicron around the world and the lack of data related to its fitness effects have triggered a number of restrictions, with some countries (notably Japan and Israel) already ending their borders altogether.
Market drivers
U. S. oil industry ExxonMobil (NYSE: XOM) is in talks with Nigerian energy company Seplat to sell its shallowwater oil fields in Nigeria, as it seeks to divest assets in Europe and Africa to fund its U. S. shale expansion. USA
BP (NYSE: BP) has announced plans to build a green hydrogen production plant in the North East of England, with HyGreen Teesside’s allocation of 60 MW alongside a blue hydrogen allocation, with the aim of getting 30% of the UK’s hydrogen production by 2030.
Italian primary energy company ENI (NYSE: E) has said it is in a position to invest more in nuclear fusion, adding that the commonwealth fusion system allocation led by MIT scientists, of which it remains the largest shareholder.
November 30, 2021
The plunge in the value of Black Friday shook the oil market, destroying the bullish sentiment that had accumulated during the month. While stocks partially recovered on Monday, they plunged on Tuesday morning as uncertainty intensified. Fears of a call to destruction. All are now the target of the next OPEC meeting, as the prospective loss of 2 to 3 million b/d from the global call may convince the cartel to avoid its 400,000 b/d of production additions per month.
Related: Could The World Run On Nitrogen?
Saudi Arabia Shrugs Off Omicron Fears. Whilst other Middle Eastern countries were hesitant to assess OPEC+ prospects of incremental supply, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman and Russia’s energy minister Alexander Novak were inclined to keep the oil group on its pre-charted course.
IEA Picks a Fight with Fossil Energy Producers. Fossil fuel energy producers are apparently to blame for high natural gas and power prices in Europe, according to the head of the International Energy Agency Fatih Birol. The comment was in response to the heavy criticism that clean energy initiatives received when prices spiked.
Russia’s Latest LNG Project Secures Financing. Arctic LNG-2, Russia’s next LNG megaproject developed by Novatek (MCX:NVTK), secured $10.7 billion in project financing from Chinese, Japanese, and Russian banks, thus failing to attract any European banking interest.
White House Seeks US Royalty Rate Revamp. In a recently published blueprint for the future development of oil and gas projects on federal lands, the Biden Administration is advocating an increase in royalty rates, currently some 12.5% on onshore leases and 12.5-18.75% on offshore leases.
Coal Prices Plummet on News of Further Chinese Intervention. China’s thermal coal futures as traded on the Zhengzhou exchange dropped 6% on Monday after the country’s economic planner NDRC indicated its willingness to “improve the mechanisms of coal pricing”, suggesting more government intervention might be on its way.
Canada Vetoes Enbridge Pipeline Allocation. Canada’s Energy regulator rejected Enbridge’s (TSE:ENB) plan to sell all pipeline space on its 3mbpd Mainline trunk pipe system under long-term contracts, arguing the proposed allocation would excessively favor those with contracts.
Related: Green Fintech is a New Trend Investors Can’t Ignore
Saudi Arabia spends cash on shale fuel. Saudi Aramco (TADAWUL: 2222) this week began paintings on the country’s largest non-oil fuel field, Jafurah, with progression prices estimated at $24 billion, with the aim of producing 2 BCf in line with the day. of herbal fuel and about 400 MCf in line with the related ethane day until 2030.
Russia needs to make its strategic partnership with China for green energy bigger. Having committed pipelines and fuels to supply China’s intake centers, Russia’s top-sensible energy officials are now calling for the strategic partnership to be extended to renewables, the maximum likely in form. of wind projects.
Shell plans to return to Libya, while British giant Shell (NYSE: RDS. A) plans to return to Libya after his departure in 2012, with an eye on oil and fuel projects in the Syrte and Ghadames basins, as well as solar power plants there.
Indonesia grants 8 new oil and fuel blocks in a new cycle The licensing cycle since the beginning of the pandemic, Indonesia now grants 8 new oil and fuel blocks across the archipelago to grant licenses, indicating that the blocks had a total capacity of 500 MMbbls of oil and 22 TCf of fuel.
By Tom Kool for Oilprice.com
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