Oil costs rose on Monday and remained regular on Tuesday morning as markets are cautiously trying past the COVID-19 pandemic

Oil costs rose on Monday and remained regular on Tuesday morning as markets are cautiously trying past the COVID-19 pandemic

Diagramm der Woche

Oil costs rose on Monday and remained regular on Tuesday morning as markets are cautiously trying past the COVID-19 pandemic

  • The EIA forecasts U.S. oil manufacturing remaining flat by the tip of 2021.
  • Production topped out at 12.9 mb/d (on a month-to-month foundation) in November 2019, earlier than falling to 10 mb/d by May 2020.
  • Production rebounded to 10.6 mb/d by August. But with world demand unable to rebound to pre-pandemic ranges till 2022 on the earliest, U.S. manufacturing might be unable to extend dramatically.


  • Devon Energy (NYSE: DVN) was upgraded by two Wall Street banks. Goldman Sachs raised DVN to Buy, and Morgan Stanley raised it to Overweight. “Improving Permian well performance and lower operating/capital costs make the company more competitive,” Goldman’s Brian Singer sagt.
  • ExxonMobil (NYSE: XOM) wants one other 8 Mrd. $ in debt financing to take care of its 2021 dividend, in keeping with MKM Partners.
  • Suncor Energy (NYSE: SU) might be on the verge of a Turnaround after getting hit laborious this yr. Suncor is “one of the [stocks] that is most undervalued, and I think the market has got a few things wrong on it in terms of concerns – so that’s one of the [companies] where we see the best opportunity,” BMO Capital’s Randy Ollenberger says.

Dienstag November 17, 2020

News {that a} second vaccine was extremely efficient lifted world markets on Monday, including optimism to the prospect that the tip of the pandemic is within reach someday subsequent yr. Oil costs rose once more on Monday, however had been down in early buying and selling on Tuesday. WTI was buying and selling simply above $41 and Brent at about $43.50 per barrel. Despite vaccine hopes, the near-term stays grim within the western hemisphere with coronavirus circumstances persevering with to rise.

OPEC+ sees deficit, eyeing 3-month extension. The extension of the OPEC+ manufacturing reduce deal by three to 6 months will swing the oil market right into a deficit subsequent yr, the group believes. OPEC+ is contemplating 4 attainable eventualities for 2021. The group is leaning in the direction of a three-month extension, sources advised Reuters.

Oil rally on the horizon. Multiple vaccines may set the stage for a rally subsequent yr. Meanwhile, even with the vitality transition looming in the long term, oil and gasoline demand will rebound subsequent yr and past.

Natural gasoline costs sink on delicate climate. Natural gasoline futures gestürzt by greater than 8% on Monday on up to date climate forecast that prompt the winter throughout the U.S. might be comparatively delicate. Shares for an extended checklist of pure gasoline firms sank on the information.

Trump admin rushes Arctic sale. Die Trump-Administration ist eilen to finalize a lease sale for the Arctic National Wildlife Refuge (ANWR) earlier than Joe Biden takes over. The “call for nominations” was introduced on Monday, which is adopted by a 30-day remark interval. Then there’s one other 30-day interval earlier than the lease sale can happen. Related: What Biden’s Victory Means For Middle East Oil

Trump admin rushes environmental guidelines. Agencies are hurrying to lock in some two dozen regulatory adjustments earlier than the clock runs out on January 20. Bloomberg Einzelheiten the checklist of guidelines at Department of Interior, Energy and EPA.

China refinery output hits report excessive. In an indication of strong gasoline demand, China’s refineries churned out a report quantity, Verarbeitung 14.09 mb/d of crude in October.

Gulfport Energy recordsdata for chapter. Gulfport Energy (NASDAQ: GPOR) eingereicht für Kapitel 11 Kapitel safety on Friday. The Oklahoma-based firm produced pure gasoline in Ohio and Oklahoma, however had taken on debt over the previous decade for a collection of acquisitions. 

Ovintiv to shed Eagle Ford belongings. Ovintiv (NYSE: OVV) is seeking to entladen its belongings within the Eagle Ford shale in an effort to pay down a few of the $7.14 billion in debt. Ovintiv purchased the belongings in 2014 from Freeport-McMoRan for $3.1 billion, however a supply advised Reuters that they could now solely fetch $600 to $700 million.

Michigan may shut Line 5. Michigan Governor Gretchen Whitmer ended a lease for Enbridge's (NYSE: ENB) Line 5 pipeline due to its “unreasonable risk” to the Great Lakes, and if it withstands authorized challenges, the pipeline might have to schließen solely by May. The pipeline carries oil and pure gasoline liquids from Alberta to refineries in Ontario, passing by Michigan.

Minnesota grants allow to Line 3. Enbridge (NYSE: ENB) obtained a key erlauben for its Line 3 alternative from Minnesota regulators. The approval strikes the challenge nearer to building within the state.

UK to announce petrol automotive ban. British Prime Minister Boris Johnson is about to bekannt geben a ban on gasoline and diesel automotive gross sales by 2030, bringing ahead a beforehand introduced date. The ban might be a part of 10-point plan supposed to slash emissions.

Arizona authorized carbon-free electrical energy by 2050. Arizona utility regulators zugelassen new guidelines that may require electrical firms to supply 100% carbon-free vitality by 2050.

Saudi Aramco plans debt sale. Saudi Aramco (TADAWUL: 2222) mentioned it could fördern one other spherical of debt to plug a deficit. Aramco issued $12 billion final yr. Debt issuance from the Middle East has topped $100 billion this yr. 

U.S. Fed eyes becoming a member of inexperienced community. The Federal Reserve may be part of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global group of central banks that research monetary danger from local weather change.

Europe to overtake carbon market. The European Commission is Abfassung a legislation to tighten the carbon market in order that it aligns with the Green Deal. The transfer may cancel carbon permits, amongst different measures, to be able to drive up carbon costs.

Tesla, Uber and utilities kind EV lobbying group. A strong group of firms are forming a Lobbying group to push 100% EV gross sales by 2030. Tesla (NASDAQ: TSLA), Uber (NYSE: UBER), Rivian, a handful of utilities resembling Southern Company (NYSE: SO), will kind the Zero Emissions Transportation Association (ZETA).

Tesla to hitch S&P 500. Tesla (NASDAQ: TSLA) will formally be part of the S&P 500, the index mentioned.

250 oil and gasoline bankruptcies since 2015. An up to date counting from Haynes and Boone finds that an estimated 250 North American oil and gasoline firms have filed for chapter since late 2014. When together with the oilfield providers sector, the whole tops 500 bankruptcies.

Sempra publicizes FID for LNG in Mexico. Sempra Energy (NYSE: SRE) eingeführt its subsidiary ECA Liquefaction authorized a remaining funding resolution for the Energia Costa Azul LNG challenge in Baja Mexico. The challenge would be the first LNG terminal on the Pacific Coast of North America, and it may join gasoline provides in Texas and the U.S. mountain west to a pacific export route.

Von Tom Kool für Oilprice.com

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