Oil prices fell again on Tuesday—by more than 3% on the day—indicating a dramatic shift in fundamentals or some geopolitical tension in the oil-rich Middle East. Only neither of those things has happened—at least not today.

By 10:30am EDT on Tuesday, the price for a barrel of Brent crude oil had fallen by $2.33 (-3.24%) to $69.51—the lowest price in years. WTI crude had fallen by $2.60 (-3.78%) per barrel to $66.11.

But fundamentals have not changed to warrant such a price dip. The API hasn’t issued any figures, nor has the EIA. The world’s largest oil consumer, the United States hasn’t released any significant economic data, for better or for worse.

The only relevant data marker that was released today is customs data about China’s exports, published by Reuters, which grew at a quick pace in August as manufacturers moved to get under the wire of upcoming tariffs. China’s imports, however, were a disappointment, rising only 0.5% instead of the 2% that was anticipated, and a lower growth than in the month prior.

Later today, the American Petroleum Institute will offer its estimate of crude oil and crude oil products inventory movements in the United States. Tomorrow, the Energy Information Administration will offer its estimate of the same.

Brent crude is now trading down $4 from this same time last week, with WTI trading down $4 week over week.

Earlier this week, Morgan Stanley reduced its forecast for Brent crude for the second time in two weeks, now expecting an average of $75 per barrel in Q4—a serious downgrade from its August predictions for Q4 of $80, comparing the trend in Brent prices to “other periods with considerable demand weakness.”

https://oilprice.com/Energy/Oil-Prices/Oil-Prices-Fall-3-Without-Real-Change-in-Fundamentals.html

The world’s biggest crude oil exporter and largest oil company, Saudi Aramco, has signed additional agreements with China’s Rongsheng Petrochemical and Hengli Group to advance talks on cooperation in the refining and petrochemical sectors in China and Saudi Arabia.

Aramco signed a Development Framework Agreement with Rongsheng regarding the potential joint development of an expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities, the Saudi oil giant said on Wednesday.

The agreement is a follow-up of an April cooperation agreement about forming the joint venture in SASREF, as well as significant investments in the Saudi and Chinese petrochemical sectors. Rongsheng could potentially buy 50% stake in SASREF, the development of a liquids-to-chemicals expansion project at SASREF, while Aramco could acquire 50% in Rongsheng’s affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), and participate in ZJPC’s expansion project.

Aramco’s agreement with Hengli Group advances talks relating to Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd., subject to due diligence and required regulatory clearances.

Earlier this year, Aramco entered into discussions with Hengli Group about the potential acquisition of 10% in Hengli Petrochemical.

“China is an important country in our global downstream growth strategy, and we look forward to building on a relationship that spans more than three decades to unlock new opportunities in this crucial market,” Mohammed Al Qahtani, Aramco Downstream President, said, commenting on the deals announced today.

Saudi Aramco continues to be on the lookout for acquisition opportunities in the downstream and LNG, Yasser Mufti, Aramco’s Executive Vice President for Products and Customers, told Reuters in an interview earlier this month.

In recent years, the Saudi oil giant has been pursuing deals to expand its international downstream presence, especially in demand centers such as Asia.

Last year, Aramco entered Pakistan’s downstream market by acquiring a 40% stake in Gas & Oil Pakistan Ltd, one of the country’s largest retail and storage companies.

Earlier in 2023, Aramco announced two major refinery and petrochemical deals in China, which not only give the world’s largest oil firm a share of the Chinese downstream market but also an additional export outlet for 690,000 bpd of Saudi crude in China.

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Aramco-Boosts-Cooperation-With-Chinese-Petrochemical-Giants.html

On September 10, CNOOC Limited announced a significant breakthrough in natural gas exploration with the successful drilling of a well in the ultra-deepwater Liwan 4-1 structure, located in the Pearl River Mouth Basin. This well, which is situated in Baiyun Sag, about 300 kilometers southeast of Shenzhen, marks the first major exploration success in ultra-deepwater carbonate rocks offshore China. The well tested at an impressive absolute open flow rate of 430,000 cubic meters of natural gas per day, highlighting its potential as a substantial natural gas resource.

Drilled to a vertical depth of nearly 3,000 meters, the well was completed at a total depth of approximately 4,400 meters and uncovered a gas pay zone extending 650 meters in the horizontal section. With a water depth of nearly 1,640 meters, this discovery in Baiyun Sag, the largest hydrocarbon-rich sag in the Pearl River Mouth Basin, showcases the promising exploration prospects of ultra-deepwater Globigerinid limestone formations. The well's success also advances China's efforts in natural gas exploration in deepwater regions.

Xu Changgui, Chief Geologist of CNOOC Limited, emphasized the significance of this discovery, stating that previous ultra-deepwater exploration in China was primarily focused on clastic rocks. The success of this well in carbonate rocks is a first for the country, demonstrating the vast potential of these formations and representing a major step forward in exploration understanding and operational techniques. "This breakthrough not only expands the exploration frontier but also opens up new possibilities for future development," Xu remarked.

Moreover, the well's proximity to the existing production facilities of the Liwan 3-1 gas field presents an economic and efficient development opportunity. The existing infrastructure can be leveraged to support the new discovery, allowing for streamlined production and resource management in the deep waters of the Pearl River Mouth Basin.

Overall, this successful drilling marks a pivotal moment for CNOOC Limited, as it advances China's deepwater exploration capabilities and highlights the untapped potential of ultra-deepwater natural gas resources, positioning the company as a leader in offshore natural gas development.

China National Offshore Oil Corporation (CNOOC), China's leading offshore oil and gas producer, was founded as a state-owned enterprise on February 15, 1982, with approval from the State Council. The company has a registered capital of RMB 113.8 billion and operates through five publicly listed subsidiaries. Its primary business activities encompass oil and gas exploration and development, specialized technical services, sales of refined products, fertilizer production, natural gas extraction, power generation, and financial services. Additionally, CNOOC is expanding into new energy sectors, including offshore wind power.

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/cnooc-achieves-significant-ultra-deepwater-natural-gas-discovery-30233

September 11, 2024 [Reuters]- U.S. oil and gas producer APA Corp said on Tuesday it would sell non-core Permian-based drilling properties to an undisclosed buyer for about $950 million as it looks to cut down its debt pile.

Consolidation in the sector hit a record $51 billion in the first quarter as energy companies rush to expand their oil and gas drilling inventories, especially in the top U.S. shale field, the Permian Basin.

This has also led to companies shedding assets in an effort to streamline operations and reduce debt.

Earlier this year, Occidental Petroleum said it would sell some assets to Permian Resources for $818 million to cut down debt.

In August, Reuters reported that APA was exploring a sale of the drilling assets.

Proceeds from the sale will be used primarily to reduce its debt pile of $6.7 billion after the acquisition of Callon Petroleum.

The Houston-based company said that it wanted to pay down $2 billion of debt it took on as part of its acquisition within the next three years.

APA also sold some non-core assets in the Permian and Eagle Ford basins for nearly $700 million earlier this year.

“The company’s more focused unconventional Permian asset base and advantageous transport and marketing positions compares favorably with like-sized, pure-play peers in the region,” said John Christmann IV, the chief executive officer of APA Corp.

The deal, which is expected to close during the fourth quarter of 2024, involves properties with an estimated net production of 21,000 barrels of oil equivalent per day, of which approximately 57% is oil.

APA estimates that its fourth-quarter production would be around 307,000 boepd after the transaction closes.

Shares of the company were up 0.8% in after-market trading.

13,300 tank storage and production facilities as per the date of this article. 

https://tankterminals.com/news/oil-producer-apa-corp-to-sell-permian-assets-for-950-mln/

Asia's middle distillates markets on Wednesday continued to see a string of spot activity, with refiner sales emerging, though spot discussion levels remained under pressure amid bearish expectations.

One of the key oil majors in South Korea emerged with end-September sales, with a tender closing today.

The paper market structure changed mostly to contango until 2026, as traders continued to price in their bearish expectations on fundamentals.

Refining margins (GO10SGCKMc1) declined by more than $1 a barrel to around $12.50 a barrel at the market's close.

On window, cash discounts (GO10-SIN-DIF) were back under pressure - slipping to 60 cents a barrel - as strong selling interest remained.

Gasoil open window deals resurfaced after a week-long thin trading activity, with trading house Petrochina buying a prompt loading cargo at larger discounts than before.

On the jet fuel front, more activity is expected in the next few trading sessions.

Regrade (JETREG10SGMc1) was little changed at discounts of 10 cents a barrel.

SINGAPORE CASH DEALS

- One gasoil deal, no jet fuel deal

INVENTORIES

- U.S. crude oil and gasoline inventories fell while distillates rose last week, according to market sources citing American Petroleum Institute figures on Tuesday.

- Middle distillates stocks at Fujairah Oil Industry Zone rose to a two-month high to 3.146 million barrels in the week ended Sept. 9, according to industry information service S&P Global Commodity Insights.

NEWS

- The head of shipping at global trading firm Vitol said on Wednesday that large quantities of uninsured oil are currently afloat on ships due the rise of the dark fleet in the aftermath of the Russia-Ukraine war.

- Trafigura expects more demand for clean tankers to continue, with 12% of its current very-large-crude-carrier (VLCC) fleet trading in the clean market, a company executive told the annual APPEC conference on Wednesday.

- Francine strengthened into a hurricane on Tuesday night, the U.S. National Hurricane Center said, as it prompted Louisiana residents to flee inland and oil and gas companies to shut in Gulf of Mexico production.

- Global oil demand is set to grow to a bigger record this year while output growth will be smaller than prior forecasts, the U.S. Energy Information Administration (EIA) said on Tuesday.

https://www.tradingview.com/news/reuters.com,2024:newsml_L1N3KT0DX:0-10ppm-gasoil-deal-appears-after-one-month-discounts-steepen/

September 11, 2024 [XM]- China’s Sinopec began operations at its first LNG receiving terminal in southern Guangdong province on Sunday, the company said on Monday.

A vessel from Australia arrived at the Huaying terminal with 72,000 metric tons of liquefied natural gas (LNG), marking the official start of operations, according to a statement by the company known officially as China Petroleum & Chemical Corp 600028.SS0386.HK.

The terminal is a joint venture between Sinopec and Huaying Investment Holding Group.

It has three LNG storage tanks with capacity of 200,000 cubic metres each and one LNG carrier berth with 6 million tons of annual receiving and transfer capacity.

A second phase is planned, Sinopec said without specifying the time frame, increasing the receiving and transfer capacity to 12 million tons and making it the largest such facility in Guangdong province.

Sinopec now has a total of 12 LNG terminals, the release said.

13,300 tank storage and production facilities as per the date of this article. 

https://tankterminals.com/news/sinopecs-guangdong-lng-terminal-starts-operations/

(Bloomberg) -- The US Export-Import Bank is considering funding a liquefied natural gas project led by Eni SpA off the coast of Mozambique, years after investing in an onshore facility to produce the fuel that’s been delayed by security issues and opposed by environmental groups.

Eni’s planned Coral North floating LNG plant is listed by the official export-credit agency of the US, known as Ex-Im, as a pending project. “The financing amount would be disclosed upon final board approval,” the bank said in an emailed response to questions, declining to give a timeline for the decision.

Eni didn’t immediately respond to a request for comment.

As the US ramps up efforts to engage on the African continent and compete with China for critical minerals needed for the transition to cleaner sources of energy, Ex-Im has faced greater scrutiny. An audit in May by the inspector general criticized it for not having a clear strategy for growth in the region, something the bank denied.

Ex-Im’s earlier gas investment hasn’t gone according to plan. The bank in 2020 helped finance what would become TotalEnergies SE’s Mozambique LNG project along the country’s northern coast with a $4.7 billion loan that it said at the time displaced funding efforts by China and Russia. Its own analysis also warned of security risks before it granted the loan, and violent attacks by insurgents would later halt construction at the site.

The situation for TotalEnergies’ project has since improved and it may be able to move forward with construction by the end of the year, Chief Executive Officer Patrick Pouyanne said in July. Ex-Im hasn’t yet dispersed any funds to Mozambique LNG, according to the bank.

Even though floating LNG projects are located miles offshore from potential security threats, financiers of Coral North could face scrutiny from environmental groups that have targeted oil and gas developments from Uganda to South Africa in campaigns to end the use of fossil fuels. Friends of the Earth challenged the approval of £1.5 billion ($2 billion) from UK Export Finance for Mozambique LNG. A Court of Appeal found the government didn’t breach climate rules.

Eni’s $7-billion Coral South LNG project, which began exporting fuel from its floating liquefaction plant in 2022, is in the Area 4 concession whose partners include Exxon Mobil Corp., China National Petroleum Corp., Abu Dhabi National Oil Co., Korea Gas Corp. and Mozambique’s state producer Empresa Nacional de Hidrocarbonetos E.P. The Coral North project will be developed using a similar offshore vessel.

Regarding the benefit of investing in Coral North, Ex-Im said the bank “has the distinct mission to support US jobs through financing tools that support American exporters.”

--With assistance from Matthew Hill, Alberto Brambilla and Gina Turner.

©2024 Bloomberg L.P.

https://www.bnnbloomberg.ca/investing/2024/09/12/us-ex-im-bank-eyes-investment-in-another-mozambique-lng-project/

STORY: Hurricane Francine is giving U.S. ports a battering.

The storm made landfall in southern Louisiana on Wednesday, packing sustained winds of up to 75 miles per hour.

Facilities in New Orleans and elsewhere also had to close.

The storm has already disrupted crop shipments to the Mississippi Gulf area, responsible for some 55% of U.S. soy exports.

Shipping companies have halted movements of produce by barge until the winds die down.

Meanwhile, farmers around the region have harvested crops where possible, to protect them from damage.

Energy production is suffering too.

Six refineries in eastern Louisiana were operating with minimal staffing while they rode out the storm.

Exxon Mobil’s facility in Baton Rouge cut output to as little as 20% of normal levels in preparation for the hurricane’s arrival.

In all, close to 39% of oil production and half of natural gas output in the Gulf of Mexico was offline on Wednesday.

A total of 171 production platforms and three rigs were evacuated.

That cut around 675,000 barrels per day off oil production in the region.

Now analysts estimate energy output could be affected for about two weeks.

Later in the day, the U.S. National Hurricane Centre said Francine had weakened, downgrading it to a tropical storm.

However, it’s still expected to raise the risk of flooding across surrounding states, even into southern Alabama and northern Florida.

https://finance.yahoo.com/video/hurricane-francine-batters-us-energy-075505523.html

Major natural gas pipeline projects are set to come online in the Permian Basin, promising to alleviate price pressures and increase takeaway capacity.

One such project is the Matterhorn Express Pipeline, with a capacity of 2.5 billion cubic feet per day (Bcf/d) expected to begin operations this month, transporting gas from the Permian Basin to Katy, near Houston, Texas.

Developed by a joint venture including EnLink Midstream, Whitewater, Devon Energy, and MPLX, the new pipeline will boost the natural gas output from the Permian basin.

The Permian Basin, known primarily for its growing oil production, has seen a substantial increase in natural gas output. This surge has led to lower regional gas prices, especially at the Waha Hub, where prices have dipped below zero for much of 2024.

To address the price challenges at Waha, several new pipeline projects are under development. The Apex Pipeline with an estimated capacity of 2.0 Bcf/d), Blackcomb Pipeline with 2.5 Bcf/d, and Saguaro Connector Pipeline, with a capacity of 2.8 Bcf/d, are expected to add a combined 7.3 Bcf/d capacity by 2027.

Additionally, pipeline operators have announced other projects with a total capacity of 7.0 Bcf/d designed to transport Permian gas to Mexico and the Texas Gulf Coast. These projects could come into service between 2025 and 2028.

With the increased takeaway capacity, the new pipelines are expected to relieve pressure on local prices and narrow the gap between the Waha Hub and Henry Hub. This development should bring much-needed stability to Permian producers and support more sustainable regional pricing dynamics.

https://www.pipeline-journal.net/news/new-pipeline-projects-set-boost-permian-basin-gas-output-stabilize-gas-prices

(Bloomberg) -- Liquefied natural gas company MidOcean, which is backed by private equity fund EIG, expanded its stake in Peru LNG, the second-largest Latin American exporter of the fuel after Trinidad and Tobago.

The deal announced Monday expands MidOcean’s stake in Peru as the company looks to shore up its position in LNG, alongside Saudi oil giant Aramco, which invested in MidOcean last year. Export plant Peru LNG has a 4.5-million-metric-ton-a-year capacity. The move comes at a time when the liquefied natural gas market is rapidly expanding, led by the US and Qatar as countries in Europe and Asia look to decarbonize and move away from other fuels.

Pending the transaction closing, MidOcean will increase its stake in Peru LNG to 35%, up from 20% announced in February. Dallas-based Hunt Oil will remain operator of Peru LNG and keep a 35% share in the facility. MidOcean also has shares in a portfolio of Australian LNG projects. Saudi Aramco, which is funding the latest Peru transaction, is also increasing its interest in MidOcean by 49%, according to a statement from MidOcean. The value of the Peru transaction was not disclosed.

MidOcean was among the companies initially interested in Tellurian’s Driftwood LNG, which was later acquired by Woodside Energy Group Ltd.

©2024 Bloomberg L.P.

https://www.bnnbloomberg.ca/investing/2024/09/16/eig-aramco-backed-lng-company-boosts-stake-in-hunts-peru-plant/

QatarEnergy LNG said on Sunday that it has awarded an offshore engineering, procurement and construction (EPC) contract worth $4bn to Italian energy engineering group Saipem.

The state energy firm said the offshore EPC contract will help boost production at the North Field offshore natural gas field, which lies off the northeastern coast of Qatar.

Saipem’s scope of work encompasses the engineering, procurement, fabrication, and installation of six platforms, approximately 100 km of corrosion-resistant alloy rigid subsea pipelines, 100 km of subsea composite cables, 150 km of fibre optic cables, and several other subsea facilities.

The Italian group said this month it had won two offshore contracts in Saudi Arabia worth about $1bn in total under an existing long-term agreement with oil giant Saudi Aramco.

QatarEnergy, already among the world’s top LNG exporters, will boost its position with its North Field expansion project, which will ramp up the GCC state’s liquefaction capacity from 77 million tonnes per annum (mtpa) to 142 mtpa by 2030.

Earlier in September, the state energy firm signed a deal with China State Shipbuilding Corporation (CSSC) to buy six additional ultra-large ships (QC-Max vessels) to carry LNG, bringing the number of such vessels it has on order to 128 as part of a fleet expansion programme.

The QC-Max vessels will enhance its capacity to meet the growing global LNG demand.

https://gulfbusiness.com/saipem-wins-4bn-contract-from-qatarenergy/

Europa Oil & Gas (Holdings) plc / Index: AIM / Epic: EOG / Sector: Oil & Gas

16 September 2024

Europa Oil & Gas (Holdings) plc

("Europa" or the "Company")

Wressle - Receipt of Planning Approval

Europa Oil & Gas (Holdings) plc, the AIM quoted UK, Ireland and West Africa focused oil and gas exploration, development and production company, is pleased to announce that planning consent has been received from North Lincolnshire Council for the further development of the Wressle well site. The approved works will include extending the existing site to accommodate the drilling of two new wells and construction of gas processing facilities and an underground gas pipeline to connect Wressle to the local gas distribution network. The Wressle field is located in onshore licences PEDL180 and PEDL182, situated in North Lincolnshire.

Will Holland, Chief Executive Officer of Europa, said:

"I am very pleased that we have now received the planning permission for the continued development of Wressle. The development programme at Wressle will increase the oil production and monetise the associated gas from the field, which will result in zero routine flaring at site. Domestic production accounts for less than 50% of demand in the UK, yet this provides economic and environmental benefits when compared to imports.

The UK is increasingly reliant on imports as domestic production continues to decline and I believe that domestic production has a vital role to play in the UK as we progress towards the Net Zero 2050 target. I look forward to updating the market further as the Wressle partners continue to progress the field development."

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

* * ENDS * *

For further information, please visit www.europaoil.com or contact:

https://www.investegate.co.uk/announcement/rns/europa-oil-gas-holdings---eog/wressle-receipt-of-planning-approval/8417308

Nigeria’s state oil company NNPC Ltd is raising the price of gasoline by 11% after it started buying fuel from the new Dangote refinery, Africa’s biggest.

The new estimated petrol prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognize the current international gasoline prices and the prevailing foreign exchange rate in line with the local petroleum act, the state company said.

NNPC Ltd also confirmed on Monday that it began buying gasoline from the Dangote refinery on Sunday and that it is paying the private refinery in U.S. dollars for the September 2024 offtake. Transactions in the local Nigerian currency, naira, will only commence on October 1, 2024, NNPC added.

The Dangote refinery is set to ramp up production of gasoline soon, potentially upending global gasoline flows.

The newly operational refinery is poised to turn OPEC’s largest African crude oil producer from a gasoline importer to a gasoline exporter, impacting fuel market balances, especially in Europe.

The Dangote refinery began the production of fuels in January 2024, marking the start-up of the plant that has seen years of delays.

The refinery, which has a processing capacity of 650,000 barrels per day (bpd), will meet 100% of Nigeria’s demand for all refined petroleum products and will also have a surplus of each of the products for export.

It is expected that once the refinery is fully operational at some point in 2025, more than half of its processing capacity will be earmarked for gasoline production.

In the middle of June, Dangote group’s president Aliko Dangote said that the refinery was delaying the start of gasoline deliveries after the middle of July.

Back then, Dangote, Africa’s richest man, said that the refinery would be able to take gasoline to the market by the third week of July.

This timeline has slipped, and most industry analysts expect considerable volumes of gasoline out of Nigeria to hit international markets next year.

https://oilprice.com/Latest-Energy-News/World-News/Nigerian-State-Firm-Raises-Gasoline-Prices-as-New-Supply-Comes-Online.html

We recently implemented a new model for forecasting crude oil and natural gas production from the U.S. Federal Offshore Gulf of Mexico (GOM) in the Short-Term Energy Outlook (STEO). In our latest outlook, we forecast that GOM production will remain relatively flat with new fields offsetting the natural production declines from existing fields.

We forecast that 1.8 million barrels per day (b/d) of crude oil will be produced in the GOM in 2024 and 1.9 million b/d in 2025, compared with 1.9 million b/d in 2023. We expect GOM natural gas production to average 1.8 billion cubic feet a day (Bcf/d) in both 2024 and 2025, compared with 2.0 Bcf/d in 2023. At these volumes, the GOM would contribute about 14% of U.S. oil production and 2% of U.S. marketed natural gas production.

We expect 12 new fields to start production in the GOM during 2024 and 2025, without which we would expect GOM production to decline. Seven of these fields will be developed using subsea tiebacks, or underwater extensions from existing Floating Production Units (FPUs) at the surface. We expect four new FPUs, which would produce crude oil and natural gas from five more fields. We expect that fields that have already started in 2024 will contribute 22,000 b/d of crude oil production in 2024, and fields that will start production in 2024 or 2025 will contribute 231,000 b/d on average in 2025 as additional production comes online and ramps up.

For more information on our new model, our forecast and supporting assumptions, and new infrastructure coming online, please refer to our recently released article, EIA expects flat oil and natural gas production from the Gulf of Mexico after model update.

Principal contributor: Eulalia Munoz-Cortijo

https://www.eia.gov/todayinenergy/detail.php?id=63124

UBS cut its oil price forecasts for 2024, citing a weaker global demand outlook especially driven by a slowing Chinese economy.

It lowered its price view for both Brent and WTI by $4 to $80 per barrel and $76 per barrel respectively.

“The key downside risks would be a recession, which would in turn raise the risk of a change in OPEC+ strategy and a faster return of production to regain market share, which could bring down prices below our forecast range,” UBS said in its note on Monday.

The bank also lowered its global demand growth by 0.1 million barrels per day (Mb/d) this year.

Both the Organization of Petroleum Exporting Countries and the International Energy Agency lowered last week their demand growth forecasts for 2024.

UBS noted that “the market is just about balanced next year, assuming no unwind” and in the near term, the bank sees it in a deficit in the second half of the year.

“We see the prices at the upper end of the range in case of positive demand growth and better OPEC+ compliance, while prices surging to $90+ would require a material supply impact from escalating geopolitical tensions,” the bank added.

Oil prices were up on Monday as investors weighed ongoing disruption to U.S. Gulf oil infrastructure against demand concerns after a fresh round of downbeat Chinese data ahead of the U.S. Federal Reserve’s interest rate decision this week.

Brent crude futures for November were up 38 cents, or 0.54%, at $72.01 a barrel by 1056 GMT. U.S. crude futures CLc1 for October were up 51 cents, or 0.74%, at $69.16.

Last week, Macquarie cut its oil price outlook for both Brent and WTI oil benchmarks by $2 per barrel to $80 a barrel and $75 per barrel respectively for 2024 citing lower demand especially driven by China.

(Reporting by Rahul Paswan in Bengaluru; Editing by Emelia Sithole-Matarise)

https://boereport.com/2024/09/16/ubs-cuts-oil-price-view-for-2024-on-weak-demand-outlook/

The DeLa Express pipeline project being developed by DeLa Express LLC, a subsidiary of Moss Lake Partners LP, is proposed to deliver liquids-rich natural gas from the Permian Basin of West Texas to the US Gulf Coast and international export markets.

Once complete, the project will act as a highway to supply the growing demand for natural gas and liquids, safely shipping critical energy to the largest demand markets, including the largest liquified natural gas (LNG) demand centre in North America – Cameron Parish, Louisiana near the Sabine River Corridor.

The project is being designed for approximately 2+ billion ft3/d of natural gas and liquids transportation capacity, enough to supply the daily equivalent demand of the city of Chicago, Illinois.

By aiming to provide much needed natural gas and liquids takeaway capacity, the project will reduce flaring and emissions in the Permian, and by transporting natural gas and liquids in a single mainline, it will minimise the need for right-of-way clearing and have a significantly lower environmental impact.

Jeremy Hall, Senior Vice President of Oil, Gas and New Energies Americas for Wood, said: “As demand for natural gas increases, the project will provide a transformational answer to the strained existing pipeline capacity from the Permian Basin.

“Wood recently completed the design of several long-haul pipeline systems in the United States and has a strong track record of delivering engineering for complex natural gas pipeline systems as well as managing the FERC permitting process. Our team is delighted to work with DeLa Express and Moss Lake Partners on this flagship project that will help to provide increased energy security in the United States and around the world.”

Under the contract, Wood will design approximately 645 miles of 42 in. diameter mainline pipeline and approximately 139 miles of associated laterals. The team will also manage the compressor station subcontractor, Burrow Global, LLC.

Eric J. Carmichael, Senior Vice President, EPC Projects for Moss Lake Partners, commented: “Given the remarkable interest from Permian producers, global consumers and private capital markets, Wood is the natural choice to spearhead one of our premiere infrastructure development projects.

“Wood’s industry expertise, seamlessly woven with our strategic vision, heralds an exhilarating future for U.S. energy infrastructure and Moss Lake Partners.”

Wood’s team of pipeline experts have recently delivered engineering for major pipeline projects, such as Grey Oak, ExxonMobil’s Delaware Connector and Williams’ Regional Energy Access, and designed over 3000 miles of energy transition pipelines in North America.

https://www.worldpipelines.com/project-news/16092024/wood-to-design-the-dela-express-natural-gas-pipeline-project-in-texas-and-louisiana/

According to operator Petroineos, the only oil refinery in Scotland, Grangemouth will close in 2025, resulting in the loss of 400 jobs, as reported by Reuters.

Pegging it to the current state of the energy market in Nigeria, BrandSpur national news stories report that this is happening concurrently with the Dangote refinery’s introduction of premium motor spirit (PMS), which drastically decreased PMS imports.

According to a company representative, Petroineos told Reuters that it was getting ready to close Grangemouth, the oldest refinery in Britain when output ends in the second quarter of 2019. However, this is contingent upon employee consultation. Politicians and trade unions, however, opposed the decision.

According to Ed Miliband, the UK’s Energy Secretary: “It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.”

According to other sources from Reuters, the location would serve as an import and distribution hub for finished fuels, resulting in a 2-year reduction in staff from 475 to approximately 75. A joint venture between INEOS Group, a British chemicals company founded by billionaire Sir Jim Ratcliffe, and PetroChina International London (PCIL) is called Petroineos.

The company stated that it had invested $1.2 billion since 2011 and returned losses exceeding $775 million during the same period, citing economic challenges as the cause of the shutdown.

Continuing, the company went on to say: “Grangemouth is increasingly unable to compete with bigger, more modern and efficient sites in the Middle East, Asia and Africa. Due to its size and configuration, Grangemouth incurs high levels of capital expenditure each year just to maintain its licence to operate.”

The report claims that the factory is now losing almost $500,000 every day and projects a $200 million deficit by 2024.

According to analysts, the Dangote refinery’s start of operations would drastically cut gasoline imports, which would have an impact on the operations of several refineries outside of Africa. Refineries are volume-driven businesses, and economists predict that if more African nations engage in domestic refining, more refineries in Europe will close.

Reviving its refineries at Port Harcourt, Kaduna, and Warri is another project of the Nigerian federal government.

https://brandspurng.com/2024/09/16/scotlands-only-refinery-to-shutdown-in-2025/

Asia's gasoline margins rose for a second consecutive session on Tuesday as supply is expected to tighten due to ongoing refinery maintenance in the region, traders said.

Refiners' margin for the motor fuel could also be supported in the short run by refiners potentially trimming output due to weak overall margins, a trader said.

The gasoline crack rose to $4.45 per barrel above Brent crude from $4.14 on Monday.

Saudi Aramco was the main seller on the window, having sold 75% of the 200,000 barrels of 92-octane gasoline that traded. Unipec snapped up half of the traded volume.

In naphtha market, the crack dropped $4.83 to $107.63 per metric ton over Brent crude.

Supplies from the Middle East helped to counter the drop in Asian supplies with Saudi Arabia and United Arab Emirates being the top two exporters to the region, stabilising the market, traders said.

Oil prices were steady on Tuesday, after rising more than $1 in the previous session, as traders assessed concerns over U.S. production in the aftermath of Hurricane Francine and also the prospect of lower U.S. crude stockpiles. Brent crude futures BRN1! for November held their ground at $72.77 a barrel. U.S. crude futures CL1! for October inched 12 cents higher to $70.21 a barrel.

Several oil companies including Exxon Mobil XOM and Chevron CVX defeated an appeal on Monday by consumers who accused them of colluding with former U.S. President Donald Trump, Russia and Saudi Arabia to cut oil production, boosting prices at the pump.

Russia's primary oil refining capacity is expected to rise in the second half of September as refineries are wrapping up their maintenance. Russia's average offline oil refining capacity is expected at 119,600 metric tons per day between Sept. 16 and 30, down from 145,600 tons per day in the first half of the month.

https://www.tradingview.com/news/reuters.com,2024:newsml_L4N3KZ0JO:0-gasoline-crack-rises-for-a-second-session/

South Sudan is aiming to restart exports of its heavy sweet Dar Blend crude through Sudan within weeks, the country's presidency said.

Around 100,000 b/d of Dar Blend has been shut in since February because of ruptures and blockages along the Petrodar pipeline which links oil fields in South Sudan to war-torn Sudan's Red Sea export terminal at Bashayer.

"Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production," South Sudan said following a visit by the head of Sudan's army, Abdel Fattah Al Burhan.

South Sudan said its engineers are expected to visit Sudan in the coming weeks to "familiarise themselves with the readiness of the facilities so as to jump-start production".

Previous attempts to repair and restart pipeline flows have been hampered by the civil war in Sudan, which pits the army against the paramilitary Rapid Support Forces. International efforts to forge a ceasefire have been unsuccessful, with the war now in its 18th month.

Production of South Sudan's medium sweet Nile Blend crude grade has not been impacted, as it is transported to Bashayer through the Greater Nile pipeline.

Nile Blend now accounts for all of South Sudan's production, which stood at 60,000 b/d in August compared with around 150,000 b/d before the closure of the Petrodar pipeline, according to Argus estimates.

The closure of the pipeline has put immense economic strain on South Sudan, which depends on oil sales for more than 90pc of government revenues.

Meanwhile, South Sudan has postponed long-delayed national elections scheduled for December by two years. The move is seen by many as a bid by the country's leadership to cling onto power.

https://www.argusmedia.com/en/news-and-insights/latest-market-news/2608849-south-sudan-eyes-restart-of-dar-blend-crude-exports?

California Gov. Gavin Newson says he has a plan to lower prices at the gas pump.

The state’s Division of Petroleum Market Oversight said the recent spike at the pump is due to unplanned maintenance at two Bay Area refineries.

What Newsom is proposing is new rules to avoid this kind of price spike. He wants to give state regulators the power to force oil refiners to have a backup oil supply for unplanned maintenance and outages.

Starting Wednesday, a special committee lead by a democrat in the assembly will begin to hold three hearings over the next week and a half to dive into the issue.

The Western States Petroleum Association, which advocates on behalf of the oil industry, told KCRA-TV the new tanks to hold Newsom’s backup oil are each $35 million and would take years to build because of California’s strict environmental requirements and regulations.

Those are costs the association said refiners would pass onto the customer, which would actually make gas more expensive, not only in California but in Arizona and Nevada as well.

Republicans in Sacramento have also introduced several bills in the special legislative session aimed at reducing the cost of gasoline, including a suspension of the state's gas tax and blocking future attempts to increase it.

https://www.nbcbayarea.com/news/california/california-newsom-oil-gas-proposal/3654697/

Russian company RusChemAlliance has sued five European banks, including Unicredit, for halting financing for the construction of a gas project in the country after the West imposed sanctions against Moscow for invading Ukraine in 2022.

The lawsuits, all filed with the St. Petersburg Arbitration Court on Sept. 16, were addressed to German banks Deutsche Bank, Commerzbank, Bayerische Landesbank and Landesbank BadenWurttemberg in addition to UniCredit. No further details are available.

RusChemAlliance and Commerzbank preferred not to comment. No comment was available from the other banks at this time either.

RusChemAlliance, a 50/50 joint venture controlled by Russian gas producer Gazprom, has filed several other lawsuits against European banks after German industrial gas company Linde halted work on a liquefied natural gas (LNG) plant at the Baltic port of Ust-Luga in 2022.

The St. Petersburg court froze some of Linde's assets in Russia and ordered the freezing of some assets outside the country in an attempt to recover funds lost due to the sudden work stoppage.

The same court previously ordered all five banks to pay damages.

(Translated by Laura Contemori, editing Francesca Piscioneri)

https://www.marketscreener.com/quote/stock/UNICREDIT-S-P-A-33364083/news/Russian-RusChemAlliance-sues-Unicredit-and-4-other-EU-banks-for-stopping-gas-project-47882581/

According to the report, Turkey — and the Western firms buying from it — is taking increasing advantage of this so-called refining loophole, despite repeated Ukrainian pleas that it be closed.

In the first half of 2024 alone, the EU, U.S., U.K. and other Western allies bought around $2 billion worth of fuel made from Russian oil by the trio of Turkish facilities, the report found. Turkey, meanwhile, has cashed in on discounts of from $5 to $20 per barrel from Moscow, stepping up its purchases from Russia annually by 34 percent in 2023 and a colossal 70 percent this year.

“When the EU imports gasoline from Turkey, it is 10 percent cheaper than it would be from Saudi Arabia,” said Vaibhav Raghunandan, an analyst with the Center for Research on Energy and Clean Air. “But those savings aren’t passed on to consumers at all; it’s just companies and traders who benefit. Someone is making a killing from this trade, but it isn’t ordinary people.”

While EU and U.S. policymakers have defended the sanctions arrangement, arguing it deprives Moscow of a “refining premium” on its fuels, the fossil fuel industry remains a lifeline for Russia’s war machine. According to the analysis, the tax revenues collected by Moscow on the fuel sold to Western countries would allow Russia to recruit an additional 6,200 soldiers a month to fight in Ukraine.

According to the analysis, the tax revenues collected by Moscow on the fuel sold to Western countries would allow Russia to recruit an additional 6,200 soldiers a month to fight in Ukraine. 

Nor can Western countries claim ignorance of the fuel’s true origins.

According to the authors of the report, one of the Turkish refineries, the Azerbaijan-owned Star Aegean, is 98-percent dependent on Russian crude, with some 73 percent of its supplies coming from Russian energy giant Lukoil, which the U.S. has sanctioned. Nevertheless, almost nine in 10 barrels from the refinery go to Western allies backing Ukraine.

https://www.politico.eu/article/west-funding-vladimir-putin-soldier-russia-fuel-oil-ukraine-war/

Attention is shifting from hurricane remnants to tomorrow’s Federal Reserve meeting. Traders remain uncertain about the Federal Reserve’s anticipated rate cut and its potential impact on oil markets but are predicting a 50-basis point rate cut. A lower interest rate could boost economic growth and increase oil demand. Concerns over weaker demand in China have kept prices down. However, prices are facing upward pressure from expectations of reduced US stockpiles and lingering production issues following last week’s storm.

Hurricane Francine has left the Gulf Coast with over 12% of U.S. Gulf of Mexico crude oil production remaining offline, as the U.S. Bureau of Safety and Environmental Enforcement (BSEE) reported. A total of 213,204 bpd of oil is still not operational. The hurricane has led to the shutdown of 2.37 million barrels of oil. As of Monday, 24 oil and gas platforms remain evacuated, down from a peak of 171 platforms last week.

China’s refinery output dropped for the fifth consecutive month in August, declining 6.2% year-over-year to 13.91 Mbpd, driven by weak fuel demand and poor export margins. Year-to-date, refinery throughput is down 1.2% compared to the same period in 2022. Despite peak gasoline season, overall consumption has been lower than expected, with diesel demand weakened by the economic slowdown and increased use of liquefied natural gas as a truck fuel.

Planned maintenance at major refineries and soft export margins further limited production in China, although independent refiners saw a slight rebound in output. Meanwhile, China’s crude oil production rose by 2.1% in August, continuing a trend of healthy growth in the sector.

The UK’s offshore oil and gas industry has reportedly achieved its target of cutting emissions by 25% four years ahead of the 2027 deadline, according to Offshore Energies UK (OEUK). This early success was reached by power efficiency improvements and flaring and venting reductions. The industry reduced its emissions by 28% compared to 2018 levels, and methane emissions were cut by more than half, meeting targets seven years early.

Despite the UK’s goal of achieving net zero emissions by 2050, OEUK emphasized that oil and gas will remain essential for decades, focusing on reducing domestic production’s carbon footprint. Looking ahead, emissions from the sector are expected to decline further due to reduced output and more efficient operations.

However, OEUK warned that the country’s oil and gas production could halve in the next six years unless favorable fiscal and regulatory policies are implemented. The North Sea still holds the potential for hefty oil and gas resources, equivalent to 13.5 billion barrels.

https://mansfield.energy/2024/09/17/oil-prices-stuck-between-hurricane-fallout-and-fed-rate-cut-predictions/

Several oil companies including Exxon Mobil and Chevron defeated an appeal on Monday by consumers who accused them of colluding with former U.S. President Donald Trump, Russia and Saudi Arabia to cut oil production, boosting prices at the pump.

In a 3-0 decision, the 9th U.S. Circuit Court of Appeals in San Francisco said two dozen consumers could not pursue class action claims because they concerned political questions and the oil-producing policies of foreign countries.

The court also found a lack of proof that the oil companies violated antitrust law by conspiring to raise prices.

Other defendants included Devon Energy, Energy Transfer, Occidental Petroleum, Phillips 66, Continental Resources, Hilcorp Energy and the American Petroleum Institute.

Lawyers for the consumers did not immediately respond to requests for comment. The defendants’ lawyers did not immediately respond to similar requests.

The lawsuit stemmed from a price war that broke out in March 2020 between Russia and Saudi Arabia.

Both countries boosted production quickly, ending three years of production and sales limits, after Russia rejected cuts proposed by Saudi Arabia and other OPEC producers.

Consumers said the oil companies’ complaints about sinking prices prompted the Trump administration to cajole oil-producing countries to slash production, boosting industry profitability.

Within about two years, the price of a barrel of oil LCOc1 soared above $100 from less than $20, while the U.S. retail price of a gallon of gas more than doubled to over $5.

In Monday’s decision, Circuit Judge Ryan Nelson said courts shouldn’t second-guess White House foreign policy, and had no authority to order Russia and Saudi Arabia how to manage their oil resources.

He also said the early 2020 start of the COVID-19 pandemic drastically reduced oil demand, and was an “obvious alternative explanation” for why oil companies cut production.

Monday’s decision upheld a January 2023 ruling by U.S. District Judge Jeffrey White in Oakland, California.

Nelson was appointed to the bench by Trump, a Republican. The other judges on Monday’s panel, Ronald Gould and Richard Tallman, were appointed by Democratic President Bill Clinton.

The case is D’Augusta et al v American Petroleum Institute et al, 9th U.S. Circuit Court of Appeals, No. 23-15878.

https://www.insurancejournal.com/news/national/2024/09/17/793214.htm

Following a period of declining profits due to lower oil prices and reduced gas demand since 2022, the world’s largest oil and gas companies are experiencing renewed growth.

According to AltIndex, the top ten global oil and gas companies generated over $2.5 trillion in revenue in the year leading up to July 2024, marking a 9% increase from the previous year.

Chinese Firms Lead Revenue Growth

While profits remain below 2022’s peak levels, major players like China’s Sinopec and PetroChina, along with US giants ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero, and European leaders BP, Shell, and TotalEnergies, have reported robust financial results for 2024. Despite a drop in oil prices, these ten companies achieved significant revenue, surpassing $2.5 trillion, up 9% year-over-year.

There are notable differences in revenue growth among regions. Chinese companies led the way, with Sinopec and PetroChina achieving an 18% year-over-year increase—six times higher than their US counterparts. Sinopec and PetroChina reported revenues of $441 billion and $425 billion, respectively.

In contrast, US firms like ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero saw an average revenue increase of 6%, with Phillips 66 leading at 11.2%. Chevron and ExxonMobil reported growth rates of 5.3% and 5.5%, respectively.

European firms BP and TotalEnergies saw smaller revenue increases of 2.6% and 3.7%, respectively. Shell, however, experienced a 1% decline in revenue.

Investor Sentiment Mixed

Despite revenue growth, investor sentiment remains uncertain. Seven of the ten largest oil and gas companies have seen their stock values drop year-to-date. Chevron experienced the steepest decline, losing $28 billion in stock value, more than BP, Shell, and Phillips 66 combined.

Conversely, Chinese companies Sinopec and PetroChina increased their stock values by around $23 billion. ExxonMobil stands out as the best-performing stock of 2024, with a 13% increase in stock price, adding over $100 billion to its market value.

https://www.universenewsnetwork.com/2024/09/17/oil-and-gas-giants-near-2022-highs-with-9-revenue-increase-to-over-2-5-trillion/

Diamondback Energy, Inc. FANG, headquartered in Midland, Texas, operates as an independent oil and natural gas company. With a market cap of $31.2 billion, the company acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and FANG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the oil & gas E&P industry. FANG delivers robust operational performance driven by surging oil sales. By prioritizing oil production, FANG capitalizes on favorable market prices and demand for crude. The company's efficient scaling and optimal oil-to-gas ratio solidify its competitive advantage in the energy sector.

Despite its notable strength, FANG slipped 18.5% from its 52-week high of $214.50, achieved on Jul. 17. Over the past three months, FANG stock has declined 6%, outperforming the SPDR S&P Oil & Gas Exploration & Production ETF’s XOP 9% dip during the same time frame.

In the longer term, shares of FANG rose 12.7% on a YTD basis and climbed 12.2% over the past 52 weeks, outperforming XOP’s YTD losses of 5.2% and 13.5% dip over the last year.

However, FANG has been trading below its 50-day and 200-day moving averages since early September, indicating a recent bearish trend.

FANG's strong performance is driven by potential economic growth in non-OECD nations and possible supply adjustments by OPEC+. Diamondback's merger agreement with Endeavor Energy Resources adds Permian Region assets and significant synergy opportunities, with management aiming for $550 million in annual synergy.

On Aug. 13, FANG shares closed down more than 2% on signs of insider selling after an SEC filing showed CFO Van’t sold $9.9 million of shares.

On Aug. 5, FANG shares closed down more than 2% after reporting its Q2 earnings results. Its adjusted EPS of $4.52 beat Wall Street expectations of $4.46. The company’s revenue was $2.5 billion, topping Wall Street forecasts of $2.2 billion.

FANG’s rival, Occidental Petroleum Corporation OXY, has had a rough ride. OXY's shares plummeted 14.1% in 2024 alone and 22.5% over the past 52 weeks, lagging behind FANG’s double-digit gains.

Wall Street analysts are highly bullish on FANG’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $225.25 suggests a potential upside of 28.9% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

https://www.tradingview.com/news/barchart:e99cbd5fc094b:0-how-is-diamondback-energy-s-stock-performance-compared-to-other-oil-gas-e-p-stocks/

With a market cap of around $17 billion, Coterra Energy Inc. CTRA is a premier, diversified energy company engaged in developing, exploring, and producing oil, natural gas, and natural gas liquids. The Houston, Texas-based company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities.

Companies worth more than $10 billion are generally labeled as “large-cap” stocks, and Coterra Energy fits this criterion perfectly. The company strives to be a leading energy producer, delivering sustainable returns through its diversified asset base. CTRA has focused operations in the Permian Basin, Marcellus Shale, and the Anadarko Basin.

Shares of CTRA have declined 23.3% from its 52-week high of $29.89, recorded in October last year. The oil and gas company’s shares have dipped 14.3% over the past three months, underperforming the broader iShares U.S. Oil & Gas Exploration & Production ETF’s IEO 5.9% decline over the same time frame.

Moreover, in the longer term, CTRA stock is down 10.2% on a YTD basis, lagging behind IEO’s 2.7% dip. Shares of CTRA have declined 17.9% over the past 52 weeks, underperforming IEO’s 9.2% drop over the same time frame.

To confirm its bearish trend, CTRA has been trading below its 200-day moving average since mid-July and has remained below its 50-day moving average since mid-June.

Coterra Energy's underperformance stems from its management's failure to optimize natural gas sales, as it continues to sell at discounted prices within the oversupplied Marcellus Basin instead of securing better prices in stronger markets. Moreover, the stock fell more than 5% following its Q2 earnings release on Aug. 1 due to weaker-than-expected natural gas prices, which led to a decline in earnings. The company reported adjusted earnings of $0.37 per share, which was hurt by rising operating expenses and lower natural gas production.

However, CTRA's declines over both periods are less pronounced than those of its rival, Devon Energy Corporation DVN, which has declined 20.2% over the past 52 weeks and 12.5% on a YTD basis.

Despite CTRA’s underperformance, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts in coverage, and the mean price target of $32.75 suggests a 43.8% premium to its current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

https://www.tradingview.com/news/barchart:fbcfaaf0c094b:0-how-is-coterra-energy-s-stock-performance-compared-to-other-oil-and-gas-stocks/

The Matterhorn Express Pipeline, due to begin service in September, will significantly increase natural gas pipeline capacity in the Permian Basin, according to a new analysis from the U.S. Energy Information Administration. This new capacity will be able to transport natural gas currently “locked up” in the Waha region to domestic and international customers, and consequently could help stabilize regional pricing dynamics in the Waha region.

Untapped reserves with belated operational infrastructure

The EIA reports that the Matterhorn Express Pipeline has a capacity of 2.5 billion cubic feet per day (Bcf/d) and should start operations this month.

Most of the natural gas pipeline network in Texas targets the Gulf Coast Industrial Corridor. However, Matterhorn provides direct access to the Waha region while building further redundancies towards the Coast. Per Reuters, the Matterhorn Express Pipeline is the “biggest gas pipe” in construction capable of transporting gas trapped in the Permian Basin.

In addition to Matterhorn, three other pipelines – already approved – will add a combined capacity of 7.3 Bcf/d to the Permian Basin in the upcoming years.

These new pipelines will serve both domestic and foreign demand:

“For one thing, more LNG is going to be flowing overseas in 2025. Additional liquefied natural gas capacity is ramping up on the Gulf Coast. Western Canada next year should begin exporting gas – for the first time – to Asian markets. And Mexico continues to draw copious imports from Texas.” (Natural Gas Intelligence, 8.23.2024)

Sustainable regional pricing dynamics

This pipeline also presents relief for local producers in the Permian Basin which have struggled with low prices throughout most of 2024. For instance, the lowest price on record for 2024 was negative $6.41 per million British thermal units.

And according to Natural Gas Intelligence, the Waha Hub prices have been below zero for 46 percent of trading days in 2024. So, despite the large volumes of in-demand natural gas in the basin, local producers effectively lost money due to limited midstream capacity.

The EIA explains that this is due to a lack of infrastructure to offtake and transport the Permian Basin’s natural gas. Despite Waha’s abundant gas resources, if the region does not currently have sufficient infrastructure to transport it to where there is demand, the Basin ends up in oversupply. The spot natural gas prices at the Waha Hub then decrease, and in some cases, drop below zero.

In addition to losing value on the whole, the Waha Hub prices have become highly volatile (as shown in the graph below), causing risk and uncertainties for producers in the region.

The entry in service of the new pipelines, including Matterhorn, will increase the supply of gas from this region to the rest of the country and the world. It’s likely that new midstream infrastructure will stabilize Waha Hub prices and bring them into more close alignment with Henry Hub prices.

By increasing the pipeline takeaway capacity of the Permian Basin, the Matterhorn pipeline will distribute gas more efficiently and stabilize spot prices for producers in the Waha Hub region.

Bottom line: Energy security also means investing in infrastructure capacity. This is key not only to provide energy affordability and access, but also price stability for producers so that they can invest predictably year-over-year in new technologies that allow for more sustainable production of oil and natural gas in the Permian Basin.

https://www.energyindepth.org/new-permian-pipeline-projects-are-crucial-to-energy-security-and-market-stability/

In a major decision that could have repercussions across the board in major sectors, particularly the energy and discom avenue, the government recently announced the scrapping of the Windfall Tax on crude oil. This new regime with a 'nil' windfall tax on non-renewable source energy kicks in today, that is, Wednesday, September 18.

Windfall Tax Is Gone

Here, a 'Windfall Tax' is a system that allows the taxation of the profits of businesses making large sums of money as a result of an exceptional occurrence. The windfall tax was implemented in the 1970s. However, since its inception, this tax structure has been the subject of discussion.

This is the second time that the regime of windfall tax has been reduced to nil or scrapped. The previous tranche of tax was reintroduced in July 2022.

Scrapping After Sucessive Cuts

In addition, this regime was later extended to tax on the export of petrol, diesel and aviation fuel because private refiners preferred to sell fuel abroad rather than domestically in order to benefit from high refining margins.

A month ago, on August 16, the central government brought the windfall tax on crude oil to Rs 2,100 per tonne. This meant a mammoth 54 per cent reduction in the tax levied. Two weeks later, the rate was further slashed to the current Rs 1,850 per tonne.

Gas and Oil Stocks In Focus

This measure comes at a crucial juncture, as the major Indian states including Haryana and Maharashtra are lining for elections, later this year.

With this crucial decision, major oil and gas stocks, particularly publicly owned entities like Oil and Natural Gas Corporation Ltd. (ONGC), Indian Oil Corporation Ltd. (IOC), Bharat Petroleum Corporation Ltd. (BPCL), Hindustan Petroleum Corp. Ltd. (HPCL), Gas Authority of India Limited (GAIL) and Oil India Ltd. (OIL), would be in focus.

https://www.freepressjournal.in/business/no-more-windfall-tax-on-crude-starting-today-major-oil-stocks-in-focus

The BP share price has experienced a significant decline of over 12% year-to-date (YTD), compared to the Financial Times Stock Exchange (FTSE) 100’s 8% gain, prompting investors to closely examine the underlying factors. This downturn can be attributed to two primary causes: lower oil and gas prices impacting the company's profits, and increasing pressure from investors to accelerate BP's transition away from fossil fuels towards renewable energy sources.

The energy sector has faced considerable challenges in recent months, with oil prices falling sharply by around 20% from last year’s highs due to concerns about global economic growth and weakening demand. In the past month alone, West Texas Intermediate (WTI) crude oil futures dropped by approximately 13%, reaching levels not seen since May 2023 (and December 2021 for Brent crude oil).

This decline in oil prices has directly affected oil companies like BP, putting downward pressure on their share prices. As a result, investors are reassessing their positions in energy stocks, considering both short-term market conditions and long-term industry trends.

The impact of falling oil prices on BP and the energy sector

The recent steep drop in oil prices can be attributed to several factors, all of which have significant implications for BP and the broader energy sector. Disappointing US jobs data, coupled with weak labour market signals, have raised concerns about potential cracks in the economy. This, combined with sluggish European economic data, has compounded worries over eroding energy demand.

Additionally, ongoing unease about soft consumption and disinflationary pressures in China, the world's largest crude oil importer, has further spooked traders. These macroeconomic factors have led to a pessimistic outlook for oil demand, with Organization of the Petroleum Exporting Countries (OPEC+), the Energy Information Administration (EIA) and Bank of America lowering their 2024 and 2025 price outlook for crude oil.

According to the latest Commitment of Traders (COT) report published by the US Commodity Futures Trading Commission, speculative traders are the most bearish on oil prices in over a decade. Furthermore the net long position held by money managers in crude oil futures has plunged to its lowest level since October 2012.

The supply side of the equation is also putting pressure on oil prices. Despite OPEC+ postponing its planned production increment, ample supply and high US stockpiles continue to weigh on prices.

https://www.ig.com/uk/news-and-trade-ideas/why-the-bp-share-price-is-dropping--oil-market-challenges-and-st-240918

BAKU, Azerbaijan, September 18. Iran continues diplomacy on gas export, import, and transportation, Iran's Deputy Oil Minister and Executive Director of the National Gas Company Saeed Tavakoli said, Trend reports.

According to him, a gas agreement was recently signed between Iran and Russia. This agreement is of great importance, and it is expected to be realized soon. Iran wants to become the energy center of the region in the coming years. One of the ways to do this is through gas exchange with Russia.

Tavakoli added that Iran has a gas exchange agreement with Turkmenistan, and a timeline for the implementation of this agreement should be determined, and work is underway in this direction.

The deputy oil minister stated that Iraq has no debt to Iran for exporting Iranian gas to Iraq. Iraq is one of Iran's best customers and pays on time for the exported gas.

“When it comes to the issue of Iranian gas exports, decisions are not made only by the National Company of Iran. This company is trying to turn most of the country's natural gas into revenue. However, this issue depends on many factors,” he said.

Iran is considered the second-largest gas reserve country in the world, with about 34 trillion cubic meters of gas reserves. A total of 22 gas fields are currently operating in Iran.

To note, Executive Director of Iran's National Gas Company Majid Chegeni and Executive Director of Russia's Gazprom Alexey Miller signed a document on June 26 on the transportation of Russian gas to Iran. Russian gas will be transported to Iran along the Caspian Sea bed. Under the 30-year contract signed between Iran's National Gas Company and Russia's Gazprom, 300 million cubic meters of gas will be transported daily from Russia to Iran.

https://en.trend.az/iran/3946670.html

Nineteen companies from eleven European countries have filed 18,6 billion euros ($20,6 billion) in lawsuits against Russia's Gazprom for breach of gas supply contracts, Reuters reports.

The article states that the lion's share of the above-mentioned amount, 13 billion euros, includes a claim from the German concern Uniper, which was the main client of our "gas giant" in Germany and, concurrently, the largest investor in Nord Stream 2. 

The company, which previously imported 20 billion cubic meters of gas per year from Russia, demanded compensation for losses incurred as a result of the cessation of supplies. 

At the same time, in June of this year, the Stockholm Arbitration Court satisfied its claim in full. In turn, according to BCS, the amount of damage declared by the Europeans exceeds Gazprom’s annual revenue from gas sales to other markets, including Europe and Turkey ($10 billion), China ($7 billion), as well as the CIS countries and Central Asia ($2 billion). 

Against this background, many experts believe that multi-billion dollar lawsuits could lead to a situation where payments transferred to the Russian company by the remaining clients in Europe will be blocked and appropriated by the "injured" parties. 

Incidentally, in Austria, the national gas operator OMV has already reported attempts to "intercept" payments to Gazprom. 

Let us recall that in 2023, for the first time since the late 1990s, Gazprom ended the reporting period with a net loss under IFRS, which amounted to 629 billion rubles (6,88 billion dollars at the current exchange rate) - a record loss in stories companies. 

The last time the Russian "gas" giant's reporting period ended with a loss was in 1999. The losses then amounted to 79 billion rubles. 

It is worth recalling that the disruption of contracted gas supplies to the EU occurred due to sabotage, which destroyed both lines of the Nord Stream and one line of the Nord Stream 2. At the same time, European countries sabotaged the investigation of the incident in every possible way, not allowing Russia to participate in it. 

Now, a certain group of diving instructors from Ukraine is suspected of causing the explosion on our gas pipelines, which even sounds ridiculous.

https://en.topwar.ru/250349-evropejskie-kompanii-potrebovali-ot-gazproma-bolee-20-mlrd-dollarov-za-nepostavlennyj-gaz.html

At least 19 corporations from 11 European states have filed lawsuits against Russia’s Gazprom for breaching gas contracts, and their total amount has reached €18.6 billion (US$20 billion). 

Source: Russian online newspaper The Moscow Times

Details: The largest claim, for €13 billion, was made by Uniper, Gazprom's former principal client in Germany and a co-investor in the Nord Stream 2 project. The corporation, which buys 20 billion cubic metres of gas from Russia each year, claimed compensation for multibillion-dollar damages resulting from the supply disruption. The Stockholm arbitration concluded in June 2024, fully satisfying its claim.

RWE, another German gas importer that receives 1 billion cubic metres each year, has demanded an additional US$1 billion from Gazprom. French Engie has filed an arbitration action against Gazprom, seeking more than €300 million.

In Austria, which continues to buy Russian gas, which covers about 90% of its consumption, the country's largest energy business, OMV, launched a €575.3 million lawsuit against Gazprom.

In Finland, where Russian gas dominated the market prior to the full-scale invasion, Gasum initiated a case against Gazprom. In Italy, the oil firm Eni refused to comply with Vladimir Putin's directive requiring payment of supplies in roubles.

Europol Gaz, which manages the Polish segment of the Yamal-Europe gas pipeline that transports gas from Western Siberia to German consumers, has filed a €1.5 billion lawsuit against Gazprom. In Czechia, Net4gas and Innogy Energie have filed claims against Gazprom for short-delivered gas: the first seeks €113 million, the second €78 million. In Switzerland, gas dealers DXT Commodities and Axpo Solutions have filed lawsuits totalling over €1 billion.

In the Netherlands, the gas transmission system operator Gasunie Transport Services demands €275 million from Gazprom. BBL Company V.O.F. has filed another complaint for failure to use reserved gas capabilities. ZSE Energia and Východoslovenská energetika in Slovakia are suing Gazprom, while Bulgargaz, Bulgaria's national gas provider, is seeking €400 million for contract termination.

According to Moscow-based brokerage BCS estimates, the total amount of claims against Gazprom exceeded its net income from petrol sales to all international markets combined: US$10 billion annually from supplies to Europe and Türkiye, US$7 billion to China, and US$2 billion from exports to the CIS and Central Asia.

https://www.pravda.com.ua/eng/news/2024/09/18/7475714/#:~:text=European%20countries%20demand%20US%2420%20billion%20for%20undelivered%20gas%20from%20Russia,-Oleksii%20Artemchuk%20%E2%80%94%20Wednesday&text=At%20least%2019%20corporations%20from,billion%20(US%2420%20billion).

GERMANY’S government took a first step towards privatising Uniper, the utility it nationalised at the peak of Europe’s energy crisis in 2022 after Russia curbed gas flows to the region.

The nation’s finance ministry said an initial public offering is its preferred option for selling the company, according to a statement. It’s also considering off-market sale alternatives.

The announcement marks a momentous step after the bailout just under two years ago, which was one of the largest in German corporate history. At the time, the utility – once the biggest buyer of Russian gas in Germany – was forced to pay hundreds of millions of euros a day for alternative supplies and was only able to do so with state support.

In contrast to other state holdings in companies like Commerzbank or DB Schenker, the proceeds of a Uniper sale would flow back into the regular budget and might be used to narrow a shortfall of more than 12 billion euros (S$17.3 billion) in the government’s 2025 finance plan.

“Germany is currently examining all options available to fulfil this exit commitment,” the finance ministry said Thursday. “So far, no final decision has been made regarding the timing and form of a potential transaction.”

Earnings recovery

Uniper’s earnings have made a significant recovery since the hit they saw from the energy crisis and the company is now preparing for new investments to aid the nation’s energy transition. It set aside nearly 3 billion euros for payments linked to the bailout in recent quarters, and funds will likely be transferred to the German state at the beginning of next year.

It has also been awarded more than 13 billion euros in damages against Russia’s Gazprom, an amount that would also be passed on to taxpayers, though it’s unclear whether and how much of it Uniper will be able to recover from the gas giant anytime soon.

The German state owns more than 99 per cent of Uniper. At the time of the nationalisation, it committed to reduce its holding to a maximum of 25 per cent plus one share by 2028, as agreed with the European Commission.

Uniper welcomed the finance ministry’s announcement and said it will work closely with the German state to progress all necessary preparations. 

https://www.businesstimes.com.sg/companies-markets/energy-commodities/germany-eyes-uniper-ipo-after-historic-energy-crisis-bailout

Dutch and British wholesale gas prices fell on Thursday afternoon, reversing earlier gains, on a media report that Ukraine has agreed to transit Azerbaijani gas to Europe. Reuters was unable to immediately verify the report.

The benchmark front-month contract (TRNLTTFMc1) at the Dutch TTF hub was down by 0.84 euro at 34.25 euros per megawatt hour (MWh), or $11.16 mmBtu, by 1334 GMT.

The November contract (TRNLTTFMc2) was 1.69 euro lower at 35.74 euros/MWh, LSEG data showed.

In the British market, the day-ahead contract (TRGBNBPD1) fell by 3.35 pence to 80.00 pence per therm.

Ukrainska Pravda news outlet on Thursday afternoon reported that Ukraine has agreed to transit Azerbaijani gas to Europe as a temporary measure after it ends a transit deal with Russia.

The transit deal, allowing Russian gas to flow through Ukraine to Europe, is due to expire at the end of the year and the market has been watching for possible options to keep the supply flowing.

Traders said this had led the market to reverse gains seen earlier today and that the news Egypt is planning to restore normal output at gas fields by summer 2025 had also contributed to lower prices.

"Its a combination (of bearish) headlines," one trader said.

The price drop reversed gains seen earlier this morning when the market edged higher due to a dip in exports from Norway as maintenance ramped up.

Total Norwegian exports are expected down 13 million cubic metres/day (mcm/d) compared with the previous day as maintenance at the Kollsnes processing plant ramps up, LSEG data showed.

Supply of gas from Russia to Europe via Ukraine has remained steady amid attacks on Ukraine's energy system.

Russia's Gazprom GAZP said it would send 42.3 million cubic metres of gas to Europe via Ukraine on Thursday, the same volume as on Wednesday.

In the European carbon market, the benchmark contract (CFI2Zc1) was 0.26 euro higher at 63.44 euros per metric ton.

https://www.tradingview.com/news/reuters.com,2024:newsml_L1N3L10K3:0-prices-reverse-earlier-gains-after-ukraine-transit-deal-report/

Workers described the announcement as a "kick in the teeth", while unions labelled it a "terrible indictment" of both governments and of the company.

About 2,000 people are directly employed at Grangemouth, including about 500 at the refinery, while others work at Ineos’s petrochemicals business and the Forties pipeline.

Announcing the refinery’s closure, Petroineos said it was unable to compete with sites in Asia, Africa and the Middle East.

The converted terminal is expected require fewer than 100 employees.

The BBC understands the refinery is currently losing about $500,000 (£383,000) a day and is on course to lose around $200m (£153m) in 2024.

The Grangemouth refinery is one of six in the UK and the only one in Scotland.

It was originally opened by BP in 1924 and expanded into petrochemicals in the 1950s. Ineos acquired the site in 2005.

It is the main supplier of aviation fuel for Scotland's airports and a major supplier of petrol and diesel ground fuels across the central belt.

According to Ineos, about half of the refinery’s crude oil comes from the North Sea, with most of it delivered via ship to Finnart Ocean Terminal on Loch Long and piped east across the country to Grangemouth.

Between 250 to 280 of the refinery redundancies are expected to happen in the three months after the plant closes, with 100 staff retained for between six to 12 months to help decommission and to build up the import business.

A further 30 workers are to be retained for longer to work on decommissioning and demolition, which is expected to continue until 2030.

Twenty jobs will also go at the Finnart pipeline terminal at Loch Long.

https://www.bbc.co.uk/news/articles/cyvy3mgp8qlo

DBS analyst Pei Hwa Ho maintained a Buy rating on PetroChina Company (PCCYF) today. The company’s shares closed yesterday at $0.76.

Hwa Ho covers the Industrials sector, focusing on stocks such as Sembcorp Industries, Seatrium Limited, and Yangzijiang Shipbuilding (Holdings). According to TipRanks, Hwa Ho has an average return of 15.8% and a 68.85% success rate on recommended stocks.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for PetroChina Company with a $0.75 average price target, representing a -0.66% downside. In a report released on September 17, Goldman Sachs also maintained a Buy rating on the stock with a HK$8.20 price target.

The company has a one-year high of $1.08 and a one-year low of $0.60. Currently, PetroChina Company has an average volume of 97.2K.

PetroChina Company (PCCYF) Company Description:

PetroChina Co. Ltd. engages in the petroleum related products, services and activities. It operates through the following business segments: Exploration and Production; Refining and Chemicals; Marketing; Natural Gas and Pipeline; and Head Office and Other. The Exploration and Production segment involves exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment focuses on the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment includes marketing of refined products and the trading business. The Natural Gas and Pipeline segment comprises transmission of natural gas, crude oil, and refined products and the sale of natural gas. The Head Office and Other segment relates to cash management and financing activities, the corporate center, research and development, and other business services supporting the operating business segments of the Group. The company was founded on November 5, 1999 and is headquartered in Beijing, China.

https://markets.businessinsider.com/news/stocks/dbs-sticks-to-its-buy-rating-for-petrochina-company-pccyf-1033781906

KYIV, Sept 19 (Reuters) - A Ukrainian news outlet backed away from its report on Thursday that Ukraine had agreed to transit Azerbaijani gas to Europe as a temporary measure after it ends a transit deal with Russia.

Two Azerbaijani energy sources also said the report was incorrect.

Ukrainska Pravda quoted a source in the Ukrainian government as saying that Kyiv understood that the European Union needed time to completely abandon Russian gas and Ukraine was "taking this step to make this transition easier for the EU".

Ukrainska Pravda later issued what it described as a clarification, saying that the government source emphasised that there was currently neither a signed gas-transit agreement between Ukraine and Azerbaijan nor any relevant negotiations.

A source in Azerbaijan's energy ministry and another source at its energy company SOCAR both dismissed the report when contacted by Reuters.

Ukraine's gas-transit deal with Russia's Gazprom (GAZP.MM), opens new tab is due to expire at the end of this year and Kyiv has said it does not want to renew it amid the war between the two countries.

Some central European countries, however, rely on gas from Russia that crosses Ukraine in a pipeline - having secured an exemption from a European Union ban on Russian gas imports - and they are keen to continue receiving supplies.

An Azerbaijani official has said the EU and Kyiv have asked Baku to facilitate discussions with Russia, with one potential option that Azerbaijan might buy Russian gas for itself to free up some of its own gas to export to the EU.

Ukraine's energy ministry declined to comment.

Azerbaijani President Ilham Aliyev said last week he was optimistic of a breakthrough in talks to keep gas flowing through Ukraine to several European countries.

Russia's gas-transit volumes via Ukraine are likely to total 14 billion cubic metres for 2024.

https://www.reuters.com/business/energy/ukraine-agrees-transit-azerbaijani-gas-after-gazprom-deal-ends-report-says-2024-09-19/