Oil values fell on Tuesday as sentiment shifted amid growing uncertainty surrounding the wave of COVID-19 moments Chart of the week: U. S. fuel ethanol production capacity succeeded at 17 , 3 billion gallons consistent with the year (gal / year), or 1. 1 million barrels consistent with the day (b / d), as of January 2020. Capacity development increased 3% year-over-year in January: 12 of the thirteen most sensitive ethanol-generating states are in the Midwest, with Iowa having 4. 5 billion gallons year-on-year in capacity, roughly double the state with the highest capacity at the time (Nebraska). expanding capacity, genuine production has recently declined. Production declined as demand for fuel plummeted after the start of the pandemic. The EIA predicts an average production of 0. 9mb / d in 2020, 13% less than 2019 levels. Market Drivers: Dominion Energy (NYSE: D) went obese through JPMorgan with a target value of $ 84 . The bank said Dominion was “in the most productive position to highlight the ‘green exchange rate’ and attract additional ESG investors. . . ” – Baker Hughes (NYSE: BKR) announced an order to acquire 4 major refrigerant compressors “mega- train “for Qatar Petroleum’s North Field expansion project. This is one of the largest LNG deals made through Baker Hughes in the last five years. – Petrobras (NYSE: PBR) said it will spend $ 6 billion to decommission 18 offshore platforms through 2024 Tuesday, September 29, 2020 Oil values fell on Tuesday as investors have become wary of the call of fears and the accumulation in the number of coronavirus in the United States and Europe. “Sentiment suffers from the uncertainties related to Covid-19,” said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. Oil stagnated at $ 40. Oil values have been capped at around $ 40 a barrel for months, and there are few signs of stocks exploding anytime soon. “The market is stagnant,” Giovanni Staunovo, a commodities analyst at UBS Group AG, told Bloomberg. “For values to increase, OPEC + reserve capacity will have to decrease, and for that to happen, demand will have to continue to recover. Until there is a moment of global lockdown, oil cannot fall too far below $ 40. India is cutting back on refining consistent fuels. Indian refinery Bharat Petroleum Corp. will maintain declining refining cycles due to weak demand for diesel, a symptom of a slow recovery in commercial demand. Lithrougha is boosting exports. Lithrougha’s oil production soared to 250,000 bpd from 90,000 bpd as the blockade of the country’s oil export terminals was partially lifted. Exports to the eastern ports of Hariga, Brega and Zueitina have resumed, but Es Sider and Ras Lanuf remain offline. JPMorgan and Goldman Sachs estimate that exports can increase by as much as 0. 5 mb / d until the end of the year, and potentially be successful by 1 mb / d until the end of the first quarter in 2021. Rosneft criticizes the energy transition through BP. Rosneft (OTCPK: RNFTF), which partners with BP (NYSE: BP) in Russia, criticized the British company’s transfer to renewables. “It is an existential risk for the source. It is an existential risk to the value of volatilityArray . . . we will have an adjusted [source], a volatility of value and yes, coherent with the values, ”said Didier Casimiro of Rosneft at the Financial Times Global Commodity Summit. The setbacks of the Colorado exercises, the emission control, advance. The Colorado Oil and Gas Conservation Commission voted in favor of setbacks of 2,000 feet on Monday. A final vote on this rule and many more is expected in early November. The oil and fuel industry says the measure will devastate drilling in the state by restricting drilling locations. Meanwhile, a separate state firm has passed the more sensitive regulations that require corporations to reduce emissions from boreholes, garage exits and pipes. Devon Energy merges with WPX. Devon Energy (NYSE: DVN) will get WPX Energy (NYSE: WPX) in a total inventory deal of $ 2. 6 billion, a move that will make Devon bigger than Apache Corp. (NYSE: APA) and Marathon Oil (NYSE : MRO). . Devon and WPX inventory values rose on the news, but fell on Tuesday. The move comes after Chevron (NYSE: CVX) obtained Noble Energy and could sign an additional consolidation. In particular, Devon has giant chunks of federal land, which may be in jeopardy if Joe Biden wins the presidency. The acquisition of WPX would diversify Devon’s holdings. Technology will be important as oil and fuel recover. The oil and fuel industry will have to rely heavily on generation to reduce costs and increase efficiency. According to industry giant Buurst Inc, there are three key generation finishes that will help revive the oil and fuel industry. These trfinishs come with cloud storage, intermediate knowledge closures, and cross-platform trade partnerships.
Related: Natural gas prices soar after stronger demand The west coast of the United States is experiencing high temperatures, while the east is in a time without blood. Natural fuel costs rose to $ 2. 80 / MMBtu, but fell to around $ 2. 50 / MMBtu on Tuesday. The Swedish battery manufacturer has raised six hundred million dollars. Swedish lithium-ion battery maker Northvolt is raising $ 600 million in capital, and investors will add Volkswagen, Goldman Sachs and Spotify founder Daniel Elk. Northvolt aims to gain 25% of the market share in Europe by 2030. EPA rejects the ICE ban in California. The US EPA is raising legal questions about California’s plans to phase out fuel and diesel vehicles. Canada-Alaska Railroad to move on. US President Donald Trump will approve a $ 22 billion freight rail allocation to be run between Alberta and Alaska to ship a variety of commodities such as oil, ore and potash, as well as containers. Trump recently blocked offshore oil and fuel drilling. the coasts of Florida, Georgia, and North and South Carolina. But restrictions can also restrict offshore wind power. The ruling to approve the ruling removes the interim director of BLM. For more than a year, William Perry Pendley led the Bureau of Land Management as Acting Director, without obtaining Senate confirmation. A US ruling on illegally ruled his leadership, a move that removed him from office. The resolution has broader implications. Now there are legal questions about whether each and every BLM rule under his mandate can now be overridden, rulings that can lease oil and fuel. Shell is preparing thousands of job cuts. Royal Dutch Shell (NYSE: RDS. A) prepares thousands of job cuts as it nears the final touch of a primary restructuring. China is on track to buy record LNG. China is on track to increase its LNG imports by 10% this year to a new record.
Related: Natural fuel costs are soaring as a result of increased demand Increased car sales in China Signals a stable recovery, car sales in China have increased for two consecutive months Guyana is approaching an agreement with ExxonMobil Guyana is close to reaching an agreement with ExxonMobil (NYSE: XOM) to approve the company’s Payara project. Trafigura Bureaucracy a renewable energy unit. Oil trader Trafigura has announced plans to invest $2 billion in renewable energy. Investment in oil and fuel is falling and then rebounding. The amount of new cash for oil and fuel IDF will fall to about $53 billion, below $190 billion in 2019, Rystad Energy projects. IDF spending will double next year and will already exceed prepandemic grades from 2022, the company said.
By Josh Owens for Oilprice. com
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