COVID cases are now emerging around the world, threatening demand for oil and making oil costs below $40.
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Friday, October 23, 2020
On Thursday, the United States reported more than 70,000 cases of COVID for the first time in three months, and the trajectory suggests that the United States could break new records in the coming days. The figures help the weakness (and weakening) of gas in the United States, an issue that is also taking a position in Europe. The pandemic continues to largely limit any possible increase in value. Crude remains stagnant at $40, where it has been trading for about 4 months.
Two-speed oil market. Demand is low in Europe, the United States and Latin America and remains depressed as coronavirus continues to spread, but in Asia, demand for gas is strong and even demand for kerosene is recovering strongly. As Javier Blas points out, lately there is a big difference between East and West, with Asia switching to pre-pandemic call levels.
Biden and Trump are confronted by oil and climate. While the substance and its positions were not new, oil issues, hydraulic fracturing and climate replacement played a major role in the last presidential debate. Trump has largely ignored climate science and promises to maintain a friendly stance toward oil and gas. Biden took advantage of the opportunity to use renewable energy and said the United States will have to abandon fossil fuels.
Democrats are proposing a “blue carbon” bill. A proposal through house Democrats would expand offshore wind energy and ban further offshore oil drilling.
Iberdrola will create a $20 billion blank power plant, Spain’s Iberdrola (BME: IBE) has announced an agreement to acquire $8. 3 billion in PNM Resources (NYSE: PNM) and the incorporation of the unit into Iberdrola’s subsidiary, Avangrid Renewables. would make Avangrid the third largest renewable energy company in the United States, $20 billion.
France is blocking U. S. LNG due to methane. The French government prevented Engie (EPA: ENGI) from signing an agreement for U. S. LNG in Brownsville, Texas, on the grounds that the herbal fuel was too dirty. The trump administration’s elimination of environmental regulations, i. e. those relating to methane emissions. Analysts say the methane and carbon dispute will only increase. clearview energy analytics company, told Politico. Related: Oil markets prepare for a complicated end of year
Exxon to announce layoffs. ExxonMobil (NYSE: XOM) announced task cuts Wednesday, but refused to reveal details. “We inform workers today that the US review is in the process of being tested by the US. But it’s not the first time It is being reviewed and close to completion,” a spokesperson told E
Kinder Morgan’s profit is declining. Kinder Morgan (NYSE: KMI) recorded a fall in third-quarter profits due to the slowdown in shipments of pipelines and subtle products.
Commercial purchases of renewable energy are increasing. Over the next decade, commercial purchases will account for 20% of total renewable energy installations, according to a new IHS Markit report, a percentage higher than other countries.
NextEra has 15 GW of renewable energy in the project. NextEra (NYSE: SEN) says it has 15 GW of renewable energy in process, a larger order book than its entire portfolio today.
Japan will move from 0 to 2050. The Japanese prime minister is about to announce a carbon neutrality target by 2050, aligning Japan with the EU and 60 countries. Japan is a major customer of coal, oil and LNG, and is the fifth largest CO2 emitter in the world, so a competitive decarbonization effort would have global ramifications.
Russia refers to the expansion of OPEC. Vladimir Putin has hinted that Russia would be willing to postpone planned relief in OPEC production cuts. Currently, OPEC helps keep 7. 7 mb/d off the market, but as of January, the agreement is expected to reduce that figure to 5. 7 mb/d. d. But the call for favor does not return as temporarily as expected. “We don’t think there’s any desire to replace anything in our agreements, we will strongly monitor the market recovery,” Putin said. “However, we don’t, rule out that we can limit ourselves to existing production restrictions and not eliminate them as temporarily as we planned to do before. “
Renewable energy IPO. New Mexico-based Array Technologies (NASDAQ: ARRY) billed directly, expanding by 79% in its first 3 days of trading to give the solar appliance manufacturer a valuation of $5 billion. Right now, the largest provider of solar tracking systems, a rapidly developing market estimated at around $3 billion 2020. Se some other IPO known. Related: Natural Fuel Provides Lifeguard for Endangered Gulf Oil Giants
BP is the sale of the Gulf of Mexico oil box. BP (NYSE: BP) is promoting its stake in the Constellation oil box in the Gulf of Mexico. The company expects to raise two hundred million dollars.
Diamondback, the next redemption target? A wave of consolidation is sweeping america’s shale industry. ConocoPhillips (NYSE: COP) and Pioneer Natural Resources (NYSE: PXD) making multimillion-dollar purchases this week. Diamondback Energy (NASDAQ: FANG) analysts may be a top target for some of the giant corporations still looking for acquisitions.
The demand for gas in the United States is declining. Demand for gas in the United States is weakening, leading refineries to use additional capacity and processing crude, a sign that the resurgence of coronavirus cases is derailing the recovery in fuel demand. Demand fell to 8,289 mb / d during the week ending October 16. below the 8,576 mb / d of the previous week and the 8,896 mb / d of the previous two weeks.
By Tom Kool for Oilprice. com
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Tom specializes in foreign industry at the Amsterdam Graduate School of Economics, is the head of oil operations.
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