Oil prices are on track to post a second weekly gain as bullish sentiment builds and the prospect of a prolonged price rally becomes increasingly likely.
Friday, September 20th, 2024
Oil prices are set to record their second straight week-on-week gain with WTI rebounding above $70 per barrel and now trading closer to $72 per barrel, but the fact that the US Federal Reserve has at last initiated a new cycle of monetary easing should have prompted a stronger market response. With a weaker dollar and an improved macro risk outlook, next week could see further upside.
US Crude Stocks Hit One-Year Lows. Crude oil inventories in the United States have dropped to their lowest level in a week, posting another week-on-week decline to 417.5 million barrels, with stocks particularly drained in the Midwest where they dipped to their lowest since December 2014.
NGL Pipeline Blaze Becomes Criminal Case. Human remains were found in a burned-out car that struck a natural gas liquids pipeline operated by Energy Transfer (NYSE:ET), causing a blaze that still burns itself out and debilitating the operations of the 375,000 b/d Justice pipeline that feeds Mont Belvieu fractionators.
Chevron Criticizes Biden’s Natural Gas Policy. Chevron’s (NYSE:CVX) CEO Michael Wirth criticized the Biden administration for ‘attacks on the natural gas industry’, arguing that resources from the Permian Basin have played a key role in powering AI proliferation as the White House set up a task force to investigate whether data centres don’t undercut US climate goals.
European Carmakers Panic as EV Sales Crash. The European Automobile Manufacturers’ Association (ACEA) has called for urgent government action to reverse this year’s trend of slumping EV sales as BEV sales in Germany and France have collapsed by 69% and 33%, respectively, as subsidies were cut.
Ukraine Agrees to Azeri Gas Transit. Ukrainian media have reported that Kyiv has in principle agreed to transit Azerbaijani gas to Europe as a temporary measure after its 5-year transit contract with Russia runs out in December, with the derisking of European imports seeing TTF drop lower to €33 per MWh.
US Sues Shipowners That Struck Baltimore Bridge. The US Justice Department filed a civil claim this week against two Singaporean companies that owned the Dali ship that toppled the Francis Scott Key Bridge in Baltimore this week, seeking $103 million in compensation for cleanup and repair costs.
Turkey Locks In Another LNG Supply Deal. Having already signed supply deals with Shell (NYSE:RDS.A) and ExxonMobil (NYSE:XOM), Turkey’s state energy firm BOTAS clinched a 10-year LNG term deal with France’s TotalEnergies (NYSE:TTE) starting from 2027, for up to 1.1 million metric tonnes annually.
Colombia Gives Up on Peace Deal with Rebels. Raising the risks of attacks on energy infrastructure in the country, particularly pipelines in faraway regions, Colombia’s government has called off peace talks with the leftist militia ELN after an attack on a military base next to the Venezuelan border killed two soldiers.
India Eyes Bundle Crude Import Deal with Russia. Indian refiners are jointly negotiating long-term deals for Russian crude supply next year as in 2024 only private refiners managed to land term contracts, prompting state-controlled refiners to lock in deals as Russia still accounts for 40-45% of India’s imports.
China Releases New Oil Product Export Quota. The Chinese government has issued a new batch of export quotas for clean products, adding 8 million tonnes of quotas for diesel, jet and gasoline, paving a way for an increase in Chinese Q4 exports to 950,000 b/d after averaging 850,000 b/d in January-August.
Venezuela’s Main Refinery Hampered by Outages. The giant 645,000 b/d Amuay refinery, Venezuela’s key downstream asset that accounts for almost half of the country’s total capacity, remains almost completely offline following a power outage that occurred on September 12, restricting product supply.
Copper Hits Two-Month High on US Fed Rate Hike. The US Federal Reserve’s 50 bps interest rate cut lifted copper prices to their highest level since mid-July, with the October Comex contract touching $9,640 per metric tonne as hopes for a soft landing improved the outlook for the transition metal.
Red Sea Risk Premiums Soar on Increased Strikes. The cost of insuring a tanker through the Red Sea has more than doubled over the past month as some underwriters are pausing insurance cover after the sinking of the Sounion vessel, with war risk premiums now quoted up to 2% of the vessel value.
By Michael Kern for Oilprice.com
Take the Survey at https://survey.energynewsbeat.com/
Crude Oil, LNG, Jet Fuel price quote
ENB Top News ENBEnergy DashboardENB PodcastENB Substack
Energy News Beat