|Day's Range||2.5800 - 2.6430|
Petronet will take an equity investment in Tellurian's Driftwood project in Louisiana, they said, without providing financial details. Sources told Reuters on Friday that Petronet would sign a memorandum of understanding with Tellurian to invest $2.5 billion for rights of up to 5 million tonnes a year of LNG over the lifespan of the Driftwood project.
The past week's sudden surge in oil prices brought to mind the nightmare of shortages, but it's not too likely motorists will be queueing to fill up around the world, analysts say. All it took was a September 14 strike on key oil infrastructure in Saudi Arabia to abruptly leave the world's main supplier producing just half its normal amount. "In essence, the world is far better equipped to handle oil shocks than it was in the '70s," explained Harry Tchilinguirian, the head of commodity research at BNP Paribas.
Based on the early price action and the current price at 26967, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close on Friday will be determined by trader reaction to 27009.
The British pound went back and forth during the week, testing the 1.25 level on both sides showing a bit of a neutral candle stick. However, we are running into a significant amount of resistance, so this could be a hit as to the next move.
Natural gas markets fell during the huge portion of the week, after initially popping much higher. By doing so, it has shown that there is in fact going to be a lot trouble on the way up for the winter move.
Silver markets went back and forth during the trading session on Friday as traders continue to hang on to a trend line that has been so crucial for so long. Because of this, it’s likely that silver could get a bit of a boost going forward.
The US dollar continue to grind higher against the Japanese yen after initially gapping lower. Looking at this chart, it’s very obvious that the pair is approaching a major resistance barrier, and a major inflection point.
The British pound initially gapped lower after a reactive move to the Saudi drone attacks, as there were a lot of concerns about the global economy. Most of the week the market turned around to rally, but as we close out it looks like exhaustion is setting in.
(Bloomberg) -- Saudi Aramco revealed the significant damage caused by aerial strikes on its Khurais oil field and Abqaiq crude-processing plant last weekend, and insisted that the sites will be back to pre-attack output levels by the end of the month.Aramco took reporters for a first look inside the facilities, where equipment was scorched and ruptured by the assault on Saturday. In one area lay a pile of debris -- a mess of oil melted to asphalt, twisted and charred metal grates, and pieces of fire hose -- that stank of tar. While officials promised the plants would be repaired quickly, they also said they were still in the process of evaluating whether some equipment could be fixed or would have to be completely replaced.The Khurais field and processing plant resumed 30% of production within 24 hours of the strike and will produce 1.2 million barrels a day by the end of September, Fahad Al Abdulkareem, general manager for Aramco’s southern area oil operations, said at a briefing on Friday. Workers are there 24 hours a day to speed the repairs, but the site showed significant damage.The Khurais field has a maximum output capacity of 1.45 million barrels a day and processes all of its oil on site, according to Al Abdulkareem. The assault affected four of its crude-stabilization units -- 90-meter (300-foot) towers that reduce pressure and remove gas from the crude. One of the columns shown to reporters was a charred wreck, and at least one other was even more badly damaged, he said.Aramco also showed reporters pipes that had been pierced by fragments from the missiles, causing them to spew oil, feeding the fires. Workers were busy replacing segments of piping and insulation at the facilities, and conducting tests on the damaged crude-stabilization columns.The world’s biggest crude exporter has vowed a swift restoration of output at Khurais and Abqaiq after the attack by drones and missiles disabled 5% of global supply. There’s concern in the market about how long it will take the kingdom to fully restore lost production as it depletes inventories to meet supply commitments and operates without its usual buffer of spare capacity.Saudi and U.S. officials have said that the drones and missiles used in the attack were made by Iran, though Tehran has denied involvement. The incident has ratcheted up instability in the world’s most important oil-producing region, where tensions were already high following several attacks on Saudi oil tankers and pipelines in recent months.The tour of the Abqaiq plant, which processes crude oil from fields including Ghawar, the kingdom’s largest, also showed extensive damages. The smell of natural gas and other hydrocarbons hung over some areas of the facility. A huge sheet of twisted metal that had been struck by missiles was laid out next to a damaged tank for reporters.The attacks seemed to target with high precision key equipment at both sites, shutting the plants completely even though majority of the facilities were untouched.Abqaiq was struck 18 times, with five hits on crude-stabilization towers and 11 on spheroids, which separate natural gas from oil, said Khaled Al Buraik, Aramco’s vice president for southern-area oil production. At least three of the towers showed heavy damage, including large holes surrounded by scorching. Some of them may need to be replaced, he said.Large holes were visible on the tops of rounded tanks called “spheroids,” which had been surrounded with scaffolding as lines of workers went up and down, evaluating whether they could be fixed, or would have to be replaced.Abqaiq’s throughput before the attack was about 4.9 million barrels a day, and on Tuesday Aramco Chief Executive Officer Amin Nasser said it was processing about 2 million a day. It should return to pre-attack levels by the end of September, he said.Aramco has ramped up output at its offshore fields -- making more of its heavier crude grades available to customers -- and is also tapping oil in storage to meet export commitments. A return to the company’s full 12 million-barrel-a-day capacity is unlikely before the end of November, Prince Abdulaziz bin Salman, the energy minister, said Tuesday.To contact the reporter on this story: Anthony DiPaola in Abqaiq, Saudi Arabia at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Continuing to trade inside the $2.585 to $2.691 retracement zone will indicate the bulls and the bears are somewhat balanced.
Before the market can really become stable, Saudi inventories are going to have to return to pre-attack levels, the damaged facilities are going to have to be repaired and working at full capacity and further threats will have to be prevented. Since the risk is to the downside, the markets are likely to be bid for several days.
Natural gas might experience short-lived surge based on positive weather forecasts but any powerful turnaround looks unlikely at the moment.
Japan's Fair Trade Commission (JFTC) in 2017 ruled that destination restrictions that prevent the reselling of contracted LNG cargoes breach competition rules. Since the ruling, Japanese LNG importers have signed new term contracts without the clauses but it is rare that an LNG buyer has confirmed that it was able to eliminate the clauses from the existing contracts. "We have been asking sellers to scrap the destination clauses from the current contracts and some of them have accepted our request," Sunao Nakamura, JERA's managing executive officer, told Reuters in an interview on Thursday.
The direction of the December Comex gold market the rest of the session on Friday is likely to be determined by trader reaction to the pivot at $1511.50.
Pakistan has given the go-ahead to five consortiums, including Exxon Mobil, Royal Dutch Shell and Mitsubishi, to progress with their liquefied natural gas (LNG) terminal plans, a minister told Reuters on Friday. The move comes on the heels of the arrests of two Pakistan business executives involved in building the country's previous LNG terminals, cooling sentiment in the industry. Pakistan is seen as a big growth market for the global LNG industry as domestic gas production slips in tandem with a growing industrial economy hungry for gas.
Integrated oil companies ExxonMobil and Chevron have strong upstream portfolios, which play a vital role in determining their profitabilities.
At the beginning of last December, the United States became a net exporter of oil for the first time in 75 years. Long gone is the talk of peak oil of the early 2000s, which for now seems like a relic of the old way of American thinking about oil. This new phenomenon appeared just in time as the global oil markets have proved just as contentious as ever.
The British pound has gone back and forth over the last couple of days, as we are hanging just below the crucial 1.25 handle. That’s an area that obviously would attract a lot of attention, but it also has a lot of technical factors attached to it as well.
Under Orn discovery, Equinor ASA (EQNR) is expected to hold 40% interest while its partners Aker BP and Wellesley will own 30% stake each.
U.S. crude prices are steady on Thursday, as the markets are calmer after sharp volatility early in the week. A surprise surplus in crude inventories is keeping upward movement in check
Based on the early price action and the current price at 27207, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 27191.
The sideways price action the last eight sessions suggests that speculative bulls are having a hard time letting go of their long positions, and the major short-sellers are having a difficult time regaining control although they haven’t been spooked into aggressively covering their positions either.