|Day's Range||2.542 - 2.559|
With tensions between the United States and Saudi Arabia continuing to escalate, the global economy is becoming increasingly vulnerable
Continued production growth in the U.S. shale patch is putting downward pressure on oil prices, with shale drillers showing no sign of slowing down
At a massive natural gas field in northern British Columbia, Royal Dutch Shell Plc is using new technologies and processes to cut emissions to address public and environmental group concerns that Canada's nascent liquefied natural gas export industry could be a climate time bomb. The Groundbirch project, perched above Canada's richest shale gas deposit some 1,110 kilometers (684 miles) northeast of Vancouver, includes four gas plants and 500 wells dotted over an area the size of New York City.
The Federal Reserve seems keen to maintain it’s hawkish stance on nipping any sign of inflation in the bud, forecasting one more rate hike for 2018 and bringing the total increases in 2018 to four. Fed chair Jerome Powell doubled down on this approach further when he introduced the possibility of instituting up to seven more rate increases over the course of 2019. President Trump, on the other hand, is characteristically vocal about how that plan is wreaking havoc on the stock market, which is one of his favorite examples of success for his administration and the Republican-dominated legislature due to the recent tax cuts.
Troubled coal-fired power plant operators might not get financial support as proposed by Energy Secretary Rick Perry as President Trump has reportedly canceled the plan
The long-term plan is to get long and stay long throughout the winter, however, there are going to be short-term swings due to changing weather patterns and strong production. In other words, don’t expect a prolonged rally unless there is a lingering cold spell. Furthermore, professionals prefer to buy dips. Speculators tend to chase the market higher.
The Zacks Analyst Blog Highlights: Chesapeake Energy, Comstock Resources, Southwestern Energy, Range Resources and CNX Resources
Bangladesh Petroleum Corp (BPC) issued an international tender on Tuesday to import up to 1.425 million tonnes of refined oil products in the first half of 2019, according to a tender document from the company. The state-owned company is seeking 1.06 million tonnes to 1.18 million tonnes of gasoil with a sulphur content of 500 parts per million, 80,000 to 120,000 tonnes of 180-centistoke high-sulphur fuel oil, 110,000 tonnes of jet fuel and 15,000 tonnes of 95-octane gasoline. Delivery will be carried out in phases over the first half of 2019, a senior BPC official said.
The gold prices broke above the $1230 level in the Monday’s session as weak USD is supporting the market. The market is likely to continue going towards the $1250 level and $1220 level underneath will be offering a strong support to the market. The gold prices will continue to gain amid the uncertain global conditions and pullbacks will be a nice buying opportunity.
“This reckless, harebrained proposal undermines national security instead of increasing it, and it undermines states’ rights to enforce necessary health, safety and environmental protections in their communities,” Washington state’s Democratic governor, Jay Inslee, said in an emailed statement. The idea is one of several being considered by administration officials as they seek to make good on President Donald Trump’s promise to propel a “new era of American energy dominance.” The Trump administration also has sought to use a United Nations climate fund to promote the construction of coal-fired power plants in other countries, which could help foster demand for U.S. supplies of the fossil fuel.
Natural gas markets gapped higher to kick off the week, reaching above the $3.20 level. That’s an area that has been important more than once, but this is a very bullish looking set up.
The maiden liquefied natural gas cargo is scheduled to be loaded Oct. 17-22, with three more following in November, said the people, who asked not to be identified because the information isn’t public. The shipments would be the first gas exports from the $40 billion plant, which was approved for investment in 2012 by Inpex and its biggest partner, France’s Total SA. Both companies declined to comment Monday. If the cargoes are shipped without a hitch, the project would add a new source of supply just ahead of peak winter demand season and may help curb prices that have jumped to the highest since 2014 amid booming Chinese consumption and higher oil prices.
Natural gas inventories have plunged well below the 5-year average, but markets remain confident that increased production will prevent a sudden price spike
President Donald Trump's administration is considering using West Coast military facilities to export coal and natural gas to Asia, according to an Associated Press report on Monday, citing U.S. Department of Interior Secretary Ryan Zinke. The move would help fossil fuel producers ship their products to Asia and circumvent environmental concerns in Democratic-leaning states like Washington, Oregon and California that have rejected efforts to build new coal ports. In an interview in Montana, Zinke told AP "it's in our interest for national security and our allies to make sure that they have access to affordable energy commodities" and proposed using naval facilities or other federal properties for exports.
SM Energy (SM), an exploration and production company focused on South Texas, the Gulf Coast, and the Permian Basin, is 78.0% above its 52-week low despite the US upstream energy sector’s recent correction. SM’s strength could be due to its production growth in the Midland Basin and higher crude oil and natural gas prices. The company’s daily average Q2 production comprised ~42% crude oil, ~40% natural gas, and ~18% natural gas liquids.
Whiting Petroleum (WLL), an exploration and production company operating in North Dakota and the Williston Basin, has seen its stock fall ~20% recently, underperforming the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). WLL’s sharp correction could be due to its high crude oil exposure—crude oil and natural gas liquids together formed ~84% of the company’s total production in Q2 2018.
Big oil has agreed to carbon taxes, but its support might come too late as the measure might not be good enough to mitigate the risk of climate change
Last week, which ended October 12, global tensions remained high, and natural gas prices spiked as the overall stock market traded in the deep red. An increase in natural gas prices raised the costs for companies (MOO) such as CF Industries (CF), Nutrien (NTR), and CVR Partners (UAN). Let’s look at the movements in natural gas prices and the short-term outlook.
It is well-known that Saudi Arabia plays a major role in the oil markets. As a key member of the Organization of the Petroleum Exporting Countries (OPEC), the national petroleum and natural gas company Saudi Aramco produces and manages billions of barrels of Saudi oil, including approximately 260 billion barrels in reserves. The Tadawul is the only stock exchange in the country and the main stock exchange among the Gulf Cooperation Council (GCC) countries.
Shtokman was one of the last truly impressive discoveries of Soviet geology, and after years of indecision, Russia’s Gazprom is now looking to revive the field and make it one of their top LNG projects