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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
On October 5–12, the United States Natural Gas ETF (UNG) was unchanged, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 2.3%. These ETFs track natural gas futures. UNG holds active natural gas futures contracts, while BOIL’s objective is to track the Bloomberg Natural Gas Subindex.
On October 5–12, US crude oil November futures fell 4% and closed at $71.34 per barrel on October 12. Bearish inventory data might have pulled oil prices in the last week.
In the forthcoming Cannabis Energy Report, New Frontier Data has joined both Scale MicroGrid Solutions and the Resource Innovation Institute to provide a landmark, comprehensive study about energy usage and carbon emissions throughout the cultivation cycles of cannabis. The study examines North American cultivators' and operators' overall energy consumption, and provides operational insights and cost indicators to assess both the fundamental efficiency and profitability of a grow operation. The inspiration for the report — available free of cost — is to drive new and effective efficiencies throughout the cannabis industry, toward benefits for companies, stakeholders, and consumers alike.
* More than 0.3 billion cubic feet per day (bcfd) of natural gas started to flow to the plant late last week, according to data from Refinitiv. * Cove Point, which started exporting LNG in March, is designed to liquefy about 0.75 bcfd of gas. * One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.
British shale gas company Cuadrilla has started fracking for natural gas in northwest England, seven years after the practice was halted in Britain for causing earth tremors. Environmental groups strongly oppose the practice of hydraulic fracturing, or fracking, which involves extracting gas from rocks by breaking them up with water and chemicals at high pressure.
Petrobras (PBR) appears to be a solid bet on the back of its ambitious five-year plan and encouraging portfolio of investments.
India's Petronet LNG Ltd said on Monday its talks to invest in Qatar's exploration and production sector had "slowed down," as the company had not been able to reach an agreement on pricing with the Middle Eastern nation. "Qatar is still at a very preliminary stage. Petronet LNG, India's biggest liquefied natural gas (LNG) importer, wanted to partner with ONGC Videsh Ltd (OVL), the overseas arm of India's biggest explorer Oil and Natural Gas Corp Ltd, to pick up a stake in an upcoming exploration and LNG project in Qatar.
On October 11, US crude oil’s implied volatility was 26.2%, which is ~3% above its 15-day average. The inverse relationship between oil prices and oil’s implied volatility is illustrated in the following graph. Since reaching a 12-year low in February 2016, US crude oil active futures have risen 170.8%. Crude oil’s implied volatility has fallen ~65.2% since February 11, 2016.
Australian F1® driver Daniel Ricciardo has joined forces with Forex & CFD Broker EightCap. Daniel has joined one of Australia’s fastest growing online trading companies as the official brand ambassador. “Striving to be the best in any pursuit takes serious commitment, and I respect what the EightCap team is aiming to achieve.
Stock market volatility and supply/demand concerns will continue to influence the price action. Crude oil bulls have no control over the volatility in the stock market. All they will be trying to do is keep the bull market intact until the sanctions against Iran begin on November 4.
* Tohoku Electric Power Co said it had signed the first contract by a Japanese buyer to procure up to 280,000 tonnes per year of liquefied natural gas (LNG) from Mozambique LNG project for 15 years from the start of production in the early 2020s. * The contract was signed with a company set up by Mozambique LNG project participants such as Anadarko Petroleum, the company said.
Oil prices may have closed the week lower on bearish news, but the continuation of the Iran saga continues to create uncertainty in the markets