Energy – Oil continues its recovery Oil prices continued their move higher yesterday. ICE Brent settled more than 1.9% higher on the day, leaving it within striking distance of $72/bbl. Supply disruptions from Hurricane Francine continue to provide some support. The latest data from the Bureau of Safety and Environmental Enforcement shows that 41.74% of US Gulf of Mexico oil production has been shut in due to the storm. More than 53% of natural gas production has also been shut in. The IEA’s monthly oil market report yesterday painted a ...

Trillions of US dollars of bank finance to fossil fuel companies is being routed via opaque financial centres in several countries, including the Netherlands, research published this week showed. The study by Tax Justice Network, which campaigns against tax havens, highlights a lack of transparency in funding for energy companies. The study examined 60 global banks’ US$6.9 trillion of syndicated financing of fossil fuel companies, such as coal miners or shipping firms between 2016 to 2023, including loans, credit lines and bonds. “We’re raising the alarm on banks and fossil ...

Iran continued to raise its oil production in August despite the continued pressure of US sanctions that restrict the country’s ability to sell oil in international markets, according to latest data by the Organization of the Petroleum Exporting Countries (OPEC). OPEC data cited in a Tuesday report by the official IRNA news agency showed that Iran’s oil production had averaged 3.277 million barrels per day (bpd) in August, up just 4,000 bpd from July. The increase came despite a fall in total OPEC output in August as the bloc produced ...

Singapore’s middle distillates stockpiles fell 4% week-on-week to below 11 million barrels as a rise in jet fuel/kerosene net exports outweighed gains in diesel/kerosene net exports, official data showed on Thursday. Inventories of diesel/gasoil and jet fuel/kerosene at key oil storage hub Singapore were at 10.919 million barrels for the week ended Sept. 11, slightly down from 11.374 million barrels a week ago, data from Enterprise Singapore showed. O/SING1 For jet fuel/kerosene, net exports surged almost ten-fold from a week earlier as total imports went back to nearly negligible levels. ...

U.S. motorists should see gasoline prices fall below $3 a gallon for the first time in over three years as soon as next month, shortly before they go to vote in November’s presidential election, analysts said this week. Softer gasoline prices, resulting largely from weaker fuel demand and sliding oil prices, are a relief for consumers who have struggled with record high fuel costs that have stoked inflation. Lower prices could also help Vice President Kamala Harris and other Democrats fight off sharp criticism from Republicans over pain at the ...

Dutch and British wholesale gas prices eased on Thursday morning as supply from Russia via Ukraine and from Norway remained steady. The benchmark front-month contract for Dutch TTF hub was trading 0.74 euros lower at 35.40 euros per megawatt hour (MWh) on the Intercontinental Exchange (ICE), by 0834 GMT. In the British market, the day-ahead contract TRGBNBPD1 was 2.28 pence down at 85.75 pence per therm. Prices rose on Wednesday on a combination of supply concerns, including any impact of hurricane Francine on U.S. liquefied natural gas (LNG) exports and ...

Oil prices rose more than 1% on Thursday, extending a rebound spurred by concern over Hurricane Francine’s impact on U.S. output, though a gloomy demand outlook capped gains. Brent crude futures for November were up 95 cents, or 1.4%, to $71.56 a barrel by 1322 GMT. U.S. crude futures for October rose $1.02, or 1.5%, at $68.33. Both contracts gained more than 2% on Wednesday as offshore platforms in the U.S. Gulf of Mexico were shut and coastal refinery operations were disrupted by Francine’s landfall in southern Louisiana. “Hurricane Francine ...

Highlights Global oil demand growth continues to decelerate, with reported 1H24 gains of 800 kb/d y-o-y the lowest since 2020. The chief driver of this downturn is a rapidly slowing China, where consumption contracted y-o-y for a fourth straight month in July, by 280 kb/d. Average annual gains of 900 kb/d in 2024, compared to 2.1 mb/d last year, will take demand to almost 103 mb/d. An increase of 950 kb/d in 2025 will be equally subdued. World supply rose by 80 kb/d to 103.5 mb/d in August, with outages ...

Fitch Ratings has maintained its base-case oil and TTF gas price assumptions and has marginally revised down its 2024 base-case gas price assumption for Henry Hub, reflecting year-to-date prices. All our base-case oil price assumptions are unchanged. OPEC+’s large spare capacity, increasing supply and moderating demand growth will constrain Brent crude oil prices at or below USD80 a barrel in 2024, despite heightened geopolitical risk. We expect global oil demand growth to moderate to below 1 million barrels a day (MMbpd) in 2024 and 2025 due to weaker Chinese consumption, ...

The growing influence of hedge funds in the European natural gas and LNG markets has pressured market prices increasingly over the last year, with values sinking as the market now sees a shift in patterns ahead of winter. In a recent report on European competitiveness published Sept. 9, former Italian Prime Minister Mario Draghi also highlighted the impact of speculative trading activity on volatility and prices in Europe’s gas market. Under existing regulations, financial entities can rely on exemptions around conduct and prudential rules, with the report highlighting so-called “ancillary ...

Global crude oil and refined product benchmarks regained some lost ground Sept. 11 after tumbling to three-year lows as bearish sentiment continued to grip global markets, causing traders to reevaluate price floors and threatening to put pressure on refining economics. ICE November Brent crude oil futures cratered below $70/b Sept. 10 for the first time since December 2021 as the market continues to test psychological thresholds for the benchmark, while a two-week selloff has left macro-sensitive product benchmarks in freefall. ICE Low Sulfur Gasoil Futures were briefly trading around $627.5/mt ...

The spot premium for the Middle East crude benchmark Dubai inched lower on Thursday after Saudi Arabia allocated more supply to the world’s top importer, China, in October. SAUDI ALLOCATION Saudi Arabia’s crude oil supply to China is set to rise to 46 million barrels in October, trade sources said, after the world’s top oil exporter slashed prices for Asia, boosting demand. China’s top refiners, Sinopec and PetroChina, sought more crude for loading in October while demand from private refiners Rongsheng Petrochemical and Hengli Petrochemical held steady, they said. The ...

Asia’s middle distillates markets recorded more physical discussions in comparison with paper activity, as jet fuel cargoes continued to be sold on the open trading window, with prices rebounding for the first time in four sessions. In jet fuel markets, a slew of buying activity continued for end-September to early October cargoes on the open trading window, with UIT still being the key buyer. The regional trading house has bought up to 470,000 barrels this week for end-September to October loading. This recent prompt buying activity could have been driven ...

Gas consumption in France is expected to drop by almost 20% by 2030 under changes aimed at meeting climate targets and efforts to curb costs, French grid operators said on Thursday. France is one of Europe’s largest energy consumers and its gas consumption influences the region’s trade flows and prices. A study by GRDF, GRTgaz and Terega forecast 2030 consumption at 321 terawatt-hours (TWh), down 78 TWh from 2023, with recent efficiency gains and cost-saving initiatives leading to slightly larger demand reductions than previously estimated. Recent significant drops in electricity ...

Asia’s gasoline margins extended their fall on stubbornly poor demand. SKEISG emerged as the sole buyer of the benchmark grade of octane, snapping up 150,000 barrels all of which were purchased from AramcoSG. The crack dipped to $4.70 per barrel above Brent crude, from $4.93 on Wednesday. In naphtha market, the crack reached a six-month high to hit $103.75 per metric ton over Brent crude. It last traded at $106.05 on Mar. 13, 2024. INVENTORIES Singapore light distillates stocks fell 771,000 barrels to four week low of 15.099 million barrels in ...