Oil markets are on edge as the next OPEC+ meeting and the “X date” when the US government could default on its debt looms.
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Friday, May 26, 2023
Fears of a US government shutdown eased this week, easing some pressure on oil prices as debt ceiling talks look to head domestically. However, Russia and Saudi Arabia continue to confuse the market with conflicting messages. As a result, WTI and Brent are trending sideways at $72 and $76 per barrel respectively.
Russia cools OPEC+ hopes. Russia’s Deputy Prime Minister Alexander Novak poured some cold water on OPEC+’s June 4 meeting of production cuts, just a day after the Saudi energy minister warned market sellers to be short. Expect new moves.
Solar power spending to exceed oil investment. According to the IEA’s World Energy Investments 2023 report, global spending on renewable energy will rise to $1.7 trillion this year, with solar investment rising to $650 billion and surpassing oil for the first time in history.
The US will hold the first block auction since IRA enactment. The US government will sell oil and gas drilling rights on federal land in New Mexico and Kansas, covering more than 10,000 acres with two-thirds of the acreage in Cheyenne County, KS, the first since the previous passage of the IRA. Will mark the auction. Year.
Pressure builds on COP28. More than 130 politicians from the European Union and the United States have called for the ouster of the United Arab Emirates’ Sultan Al-Jaber, CEO of national oil company ADNOC and president of the COP28 conference, arguing that the oil industry is not involved in strong climate action. puts an “obstacle”. ,
Norway welcomes major oil discovery. Norway-focused oil explorer AKRBP (OSL: AKRBP) has reported a new oil discovery in the Yggdrasil field of the Norwegian continental shelf, with a gross recoverable amount of 90 million barrels of oil, nearly triple the pre-drilling estimate.
Chevron will leave the Congo. american oil major Chevron (NYSE: CVX) has reportedly launched a sale process for its oil and gas assets in Congo that could fetch up to $1.5 billion, with 31,000 boepd of production at stake, the company’s bid to focus on US shale in African Another part of the disinvestment of assets has become.
Canadian Gas Exports General. Canadian natural gas exports to the United States this week returned to levels seen before the start of wildfires in Alberta, with daily volumes averaging 8.1 bcf per day, boosting Canada’s gas production by 14%.
Petrobras will appeal the Amazon drilling ban. national oil company of brazil Petrobras (NYSE: PBR) decided to appeal against the country’s environment agency that banned exploratory drilling in the mouth of the Amazon River, saying the company had met all technical requirements to approve the project.
Mozambique is back on the LNG track. More than 2 years after Islamic State-affiliated insurgents attacked a Mozambique LNG liquefaction plant operated by the French oil major Total Energy (NYSE: TTE)The company is now resuming work on the project, first by improving the security situation in the surrounding area.
White House extends oil service exemption. The Biden administration waived sanctions against Venezuela, allowing four major oilfield service companies – including Halliburton, Baker Hughes and Schlumberger – to continue operating in the country with restricted mandates.
Qatar wants to get into Iraqi upstream. Qatar is on the verge of contracting exploration blocks in Iraq according to Iraqi Oil Minister Hayan Abdul Ghani, with Baghdad introducing an annex to its 5th licensing round from 2018 as well as starting its 6th licensing round.
Major agri traders are considering merger. One of the world’s largest grain traders Bungee (NYSE: BG) The talks are reportedly on for a merger with Vitra, a rival trading company partially owned by the Switzerland-based major Glencore (Lawn: Glen)Six years after the latter’s failed takeover attempt.
Kenya suffers from a massive outflow of investors. Despite discovery of 5 oil fields in South Lokichar Basin and contingent reserves of 461 MMboe, Africa-focused driller Tullow Oil (LON:TLW) After both have to develop the project alone Total Energy (NYSE: TTE), And Africa Oil (TSE: AOI) Backed it this week.
Billionaire Buys Into Mexico’s New Megafield. Once the richest man on Earth, Mexican billionaire Carlos Slim buys 49.9% minority stake Talos Energy (NYSE: TALO) The Mexico unit, for $125 million, is seeking to tap into the hydrocarbon wealth of the Zama field, which is believed to contain up to 2 mmbbl.
By Michael Kern for Oilprice.com
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