May 29, 2023

Oil prices rise despite growing recession |

Oil prices have been boosted by a weaker dollar and rumors that China may ease some of its Covid regulations, although the Fed’s increasingly hawkish tone is likely to increase downward pressure on prices in the long term.

Oil price alert: This week Global Energy Alert is a welcome read for all oil investors, as our main trader strongly supports the rise of oil stocks. Meanwhile, geopolitical risks are growing following threats from Iran, Russia and Libya this week. Register todayand if you don’t enjoy it after the first month, we’ll give you your money back.





Crude oil



on Friday 4 November 2022

Jerome Powell’s much-anticipated press conference this week has dampened the enthusiasm of those expecting a U-turn from the Fed when he said the terminal rate could be higher than previously expected. The future recession of the USA does not bode well for oil demand, even if it happens alongside the possible opening of China after years of self-imposed restrictions. Oil prices rose on Friday morning helped by a weaker dollar and increased rumors of China relaxing its zero covid policy.

China Mulls Soften Zero COVID. China is working to relax strict zero-COVID flight rules that have until now temporarily banned airlines if their flights carried infected passengers.

OPEC warns of future energy crises. OPEC Secretary General Haitham al Ghais urged the global oil industry to invest in new oil projects to avoid sowing the seeds of future energy crises, as oil is still at least a decade away from its peak.

Canada Muscles Out Chinese Metals Companies. Canada’s government authorized three Chinese companies to divest their investments in Canadian minerals companies, citing national security concerns, drawing ire from Beijing, which Ottawa says is harming global supply chains.

Total sues Greenpeace for defamation. French energy company TotalEnergies (NYSE:TTE) announced that it will take legal action against Greenpeace, claiming that the environmental group’s 2019 carbon emissions report, which accused it of underreporting emissions, is highly questionable and damaging to its reputation.

Not all trading is profitable. Despite the British oil major Shell (LON:SHEL) Recently reporting its second-biggest quarterly profit of $9.45 billion, its LNG trading unit reportedly racked up a $1 billion loss in the same period after making a wrong bet on the gap between European and Asian gas benchmarks.

US-UAE Tandem signs $100 billion clean energy deal. The United States and the United Arab Emirates have agreed to spend €100 billion on renewable energy projects by 2035, aiming to add 100 GW of capacity globally, mending relations after OPEC+ production cuts.

Uganda expects first oil in 2025. Uganda expects first oil production from oil fields it operates TotalEnergies (NYSE:TTE) in the west of the country by April 2025. The country hopes to secure funding, likely from China, to build a pipeline to connect the fields to the Tanzanian coast.

Venezuela’s oil production recovered. According to media reports, Venezuela’s crude oil production rose by more than 100,000 b/d last month to 765,000 b/d. The increase was mainly due to deliveries of Iranian condensate, which is a much-needed diluent.

Libya is enjoying the sun. The newly appointed head of Libya’s National Oil Corporation said the North African country’s output levels have reached 1.2 million b/d, doubling from low production levels seen earlier this year, and insisted port blockades are a thing of the past.

US drillers seek methane exemptions. Associations of U.S. drillers have asked the Environmental Protection Agency to exclude smaller oil wells producing less than 6 barrels a day from future rules requiring oilmen to find and plug methane leaks, citing a lack of funds and capacity.

Germany accelerates the phase-out of coal. The German government ratified a draft law that would phase out coal-fired power plants in the main industrial region of North Rhine-Westphalia by 2030, about 8 years earlier than previously estimated, although several coal-fired power plants have been reactivated this year.

The Dutch court’s decision puts carbon capture at risk. The Dutch Supreme Court ruled this week that Europe’s largest planned carbon capture and storage project in Rotterdam, which could reduce the country’s carbon dioxide emissions by two percent, may be halted because it does not meet EU environmental regulations.

Cash Bribe Bonanza in West Africa. An indictment in the United Kingdom against global oil trader Glencore found that company representatives paid more than $28 million in cash bribes to West African officials between 2011 and 2016 to secure privileged access to oil.

Big events full of excitement ahead of the Brazilian auction. Brazil’s upcoming permit round for 11 offshore pre-salt fields operated under PSA drew a strong response from major oil companies and was cleared by the country’s regulator ANP. BP (NYSE:BP), Equinor (NYSE:E), TotalEnergies (NYSE, CVX), Chevron (NYSE:CVX), Petrobras (NYSE:PBR) and Shell (LON:SHEL) instead of the operator.

Michael Kern,

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