OPEC Monthly Oil Market Report December 2021

The OPEC Monthly Oil Market Report (MOMR) for December released Monday provides OPEC’s outlook for crude oil market developments for the coming year with key developments impacting oil market trends in world oil demand and supply.   MOMR Highlights Oil demand was adjusted higher in 1H21, amid better-than-anticipated transportation fuel consumption in OECD, offset by a downwardly-revised estimate for 3Q21 due to increased COVID-19 cases and softer industrial production in China, as well as easing transportation fuel recovery in India. … Continue reading “OPEC Monthly Oil Market Report December 2021”

Fitch Outlook For North American Oil & Gas is Neutral in 2022

Fitch Ratings issued a note Friday maintaining the North American Energy (Oil & Gas) sector neutral. Fitch expects continued conservative capital deployment, moderate volume growth despite significantly above midcycle prices, and strong focus on FCF. Fitch said that robust FCF has allowed a number of producers to accelerate refinancing, execute debt reduction initiatives and increase shareholder returns. Highlights West Texas Intermediate prices seen moderated through 2022. Fitch anticipates a majority of issuers will continue to generate positive FCF given moderate … Continue reading “Fitch Outlook For North American Oil & Gas is Neutral in 2022”

U.S. And Israel To Discuss Military Drills For Different Iran Scenarios

U.S. talks with visiting Israeli Defense Minister Benny Gantz on Thursday are expected to discuss possible military exercises that would prepare for a worst-case scenario to destroy Iran’s nuclear facilities should diplomacy fail a senior U.S. official told Reuters. The talks follow an Oct. 25 briefing by Pentagon leaders to White House national security adviser Jake Sullivan  The U.S. official said on Wednesday, speaking on condition of anonymity said the U.S.-Israeli preparations, which have not been previously reported, underscore Western … Continue reading “U.S. And Israel To Discuss Military Drills For Different Iran Scenarios”

Around The Barrel – Large Cushing Crude Oil and Gasoline Storage Builds Continue

WTI Oil futures have rallied back from the recent dump. EIA reporting a crude draw -241Kbbl (incl +2373kbbl build at Cushing). Gasoline stocks grew +3882kbbl,  Utilization rose +1.0% to 89.6%. Production rose +100k to 11,700 kbpd. DOE Weekly Petroleum Status Report via TradersCommunity.com Report Date 12/1/21 Release Time: Wednesday, December 8, 2021 at 10:30 A.M. (ET) Note in bbls *exp = Reuters poll est  adjusted for API shift, except Cushing   EIA Exp Prior API Crude -241k -1677k -909k -3089k … Continue reading “Around The Barrel – Large Cushing Crude Oil and Gasoline Storage Builds Continue”

Iranian Nuclear Deal Revival Talks Seem Futile With Scaled Up Iran Uranium Efforts

Negotiations for the seemingly endless talks aimed at reviving the international nuclear agreement with Iran is set to start Monday involving the U.S., Britain, Germany, France, Russia, China and Iran. The elephant in the room is has Tehran advanced its nuclear work so much in the past two years that the 2015 deal can no longer be rescued? Iran’s new president has delayed restarting talks while pressing ahead with nuclear work. Iran is in no hurry after President Donald Trump … Continue reading “Iranian Nuclear Deal Revival Talks Seem Futile With Scaled Up Iran Uranium Efforts”

U.S. Strategic Petroleum Reserve Quick Facts

The American Strategic Petroleum Reserve is a U.S. Government complex of four sites with deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf Coasts.  The SPR is back in focus after the U.S. Department of Energy announced it will release 50 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices. There are four SPR sites in the United States of America  Crude Oil Storage by Site  (as of August 30, 2021) Bryan Mound – … Continue reading “U.S. Strategic Petroleum Reserve Quick Facts”

Oil Futures Collapse Over 13% on South African Variant Risk Asset Selling

Stock markets and commodities markets sold off hard on Friday due to a new coronavirus variant identified in South Africa. The selling intensified with some countries including the UK, Singapore and Israel curbing travel from South Africa and other neighboring countries. We had seen a dead cat bounce in WTI and Brent after the SPR coordinated release plans. The new COVID-19 variant contains significantly more mutations than others raised concerns of further lockdowns and travel restrictions that could weigh heavily … Continue reading “Oil Futures Collapse Over 13% on South African Variant Risk Asset Selling”

OPEC Says US Led Planned Oil Reserves Release Will Bloat Crude Surplus

OPEC warned of oil gluts in response to the U.S. announcing it will release 50 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom. OPEC’s advisory body ahead of a meeting with OPEC+ next week predicted that the excess in markets would expand by 1.1 million barrels a day in January. The advisory board also saw February … Continue reading “OPEC Says US Led Planned Oil Reserves Release Will Bloat Crude Surplus”

Around The Barrel – Crude Oil Builds With Exports Down & Imports Higher

WTI Oil futures bounced following the US Released SPR ahead of EIA reporting a crude build +1017Kbbl (incl +787kbbl build at Cushing). Crude storage near lows seen in 2018. Gasoline stocks drew -603kbbl,  Utilization rose +0.7% to 88.4%. Production fell to +100k to 11,500 kbpd. DOE Weekly Petroleum Status Report via TradersCommunity.com Report Date 11/17/21 Release Time: Wednesday, November 24, 2021 at 10:30 A.M. (ET) Note in bbls *exp = Reuters poll est  adjusted for API shift, except Cushing   EIA … Continue reading “Around The Barrel – Crude Oil Builds With Exports Down & Imports Higher”

Coordinated Strategic Petroleum Reserve Release By China, India, Japan, South Korea and the UK To Lower prices

The U.S. Department of Energy announced it will release 50 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices. This release will be taken in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom. This has been well telegraphed with oil down roughly 10% from recent highs. The move is seen by many as the epitome of ignorance of energy markets and the self serving nature of … Continue reading “Coordinated Strategic Petroleum Reserve Release By China, India, Japan, South Korea and the UK To Lower prices”