Draws In Product Inventories Offset Rising Crude Stocks

The American Petroleum Institute (API) on Tuesday reported its fourth straight week of crude oil inventory builds. The week, according to the API, the build was 3.294 million barrels-strong. U.S. crude inventories are still 63 million barrels below where they were at the beginning of the year. Analyst expectations for the week were for a build of 2.233-million barrels for the week. In the previous week, the API reported a surprise build in oil inventories of 5.213-million barrels, compared to the 140,000 barrel build that analysts had predicted. Oil prices…

Read More

Oil Refining Margins Bounce Back To Pre-Crisis Levels

Recovering fuel demand and additional demand for oil products amid record-high coal and natural gas prices have pushed up global oil refining margins to their pre-pandemic levels. For the first time since COVID crippled fuel demand and margins in early 2020, refining margins in the key regions Asia, Europe, and North America have rebounded strongly in recent weeks, according to analysts and company officials who spoke to Reuters. Globally, refinery activity continued to disappoint in the third quarter, with lower throughputs in China and India in August only partially offset…

Read More

Kazakhstan Is Pulling The Plug On Crypto Miners Amid Power Shortages

Kazakhstan’s national grid operator has begun rationing electricity to the country’s biggest consumers, likely targeting cryptocurrency mining farms. Facing a sudden energy shortage, officials must be regretting their recent embrace of the crypto industry. Nur-Sultan has struggled to land on a consistent policy toward cryptocurrencies and mining – the series of electricity-hungry calculations made by networked computers to verify and record cryptocurrency transactions. Only three years ago, the National Bank called for a ban on trading cryptocurrencies and mining them. Then, in 2020, parliament passed a law legalizing mining and creating welcoming conditions for…

Read More

After The Bell: Tesla Expected Booming Revenue For Q3

Chip shortage or not, it looks like Tesla’s Q3 results are going to be quite impressive despite some supply chain issues that are pervasive in the market. Tesla (NASDAQ: TSLA) is set to report after the bell on Wednesday, and expectations are for $1.3 billion in profit for Q3—up from the paltry $331 million that the electronic vehicle manufacturer reported in Q3 2020. Tesla’s Q3 revenue is expected to hit between $13.6 billion and $14.116 billion, up from $8.8 billion in Q3. Tesla already reported at the beginning of October…

Read More

Exxon Considers Abandoning Major Oil And Gas Projects To Appease ESG Investors

Ever since the arrival of the ESG craze, we have discussed the change in “optics” that Exxon has been trying to pull off in order to placate some of the most vocal activist shareholders, some of whom now happen to be on the company’s board. But now, instead of just purely superficial changes, Exxon may be on the cusp of making fundamental changes as well as the oil and gas major is considering whether or not to shutter “several major oil and gas projects”, according to a new report from…

Read More

Plan for New LNG Terminals in Limbo

The government’s plan to establish two new LNG terminals appears to be in limbo as Minister for Maritime Affairs is unhappy at the volume of capacity for the two terminals, arguing that allocation of pipeline capacity, as proposed by the Petroleum Division, may not serve the purpose, well informed sources told Business Recorder. On October 8, 2021, the Petroleum Division briefed the Cabinet Committee on Energy (CCoE) that as directed by the Oil and Gas Regulatory Authority (OGRA), Sui Northern Gas Pipelines Limited (SNGPL) will allocate 250-300 MMCFD pipeline capacity to…

Read More

Energy Crisis 2021: How Bad Is It, And How Long Will It Last?

Trying to bounce back from Covid, the world has run headlong into an energy crisis. The last spike of this magnitude popped the 2008 bubble. Crude oil is up 65% this year to $83 per barrel. Gasoline, above $3 per gallon in most of the country, is more costly than any time since 2014, with inventories at the lowest level in five years.  Meanwhile natural gas, which provides more than 30% of all U.S. electricity and a lot of wintertime heating, has more than doubled this year to $5 per…

Read More

China coal futures drop on threat of state intervention in energy crisis

Chinese coal prices tumbled on fears of government intervention in the strained energy sector, as Beijing seeks to rein in electricity costs and stem a crisis that has hobbled the country’s economic growth. Thermal coal futures trading on the Zhengzhou Commodity Exchange, which have hit record levels in recent weeks, fell the maximum 8 per cent for a second consecutive day on Wednesday to Rmb1,755 ($274) a tonne. The CSI Coal index of big China-listed miners dropped 8.5 per cent. The retreat came a day after China’s National Development and…

Read More

LNG Carrier rates top $260,000 per day as arbitrage profits exceed $100m

THE natural gas and energy crunch sweeping Asia and Europe has propelled spot rates for liquefied natural gas carriers above $260,000 per day on key routes as traders sought vessels to profit from cargo arbitrages worth over $100m. The Baltic Exchange currently assesses time charter equivalent rates to ship 180,000 cu m of LNG to Tokyo from Gladstone, Australia at $262,215 per day, with LNG-fuelled ships at $201,535. That is up 7% and 11% , respectively, from the last assessment on October 14, data show. Pacific LNG rates are trading…

Read More

OPEC+ Spare Capacity Is Insufficient Amid Global Energy Crisis

A decade of underinvestment in traditional energy supply chains has finally caught up to world economies. Surging demand, tightening inventories and soaring prices are causing energy shortages and blackouts. Coal and natural gas inventories are at dangerously low levels, diesel power generation is switching on, factories are shutting down, and blackouts are already happening in China. The situation has deteriorated materially since “The Myth of OPEC+ Spare Capacity” was published, yet the consensus remains that OPEC+ can tame oil markets at any time by unleashing its abundant spare capacity. In this context,…

Read More