Category: Highlights

Last week, we presented a bear case for the energy sector based on the premise that oil and gas stocks could be in danger of overheating. Energy is the 4th most expensive sector going by Shiller’s P/E, and also looks overvalued compared to gold prices. It’s a sentiment that has also been gaining momentum across Wall Street.  “Energy traders are confident this oil market will remain tight given the short-term supply outlooks from both OPEC+ and the US, but it has been a steady climb higher. Exhaustion could be settling in,” Ed…

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Germany and Austria announced emergency measures on Sunday to ensure their energy needs after a drop in Russian gas supplies, including reverting to coal in what Berlin called a “bitter but indispensable” step. “To reduce gas consumption, less gas must be used to generate electricity. Coal-fired power plants will have to be used more instead,” the German economy ministry said in a statement. The move comes after Moscow turned up the pressure on Western allies by sharply reducing flows of natural gas in its pipelines to western Europe, driving up…

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Qatar Energy signed a partnership deal with Eni on Sunday for the North Field East expansion of the world’s largest liquefied natural gas (LNG) project, having announced a deal with TotalEnergies earlier this month. Qatar Energy CEO Saad al-Kaabi said the joint venture with Eni would own 12.5% of the North Field East expansion. Eni would own 25% of the joint venture, Kaabi told a news conference, giving the Italian producer a 3.12% stake in the expansion. Qatar is partnering with international energy companies in the first and largest phase…

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Delegates from OPEC+ are trying to decide what to do when the oil production pact ends in August, Bloomberg reported on Friday. The pact is faced with numerous uncertainties and difficult situations—not the least of which is its relationship with one of the top members of the group—Russia. Saudi Arabia has stressed that Russia is an integral part of OPEC+ despite Russia’s aggression in Ukraine, pointing out that OPEC+ is not an alliance formed out of politics, but one of market management. Saudi Arabia—and other OPEC members—must weigh the benefits…

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Asian spot liquefied natural gas (LNG) prices jumped this week, tracking a rise in European gas prices, on further market tightening as an extended shutdown at a U.S. export plant prompted buying by Japan and South Korea. The average LNG price for August delivery into north-east Asia was estimated at $36.50 per million British thermal units (mmBtu), up $13.00 or 55.1% from the previous week, industry sources said. Freeport LNG, the operator of one of the largest U.S. export plants, said on Tuesday that last week’s fire damage to its…

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