Oil Prices Rise Supported by Economic Recovery, Prospects of Fuel Demand Growth

SECTOR COMMENTS:

Energy stocks are poised for a mixed to higher start, supported by gains in the crude oil complex, while the broader index futures have swayed between gains and losses. Growth is expected to outperform as the yield on the 10-year note continues to decline. Industry news said over the weekend that Shell could sell part or all of its position in the Permian Basin under pressure to cut CO2 emissions. The Permian region accounts for 6% of Shell’s total oil and gas production in 2020, the article said.

Oil prices rose in overnight trading, reaching their highest level in more than two years, aided by the economic recovery and the prospect of rising demand as vaccination campaigns accelerate in developed countries. Motor vehicle traffic is returning to pre-pandemic levels in North America and much of Europe, and more planes are in the air as anti-coronavirus lockdowns and other restrictions are eased, leading to a three-week hike in oil benchmarks. On the supply side, heavy maintenance seasons in Canada and the North Sea also helped keep prices high.

Natural gas was down 0.1% to $ 3,294 after the Texas Eastern Pipeline Company announced Friday that it expected a 20% drop in its main line pressure by at least the summer. The forecast expects over-season temperatures for all east coast states (ex-NY, PA) and the western half of the Lower 48 over-season. Everywhere else it is expected to be seasonal or off-season.

US INTEGRATED

No news to speak of.

INTERNATIONAL INTEGRATED

According to Reuters, BP Norway’s Statkraft and Aker Offshore Wind will join forces to apply for permits to build offshore wind projects off Norway, the companies said. The consortium, in which each partner will hold a 33.3% stake, plans to submit offers for offshore wind power projects in the Soerlige Nordsjoe II license area in the southern part of the North Sea, one of the two areas opened in Norway.

Eni by Vår Energi, which is jointly owned by Eni (69.85%) and HitecVision (30.15%), announced a new oil discovery in production license 554 in the North Sea by drilling exploration well 34 / 6-5S in the Garantiana prospect West was drilled. The hole was targeted at an adjacent fault block of the Garantiana discovery and is located 30 km north of the Snorre field at a depth of 385 meters using the West Hercules semi-submersible rig.

Petroleo Brasileiro SA said his Chinese partners in the Buzios pre-salt oil field had to pay him $ 2.94 billion for his investment in exploration under the TOR rights to excess oil found there. Petrobras said in a security filing that the Brazilian oil regulator, ANP, has yet to approve the payment estimates made by China National Offshore Oil Corp and China National Oil and Gas Exploration and Development Corp, which account for 10% of the surplus production of the productive Santos. have basin field.

Petroleo Brasileiro SA informed BR Distribuidora of its plans to sell its remaining 37.5% stake in a public follow-up offer, Petrobras said in a file.

According to Reuters, Repsol hired banks to introduce investors to a new transition funding framework that would allow the company to issue sustainability-related bonds, according to a senior manager

Royal Dutch shell Reuters is reviewing its stakes in the largest oil field in the United States for a possible sale as the company focuses on its most profitable oil and gas assets and increases its low-carbon investments. The sale could sell some or all of Shell’s position in the U.S. Permian Basin, which is primarily in Texas. The holdings could be worth up to $ 10 billion, the sources said, on condition of anonymity since the conversations are private. Shell declined to comment.

Six leading Western energy companies are vying for a partnership in the huge expansion of Qatar’s liquefied natural gas production, industry sources said, helping the Gulf state consolidate its position as a leading LNG producer while several large projects around the world have recently stalled. Exxon Mobil, Royal Dutch shell, TotalEnergies and ConocoPhillips, which are part of the existing LNG production in Qatar, have been supplemented by new entrants Chevron and Eni in bidding for the expansion project on May 24, industry sources told Reuters.

CANADIAN INTEGRATED

No news to speak of.

US E&PS

Comstock resources announced that, subject to market conditions, the company intends to offer eligible buyers a new series of Senior Notes maturing in 2030 in a private placement. Comstock intends to use the net proceeds from this offering to fund the repayment of a portion of the Company’s 9.75% Senior Notes maturing in 2026 and to pay related fees and expenses.

Earth stone energy announced that it has acquired operating interests from four separate vendors in assets it operates in southern Gonzales County, Texas. The total purchase price of the Eagle Ford acquisitions was approximately $ 48 million in cash. Earthstone funded the Eagle Ford Acquisitions with cash and loans under its senior secured revolving credit facility. The effective date of the Eagle Ford acquisitions was April 1, 2021. The largest of the acquisition components, consisting of labor holdings owned by two affiliates of Titanium Exploration Partners, LLC, made up the bulk of the total consideration.

CANADIAN E&PS

No news to speak of.

OIL FIELD SERVICES

Block Energy signed an MoU with Baker Hughes. The MoU provides multiple service awards for advanced oil and gas technology in a multi-hole production-led drilling program. The first project will drill a horizontal hole targeting an recoverable volume of an estimated 2.1 MMboe at the WR-BA well target location in West Rustavi.

Citi downgraded Core laboratories from neutral to sell.

KBR announced that it has won a three year contract to provide INSITE monitoring and advisory services to the Iowa Fertilizer Company facility in Wever, Iowa.

DRILL

No news to speak of.

REFINER

No news to speak of.

MLPS & PIPELINES

Goldman Sachs upgraded Cheniere Energy Partner to ‘Buy’ from ‘Neutral’ and downgraded Morgan children from “neutral” to “sell”.

Raymond James upgraded DCP midstream to ‘Strong Buy’ from ‘Outperform’ and updated EnLink midstream from ‘Market Perform’ to ‘Outperform’.

MARKET COMMENTARY

Wall Street futures rose as focus shifted to the Federal Reserve’s meeting this week, where the central bank is expected to maintain its accommodative stance on monetary policy. European stocks were in the green. Japanese stocks closed higher as cyclicals such as tire makers and shippers rose on global recovery hopes. The dollar slipped down. Gold prices fell. Oil prices rose, aided by the prospect of fuel demand, as vaccination campaigns accelerate in developed countries.

NASDAQ ENERGY TEAM THINK GUIDANCE

Nasdaq Advisory Services Energy Team is part of Nasdaqs Advisory Services – the most experienced team in the industry. The team provides unmatched shareholder analyzes, a comprehensive overview of trading and investor activities and insights into the best possible management of public relations in the area of ​​investor relations. If you have any questions, please contact Tamar Essner.

This announcement and the content available through any of the links herein is provided to you by Corporate Solutions, a company of Nasdaq, Inc. and some of its subsidiaries (collectively, “Nasdaq”) for informational purposes only. Nasdaq makes no representations or warranties with respect to this release or any such content, and expressly disclaims any implied warranties. Sources include Reuters, TR IBES, WSJ, The Financial Times, and proprietary Nasdaq research.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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