Oil Climbs Amid Supply Cuts from OPEC+
SECTOR COMMENTARY:
The energy sector is poised for a higher start, supported by strength in the underlying commodities and in the major equity futures which rose this morning ahead of key inflation data slated for release later in the week and strength in overseas markets.
WTI and Brent crude oil futures resumed their climb higher today as traders weighed supply cuts from OPEC+ and hopes for higher demand in the developing world in the second half of 2023 against a sluggish global economic outlook. A drop in the dollar to a two-month low offered some additional support. Headwinds still include fears around weakening China demand, higher-for-longer central bank policy, resilient Russian supply, growing US output and global recession fears.
Natural gas futures continued to swing higher, supported by warming weather forecasts in key consuming regions that should stir demand with temperatures in several Southwestern locations expected to push above 110 degrees.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
Moxa and Saudi Aramco Technologies Company have signed a worldwide commercialization agreement to further develop and commercialize the Intelligent Integrated Node (IIN) technology.
Petrobras said it requested access to petrochemical firm Braskem's virtual data room to start the due diligence process for the possible exercise of tag along or preemptive rights at Braskem's Novonor stake.
Petrobras is negotiating seven new natural gas supply contracts for the coming years, three sources close to the matter said on Monday, as the firm aims to boost supplies while lowering domestic energy prices.
Following the Kingdom of Saudi Arabia - Ministry of Energy’s introduction of the third round of Public Renewable tenders, ARE (Altaaqa Renewables – a Zahid Group company) is proud to announce financial close for the development of a 119MWp Photovoltaic Independent Power Plant (PV Plant) in Wadi ad-Dawasir, along with its Consortium partners TotalEnergies and Toyota Tsusho Corporation. The Consortium will finance, build, own and operate the PV plant that will generate renewable energy for the Kingdom’s Central Region. The achievement follows the Consortium being awarded the project by the Saudi Power Procurement Company.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Keybanc initiated Murphy Oil with an Overweight rating.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Gold Hydrogen said it has agreed drilling and services contract for its flagship Ramsay project with SLB and mining service provider Savanna Energy.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
Equitrans Midstream said that it is evaluating all legal options after a federal appellate court's decision to halt construction in the Jefferson National Forest for its Mountain Valley Pipeline project.
MARKET COMMENTARY
Wall Street futures and European shares gained ahead of U.S. inflation data, as market hoped it could support a quicker end to Federal Reserve rate hikes. In Asian equity markets, Hong Kong and China stocks rose, supported by gains in automobile sector, while the Nikkei surrendered earlier gains to end slightly higher as investors locked in profits. Gold strengthened, drawing support from a weaker dollar. Oil prices were higher as traders weighed supply cuts by the world's biggest oil exporters.
Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Rich Pontillo.
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