Oil Prices Are Up, Paring Earlier Losses as the Market Awaits Further Signs of Fuel Demand Recovery in China
SECTOR COMMENTARY:
The energy sector is poised for a mixed to lower start, looking past strength in the crude complex and pressured by weakness in the major equity indices. U.S. stock index futures fell sharply after data showed the economy added jobs at a rapid pace last month, feeding into fears that the Federal Reserve could keep interest rates higher for longer in its fight against inflation. Total nonfarm payroll employment rose by 517,000 in January, and the unemployment rate changed little at 3.4 percent.
WTI and Brent crude oil futures are up in early trading, paring earlier losses as the market awaited further signs of fuel demand recovery in China and the impact of an EU embargo and price cap on Russian oil products. Venezuela's January oil exports fell despite a U.S. license authorizing Chevron Corp to take cargoes for the first time in four years, after a new boss at state-run PDVSA froze most shipments pending contract reviews.
Natural gas futures are swinging in and out of negative territory as the NOAA's 6-10 day outlook shows above-normal temps across the north-central and eastern US, especially throughout the Midwest and East.
BY SECTOR:
US INTEGRATEDS
No significant news.
INTERNATIONAL INTEGRATEDS
BP and Chubu Electric Power said they would study the feasibility of a carbon capture and storage (CCS) project to help reduce carbon dioxide (CO2) emissions in the Nagoya Port area in central Japan.
Plenitude, the retail and renewable energy division of Italian energy group Eni, has started production at its 236 megawatt (MW) photovoltaic plant in Texas.
Petrobras is expected to discuss this month plans to resume construction of a nitrogen fertilizer plant in the central-western part of the country, two government officials in Mato Grosso do Sul state told Reuters.
Petrobras said it has nominated Joelson Falcao as the head of exploration and production.
As part of its strategy of profitable growth in renewable energies, TotalEnergies is selling to Crédit Agricole Assurances 50% of a 234 MW portfolio of renewable projects, including 23 solar power plants with a capacity of 168 MW and 6 wind farms with a capacity of 67 MW. Of the 29 power plants in the portfolio, 25 are already operational (180 MW) and the four others (54 MW) will be commissioned in the first half of 2023.
Following the allegations against Adani Group published by the Hindenburg Research company on January 24, 2023, TotalEnergies wishes to bring the following information regarding its joint investments in India in partnership with Adani since 2018. TotalEnergies' investments in Adani's entities were undertaken in full compliance with applicable - namely Indian - laws, and with TotalEnergies' own internal governance processes. The due diligence, which were carried out to TotalEnergies' satisfaction, were consistent with best practices, and all relevant material in the public domain was reviewed, including the detailed disclosures to regulators required under applicable laws. TotalEnergies welcomes the announcement by Adani to mandate one of the "big four" accounting firms to carry out a general audit.
Teck Resources Limited announced that it has completed the sale of its 21.3% interest in the Fort Hills Energy Limited Partnership to Suncor Energy and TotalEnergies EP Canada Ltd., a subsidiary of TotalEnergies. Teck received aggregate cash proceeds of approximately $1 billion and does not anticipate any tax payable on the disposition.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
No significant news.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
Minerals Technologies reported diluted earnings per share of $0.67, excluding special items, for the fourth quarter ended December 31, 2022, compared with $1.25 in the prior year. Reported diluted earnings per share were $0.62 compared with $1.23 in the prior year. For the full year 2022, the Company reported earnings per share of $4.88, excluding special items, compared with $5.02 in the prior year. Reported earnings per share were $3.73 compared with $4.86 for the full year 2021.
DRILLERS
No significant news.
REFINERS
No significant news.
MLPS & PIPELINES
MPLX LP announced that it has priced $1,600,000,000 in aggregate principal amount of senior notes in an underwritten public offering consisting of $1,100,000,000 aggregate principal amount of 5.000% senior notes due 2033 and $500,000,000 aggregate principal amount of 5.650% senior notes due 2053. The 2033 senior notes and 2053 senior notes were offered at a price to the public of 99.170% of par and 99.536% of par, respectively.
MARKET COMMENTARY
U.S. stock index futures dropped after disappointing results from megacap growth companies including Apple and Amazon, while investors awaited the January jobs report for more clues on future rate hikes by the Federal Reserve. European shares fell, weighed down by concerns about global economic demand and the impact of high interest rates. Japan's Nikkei ended at a seven-week high with Sony Group leading the charge after reporting strong growth outlook. Oil prices were down as the market awaited further signs of fuel demand recovery in China and the impact of an EU embargo and price cap on Russian oil products. The dollar edged lower, while gold prices were little changed.
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 Tamar Essner.
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