Oil Prices Rise on Discussions of Further Supply Cuts by OPEC+
Energy stocks are set to gain at the open to start the final trading month of 2022. Oil prices up over 2% is aiding the group, as are higher broader equity indices, which are indicating gains of about 0.3% (as of 9:00 AM ET).
Oil rose about $1 a barrel on Thursday, supported by the potential for OPEC+ to cut supply further and as easing COVID curbs in China raised the likelihood of higher demand from the world's top crude importer.
U.S. natural gas futures edged up about 1% on Thursday on a preliminary start of the month drop in U.S. output and rising global gas prices.
BY SECTOR:
US INTEGRATEDS
Chevron continues to work with the U.S. government to comply with sanctions on Venezuelan crude oil exports, Chief Executive Michael Wirth said, days after winning a new license to expand its operations in the country.
INTERNATIONAL INTEGRATEDS
HSBC downgraded Eni to Hold from Buy.
The Norwegian energy ministry said it had approved operator Equinor's plan for new investments in the North Sea Oseberg petroleum fields, which will boost gas exports to Europe.
HSBC downgraded Equinor to Hold from Buy.
GE Renewable Energy’s Grid Solutions Services team used digital X-ray technology – guided by the same principle utilized in the healthcare industry – to complement the preventive maintenance in Petrobras’ gas insulated substation (GIS), in the Abreu e Lima Refinery (RNEST), state of Pernambuco (Brazil).
Petrobas lowered refinery gate jet fuel prices by around 6% starting Dec. 1, data provided by the firm showed.
Petrobras informed that its Executive Board has approved the termination of the competitive process for the sale of the Canoas Thermoelectric Plant (UTE Canoas).
Petrobras informed that it concluded the assignment of 5% of its interest in the Production Sharing Contract of the Surplus Volume of the Transfer of Rights, for the Búzios field, in the pre-salt of Santos Basin, to the partner CNOOC Petroleum Brasil Ltda. The Production Sharing Contract Amendment Term was signed today by the Ministry of Mines and Energy, putting the transaction into effect.
Petrobras informed that it was disclosed by the Fundação Petrobras de Seguridade Social (Petros) that its Deliberative Council approved the Deficit Equalization Plan (PED) for the year 2021 of the Renegotiated Petros Pension Plan (PPSP-R), because this plan has exceeded the legal limit of tolerance to technical deficit.
Petrobras informed that it has finalized the sale of the shares of Refinaria de Manaus S.A. (Manaus Refinery), which was formed to hold Refinaria Isaac Sabbá (REMAN) and its corresponding logistics assets, located in Manaus, Amazonas, to the company Ream Participações S.A (Ream), a corporate vehicle owned by the partners of Atem's Distribuidora de Petróleo S.A. (Atem).
Petrobras disclosed a 15% increase in its five-year spending plan to $78 billion, with little change to the company's strategy of focusing on fossil fuel production. The last Petrobras business approved under President Jair Bolsonaro could be scrapped next year, as a newly elected government that takes office on Jan. 1 has signaled it will change the company's top management and review its strategy.
Petrobras has decided to end the process to sell a thermoelectric power plant in Southern Brazil, it said in a securities filing late on Wednesday.
Ryanair signed an agreement with Shell that it said would give it potential access to 360,000 tonnes of sustainable aviation fuel (SAF) from 2025 to 2030 as the low-cost carrier seeks to cut its carbon emissions.
TotalEnergies implements its energy transition strategy in Kazakhstan with, on the one hand, the sale of its affiliate Total E&P Dunga GmbH and, on the other the giant Mirny wind farm project that received the support of the French and Kazakh authorities on the occasion of the visit in France of the President of Kazakhstan, Kassym Jomart Tokayev. On November 28, 2022, TotalEnergies signed an agreement for the sale of its affiliate Total E&P Dunga GmbH to the Kazakh company, Oriental Sunrise Corp Ltd, for an amount of $330 million. Total E&P Dunga GmbH holds a 60% operating interest in the onshore Dunga oil field in Kazakhstan, representing a net production of approximately 7,400 barrels of oil equivalent per day in 2022. The transaction is subject to the approval of the authorities of Kazakhstan and the waiver of the partners’ preemption rights.
Energy Voice reported that the head of TotalEnergies’ North Sea business says the supermajor will slash investment by a quarter next year in light of the UK Government’s windfall tax, and expressed concern over the lack of a price floor built into the policy.
CANADIAN INTEGRATEDS
No significant news.
U.S. E&PS
Comstock Resources announced that effective November 30, 2022, all outstanding shares of the Company's Series B Convertible Preferred Stock have been converted into 43,750,000 shares of common stock.
Diamondback Energy announced that it has completed its previously announced acquisition of all leasehold interests and related assets of FireBird Energy LLC.
Diamondback Energy filed a prospectus that relates to the proposed resale from time to time of up to 5.9 mln shares of common stock by selling stockholders.
Range Resources announced that its Board of Directors declared a quarterly cash dividend on its common stock for the fourth quarter. A dividend of $0.08 per common share is payable on December 30, 2022 to stockholders of record at the close of business on December 15, 2022.
W&T Offshore announced the promotion of W. Allen Tate to Senior Vice President of Marketing, Jake G. Woodall to Vice President of Midstream and Kristen Ecklund to Vice President of Human Resources.
CANADIAN E&PS
No significant news.
OILFIELD SERVICES
No significant news.
DRILLERS
No significant news.
REFINERS
A California regulator said it was investigating emissions containing higher-than-normal amounts of heavy metals due to an equipment failure at PBF's 156,400 barrel-per-day refinery in Martinez last week.
MLPS & PIPELINES
TortoiseEcofin announced that PBF Logistics LP will be removed from the Tortoise MLP Index (TMLP), and the Tortoise North American Pipeline Index (TNAP), as a result of the approved merger with PBF Energy. As part of the transaction PBF will acquire all of the outstanding common units representing limited partner interests of PBFX it does not already own effective December 1, 2022. Due to the acquisition, PBFX will be removed from both indices at market open on Thursday, December 1, 2022.
The Canadian government approved an expansion to TC Energy's NOVA Gas Transmission Ltd (NGTL) pipeline system in Alberta, which will help improve market access for western Canadian natural gas.
MARKET COMMENTARY
Wall Street is set to open lower a day after markets rallied following Jerorme Powell signaling that the U.S. Federal Reserve will temper its pace of interest rate hikes. European and Asian markets rose tracking overnight gains in the U.S. and Treasury yields extended their decline. The sterling rose against a broadly-soft dollar and gold prices extended gains for a third straight session.
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.
This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Other Topics
Energy Commodities Nasdaq Advisory Services
MarketInsite
Nasdaq’s Marketinsite offers actionable insights on a variety of market-moving topics. Learn from our thought leaders who are driving the capital markets of tomorrow.
Read MarketInsite's Bio