Saturday , October 31 2020
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The Barrel Blog

Peak oil is coming, it’s just a question of when: Fuel for Thought

October marks a historic but largely forgotten moment in the history of the oil sector, and something which is unlikely to ever be repeated if forecasts for the demise of the world’s most valuable fossil fuel prove accurate. Fifty years ago, BP – then known as British Petroleum and state-owned – discovered oil off the coast of Scotland in the once mighty Forties field with the help of a GBP370 million loan. The financing would be equivalent to GBP5.5 billion ($7.16 billion) in today’s money...

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Commodity Tracker: 5 charts to watch this week

How is energy demand faring across different sectors and regions amid the evolving coronavirus pandemic? In this week’s Commodity Tracker, S&P Global Platts editors look at global aviation, Chinese fuels consumption, Brazilian power demand and European refining, as well as US LNG output. 1. Lift in air travel helps jet fuel but demand still far from normal   What’s happening? Global aviation continues to recover and global kerosene/jet fuel demand is tracking the pattern...

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California’s new clean car goal faces roadblocks, starting with election: Fuel for Thought

In California, greenhouse gas emissions produced by this year’s record-breaking wildfire season have climbed past the industrial, power and residential emissions categories and could even overtake transportation as the top polluter, according to estimates by S&P Global Platts Analytics. The scale and devastation of the California wildfires have also added urgency to the state government’s climate priorities, with the latest measure targeting that top emitter, cars. Governor...

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Commodity Tracker: 6 charts to watch this week

Libyan oil flows have resumed but their stability remains uncertain, while India’s coal powered generation has dipped, granting gains to renewables. S&P Global Platts editors and analysts also discuss the latest Chinese actions on coal imports, Norwegian gas flows to Europe, and separate challenges faced by power markets in the UK and California. 1. Libya’s fragile oil return complicates market outlook   Click to enlarge What’s happening? Light sweet Libyan crude is starting to...

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China Macro & Metals: tighter credit conditions will weigh on metals markets

Sentiment in China’s metals markets was buoyant in July and August on easy credit conditions and expectations of further stimulus flowing to infrastructure. But September saw a distinct change of tone as cash flows tightened, demand waned and metals prices came under pressure, leaving the market hoping for better after China’s Golden Week holiday. Paul Bartholomew discusses what could happen in coming months. Money’s too tight to mention Beijing unsurprisingly opened the monetary sluice...

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Uptick in US LNG exports a boost for terminals, despite storm challenges

An unusually active Atlantic hurricane season has tested the resilience of US liquefaction infrastructure that is still in its infancy relative to terminals in more mature exporting nations. Utilization is starting to rise toward pre-pandemic levels, as demand and price recovery in buyer markets in Asia and Europe are incentivizing exports. While the trend could quickly turn around – depending on further storm damage and planned or unplanned maintenance – higher consumption during the...

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Tanker market could face sharp rebalancing in next couple of years: Fuel for Thought

The global tanker market is set for some critical capacity management in 2021-22. Weaker freight rates have sapped enthusiasm for new orders, and creaking oversupply of older ships could accelerate scrapping. With uncertainty over pandemic-related oil demand and over fueling ships ahead of key climate goals, a step backward may be the way forward for tankers. The boom in tanker deliveries in 2019 is set to be followed by a lull. New orders have fallen to decade lows, with the third quarter of...

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Commodity Tracker: 5 charts to watch this week

The global oil supply path into 2021 is in focus this week, along with the impact of storms on US  oil output. Away from oil, we also survey they outlook for LNG demand in Asia and the European power mix, and look at the key factors driving the copper market. 1. OPEC+ compliance, Libya output to drive global oil supply growth in Q4   What’s happening? Global oil supply has increased by 3.6 million b/d from July through September after dropping more than 13 million b/d from April to...

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Tanker owners pin hopes on storage uptick in oversupplied market

The fourth quarter has traditionally been referred to as the strongest quarter for freight markets, with factors such as winter heating needs in the northern hemisphere and agricultural exports following harvests in key regions, coupled with bad weather and ice tying tonnage up. However, Q4 2020 is looking less positive for shipowners, as discussed in S&P Global Platts’ shipping special report,  Changing Tack. In this extract from the report, Charlotte Bucchioni looks at what’s in...

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Insight Conversation: Sergiy Makogon, Gas TSO of Ukraine

As part of its transformation into a liberalized natural gas market, forged in the image of its liquid European neighbors, Ukraine’s natural gas transmission network GTSOU was made legally, financially and operationally independent from state-owned company Naftogaz at the beginning of this year, as a requirement of European benefactors who have helped fund the development of the country’s natural gas industry. As the first anniversary of its independence approaches, so does the...

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