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Tag Archives: OPEC

Commodity Tracker: 6 charts to watch this week

Geopolitical risk and oil markets top this week’s pick of energy and commodities themes from S&P Global Platts editors. Plus, Ukraine’s role in European gas supply, steel scrap prices as a bellwether for economies, and a milestone approaches for US LNG exports. 1. Global oil markets on alert after attacks on Saudi oil facilities   Click for full-size infographic What’s happening? Attacks on Saudi Arabian oil facilities at Abaiq and the kingdom’s second-largest oil field,...

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London missing out on Aramco IPO could be a blessing in disguise

Saudi Arabia is getting deadly serious about the stock market flotation of state oil giant Aramco, just not in London. Once tipped as a potential host for what could be the world’s largest initial public offering, Brexit chaos and the prospect of Jeremy Corbyn seizing power have significantly diminished the City’s chances of becoming the international home for Aramco’s shares. Missing out would be a blow to prestige, but it could also be a blessing in disguise. Aramco – which the kingdom’s...

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Commodity Tracker: 6 charts to watch this week

Globalization of natural gas markets, OPEC’s struggle to balance oil supply and price, and platinum coming to the fore as an investment vehicle are all covered in this week’s selection of essential charts from S&P Global Platts editors. 1. Global gas price differentials keep tightening…   What’s happening? Gas spot prices across regions have converged in recent weeks due to the continued gas glut in an increasingly globalized gas market, with surplus LNG cargoes...

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Commodity Tracker: 6 charts to watch this week

US-China trade tensions and a febrile political climate in the UK are driving key commodity flows and price trends this week. S&P Global Platts editors’ latest pick of charts spans agriculture, the energy complex and metals. 1. US soybean stocks pile up as Chinese export avenue cut off   What’s happening? At the start of the new US marketing year, farmers are sitting on a huge pile of soybean stocks, estimated at 29.1 million mt, up 144% from 2017-18 levels. The escalated...

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Saudi oil policy adrift despite Aramco’s eye-watering earnings

Saudi Arabia has no easy answer to falling oil prices. The kingdom could provoke an international backlash by slashing exports, or open a new war with US shale producers by flooding the market with cheap crude. The former risks the ire of President Donald Trump, but the latter would shatter the fragile economies of its OPEC partners and threaten the IPO of Aramco. The value of Brent crude has slumped 20% since April and traded for most of last week briefly below $57/b after a slew of bad data...

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OPEC is playing into Thunberg’s hands on climate change

OPEC would be wise to avoid picking a fight with Greta Thunberg. The 16-year-old poster child of the Extinction Rebellion movement wants to bring the fossil fuel era to an abrupt end, regardless of the economic risks. Branding her populist methods an enemy could make big oil an easier target for protesters to aim at. That is exactly the mistake OPEC’s Secretary General Mohammed Barkindo has made. The head of the oil cartel – which pumps just under a third of the world’s crude – was quoted...

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Energy and commodities highlights: China upstream, OPEC’s output discipline and Chevron in Kazakhstan

China announced landmark reforms in upstream oil and gas policy this week, lifting restrictions on foreign investment in conventional oil and gas projects. The city gas distribution sector is also being opened up, in a move that could attract oil majors and energy companies eager to tap into China’s growing appetite for LNG. Chinese LNG imports were up 20% year on year in the first half of 2019, according to S&P Global Platts Analytics data. The country’s Blue Sky policy targeting air...

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Energy and commodities highlights: US gas prices, OPEC meeting, Chinese LNG investment

Moving into high summer, US energy markets were taking stock of trends in power generation amid low gas prices. The US Henry Hub gas benchmark recently traded at historic lows, and with forward prices suggesting little upside, the fuel is likely to see increased demand from power plants this summer. According to S&P Global Platts Analytics, even average seasonal temperatures in July and August could lift demand for power burn as much as 2-3 Bcf/d over last summer, assuming gas prices...

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Oil traders have bigger worries than a new Hormuz tanker war

Oil tankers ablaze in the Gulf of Oman and the US pointing the finger at Iran should be enough to send the price of the world’s most vital commodity skyrocketing. Instead, oil prices have barely budged. Traders are not buying into the theory that Tehran wants a war, but they are worried about demand. Dated Brent assessed by S&P Global Platts – the world’s most important oil benchmark – spiked by over 4% following the attacks on June 13 and traded briefly just above $62/b. On the face of...

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With oil prices falling, Putin has OPEC over a barrel

OPEC is learning the dangers of dealing with the Kremlin. President Vladimir Putin now has the group’s Middle East kingpin Saudi Arabia over a barrel and can name his own terms to continue their partnership. The oil cartel depends on extending its alliance with Russia to keep restricting supplies if it stands any chance of engineering a quick rebound in prices. The price of Brent crude has collapsed by almost 15% since April, briefly falling below $60/b last week. Depressed prices are good...

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