Sour Fundamentals Force Brent Crude Oil Below $ 40


Both the President of the United States and the First Lady tested positive for COVID-19 on the day Brent oil prices fell below $ 40 and the American rig count climbed.

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Friday, October 2, 2020


Crude prices fell on Friday after President Donald Trump tested positive for coronovirus. Extensive equity also tumbled. During midday trading, Brent was down more than 4 percent, down from $ 40 per barrel.

Shell companies performed poorly, but executives paid. A Wall Street Journal analysis found that the average payout for executives of US oil and gas companies increased to $ 13 million for four consecutive years in 2019, up from $ 9.9 million in 2015. In that time period, mean shareholder returns had fallen by 35 percent. Energy was the worst-performing sector in the S&P 500, but Shell’s CEO received a larger lift than last year, but analyzed two of the 11 major industries.

Moody’s: Long-term investment in natural gas carries a risk. According to a new report by Moody’s Investors, a combination of legal challenges to natural gas pipelines, policies aimed at reducing emissions and public scrutiny on natural gas could “decrease” natural gas demand over the next two to three decades is. Relations. “We’re raising the flag,” Ryan Wobbrook, vice president and senior credit officer at Moody’s Investors Service Inc. and principal analyst on the report, told E&E News. “We are talking about a multidimensional horizon of risk.”

Natural gas prices may rise. Highly volatile US natural gas benchmark prices are set for lower domestic production in the coming months, greater demand in winter and higher propensity to recover global gas prices in Europe and Asia. Henry Hub prices have been volatile over the past few weeks, but have steadily strengthened to $ 2.50 / MMBtu compared to levels a few months earlier.

ExxonMobil stock falls on likely Q3 number. In the SEC filing on Thursday, ExxonMobil (NYSE: XOM) Provided a Q3 earnings consideration, updating its expectations for third quarter results relative to the second quarter. On Friday, Exxon’s stock price fell nearly 2 percent, to a multi-decade low hit earlier this year to around $ 32.47 per share.

NextEra contemplates the $ 60 billion acquisition of Duke Energy. NextEra Energy (NYSE: NEE) Recently contacted Duke Energy (NYSE: DUK), Discovering what the $ 60 billion combination of the two major utilities would be.

Oasis Petroleum files for bankruptcy. Oasis Petroleum (NASDAQ: OAS) Filed for bankruptcy on Wednesday, the latest driller to succumb to the recession.

Demand continues to worry. US gasoline demand remained flat for much of the third quarter, with little hope of a rebound. “It’s difficult to portray a story of rapid demand for energy in the short term … I don’t see it,” said Jennifer Rowland, senior energy analyst for Edward Jones. “Instead, I see all the warning signs.”

Oil traders suspect that OPEC + increases production. OPEC + is scheduled to cut production starting in January, with 2 mb / d added to the market in January. But some traders suspect that the group will follow due to weak demand. “I don’t think OPEC will increase production in January … if they do, the market will test them on the downside,” Pierre Andurand, founder and chief investment office at Andread Capital, told the FT Global Commodities Summit. Related: Iraq supplies more crude oil despite OPEC output cut pledge

Trump signed the executive order on Rare Earth. US President Donald Trump has signed an executive order declaring a national emergency in the mining industry, a move that would curb the country’s dependence on rare earths in its latest bid to end control over China’s market Makes efforts.

Another round of industry retrenchment. Marathon Petroleum (NYSE: MPC) It began cutting jobs on Tuesday, with about 12 percent of its workforce being let go. Royal Dutch Shell (NYSE: RDS.A) Said that this would eliminate 9,000 jobs. Chevron (NYSE: CVX) And ExxonMobil (NYSE: XOM) Are in the process of reorganization.

There is no peak demand until 2030. whereas BP (NYSE: BP) Said the possibility of the world already passed peak oil demand, French oil giant Total (NYSE: TOT) A new report says peak demand is a decade away. Kool said it would boost annual spending on renewable goods by $ 3 billion by then and it would cut petrol and diesel sales by 30 percent.

Ohio Cancell Permit for Gas Storage. Ohio environmental regulators have revoked the major permits required for the underground natural gas liquids storage facility, which is expected to make the area a major natural gas liquids storage hub that will spur the construction of an extensive petrochemical hub.

Abandoned wells can leave billions of dollars to taxpayers. According to a new report by Carbon Tracker, US taxpayers can drop the cost by tens or hundreds of billions of dollars. Related: Natural Gas Prices Explode On Strong Demand

Denmark gives greenlight to Nord Stream 2. Denmark advances the Nord Stream 2 pipeline, promoting a project that exceeds 90 percent, but recently conducted it due to US sanctions and a backlash by the Kremlin against the suspected poisoning of a Russian opposition leader has gone. .

Vietnam approved a $ 5 billion LNG project. Approved $ 5 billion LNG project to be developed by Vietnamese city Haiphong ExxonMobil (NYSE: XOM).

Attempt to open Atlantic coast for drilling on the verge of collapse. The Trump administration’s efforts to open the Atlantic to offshore oil and gas exploration could collapse as permits for seismic testing by four companies are expiring without renewing them.

$ 110 billion in asset sales can be difficult. Large oil and gas companies have proposed $ 110 billion in asset sales in an effort to cut debt, but finding a buyer may prove difficult. “This is not a good time to sell property,” Total (NYSE: TOT) CEO Patrick Pouyanne said on Wednesday.

By Tom Cool for Oilprice.com

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