Brent Tops $86
on Hopes of Fed Cut in September
Brent crude soared to $86 per barrel as
better-than-expected U.S. inflation data stirred hopes of a September Fed
rate cut.
Friday, July 12th, 2024
The beginning of this week has seen a slight downward correction for oil
prices, with anticipated damages from Hurricane Beryl turning out to be
less impactful than initially assumed, however, constructive macroeconomic
data have reversed that downslide. With US consumer prices falling for the
first time in four years last month, the September interest rate cut
became a high-probability event for the Fed, lifting ICE Brent above $85
per barrel again.
IEA Sees Global Demand Weakness. The IEA
reported
the lowest quarterly increase in global demand in over a year as
consumption rose by 710,000 b/d in Q2, saying that China’s stellar growth
is coming to an end and cutting the 2025 outlook further to 970,000 b/d.
Indian State Refiners Seek Russian Term Deals.
India’s Prime Minister Narendra Modi visited Russia this week,
accompanied
by representatives of the country’s state-controlled refiners seeking to
sign long-term import deals with Russian exporters, finalizing terms such
as payment currency.
South Africa Seeks to Salvage Grounded Ship. The
Panama-flagged dry bulk tanker Ultra Galaxy
carrying
ammonium nitrates to Dar es Salaam in Tanzania ran aground off South
Africa’s coast, raising the risks of a potential oil spill and pollution
as salvage operations are hampered by rough sea conditions.
Taking Its Chances, US Seeks Q4 SPR Volumes.
Having failed to purchase any SPR volumes below $80 per barrel in its last
tender, the US Energy Department
seeks
to purchase up to 4.5 million barrels of oil to its Bayou Choctaw site in
Louisiana, to be delivered from October through December.
Saudi Aramco Taps into Bond Market.
Saudi Aramco (TADAWUL:2222), the national oil company of Saudi
Arabia,
attracted
more than $31 billion of orders for its $6 billion bond sale, its first
foray into the debt markets in three years, selling 10-, 30- and 40-year
dollar-denominated bonds.
Rio Tinto’s Lithium Project Back on Track.
Australian mining giant Rio Tinto (ASX:RIO)
welcomed
the Serbian constitutional court’s ruling this week that overturned the
government’s 2022 decision to scrap the planning permission for Europe’s
largest lithium mine, the Jadar project opposed by local
environmentalists.
US Natural Gas Demand Soars Amidst Heatwaves.
Power generators across the United States
burned
a record amount of natural gas this Tuesday, the hottest day of 2024 so
far, some 54.2 billion cubic feet per day, surpassing the previous record
of 52.8 Bcfd from July 2023.
More Bearish Than Ever, BP Sees Oil Peak in 2025.
Publishing its annual Energy Outlook, UK energy major BP (NYSE:BP)
announced
it expects oil demand to peak in 2025 already at 102 million b/d in both
its ‘Current Trajectory’ and ‘Net Zero’ scenarios, maintaining a bearish
outlook on fuel consumption.
US Slaps Record Penalty for Air Pollution. The
US Department of Justice
fined
Marathon Oil (NYSE:MRO) over alleged air pollution violations at
the company’s oil and gas facilities on a North Dakota Indian reservation,
with the oil producer agreeing to pay a $241 million settlement.
Gulf Coast Moves Past Hurricane Beryl. The US
Army Corps of Engineers and the US Coast Guard gave the all-clear for the
full reopening for the port of Houston this Thursday, lifting all draft
restrictions, with other Texas ports expected to resume normal operations
on July 12.
China Tightens Rules for Solar Manufacturers.
China’s industry ministry
issued
draft rules for the solar photovoltaic industry seeking to limit the past
year’s overcapacity problem, requiring a minimum capital ratio of 30% for
new projects and stipulating minimum efficiency levels.
UK Court Scraps Onshore Drilling Approval. The
United Kingdom’s Supreme Court reversed a 2023
decision
to grant permission for an onshore well in Lincolnshire, one month after
taking a similar decision over a prospective oil well near Gatwick
Airport, quashing the outlook for all onshore projects.
Tanker Seized by Iran Moving Again, Without Cargo.
The Marshall Islands-flagged tanker Advantage Sweet,
seized
by Iran more than a year ago with its 1-million-barrel cargo of Wafra
crude confiscated by Tehran, is heading towards international waters after
being released this week.
Best
Regards,
Tom Kool - Editor, Oilprice.com
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
509 995 1879
Cell, Pacific Time Zone.
General office:
509-254
6854
4501 East Trent
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