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WEDNESDAY MORNING IN ENERGY:
Because someone around here has to still talk about oil, right? #OOTT #EFT #EnergyFinTwit #OPEC #shale
Because someone around here has to still talk about oil, right? #OOTT #EFT #EnergyFinTwit #OPEC #shale
So the interesting thing that's going on is actually over in the #LNG markets, where the cold winter in Europe/Asia has caused a surge in prices there.
But there are other factors at work. https://www.reuters.com/article/asia-lng-prices/rpt-update-6-freezing-temperatures-push-asian-gas-prices-to-new-records-idUSL1N2JO03W
But there are other factors at work. https://www.reuters.com/article/asia-lng-prices/rpt-update-6-freezing-temperatures-push-asian-gas-prices-to-new-records-idUSL1N2JO03W
For starters, per our @j3ssi3 we've got a massive surge in Asian front-month prices that relate specifically to this. Take a look here at a chart from @JKempEnergy
What's happening? It's the result of the cold weather, big supply bottlenecks over in the Panama Canal where ships are getting stuck for days, and the overall lack of available additional #LNG export.
And we've seen a number of cancellations of cargos, too. The supply constraints among other big exporters means #LNG is likely at the mercy of the cold weather, too, per Goldman Sachs.
Oil, meanwhile, is steady on the day, pausing from a big rally: https://www.reuters.com/article/global-oil-int/oil-steadies-as-u-s-inventory-fall-tempers-demand-woes-idUSKBN29I07T
We've got an exclusive here from @DPsaledakis and @TimoGard on the US planning more sanctions on the Nordstream pipeline: https://www.reuters.com/article/us-usa-nord-stream-2-sanctions-exclusive/exclusive-u-s-tells-european-companies-they-face-sanctions-risk-on-nord-stream-2-pipeline-idUSKBN29I0CN
#OOTT
#OOTT
So, here's a fun one. JPMorgan has upgraded Exxon to "overweight" for the first time in seven years. https://www.reuters.com/article/us-exxon-mobil-research-jpm/j-p-morgan-upgrades-exxon-to-overweight-for-first-time-in-seven-years-idUSKBN29I17Y
Since we like this sort of thing, here's a chart of Exxon and other oil majors in that seven-year period:
#OOTT
#OOTT
See the orange line? That's Exxon. Down 35% in that time.
The S&P is the purple line (up 107%).
The other majors are mostly flat. #OOTT
The S&P is the purple line (up 107%).
The other majors are mostly flat. #OOTT
In a note, JPM analyst Phil Gresh and his colleagues said their confidence in Exxon’s ability to deliver on market expectations for earnings had grown after a series of results-day disappointments in recent years.
One-third of oil & gas workers had to deal with a pay cut in 2020, per a study we've written about here: https://www.reuters.com/article/us-global-oil-pay/third-of-oil-and-gas-workers-faced-pay-cut-in-2020-due-to-pandemic-survey-shows-idUSKBN29H1JU
About 30% of professionals saw a fall in pay last year and one in four said their salaries and day rates fell by more than 5%, according to a report by staffing firm Airswift’s Global Energy Talent Index (GETI).
#OOTT #OPEC
#OOTT #OPEC
