The energy sector is off to a higher start, supported by strength in major...
The energy sector is off to a higher start, supported by strength in major market indices with slight gains in the crude complex. U.S. stocks are higher as Chinese-based companies are leading the gains on optimism around easing regulatory crackdowns and on expectations for more demand as the country relaxes COVID-19 restrictions.
WTI and Brent crude oil are both up <$1 having fallen back from intraday highs. Prices initially jumped as Saudi Arabia raised crude prices for July and amid doubts that an increase of production from OPEC+ will help alleviate tight supply issues. Saudi Arabia raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns over tight supply and increased demand this summer. The selling price of $6.5 a barrel over Oman/Dubai quotes was much greater than the market forecasts for an increase of about $1.5 a barrel. Additionally, expectations that the OPEC+ output increase will not do much to help with the tight supply also helped support the price jump.
Natural gas futures spiked this morning on forecasts for higher demand than previously expected and an increase in LNG exports.
West Texas Intermediate crude for July delivery ...
West Texas Intermediate crude for July delivery CL00CLCLN22 rose 47 cents, or 0.4%, to $119.34 a barrel on the New York Mercantile Exchange after trading at a session high of $121. WTI on Friday closed at the highest for a most actively traded contract since March 8.
August Brent crude BRN00BRNQ22, the global benchmark, was up 46 cents, or 0.4%, at $120.18 a barrel on ICE Futures Europe.
Back on Nymex, July gasoline RBN22 fell 0.7% to $4.2231 a gallon after closing at a record on Friday, while July heating oil HON22 was up 0.6% at $4.3067 a gallon.
July natural gas NGN22 jumped 5.2% to $8.962 per million British thermal units.
Mexico Close to Agreement with Talos Energy on Zama Project
The Mexican government is close to reaching a deal with U.S.-based Talos Energy over the future of a...
The Mexican government is close to reaching a deal with U.S.-based Talos Energy over the future of a potentially lucrative shared crude discovery, the president said on June 3.
The handling of Zama, a deposit holding some 900 million barrels and located offshore in the southern Gulf of Mexico, which provoked a battle over who would run the project, is being closely watched by U.S. investors as a test of President Andres Manuel Lopez Obrador’s commitment to respecting private contracts in the politically sensitive energy sector.
🔥From Twitter: US May Allow More Iran Oil to Flow Even Without Deal, Says Vitol
The US may allow more sanctioned Iranian...
The US may allow more sanctioned Iranian oil onto global markets even without a revival of the 2015 nuclear accord, says Vitol executive, especially “if the midterms are dominated by the need to get gas prices lower in America.” https://t.co/Q4fgYWn9Zf
