The energy sector is poised for a higher start, supported by strength in the underlying commodities even as the major market indices are trading lower following yesterday’s rally. U.S. stock futures edged lower as investors remain worried about aggressive monetary policy tightening and slowing economic growth after digesting comments from Federal Reserve Bank Chair Jerome Powell.
WTI and Brent crude oil futures are up in early trading on expectations that China will be easing COVID-19 restrictions put in place to combat infection rates which will increase demand as supply concerns linger. After seven weeks of being locked down, Shanghai authorities have granted approval to 864 of the city’s financial institutions to resume work. The move is part of the financial hub’s plan to reopen broadly and allow normal life to resume after the lockdown was enacted. Supply concerns are increasing as Russian crude output in April fell by roughly 9% from the previous month due to sanctions imposed on Moscow for their invasion of Ukraine. This is the steepest fall in the country’s output since the one that occurred after the collapse of the Soviet Union in the 1990s.
Natural gas futures inched up on forecasts for warmer weather, higher cooling demand and supply concerns.
Gasoline Tops $4 a Gallon in Every US State for the First Time
Gas prices have risen above $4 a gallon in all 50 US states for the first time ever....
Gas prices have risen above $4 a gallon in all 50 US states for the first time ever. Five states are averaging more than $5 a gallon, and one—California—hit a record of $6.02. [Bloomberg]
The war in Ukraine, supply chain snarls, and record-high prices of commodities have led some experts...
The war in Ukraine, supply chain snarls, and record-high prices of commodities have led some experts to fear that the world’s transition to clean energy could intensify inflation. Soaring demand for minerals used for electric vehicles, solar panels, wind turbines, and electrical grids could lead to inflationary prices and supply shortages, they say. But while damage from a hotter climate will likely be permanent, a temporary shortfall of critical minerals could be eased through innovation (for instance, creating batteries that use less cobalt) and improving technology and recycling. [Bloomberg]
Billionaire John Arnold Backing Energy-focused Credit Fund
John Arnold, a former Enron trader and hedge fund honcho known as the “king of natural gas,”...
John Arnold, a former Enron trader and hedge fund honcho known as the “king of natural gas,” is backing an energy-focused credit fund that will aim to take advantage of commodity prices at multi-year highs, sources familiar with the matter said.
Arnold, who reportedly made around $750 million trading natural gas for Enron in the same year it went bankrupt, is backing Energy Opportunities Capital (EOC) Partners LLC through his family office.
Centaurus Capital LP has committed around $500 million in equity for EOC Partners, according to the sources.
Helix to Acquire Privately Held Alliance for $120 Million
Helix Energy Solutions Group Inc. agreed on May 17 to acquire Alliance in...
Helix Energy Solutions Group Inc. agreed on May 17 to acquire Alliance in the Gulf of Mexico for $120 million cash at closing, plus the potential for post-closing earnout consideration.
Alliance, a Louisiana-based privately held company, provides services in support of the upstream and midstream industries in the Gulf of Mexico shelf, including offshore oil field decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift and commercial diving services.
