Oil Prices Climb Higher On Larger Than Expected Crude Draw
Crude oil prices rose slightly today after the Energy Information Administration ...
Crude oil prices rose slightly today after the Energy Information Administration reported an inventory draw of 3.3 million barrels for the week to August 26. At 418.3 million barrels, inventories are 6 percent below the five-year average for this time of the year.
The number for the week to August 26 compared with a draw of 3.3 million barrels for the previous week.
The picture in fuels was mixed. In gasoline, the EIA reported an inventory decline of 1.2 million barrels for the week to August 26. This compared with a decline of 4.6 million barrels for the previous week.
Gasoline production last week averaged 9.8 million barrels daily, compared with 9.4 million bpd for the previous week.
Gazprom Says it Will Halt Gas Supplies to France’s Engie
Russia’s Gazprom said on Aug. 30 it would fully suspend gas deliveries to major European utility...
Russia’s Gazprom said on Aug. 30 it would fully suspend gas deliveries to major European utility Engie from Sept. 1 in a dispute over contracts, a move which will deepen concerns about Europe’s winter energy supply.
Europe is already on notice that Gazprom will shut off the Nord Stream 1 gas pipeline to Germany from Aug. 31 to Sept. 2 for maintenance, and there is some concern that Moscow, which has cut the pipeline's supply to just 20% of capacity, may step up pressure by delaying the restart.
In a statement, Gazprom said Engie had not paid in full for July deliveries of gas.
“In this regard, Gazprom Export notified Engie of the complete suspension of gas supplies starting from Sept. 1, 2022, until the moment it receives full payment for the gas it has supplied,” it said.
The energy sector is poised for a lower start amid more losses...
The energy sector is poised for a lower start amid more losses in crude futures. U.S stocks are set to open slightly higher, though gains moderated after private payrolls for August grew by just 132,000 for the month, a deceleration from the 270,000 gain in July, ADP said in its monthly payroll report.
WTI and Brent crude oil futures are extending yesterday’s sell-off as the market weighs in weaker demand prospects, political unrest in key OPEC+ producers and the possibility of a nuclear deal being announced with Iran. OPEC’s Joint Technical Committee is meeting this morning, with headlines noting the group is increasing its expectations for a 2022 surplus build, explaining that rising energy costs may lead to less demand. Additionally, China's factory activity extended declines in August as new COVID infections and the worst heatwaves in decades weighed in on production. Despite experiencing weaker growth, some of China's biggest cities from Shenzhen to Dalian are imposing lockdowns and business closures to curb COVID-19 outbreaks. However, the API report showed gasoline inventories fell by about 3.4 million barrels, while distillate stocks, which include diesel and jet fuel, fell by about 1.7 million barrels.
Natural gas futures are down in early trading as data suggest inventories are rising. Gazprom halted natural gas flows through Europe's key supply route on Wednesday as the economic battle intensified between Moscow and Brussels.
MarketWatch: U.S. stocks open higher after ADP's national employment report
U.S. stocks opened higher Wednesday, advancing after three straight days of declines as investors assessed...
U.S. stocks opened higher Wednesday, advancing after three straight days of declines as investors assessed ADP's national employment report showing that job growth slowed for a second straight month in August. The Dow Jones Industrial Average DJIA, 0.09% was up 0.1% soon after the opening bell, while the S&P 500 SPX, 0.26% rose 0.4% and the Nasdaq Composite COMP, 0.58% gained 0.8%, according to FactSet data, at last check. The revamped ADP report, released Wednesday, showed the U.S. economy added 132,000 jobs this month, down from 268,000 in July and 480,000 in June. Annual pay was up 7.6% in August amid high inflation, with pay growth stabilizing at elevated levels that are in line with monthly readings since the spring, ADP said.
Colombia oil, tourism industries warn tax reform may have negative impact
BOGOTA (Reuters) - Representatives of Colombia's oil, mining and tourism industries told opposition...
BOGOTA (Reuters) - Representatives of Colombia's oil, mining and tourism industries told opposition lawmakers on Monday a $5.7 billion tax reform proposed by the government of leftist President Gustavo Petro could put their sectors at risk.
Petro, who took office early this month, has said he is willing to negotiate on the reform, which seeks to raise 25 trillion pesos in 2023 to fund anti-poverty programs.
The bill would levy a 10% tax on income earned when coal and oil are exported for prices exceeding a certain threshold, though a proposal to include gold exports has been withdrawn.
The threshold for oil would be $48 per barrel, while coal exports would see the duty levied when prices exceed $87 per tonne.
