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Oil Daily | Libyan Oil Shutdown Deepens Crisis; Major Deals in Energy Infrastructure Amid Global Tensions

AInvestThursday, Aug 29, 2024 8:00 am ET
2min read
【Oil-Producing Countries Dynamics】

The Iran-aligned Houthis have agreed to allow salvage crews, including rescue ships and tugboats, to access an oil tanker that the Houthis hit with a missile in the Red Sea earlier this month. Several countries requested a temporary truce for the entry of rescue teams, which was agreed upon due to humanitarian and environmental concerns.

Oil production at several Libyan oilfields was halted as the rival government in the east announced a stop to all oil production and exports. This shutdown has plunged Libya into a deeper political crisis and affected the global oil supply.

【Latest Oil Policies】

China has yet to see its carbon dioxide emissions peak due to its status as a developing nation with a massive population, according to the country’s National Energy Administration. Despite leading in renewable energy investments, China continues to be a major carbon emitter, with plans to build more nuclear power plants and significantly reduce new coal capacity approvals.

【Industry News】

Natural gas transport operator ONEOK has struck a $5.9 billion deal to acquire interests in two energy companies. The acquisitions include a 43% stake in EnLink Midstream and another stake in Medallion Midstream, signaling a continued wave of mergers and acquisitions in the energy infrastructure sector.

Permian Basin oil and gas producers are facing challenges with gas prices due to limited takeaway capacity. The Matterhorn pipeline, expected to provide relief, may soon reach capacity, highlighting ongoing egress issues that keep Waha gas prices volatile and weak.

Argentina plans to double its mining exports to $10 billion by 2027, driven by new lithium projects and expanded copper output. The country aims to become a key supplier of these critical minerals amid rising global demand for electric vehicles.

Gas giant Qatar is reportedly in talks to purchase Rosneft’s stake in Germany’s Schwedt refinery, which has been under trusteeship by Berlin since Russia’s invasion of Ukraine. The German government may consider nationalization if a deal is not struck by the trust's expiration date.

The STAR refinery in Turkey, a significant buyer of Russia’s Urals crude, will undergo planned maintenance starting in early September for about two months. This maintenance could impact the physical market for Russian Urals crude, removing a key buyer temporarily.

【Company News】

China’s state-held oil and gas giant CNOOC reported a record-high net profit for the first half of 2024, driven by all-time high oil and gas production and rising prices. The company declared its highest interim dividend and continued to boost exploration and production as directed by Chinese authorities.

【Others】

The Ukrainian military claimed to have downed a Russian fighter jet over eastern Ukraine after Kyiv set a Russian oil depot on fire. The conflict has escalated with Ukraine targeting Russian energy installations and Russia retaliating in Ukraine's eastern regions.

European consumers will face higher natural gas prices if Ukraine does not extend the gas transit deal with Russia, which expires on December 31, 2024. Russia sees alternative routes, including a gas hub in Turkey, as work continues on this plan.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.