OIL NEWS

Investors purchased small volumes of petroleum last week, after exceptionally heavy sales the week before, squaring up short positions after an unusually sudden and steep pull back in prices on recession fears. Hedge funds and other money managers purchased the equivalent of 8 million barrels in the six most important petroleum futures and options contracts in the week to July 12. That came after cumulative sales of 201 million barrels over the previous four weeks, culminating in sales of 110 million in the week to July 5, according to ICE Futures Europe and the U.S. Commodity Futures Trading Commission.

President Joe Biden reiterated his ire toward oil industry officials, verbally sparring with Chevron Corp. Chief Executive Officer Mike Wirth just days before administration officials and oil executives are set to discuss how to bring down gasoline prices. Wirth earlier called on Biden to stop criticizing the oil and gas industry and for a “change in approach” toward US energy policy in a rare, candid letter published Tuesday. Biden responded by calling the executive “mildly sensitive” and telling reporters at a White House press conference, “I didn’t know they’d get their feelings hurt that quickly.”

$150 oil could still happen, BofA Global Research indicated in a new report sent to Rigzone this week. In the report, BofA Global Research outlined that it sees Brent averaging $102 per barrel this year and in 2023 and highlighted that a potential spike to $150 per barrel could happen if European sanctions push Russian oil production below nine million barrels per day.

Russian gas producer Gazprom said on Friday its supply of gas to Europe through Ukraine via the Sudzha entry point stood at 43.6 million cubic meters (mcm), slightly down from 44.5 mcm on Thursday. An application to supply gas via another major entry point, Sokhranovka, was rejected by Ukraine, Gazprom said.

A deal, if executed, is part of Shell’s efforts to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas, and LNG following Russia’s ongoing military conflict with Ukraine that began earlier this year.

The cheque was formally handed over to CM Himanta Biswa Sarma by NRL managing director (in-charge) Bhaskar Jyoti Phukan recently, an NRL release said on Thursday.

Equinor and Halten East partners Vår Energi, Spirit Energy, and Petoro have decided to invest about $940 million in the development of the area neighboring the Åsgard field in the Norwegian Sea.

The Russian government has authorized the temporary lifting of "mirror sanctions" and allowed for 90 days the flow of natural gas supplies from Yamal LNG to Gazprom Marketing & Trading Singapore Ltd, which is part of Gazprom Germany, shows a government decree on Wednesday, Reuters reported.

UK-headquartered offshore contractor TechnipFMC has sealed a significant deal with Norway’s Equinor for the Halten East subsea tieback development on the Norwegian Continental Shelf. The contract, worth in the region of $75m to $250m, covers the manufacture and installation of flowlines and the installation of umbilicals and subsea structures.

Houston-based Talos Energy is looking to increase its oil production and its position in the US Gulf of Mexico, chief executive Tim Duncan told the company's annual investors day on Tuesday. Pointing out the massive scale of the US Gulf and the size of its resource base, Duncan said ample opportunity remains offshore - even as production in the Gulf trails only the prolific onshore Permian basin of west Texas and south-east New Mexico in terms of US Production.

The search-cum-selection committee panel was set up in February to choose a chairman-cum-managing director (CMD) at ONGC and is planning to seek out private sector executives as well, said people familiar with the matter.

South Korea's crude imports and middle distillate exports will likely extend their upward momentum into June as refiners continue to maximize operating rates to fully capture lucrative product cracks.

Oil minister Hardeep Singh Puri said oil prices staying at $110/barrel could pose bigger threats than inflation to the global economy. "If oil prices remain at $110 (per barrel) you are not just talking about inflation, then you're talking about bigger threats. You know, that's where the R (recession) word comes in," Puri told CNBC TV18 in an interview at Davos.

Analysts noted that OMCs have been losing money on the sale of petrol, diesel, and LPG. They believe the excise cuts should give OMCs a headroom to hike fuel prices and partially recover their under-recoveries. The freeze in fuel prices in the March quarter, despite escalating global oil prices, most likely owing to state elections, led to steep under-recoveries for oil marketing companies (OMCs), said Nomura India.

"If oil prices remain at $110 (per barrel) you are not just talking about inflation, then you're talking about bigger threats. You know, that's where the R (recession) word comes in," Puri told CNBC TV18 in an interview at Davos.

ONGC, Bharat Petroleum, Indian Oil, and Oil India have also held preliminary discussions among themselves to evaluate buying BP's 20% stake in Russian energy giant Rosneft.

Gautam Adani and Mukesh Ambani are profiting from a surge in global commodity prices triggered by Russia’s invasion of Ukraine, burnishing their fossil-fuel credentials even as Asia’s richest men publicly push their pivots toward greener energy. With coal prices skyrocketing to a record, Adani’s conglomerate is expanding a controversial mine in Australia to meet demand.

Brent crude futures were up $1.15, or 1.0 per cent, at $113.08 a barrel at 0042 GMT, while US West Texas Intermediate (WTI) crude futures climbed $1.62, or 1.4 per cent, to $114.02 a barrel, paring some losses after oil prices fell by around 2 per cent in the previous session.