OPEC+ nations see no utility in ramping up crude production beyond the already agreed gradual roll-back, turning a blind eye on US President Biden’s call to boost output as gasoline prices spiral out of control, Reuters writes. Despite the relative lull, short-term sentiment turned more bearish as China’s July readings indicated its weakest refining performance since May 2020, denting hopes of a robust Chinese demand bounce-back coming anytime soon, OilPrice said.
Oil and gas majors have withstood the immediate ramifications of a sternly-worded IPCC report warning of the dire consequences of climate change quite well. Energy companies remain the second-most lucrative investment in the S&P 500 pool, having gained 30% over the course of this year, Bloomberg reports. At the same time, the era of energy stocks soaring above others in relative terms is over, with energy companies now accounting for a mere 2.5% of the broader index. Overall, energy firms in the S&P 500 saw sales more than double in Q2 and revenues in H2 are assumed to exceed those of every other sector, OilPrice writes.
US Treasury to oppose development banks investments into fossil fuels.The latest investment guidance US Treasury Dept guidance states Washington would be against international development banks (World Bank, African Development Bank) investing in fossil fuel projects, except for some downstream gas facilities in poor countries. The EIA cut its 2022 crude output estimate by a further 100 kbpd to 11.76 mbpd, indicating that production next year will still remain below pre-pandemic levels on an annual average. This year will see an 11.12 mbpd annual output rate.
Saudi Aramco is reportedly in advanced talks with Indian conglomerate Reliance to acquire a 20% stake in its refining and chemical business, in a monster deal worth some $25 billion.Aramco agreed to invest in the 1.5 GW Sudair solar PV plant, the first project under the Saudi Public Investment Fund’s renewable portfolio. Aramco will own 30% in the $0.9 billion project, already wielding a 25-year power purchase agreement with Saudi Power Procurement.
BHP Group, the Anglo-Australian energy firm, reported its best annual profit in more than a decade, taking in $17.06 billion in fiscal year 2021. BHP will also shift its main market listing from London to Sydney. UK-Australian firm is negotiating the divestment of its oil and gas assets with Woodside Petroleum in a deal that could create Australia’s largest producer. LG Energy signed a deal with Australian Mines Ltd to supply 100% of projected nickel and cobalt output from the miner’s flagship Sconi Project in southeastern Australia.
Europe to see retail energy prices hike. In a harbinger of things to come amid sky-high gas prices, EDF Energy, a subsidiary of France’s EDF, announced it will hike retail energy prices in the UK by 12% starting from October 01. IKEA starts selling renewable energy. The world’s largest furniture brand, the privately-owned IKEA, will start selling renewables-sourced electricity on the Swedish market starting this September. Germany’s government will sell a quarter of its 20% stake in Lufthansa, one of the world’s largest airlines, in a deal that is supposed to bring some $1 billion to the state coffers.