Friday, December 20, 2019
Energy, Petrochemicals and Plastics 43
1 Don’t Bet On A Natural Gas Rebound
https://oilprice.com/Energy/Energy-General/Dont-Bet-On-A-Natural-Gas-Rebound.html
Natural gas prices are set to close out the year down by about 25 percent, and unlike crude oil, there is not a lot of confidence in a rebound.
Record levels of production and mild temperatures have left the gas market in the U.S. well-supplied. After running down to exceptionally low levels a year ago, U.S. gas inventory levels have shot back up to the five-year average in 2019. That means that the U.S. enters the peak winter demand season with plenty of gas on hand.
2 Oil Price Fundamental Daily Forecast –Lackluster Trade, but Markets Still Higher for Week
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-lackluster-trade-but-markets-still-higher-for-weekl-621397
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging lower Friday on profit-taking ahead of the week-end and next week’s Christmas holiday. Nonetheless, the markets are in a position to finish higher for a third consecutive week on the back of an improving outlook for global demand growth.
3 Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-could-be-setting-up-for-short-squeeze-621408
Natural gas futures are trading higher on Friday after forming a potentially bullish technical chart pattern on the daily chart in reaction to a much larger-than-expected storage withdrawal on Thursday. Traders remain a little skeptical about the move, however, because the weather outlook for the early part of 2020 is not supportive for increasing demand.
4 Weekly resin report: PE prices hold steady; PP slips another cent
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-pe-prices-hold-steady-pp-slips-another-cent/54816879362064
The spot resin markets remained extremely active through mid-month. Transacted volumes were above average and prices were mixed, reports the PlasticsExchange (Chicago) in its Market Update.
5 Delays loom for LNG and deepwater oil & gas projects as bottlenecks restrain service industry
https://www.rystadenergy.com/newsevents/news/press-releases/delays-loom-for-lng-and-deepwater-oil-and-gas-projects-as-bottlenecks-restrain-service-industry/
A dark cloud of capacity constraints is casting a shadow over the oilfield service industry heading into 2020, mirroring the sharp growth in the number of new projects being brought forward by oil and gas operators. About 250 new oil and gas projects are likely to be sanctioned for development in 2020, up from 160 in 2016, and bottlenecks among suppliers appear inevitable.
6 Global shipping sails into turbulent times as IMO 2020 nears
https://blogs.platts.com/2019/12/18/global-shipping-turbulent-imo-2020/
When the shipping industry counts down to the New year on December 31, markets are unlikely to be in a celebratory mood as global markets will wake up to a whole new shipping regime come January 1: IMO 2020.
7 The pressure on the polyethylene (PE) industry
https://www.argusmedia.com/pages/NewsBody.aspx?id=2038672&menu=yes
The pressure that has built from all sides on the polyethylene (PE) industry looks likely to continue in 2020. Europe began 2019 with healthy integrated PE margins, but they dropped significantly towards the end of the year to the point that some producers are trimming operating rates, saying that integrated margins are unacceptably low in some grades.
8 EIA: European LNG imports hit record levels
https://www.lngworldnews.com/eia-european-lng-imports-hit-record-levels/
Europe’s imports of liquefied natural gas (LNG) have been steadily increasing since October 2018, and reached a new monthly record of 12.7 billion cubic feet per day (Bcf/d) in November 2019, according to the U.S. Energy Information Administration (EIA) estimates.
9 China firms stock up cleaner shipping fuel overseas ahead of new emission rules
https://www.reuters.com/article/us-china-shipping-fuel-imo-idUSKBN1YO0UI
Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany’s Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1.
10 Shell writes down up to $2.3 billion on weaker economic outlook
https://www.reuters.com/article/us-shell-outlook-idUSKBN1YO0PC
Royal Dutch Shell (RDSa.L) said on Friday it expected to write down up to $2.3 billion in the fourth quarter, the latest major energy company forced to shrink estimates for sector values due to a weaker economic outlook.
11 Canada approves CNOOC’s offshore drilling plan
https://www.offshoreenergytoday.com/canada-approves-cnoocs-offshore-drilling-plan/
The Chinese company is proposing to conduct an exploration drilling project within two offshore exploration licenses in the Flemish Pass Basin.
“The Minister of Environment and Climate Change, Jonathan Wilkinson, has announced that the proposed CNOOC International Flemish Pass Exploration Drilling Project can proceed,” the government said on Wednesday.
12 Why Oil Majors May Never Return To Canada’s Arctic
https://oilprice.com/Latest-Energy-News/World-News/Why-Oil-Majors-May-Never-Return-To-Canadas-Arctic.html
Canada’s federal government has returned security deposits that oil majors had paid to drill in Canadian Arctic waters which are currently off limits until 2021, but even if Canada lifts the ban then, companies are unlikely to be eager to drill in harsh-environment challenging waters, analysts say.
13 BP, Chevron to invest $116M on exploration in Australia after Bight exit
https://www.offshoreenergytoday.com/bp-chevron-commit-to-invest-116m-on-exploration-in-australia/
Oil and gas majors BP and Chevron have committed to investing a total of $116.5 million in oil and gas exploration activities in Australia, with at least half directed to projects in South Australia with a view of increasing energy supplies in the state and south-eastern Australia. The commitment follows the two firms’ cancellation of the Great Australian Bight drilling plans in the past three years.
14 Commodities 2020: China set to embrace Norway as regular crude oil supplier
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/121919-commodities-2020-china-set-to-embrace-norway-as-regular-crude-oil-supplier
China appears likely to add Norway into the list of its regular crude oil suppliers in 2020, with the country’s independent refiners especially finding North Sea’s new Johan Sverdrup crude attractive for its competitive price and familiar specification.
15 Mexico postpones clean diesel rule for Pemex for five years
https://www.reuters.com/article/us-mexico-diesel-idUSKBN1YM2EH
Mexico’s energy regulator voted on Wednesday to defer for five more years a rule requiring national oil company Pemex to produce, distribute and sell ultra-low-sulfur diesel (ULSD) nationwide.
16 2019 ends on a low note, offering a gloomy start to 2020
https://www.rystadenergy.com/newsevents/news/newsletters/OfsArchive/ofs-december-2019/
The global oilfield service market saw year-over-year revenue decline 3% in the third quarter this year, the first quarter to post negative growth since 2Q 2017. Moving into the fourth quarter, service companies are reporting that operators have little budget left, hinting that 4Q will be sluggish.
