Friday, June 28, 2019
Energy, Petrochemicals and Plastics 23
1 Oil Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-major-players-on-sidelines-ahead-of-trump-xi-opec-meetings-583293
As far as the Trump-Xi meeting is concerned, traders are not looking for any major developments. It’s possible that both leaders agreed to the meeting just to gauge the temperature of each side. However, stranger things have happened before. In early December, for instance, both sides agreed to begin trade negotiations after holding a meeting at another G-20 summit.
2 Failing Trade Talks Could Send Oil To $30
https://oilprice.com/Energy/Energy-General/Failing-Trade-Talks-Could-Send-Oil-To-30.html
The U.S. and China appear to be making progress on trade talks ahead of the G20 meeting, but should they fail, the fallout for the oil market could be significant.
3 The Single Biggest Factor For Oil Price Forecasts
https://oilprice.com/Energy/Energy-General/The-Single-Biggest-Factor-For-Oil-Price-Forecasts.html
Trump and Xi will meet this Friday at the G20 summit to discuss the possibility of settling their dispute and putting an end to the on-going trade war. While it would be overly optimistic to expect the meeting to reverse the current economic downturn, it may well produce the positive sentiment required to halt the downward trend. Downside risks for oil prices due to the trade war remain undoubtedly high, with some commentators projecting $30 a barrel in the future.
4 North American PE, PP prices down in June, PVC on the rise
https://www.plasticsnews.com/news/north-american-pe-pp-prices-down-june-pvc-rise
The regional PVC market saw prices climb by an average of 2 cents in June. This move surprised some market watchers, since construction activity, which drives demand for the resin, hasn’t been overly strong so far in 2019.
5 US May Become Third Largest Seller of LNG | Rigzone
https://www.rigzone.com/news/us_may_become_third_largest_seller_of_lng-28-jun-2019-159176-article/
This year, the U.S. will surpass Malaysia to become the world’s third largest seller of LNG. The country could even eclipse Qatar and Australia to take the top spot by 2024. This is truly staggering growth considering that LNG exports from the contiguous 48 just began in February 2016, when Cheniere Energy’s flagship Sabine Pass terminal in Louisiana first came online.
6 The LNG sector is breaking taboos to stay competitive
https://blogs.platts.com/2019/06/27/the-lng-sector-is-breaking-taboos-to-stay-competitive/
Breaking taboos in the LNG industry is a time-honored tradition. The disruptors have sometimes succeeded and sometimes failed, but the commercial arc of the LNG universe is unquestionably bending towards change.
7 Decarbonizing US Power Grid Would Cost Up To $4.5T
https://www.rigzone.com/news/decarbonizing_us_power_grid_would_cost_up_to_45t-28-jun-2019-159181-article/
The transition to a 100 percent renewable U.S. power grid would need investment of up to $4.5 trillion over the next 10 to 20 years.
8 Shale Executive Sees “Another Round Of Bankruptcies” Looming
https://oilprice.com/Energy/Energy-General/Shale-Executive-Sees-Another-Round-Of-Bankruptcies-Looming.html
The recent downturn in oil prices forced a slowdown in the U.S. shale industry, and top executives appear to be gloomier than ever.
9 Best Bets On Pipeline Politics
https://www.forbes.com/sites/greatspeculations/2019/06/28/best-bets-on-pipeline-politics/
It seems like a long, long time ago in a galaxy far, far away. But barely two years back, permits for new US oil and especially natural gas pipelines were basically a formality
10 U.S. refinery capacity reaches record high at the start of 2019 – Today in Energy
https://www.eia.gov/todayinenergy/detail.php?id=40012
As of January 1, 2019, U.S. operable atmospheric crude oil distillation capacity was a record-high 18.8 million barrels per calendar day (b/cd), an increase of 1.1% since the beginning of 2018, according to EIA’s annual Refinery Capacity Report. The previous high of 18.6 million b/cd was set at the beginning of 1981. U.S. annual operable crude oil distillation unit (CDU) capacity has increased slightly in six of the past seven years. Operable capacity includes both idle and operating capacity.
11 How U.S. LNG plays havoc with Dutch gas and Asian shipping
https://www.reuters.com/article/us-lng-usa-europe-idUSKCN1TT18U
Dutch gas prices hit 10-year lows this week, reflecting high European inventories swelled by liquefied natural gas (LNG) imports, testing levels at which companies that committed to buy U.S. LNG will start making serious losses.
12 Mexico’s president defiant in row with Canada over pipeline contracts
https://www.reuters.com/article/us-mexico-ienova-canada-idUSKCN1TS1XF
Mexican President Andres Manuel Lopez Obrador pushed backed on Thursday against Canadian concerns that gas pipeline contracts awarded under his predecessor might not be honored, saying the terms of the agreements were “abusive” toward the state.
13 Government to invest $275 million in Canada LNG
https://www.lngworldnews.com/government-to-invest-275-million-in-canada-lng/
The Canadian Gov’t said on Monday that the Ministry of Innovation, Science and Economic Development confirmed the $275 million investment in LNG Canada’s complex in Kitimat.
14 Key Factors Supporting Bullish LNG Shipping Sentiment
https://seekingalpha.com/article/4271358-key-factors-supporting-bullish-lng-shipping-sentiment
Maritime trade of LNG (liquid natural gas) is a crucial link in the natural gas supply chain for many nations where domestic demand outstrips available supply. These vessels transport natural gas, which has been reduced to a liquid state by cooling it to minus 162°C, achieving a volume reduction of approximately 600 to one. Upon delivery, this LNG can be stored in a liquid state until the market demands, whereupon it enters a re-gasification process.
15 Bechtel gets construction contract for Ohio ethane cracker
https://www.kallanishenergy.com/2019/06/24/bechtel-gets-construction-contract-for-ohio-ethane-cracker/
The giant international engineering firm Bechtel has announced it has been hired by Thailand’s PTT Global Chemical America and South Korea-based partner Daleim to build a $6 billion cracker.
16 Chevron Phillips makes $15 billion bid to acquire Nova Chemicals
https://www.plasticstoday.com/materials/chevron-phillips-makes-15-billion-bid-acquire-nova-chemicals/48536543161028
Chevron Phillips Chemical Co. (The Woodlands, TX) has offered to acquire Nova Chemicals Corp. (Calgary, AB) for more than $15 billion, Reuters is reporting based on information from people familiar with the matter.
17 Qatar teams up with Chevron Phillips for petrochemical project
https://www.reuters.com/article/us-qatar-petroleum-petrochemicals-idUSKCN1TP0U7
Qatar Petroleum has signed an agreement with Chevron Phillips Chemical to build a new petrochemicals complex, part of plans by the world’s top liquefied natural gas (LNG) exporter to broaden its energy interests.
18 Exxon hires ex-Trafigura crude oil trader in Singapore
https://www.reuters.com/article/us-exxon-mobil-singapore-oil-idUSKCN1TT1B9
Exxon Mobil Corp has hired former Trafigura crude oil trader Hong Hsien Tan to further boost its trading capabilities in Singapore, multiple sources familiar with the matter said on Friday.
