Mar 31, 2021 (Baystreet.ca via COMTEX) -- Oil prices fell on Tuesday as the Suez Canal was cleared and concerns about global bottlenecks eased. Traders are now focused on the upcoming OPEC+ meeting, which most observers believe will result in an extension of cuts, and the impact of Covid-19 on oil demand in Europe.
Annual spending by U.S. utilities on transmission has increased from $9.1 billion in 2000 to $40 billion in 2019.
- The increase includes both new investment and an increase in opex costs.
- One example: In 2020, Minnesota Power connected a 224-mile, 500-kV transmission line to bring Canadian hydropower to the U.S.
- Another example: PG&E and SCE spent more than $1 billion in 2019 on new transmission infrastructure, mostly related to wildfire mitigation.
- Chevron /zigman2/quotes/205871374/composite CVX +2.62% is the leading contender to purchase the 145,000-bpd Puget Sound refinery in Washington State from Royal Dutch Shell /zigman2/quotes/205095589/composite RDS.A +3.40% .
- Devon Energy /zigman2/quotes/209479244/composite DVN +6.59% said its first-quarter production would decline by 8% due to the Texas freeze.
- Vine Energy /zigman2/quotes/200161784/composite VEI +3.24% announced a bond sale to raise $950 million in senior unsecured notes due in 2029. Vine Energy recently launched an IPO and raised less money than it had hoped.
Tuesday, March 30, 2021
OPEC+ poised to extend cuts. Saudi Arabia wants OPEC+ cuts extended through June. Russia, the leader of the non-OPEC group in OPEC+, favors a rollover of the alliance's oil production cuts while seeking a slight increase for itself to meet higher seasonal demand.
Total evacuates staff from Mozambique. Total /zigman2/quotes/201824152/composite TOT +3.79% and other international contractors evacuated some staff from Mozambique over the weekend as insurgents advanced to the coastal town of Palma, a hub for the country's nascent LNG industry. Total's $20 billion project is the largest foreign investment on the African continent but now appears to be at grave risk.
Iran and China sign an economic and security agreement. Iran and China signed a wide-ranging economic and security agreement, billed as a "strategic partnership" that will last 25 years. Details remain sparse, but the move likely paves the way for more Chinese investment in Iran's oil sector and also open up more room for exports. The WSJ also says that the two countries could set up a joint bank that would help Iran evade U.S. sanctions. Reuters reports that Iranian oil exports are expected to continue to rise in March.
Sinopec to ramp up hydrogen investment. Sinopec, the largest oil refiner in Asia, announced plans to shift towards carbon neutrality by 2050, a plan that leans heavily on hydrogen.
Abu Dhabi debuts Murban contract. Abu Dhabi allowed trading in its futures contract, Murban, on the Intercontinental Exchange (ICE). The move is aimed at bolstering the emirate as an international oil trading hub.