Oil prices settled higher Friday but fell around 4% for the week, their second straight weekly loss. In late-morning trading today, WTI futures were up 5.9% at $110.90/bbl, Brent was up 6.6% at $115.00/bbl and U.S. natural gas was up 0.6% at $4.90/MMBtu.
OPEC+ production fell short of targets by 1 million bpd last month, even greater than January’s underproduction.
The global oil market is set for a 700,000-bpd supply deficit in the second quarter, the International Energy Agency said. The group cut its demand forecast by over 1 million bpd for the rest of the year and said consumers in advanced economies should travel less, drive slower and use more public transport to cut down on usage.
Russia’s top gas supplier Gazprom has not booked any space to send natural gas to Germany via the Yamal-Europe pipeline for the month. The supplier is also keeping its current gas transit volumes through Ukraine for April, failing to offer any additional capacity for the nation.
The U.S. Gulf Coast will see LNG plant construction accelerate in the coming months, with five projects approved in Louisiana and another seven in Texas and Mississippi.
American energy producer Venture Global LNG struck supply deals that will make it one of China’s largest sources of LNG.
U.S. oil exports to India are expected to rise some 11% this year, reports say.
Saudi Aramco’s net profit more than doubled to $110 billion in 2021, the highest since its shares began trading publicly in 2019. The company pledged to hike investments by around 50% this year toward sharply increasing crude and gas production by the end of the decade.
Canadian oil sands producers are set to increase free cash flow by over 60% this year as high oil prices offset heavy upfront investments made years ago.
Throughput at the Port of Los Angeles hit a record 857,764 TEUs in February, up 7.3% from the same time last year. February volumes at the Port of Long Beach rose 3.2% from last year after hitting an all-time high the previous month.
More than 35 ships are waiting to dock in Shenzhen and another 30 are waiting further north in Qingdao, as on-land backups — including warehouse closures and frequent COVID-19 screenings for truckers — slow the movement of cargo in major trade hubs.
U.S. diesel prices averaged a record-high $5.25 per gallon last week, up 40¢ from the previous week and $1 from two weeks earlier.
U.S. rail carloads were up an annual 3.2% and intermodal units were down an annual 7.2% for the first 10 weeks of the year, according to the Association of American Railroads.
Demand for smaller bulk-size carriers could drop after Russia’s ban on certain exports punctures 15% of global trade in fertilizers, among other implications. The Green Markets North American Fertilizer Price Index has doubled in the last 12 months to a new record.
Agricultural firms, such as Cargill Inc., Bayer AG and Archer Daniels Midland, have opted to continue their operations in Russia due to humanitarian concerns regarding food availability for residents of the nation and other countries.
Hong Kong is easing its zero-tolerance stance against COVID-19, restoring some flights, and reducing quarantine requirements and other restrictions in the face of stiff opposition from businesses and citizens. Nearly 23,000 residents left the city last week to escape the lockdown.
South Korea reported 209,169 new COVID-19 infections Monday, down from a record 621,281 reported Thursday, though the fall in cases is likely attributed to less testing over the weekend, sparking concerns that infections rates could quickly rise again.
Vietnam announced plans to reopen its borders with minimal restrictions compared with the rest of Southeast Asia, requiring air travelers to provide a negative COVID-19 test but not quarantine or show proof of vaccination.