London's FTSE 100 ends lower in a shortened Christmas Eve Session
Investors trimmed positions in pharma giants AstraZeneca & GSK in a shortened Christmas Eve session. The UK's blue chip FTSE 100 'closed down' 0.2% and moved sideways after hitting a 5-week high last 'week, following the Bank of England rate cut of 25 basis points. AstraZeneca dropped by about 0.5% and GSK fell by about 0.5%. The FTSE 250 midcap index, which is primarily focused on domestic companies, was down 0.07% but still managed to notch up its second consecutive weekly gain. As many markets were closed or operating with reduced hours on Christmas Eve, trading volumes were low.
Engineers say that Iraq's gas supply from Iran, which was halted for a while, is expected to resume within a week.
An?engineer from the?electricity ministry said on Wednesday that Iraq's gas supply from Iran should resume within a few days. The electricity ministry announced on Tuesday that gas flow from Iran has been stopped due to the shutting down of some generators and the reduction of load in others. As a result, the ministry reported that between 4,000 and 4,500 megawatts have been lost in?the electric system. Iran provides between a third and 40 percent of Iraq's power and gas needs. Two officials from the ministry of electricity said that Iran had not provided a timetable for the resumption of gas supplies to Iraq.
EUROPE GAS - European prices rise on cold weather forecasts
The Dutch and British gas contract prices rose a little on Wednesday morning amid thin trading before a long Christmas holiday. Forecasts of a cold snap are expected to increase demand. LSEG data showed that the benchmark Dutch front-month contract was 28.20 euros per megawatt hour or $9.75/mmBtu at 1021 GMT. This is an increase of 0.42 euros. The Dutch contract for February was 0.30 euros higher at 27.90 euros/MWh. The British day-ahead contract for gas was 3.55 pence more expensive?at 75.00 pence per therm. Riccardo Paraviero, LSEG analyst, said that the outlook for Christmas this year is bullish.
FTSE 100 ticks down in shortened Christmas Eve Session
The FTSE 100 dipped on Wednesday as gains in homebuilders were offset by losses in healthcare during a shortened Christmas Eve session. The UK blue-chip FTSE 100 fell?0.1% to 0936 GMT. It has been trading in a sideways fashion since hitting a five-week-high?last Thursday following the Bank of England’s 25 basis-point rate cut. The midcap FTSE 250 index, which is focused on domestic companies, was up 0.07% for its second straight week of gains. As many markets will be closed or working with reduced hours on Christmas Eve, trading volumes are expected to remain low. The London Stock Exchange will close at 1230 GMT, on Wednesday.
Russia builds its first LNG tanker of the ice class and plans to build two more by 2026
Interfax, citing the CEO of the company, reported that 'Russia's leading tanker group Sovcomflot' received its first Russian-built Ice-class tanker built for liquefied gas from Zvezda Shipyard. It plans to order two more in the next year. Due to Ukraine-related sanction, Russia has difficulty in securing gas carriers. This is especially true for vessels that can?cut through thick Arctic ice?and serve LNG projects. Zvezda is Russia's most advanced shipbuilding facility. It specializes in building large?Arc7 tankers capable of breaking through up to 2 meter thick ice. These vessels were designed to transport LNG for Arctic projects.
WSJ reports that BP is close to selling its majority Castrol stakes to Stonepeak
The Wall Street Journal reported on Tuesday that BP was close to selling a majority of Castrol's shares to Stonepeak, an investment firm. This deal values BP's lubricants division at $10 billion including debt. The report cited people familiar with this matter as saying that London-listed BP will sell a 65% share in its Castrol division to Stonepeak for approximately $6 billion. Financial Times reported on the matter, citing sources. It also stated that BP would retain a minor stake in a joint-venture, valuing its century-old lubricants 'and engine oil business at around $10 billion. BP and Stonepeak didn't immediately respond to our requests for comment.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 3 weeks.
Energy services firm Baker Hughes said that U.S. firms added oil and gas rigs this week for the first time in 3 weeks. The number of oil and gas rigs, a good indicator of future production, increased by three in the week ending December 23. Baker Hughes has released its rig count report several days earlier than usual due to the Christmas Day holidays. Baker Hughes reported that despite this week's increase in rigs, the total count is still down by 44 rigs since?this time last. This represents a 7.5% decline. Baker Hughes reported that the number of oil drilling rigs rose by three this week to 409, while gas drilling rigs remained unchanged at 127.
EUROPE GAS - European prices drop on less cold weather forecast
The Dutch and British gas contract fell on Tuesday, as some weather forecasts indicated a potential?quicker ending to a winter cold spell? and that the supply remains stable. LSEG data shows that the benchmark Dutch front-month contracts at?the TTF hub were down 0.41 euros at 27.36 Euro per megawatt hour or $9.47/mmBtu by 1005 GMT. The Dutch day-ahead contracts was down by 0.38 euros at 27.27 Euro/MWh. The British gas front-month contract was 1.55 cents lower at 72.00 pence per thermo. Saku Jussila, LSEG analyst and a member of the European Centre for Medium-Range Weather Forecasts Ensembles…
Norway's oil and gas production in November beats expectations
Norwegian Offshore Directorate (NOD), a government agency, announced on Tuesday that Norway's combined oil and gas production in November exceeded an official forecast by 0.9%. Norway is Europe's biggest supplier of natural gases and oil. However, output can vary from one month to the next depending on maintenance and other stops at close to 100 offshore fields. The total oil, gas, liquids, and condensate output in November was 0.694 standard cubic metres, which is equivalent to 4,37 million barrels of oil equivalence. This represents an increase of 0.9% on the previous year.
Analyst: Myanmar to resume LNG imports following cargo received last month
Myanmar will resume LNG imports in 2019 after receiving half of a cargo of the super-chilled fuel last month. This marks an end to a four-year-long hiatus of shipments. After the civil war, shipments of LNG to Southeast Asia were stopped. Since then, Myanmar has experienced gas shortages and widespread blackouts. Analyst Nelson Xiong said that Kpler expected Myanmar to import 0.4 millions tons of LNG by 2026. Two'restarted' or upgraded LNG to power projects will ramp up to a total 500 megawatts. According to Kpler?data the Dapeng Princess Tanker picked up LNG from the Bintulu LNG Plant in East Malaysia?on 11/12/11 before delivering it the Thilawa FSU?in the south of Myanmar.
FEATURE-AI data explosion in Mexico fuels rise of dirty energy
The country's power infrastructure is overloaded and pollution has increased due to the shortfall in green power, despite promises by government and industry to increase capacity. The data centers are huge warehouses that are the size of Olympic stadiums. They sprawl over industrial parks and house hundreds of servers, which consume a lot of energy. These servers power the most powerful technology companies, like Microsoft, Google, and Amazon. The report stated that while Microsoft waits for the connection to Mexico's struggling power grid, it uses seven natural gas generators to provide 10.5 megawatts per year.
AI data explosion in Mexico fuels growth in dirty energy
The lack of green power, despite promises by government and industry to increase capacity, has overloaded and increased local pollution. Masheika Allgood is the founder of AllAI Consulting. She provides information on data center environmental impacts. The data centers are huge warehouses that are the size of Olympic stadiums. They sprawl over industrial parks and house hundreds of servers, which consume a lot of energy. These servers power the most powerful technology companies, including Microsoft, Google, and Amazon. The report stated that while Microsoft waits for the connection to Mexico's struggling power grid…
Bousso: The geopolitical premium of oil in the ROI vanished by 2025 and is unlikely to return.
In 2025, the global oil markets were faced with multiple black swans events - such as the Israel-Iran War and Ukrainian attacks on Russian refiners. Yet they were barely affected. In an era when energy is abundant, this calm could be the new norm. The year 2025, by any measure, was chaotic in geopolitics, with President Donald Trump's return to his White House and his flurry of trade, diplomatic and policy initiatives dominating the year. On June 12, Israel attacked military, government, and nuclear sites in Iran. This was a pivotal moment for the?energy?markets. On June 22, the U.S.
The LNG tanker Kunpeng loads cargo at a Russian plant in violation of sanctions
Ship-tracking data showed that a liquefied gas tanker loaded a cargo at Russia's Portovaya?LNG plant, which is under Western sanctions due to Moscow's conflict in Ukraine. According to data provided by analytics firm Kpler, the Kunpeng arrived in Portovaya's LNG terminal on December 18, was unloaded on that day and left with a cargo of natural gas on December 21. LSEG data shows that the tanker arrived and left the terminal at the same dates. It is the first time that a vessel, Kunpeng, not subject to sanctions, has picked up LNG from a designated LNG project. Kpler data shows that until last year the Kunpeng mostly delivered LNG from Australia and Qatar to South Korea.
Prices of EUROPE Gases ease due to ample supply and cold weather forecast
Dutch and British wholesale prices of gas fell on Monday morning, due to the 'ample supply' from Norway and liquefied natural gas. Prices moved within a narrow band in a thinly traded market ahead of the public holiday Christmas later in the week. LSEG data shows that the benchmark Dutch front-month contract was lower by 0.25 euros, at 27.95 Euros per?megawatt hours, or $9.61 Per mmBtu at 0921 GMT. The Dutch February price fell by 0.18 euros to 27.70 euros per megawatt hour. The British 'day-ahead' contract fell by 1.00 pence to 72.25 per therm. All market participants, including investment funds seem to be waiting and watching.
Bousso: The geopolitical premium of oil in the ROI vanished by 2025 and is unlikely to return.
In 2025, the global oil markets were faced with multiple black swans events - such as the Israel-Iran War and Ukrainian attacks on Russian refineries - but they were not fazed. In an age of abundant energy, this calm could be the new norm. The year 2025 will be remembered as a geopolitical chaos, due to President Donald Trump's return in January, and his frenzy of trade, policy and diplomatic initiatives. On June 12, Israel bombed Iranian military, government, and nuclear sites. This was a pivotal moment in the energy market. On June 22, the U.S. also joined in with "Operation Midnight Hammer," which targeted Iran's heavily fortified nuclear installations.
Indonesia invites tenders for the purchase of eight new oil and natural gas blocks
An energy ministry document showed that Indonesia offered 'eight new blocks' to contractors on Monday as part of its efforts to increase the energy reserves. Indonesia's oil and gas production has declined over the last decade because reserves have been depleted. The government has promised to offer dozens new blocks to reverse this trend in the coming years. The Energy and Mineral Resources Ministry has announced that it will be accepting bids until February 5, 2026 for the Tapah, Nawasena and Mabelo Blocks. In a livestreamed event, Laode Sulaeman…
Australia requires LNG exporters to retain a minimum for the home market
Australia's new scheme will require exporters of liquefied?gas to keep up to 25% of their output for domestic use. The plan was announced on Monday in an effort to curb price spikes and fill a supply gap that has been predicted. The government of Anthony Albanese, a centre-left Prime Minister, said that it would work closely with exporters to create a system which limits the amount of domestic gas. A minimum allocation at local level is between 15 and 25 percent. The government announced the number of a policy that it had flagged for 2025, amid warnings of a gas shortage on Australia's east coast where 27 million people live.
Australian regulator expects a balanced gas market on the east coast in Q2; South will rely on Queensland
Australia's east-coast gas market will be in balance by the second quarter of 2026. Southern states are likely to rely heavily on?gas stored in Queensland and surpluses from Queensland to meet demand, according to the competition regulator. According to the Australian Competition and Consumer Commission's (ACCC) latest gas inquiry report, the east coast market will have a balance between supply and demand of 15 petajoules (PJ) and an 8 PJ deficit in the second quarter 2026. The'southern states' are also expected to require an extra 26 PJ over the same period. The gap between the gas supply and demand from southern sources has widened over recent years.
Baker Hughes reports that US drillers have cut their oil and gas rigs a second time in a week.
Baker Hughes, an energy services company, said that the U.S. firms have cut back on the number of oil and gas rigs for a second consecutive week for the first time since August. The number of oil and gas rigs, a good indicator of future production, dropped by six in the week ending December 19. This is the lowest since September. Baker Hughes reported that oil rigs dropped by eight this week to 406; their lowest level since September 2021. Gas rigs remained at 127, and miscellaneous?rigs increased by two to 9. Oil and gas rig counts are expected to decline by 5% in 2024, and by 20% in 2023. This is because lower U.S.