US natural gas drillers will increase output in 2025, reversing a year-long cut
The U.S. Natural Gas producers will increase output in 2025 after a series production cuts this past year. Rising demand from LNG export plants should raise prices, which had dropped to multi-decade lows. According to the latest U.S. Energy Information Administration outlook, U.S. natural gas production will decline in 2024, for the first drop since 2020 when the COVID epidemic reduced demand. After the average monthly spot price at the U.S. Henry hub benchmark, drillers started cutting back on gas production.
French and Benelux stocks - Factors to watch in November
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. The Delen family and Belgian holding company extended their historic shareholder agreements by 25 years. French cybersecurity company CD&R said that Permira and CD&R had received all the regulatory clearances needed for the proposed acquisition of the majority stake in the firm. French semiconductor materials provider reported a 16 percent drop in sales for the first half of the year…
TC Energy expects higher core profit in 2025 on natgas and electricity demand
TC Energy announced on Tuesday that it expects its core profit in 2025 to be between C$10.7 and C$10.9 Billion, higher than the C$9.9 to C$10.1 Billion forecast for 2024. This is due to an increase in demand for electricity and natural gas. In its most recent short-term energy outlook report, the U.S. Energy Information Administration predicted that gas consumption in the United States would reach a new record of 90 billion cubic feet (bcfd), in 2024. In 2025 the consumption will be lower, but still higher than its previous record of 89.1 billion cubic feet per day in 2023.
Euro Oil Giants Rethink Renewable Balance
Almost five years ago, BP embarked on an ambitious attempt to transform itself from an oil company into a business focused on low-carbon power. The British company is now trying to return to its roots as a big oil and gas player with a growth story to match rivals, revive its share price and allay investor concerns over future profits.Rivals Shell and Norway's state-controlled Equinor are also scaling back energy transition plans set out earlier this decade. Their change of…
Baker Hughes: US drillers reduce oil and gas rigs in the US for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. oil and gas companies have cut back on the number of oil rigs for the first time since four weeks. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending Nov. 15 to 584, the lowest level since early September. This is a reduction of 34 rigs, or 6% from the same time last year. Baker Hughes reported that oil rigs dropped by one this week to 478. This is their lowest level since the week of July 19. Gas rigs were also down by one, to 101.
Moody's lowers Mexico's outlook to negative due to institutional weakness
Moody's Ratings lowered Mexico's outlook from stable to negative on Thursday. The major credit rating agency cited institutional and policy weakness that could undermine the economy, as well as government finances. Moody's said that the reform of the judiciary could be a threat to the economy and fiscal strength. In a press release, the company also mentioned "contingent liability" arising from Pemex, a heavily indebted oil company owned by the state. This could complicate government's financial statements.
EIA increases US and global oil production estimates by a small amount
The U.S. Energy Information Administration announced on Wednesday that both U.S. oil production and global oil output are expected to reach record highs in this year, slightly higher than previous forecasts. Oil prices have fallen to their lowest level since 2021 despite the Organization of the Petroleum Exporting Countries (OPEC+) and its allies cutting production. The EIA reported that the U.S. oil production is expected to reach an average of 13.23 million barrels a day (bpd), which is about 300,000 more than last year's 12.93 million bpd record. The EIA had earlier predicted that U.S.
EIA says that US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration stated in its Wednesday Short Term Energy Outlook that the U.S. will reach record levels of power consumption in 2024-2025. EIA projects that the demand for electricity will increase to 4,090 kilowatt hours in 2024, and 4,158 kWh in 2020. This compares to 4,012 billion kWh by 2023, and a record of 4,067 in 2022. EIA predicted that by 2024, residential customers would purchase 1,492 billions of kWh, commercial customers 1,426 billions kWh, and industrial customers 1,027 billions kWh.
Germany prohibits oil companies from using previous emission credits to support the biofuel industry
German cabinet approved Wednesday reforms that will prevent oil companies from transferring excess credits for emissions reductions. This is a move to boost the biofuels industry, which has been hit hard by the rapid drop in carbon prices over recent years. According to the current law, oil companies are required to reduce their carbon footprint of their fuels gradually, with an aim of reaching a reduction of 25% by 2030 from 9,35% currently. These goals can be met by companies using green hydrogen, advanced biofuels and synthetic fuels.
German chemical lobby VCI reduces its 2024 forecast amid political turmoil
The German chemicals industry association VCI lowered their annual forecasts on Wednesday, citing the economic stagnation in Germany and political turmoil. The association, which represents 1,900 companies within Germany's third largest industrial sector, is expecting production volumes, including pharmaceuticals, to increase by just 2% in this year. This is a significant drop from the 3,5% growth it predicted for nearly six months. It is expecting industrial sales to fall by 2% compared to the 1.5% increase previously predicted.
RWE buys back $1.6 billion in shares as the outlook for US offshore wind and hydrogen worsens
RWE, Germany’s largest utility, announced on Tuesday that it would purchase up to 1,5 billion euros ($1.6billion) in shares. The company cited weakening prospects in Europe for hydrogen and offshore wind, in response to Donald Trump’s election win. RWE has also bowed to investor pressure by launching a buyback that will begin in the fourth quarter of this year and last for 18 months. This is due to the fact that clean energy projects are not generating the returns they should.
Baker Hughes: US Rig Count Remains Steady
U.S. energy firms this week kept the number of oil and natural gas rigs operating unchanged for a record third week in a row, according to energy services firm Baker Hughes' data going back to 1987.The oil and gas rig count, an early indicator of future output, was steady at 585 in the week to Nov. 8, Baker Hughes said on Friday. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year. Baker Hughes said oil rigs held at 479 this week,…
Australia's HESTA puts MinRes's governance problems on a watchlist; Moody's lowers outlook
HESTA, an Australian superannuation funds said that it had placed Mineral Resources in its watch list on Friday. It cited disappointment at the company's lack of response to issues surrounding billionaire founder Chris Ellison. As of 0055 GMT, shares of the company had fallen as much as 2,5% to A$40.610. Since the MinRes internal investigation concluded on Monday, over 7% of market value has been wiped off by this news. The diversified miner announced earlier this week that…
Commodities Weigh Trump Win, Tariff Threats
Commodities reacted with trepidation to the election of Donald Trump to a second term as U.S. President, with most losing ground over fears the global economy will be hit by a new tariff war.The downbeat reaction was in stark contrast to U.S. equities, which surged to record highs amid optimism that Trump's agenda of lower taxes will boost growth, at least in the United States.The contrasting response to Trump's victory over Democrat nominee and now outgoing U.S. Vice President…
Commodities fall amid increased risks of Trump's second-term: Russell
Commodities have reacted to Donald Trump's election to a second U.S. term with fear, and most are losing ground due to fears that a new trade war will hit the global economy. The negative reaction contrasted sharply with the record-breaking performance of U.S. stocks, which rose to new highs amid optimism about Trump's tax cut agenda, at least for the United States. The contrasting reaction to Trump's win over Democrat nominee, and now departing U.S. vice president Kamala Harris, showed why it is difficult to predict the impact of Trump's return as the White House.
Oil hedging activity reaches record levels in October as traders take on market risks
Oil futures and option trading reached record levels during October as investors sought to hedge against the growing uncertainty caused by the ongoing war in the Middle East, and an upcoming bearish supply and demand forecast for 2025. This led to big swings in oil prices. By locking in an oil price, hedging can protect producers from market volatility and reduce their risk. This can give traders the opportunity to make money during volatile times. According to the Intercontinental Exchange, 68.44 millions barrels of crude oil were traded as futures and options in October.
The price of VEGOILS - Palm has fallen due to profit taking before the GAPKI conference
Malaysian palm futures declined on Tuesday, after four sessions of gains. Profit taking was a factor in the decline. This is due to profit-taking ahead of the Indonesian Palm Oil Association's (GAPKI), which will be held later this week. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had fallen 41 ringgit or 0.84% to 4,850 Ringgit ($1,110.86). Profit-taking is evident today, just before the GAPKI Conference. "Palm's fundamentals are relatively stable," says Paramalingam Supramaniam of Selangor-based brokerage Pelindung Bestari.
TotalEnergies executive: Trump unlikely to undo Biden’s IRA climate law
TotalEnergies, a French oil company, does not believe Donald Trump will pull the U.S. from the Paris Agreement to combat climate change and undo the Inflation Reduction Act legislation if he becomes president of the United States again. This was stated by the strategy director on Monday. Aurelien Hamelle said this while presenting Total’s energy outlook, which forecasts global demand scenarios up to 2050. The current trends scenario of the company does not also project a lifting by the U.S. government of its current ban on new LNG export facilities.
Linde is optimistic about clean energy projects despite reducing its full-year outlook
Linde, world's biggest industrial gas company, announced on Thursday that it is confident in its clean energy projects, despite reducing its full-year outlook due to a decline in the end markets, including mining, metals, and healthcare. Sanjiv Lamba, CEO of Sanjiv Lamba Technologies said in a conference call that he was "pretty confident" about the 8-10 billion dollars for investments in hydrogen over the next several years. Linde announced in August that it would invest over $2 billion to build an environmentally friendly hydrogen facility for Dow's Path2Zero complex in Canada.
Budgets for UK mid-caps are boosted by pubs, builders and bookies
The UK midcap stocks rose on Wednesday, as investors deemed that the first UK budget of the new Labour government was less punitive than they had feared. Mid-cap shares outperformed blue-chip stocks, even though UK Finance Minister Rachel Reeves had announced a number of new tax increases to the tune 40 billion pounds per year. These would mostly impact businesses. "UK Chancellor Rachel Reeves delivered a fair but tough budget. Much of it was expected because the leaks to the market were already known," said Adrian Gosden.
