Crude climbs as supply fears outweigh concerns over further interest rate hikes


The energy sector is poised to start higher, supported by strength in underlying commodities and broader markets. Major stock indexes edged higher ahead of the Federal Reserve’s policy meeting this week and on second-quarter earnings, which will allow investors to gauge the impact of a strong dollar and high inflation.

WTI and Brent crudes are up in early trading as supply fears outweigh worries about future aggressive rate hikes that would put a damper on demand. A weaker dollar combined with gains in broader markets is also adding support to oil futures. EU leaders are set to discuss a revised proposal under which EU countries would cut their gas consumption by 15% from August to March, in a bid to prepare for a winter of uncertain energy supplies . The European Union is expected to strike a deal on Tuesday. A repaired gas turbine will be installed in the Nord Stream 1 gas pipeline once it is returned after maintenance, and natural gas will then be supplied in “corresponding volumes”, a Kremlin spokesman said on Monday. The Nord Stream 1 pipeline has only operated at 40% capacity since it resumed gas flows.

Natural gas futures rose this morning on forecasts of warmer weather and higher than expected demand next week.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

No significant news.

INTERNATIONAL INTEGRATED

The Petroleum Safety Authority Norway (PSA) has given Equine consent for the disposal of the Heidrun DSL1 loading buoy at the Heidrun field.

AKOFS Offshore AS, a 50% subsidiary of Akastor ASA, has signed a firm contract for its vessel “Aker Wayfarer” which will continue to provide services as an underwater equipment support vessel for Petrobras as a customer in Brazil. The duration of the contract is 1,415 days, i.e. almost 4 years, and the services will start in the first half of 2023. AKOFS Offshore will carry out the “Aker Wayfarer” operations jointly with its partners Bravante for marine services and Oceaneering for ROV services. The total value of the contract is approximately $282 million, of which approximately $198 million will be revenue allocated to AKOFS Offshore and included in the company’s backlog.

TotalEnergies, operator OML99 (40%) in partnership with the Nigerian National Petroleum Corporation (NNPC, 60%), announced the start of production from the Ikike field in Nigeria. Located 20 kilometers offshore, at a depth of approximately 20 meters, the Ikike platform is connected to Amenam’s existing offshore facilities by a 14 km multi-phase pipeline. It will reach peak production of 50,000 barrels of oil equivalent per day by the end of 2022.

CANADIAN INTEGRATED

No significant news.

E&PS United States

Scotiabank assumed coverage on Antero Resources with a Sector Perform rating.

Scotiabank resumed coverage on Chesapeake Energy with a Sector Perform rating.

Scotiabank assumed coverage on CNX Resources with a Sector Perform rating.

Scotiabank assumed coverage on EQT with a sector outperformance rating.

Matador Resources announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per common share payable on September 1, 2022 to shareholders of record as of August 17, 2022. In accordance with the Company’s amended dividend policy announced on June 10, 2022 2022, this quarterly dividend of $0.10 per share is double the previous quarterly dividend of $0.05 per share.

Scotiabank assumed coverage on Range Resources with a Sector Perform rating.

Scotiabank assumed coverage on South West Energy with a sector outperformance rating.

CANADIAN E&PS

No significant news.

OIL SERVICES

No significant news.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

TC Energy said on July 23, it safely resumed normal operations of the Keystone Pipeline System.

MARKET COMMENTARY

Wall Street futures rose slightly as markets braced for a Federal Reserve policy meeting later this week and a slew of earnings reports that would likely show the impact of a strong dollar and runaway inflation on American businesses. European stocks rose, after falling earlier on weak German data. Japan’s Nikkei snapped a seven-day winning streak to finish lower. The US dollar depreciated and its main rivals gained ground as risk appetite returned to the currency markets. Gold prices rose slightly. Oil rose as markets juggled a Fed hike and supply fears.


The Nasdaq Advisory Services Energy Team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


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