Crude retreats as interest rate hikes fuel fears of economic slowdown


The energy sector is poised for a mixed-to-higher start, supported by strength in major equity indices and despite weakness in underlying commodities. U.S. stock index futures rebounded from a sharp selloff on Wall Street this week after the Federal Reserve’s biggest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession . Today is the Quadruple Witching, the expiration of stock and index futures and options, as well as a quarterly rebalancing of the S&P indices that has the potential to add further volatility to equity markets.

WTI and Brent fell slightly as interest rate hikes by major central banks fueled concerns of a sharp economic slowdown. US Energy Secretary Jennifer Granholm has called an emergency meeting with refining executives for next week as tensions between the Biden administration and Big Oil mount over soaring oil prices. essence. The planned talks come as President Joe Biden, under pressure from record gasoline prices with inflation a major issue for voters ahead of the hotly contested November election, demanded that oil refining companies explain why they don’t put more fuel on the market while they reap windfall profits. The United States has imposed sanctions on Chinese and Emirati companies and a network of Iranian companies that help export Iranian petrochemicals, a move that could pressure Tehran to revive the 2015 Iran nuclear deal. Treasury said it imposed sanctions on two companies based in Hong Kong, three in Iran and four in the United Arab Emirates.

Natural gas is down in early trading as NOAA’s 6-10 day outlook shows above normal temperatures across much of the United States, including California and NV, and in the US. east of the Rockies, especially in the southeast. Below average temperatures are forecast for the NW and ME Pacific. Near normal temperatures are likely in the Four Corners region.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

Bloomberg reported that Chevron plans to spend about $2.5 billion to grow its hydrogen business this decade as the oil major ramps up investment in low-carbon technologies.

INTERNATIONAL INTEGRATED

Eni said it would receive only half of the gas supply volumes it requested from Russia’s Gazprom on Friday after running into a shortfall for the previous two days.

Equine and its partners Petoro, TotalEnergies, Shell and Conoco Phillips in the Troll and Oseberg fields, have launched a study and are investigating possible options for the construction of a floating offshore wind farm in the Troll area, some 65 kilometers west of Bergen, Norway. With an installed capacity of around ~1 GW and an annual production of ~4.3 TWh, starting in 2027, Trollvind could provide much of the electricity needed to operate the offshore Troll and Oseberg fields via a single point. ground connection.

JPMorgan upgraded Equine to neutral from underweight.

Reuters reported that Petrobras is expected to announce a fuel price increase on Friday, local media reported.

CANADIAN INTEGRATED

No significant news.

E&PS United States

In a letter to the United States Securities and Exchange Commission (SEC), CNX Resourcesprovides insights to the agency on behalf of business stakeholders. As a leader in corporate responsibility – focused on delivering tangible, impactful, and local benefits to business stakeholders – CNX comments on the practical application of the proposed rule with respect to measures accurate, transparent and consistent as well as potential unintended consequences that could have negative effects. have an impact on confidence in the capital markets. The company’s written response reflects three themes to ensure that the proposal is in line with the Commission’s mission to provide standardized and transparent information to investors.

Oil Oasis announced that its Board of Directors has, subject to certain conditions, declared a special dividend of $15.00 per Oasis common share. The special dividend is declared in connection with, and its payment is subject to, the closing of the previously announced merger of Oasis with Whiting Oil.

CANADIAN E&PS

MEG Energy announced that Ryan Kubik will be the Company’s new Chief Financial Officer effective August 1, 2022. Mr. Kubik will succeed Mr. Eric Toews who, as previously announced, plans to retire effective September 1, 2022. More Upon Mr. Kubik’s appointment, Mr. Toews will remain with the Company until September 1, 2022 to ensure a smooth transition.

OIL SERVICES

Granite announced the awarding of two contracts for work on Interstate 5 near Three Rocks, California. The first, an approximately $27 million contract, will rehabilitate the roadway and construct culvert improvements on I-5. The second, a contract worth approximately $11 million, will replace two bridge structures over Tumey Gulch on I-5. Rewards should be included in Granite’s Q2 CAP.

KBR announced the arrival of its commercial cloud and mission services platform in the Federal Risk and Authorization Management Program (FedRAMP) market as FedRAMP Ready.

TechnipFMC was awarded a major contract by TotalEnergies EP Angola will supply subsea production systems for the CLOV3 development in Block 17, offshore Angola.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

Targa Resources and Lucid Energy Group announced a definitive agreement under which a wholly owned subsidiary of Targa will acquire Lucid Energy Delaware, LLC from Riverstone Holdings LLC and Goldman Sachs Asset Management, for $3.55 billion in cash. Targa’s stand-alone financial and operating outlook for 2022 continued to improve given the strength in commodity markets and producer activity levels. The company now estimates full-year standalone adjusted EBITDA to be between $2.675 billion and $2.775 billion and a year-end leverage ratio of approximately 2.7x. Targa’s updated financial forecast assumes composite natural gas liquids prices average $1.05 per gallon, crude oil prices average $100 per barrel, and Waha natural gas prices average $6.00 per million British thermal units for the remainder of 2022.

According SECOND filing, June 15, 2022, SEACOR Marine HoldingsSEACOR Marine Foreign Holdings, a wholly-owned subsidiary of SEACOR Marine, and certain vessel-owning subsidiaries of SEACOR Marine, entered into Amendment No. 4 to this certain $130 million loan facility with a syndicate of lenders administered by DNB Bank ASA, New York Branch, dated September 26, 2018 and as amended August 6, 2019, November 26, 2019, December 13, 2019 and June 29, 2020, and in respect thereof, SEACOR Marine has entered into the Amended Guarantee and updated, dated June 15, 2022, by SEACOR Marine in favor of DNB Bank ASA, New York Branch, as security trustee.

MARKET COMMENTARY

Wall Street futures and European stocks edged higher but expected steep weekly losses as a series of interest rate hikes by major central banks stoked concerns of a sharp economic slowdown. In Asian equity markets, Japan’s Nikkei index posted its biggest weekly decline in more than two years, even as the Bank of Japan maintained its massive stimulus package and provided no nasty surprises. Meanwhile, Chinese stocks ended higher as investors began to see Beijing’s accommodative monetary policy supporting struggling stocks. Gold prices fell, shaken by a stronger dollar. Oil prices rose, supported by tighter supply and new sanctions against Iran.


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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