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Oil prices fall after news of US reserves release


Jhe energy sector is set to start the last trading day of the quarter lower, following a drop in crude prices as major equity futures were flat. In addition to a major SPR release, OPEC+ just announced that it will stick to existing plans for modest increases in oil production in May.

Meanwhile, futures fell more than 5% following news that the United States plans to release 180 million barrels of its strategic oil reserve, the largest in nearly 50 years of RPD history. The record release of SPR oil is equivalent to two days of global demand and would hit the market for several months, four US sources said on Wednesday, as the White House tries to lower fuel prices. In response to the news, Goldman Sachs analysts said the move would help the oil market rebalance in 2022, but was not a permanent fix. IEA member countries are due to meet on Friday to decide on a possible collective oil release, a spokesman for New Zealand’s energy minister said on Thursday.

Natural gas futures fell, under pressure from a sell-off in the crude oil complex and forecasts of warmer weather and weaker-than-expected demand.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

No significant news.

INTERNATIONAL INTEGRATED

Shearwater GeoServices Holding AS has announced the award of a large 4D ocean floor node reference project by Equine. The two-month survey covers the Krafla, Askja and Sentral fields in the Norwegian North Sea.

Petrobras has reached an agreement to settle four contract disputes with the Novonor conglomerate, the Brazilian state oil company said.

Petrobras said a Rio de Janeiro state court ruled against the state-owned oil company in a case brought by drilling contractor Paragon Offshore Nederland BV.

Reuters indicated that PetroRio SA is close to agreeing on the terms of purchase of the Albacora Leste field from Petrobraseven if the talks around the nearby Albacora field are proving more complex.

Petrobras said a Rio de Janeiro state court ruled against the state-owned oil company in a case brought by drilling contractor Paragon Offshore Nederland BV.

Brazil’s Treasury Secretary Paulo Valle said the change in state oil company from Petrobras the leadership makes no change to the position of the Ministry of Economy on measures to reduce high fuel prices.

According to Reuters, Repsol proposed dividend and capital reduction: propose a dividend of €0.33 gross per share with payment scheduled for July 7; propose a dividend of €0.325 gross per share charged to free reserves, the distribution of which is scheduled for January 2023; to propose a capital reduction of a maximum amount of 75 million euros, by buying back a maximum of 75 million of the company’s own shares; to propose a capital reduction of a maximum amount of 152.7 million euros, equal to 10% of the share capital, by buying back a maximum of 152.7 million of the company’s own shares.

Sempra and TotalEnergies announced that Sempra Infrastructure, a subsidiary of Sempra, and TotalEnergies are expanding their North American strategic alliance through two memorandums of understanding: one for the Vista Pacífico LNG project proposed by Sempra Infrastructure in Mexico; and a second memorandum of understanding for a proposed offshore wind project in California being developed by TotalEnergies, as well as other renewable energy and energy storage projects being developed by Sempra Infrastructure in northern Mexico .

CANADIAN INTEGRATED

Suncor Energy said it extinguished a fire at its 146,000 barrel-per-day Edmonton refinery in Alberta, Canada that broke out in the morning and caused an injury.

E&PS United States

Improved Mizuho PAA buy from neutral.

CANADIAN E&PS

No significant news.

OIL SERVICES

hugue baker won a contract with TERNA, the construction arm of the GEK TERNA Group, for the supply of gas turbines and compressors that can operate on a mixture of natural gas and hydrogen for a new compressor station of the Greek transport system of natural gas. The compressor station will be used for domestic gas supply in Greece.

Modernized Wells Fargo hugue baker overweight of equal weight.

Granite announced that it has been awarded a major road improvement project by the city of Chandler, Arizona. The approximately $20 million prize will be funded by the federal government and administered by the city. This is the largest contract to date for Granite’s new Phoenix-area office and will improve road safety and features along Chandler Heights Road from McQueen Road to Gilbert Road. The price is expected to be included in Granite’s first quarter CAP.

Wells Fargo downgraded Liberty Oilfield Services equal weight of overweight.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

US stock index futures were little changed. European stocks slid in choppy trade as oil stocks tumbled. The Japanese Nikkei ended lower and posted its worst quarter in two years. The dollar index was up, while gold prices were in the red.


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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