- Oil trades higher as Russia bans fuel exports, escalating supply concerns
- November ’23 WTI gains 90c this morning to trade around $90.53/Bbl
- Russia, the largest exporter of diesel, has halted gasoline and diesel exports to stabilize its domestic fuel market ahead of winter
- Russia has exported more than 1 MMBbl/d of diesel-type fuel so far this year, and how deep the ban’s impact will be depends on how long it lasts (BBG)
- China’s onshore crude inventories have been drawn down over the past three weeks to 1.1 billion Bbls, marking the lowest since mid-June, according to satellite intelligence firm Ursa (BBG))
- The Fed signaled rates will stay higher for longer, boosting the dollar to a six-month high and weighing on dollar-denominated commodities
- Judge orders Biden administration to expand Gulf oil lease sale (Bloomberg)
- Federal judge orders the Department of the Interior to extend Gulf of Mexico oil lease sales slated for later this month
- The ruling highlights the Bureau of Ocean Energy Management's inability to justify territory reductions and impose traffic limits on vessels meant to protect endangered whales
- A Louisiana-based judge highlighted potential state losses of up to $2.2 million in royalties, leading to the decision
- Oil and gas exploration activity climbing, says Woodmac
- Conversations with leading E&P companies and recent licensing indicate a sustained appetite for wildcatting in the oil & gas sector, said Woodmac in its recent Sept 21 report
- Exploration spending is recovering and is estimated to average US$22 billion annually from 2023-2027, closely aligning with spending levels seen before the 2006-2014 boom
- Several factors, including the post-Ukraine war political shifts, attractive economics, new exploration regions, and strong company financials, are propelling oil & gas exploration investments
- However, challenges like limited high-quality prospects, fewer specialized explorers, personnel shortages, and supply chain costs could curtail this momentum