 Energized MorningSponsored by Oil 101.July 19, 2024Morning Reader,! Well, this weekend is one for the books, and perhaps Monday should just be put on hold while we digest it. Friday started things off as a global IT nightmare that highlighted our collective vulnerability and we ended up with the unprecedented move by President Biden to step aside from his reelection campaign. It was almost enough to make you forget oil’s 3% drop on Friday and the beating your 401k plan has been taking.It may even lead one to think, like this guy 👇, “I’m out.” KHOU 11 News Houston  @KHOUIt doesn’t get much more Texas than this. A cow was running loose on the Hardy Toll Road yesterday, with wranglers hot on its heels. Full story: https://www.khou.com/article/life/animals/cow-spotted-hardy-toll-road-northgate-crossing-boulevard/285-25e5ca6e-7aa5-49b7-8ed7-f16c6b47f04d Onward we go. What’s in this issue: Energy Markets Recap Biden steps aside China and Philippines cool tensions Other News Crude Oil (Aug)$80.13-2.69-3.25% Natural Gas$2.128+0.003+0.14% Copper$4.2185-.0455-1.07% S&P 5005,505.00-39.59-0.71% Energy Markets  🛢️Oil prices dropped 3.25% on Friday, pushing back towards support levels around $80 and setting up for a move that might break out of the recent range. However, geopolitics taking over from inflation fears as the main concern among investors would historically be supportive for oil (as well as gold at bitcoin).Concerns over weak demand from China and a murky plan to stimulate the economy continue to weigh over the market, offsetting the brief spike from last Wednesday’s EIA report that posted a third week of inventory declines. Most analysts also expect the upcoming OPEC+ meeting (Aug 1) to confirm the cartel’s plan to unwind cuts in quotas. 🔥Natural gas prices continue to drift higher in the wake of a precipitous decline over the last month. While the US continues to bake in hot temps and power demand is constantly pushing up against records, it isn’t enough to offset a market with inventories sitting above 5 year averages.Sponsored by Oil 101  Oil 101 is the trusted onboarding program for energy new hires. Developed by industry experts who love to train with over a decade of feedback from corporate clients. This same content is available to individuals to prepare for interviews and fast-track their careers.Learn More About Oil 101 Today →Biden Steps Aside We could talk about oil prices and last weeks tech meltdown all we want, but really there is no bigger headline than Joe Biden stepping aside from his reelection campaign.While he has endorsed VP Kamala Harris, the process for nominating his replacement will have to play out. +Joe Biden Drops Out of Presidential Race, Endorses Harris — Latest Updates – WSJ From a market perspective, it has led to speculation that this might mean a pause in the Trump trade (long domestic small-caps, short bonds) that has been in force since Biden’s disastrous debate. China and Philippines Cool The Jets With all of the tense news lately, I thought I’d point out one geopolitical note that took a cooler twist (and put a picture of a panda above it).In 1999, the Philippines beached a ship, the Sierra Madre, on the Second Thomas Shoal in the South China Sea to station marines there and reinforce its claim on their exclusive economic zone (EEZ). The shoal rests within the Philippine’s EEZ, but China claims all of the South China Sea as its own.Supplying the ship has become a flashpoint for conflict with China’s navy ramming and even boarding Philippine vessels. As the FT reports: “If the agreement is confirmed and holds, it could help defuse a more than year-long spiral of violence in which China’s coast guard has disrupted trips by vessels commissioned by the Philippine armed forces to send supplies to the small group of marines stationed on the reef.” However, most observers aren’t holding their breath that this will be a long-lasting peace. Other News “The Driftwood LNG project has seen many setbacks, including the cancellation of some LNG supply deals amid concerns over the company’s ability to finish the project.Woodside said it is aiming for the project to be ready for a final investment decision for Phase 1 by the first quarter of fiscal year 2025.” +Australia’s Woodside Energy to buy US LNG developer Tellurian for $1.2 billion – Reuters “People used to call us drunken sailors,” said Steve Pruett, chief executive of the oil and gas producer Elevation Resources, which is based in Midland, Texas, an industry hub in the Permian Basin. “Hopefully we’re shaking off that reputation now.” +Why Is the Oil Industry Booming? – NYT ”Between January and June, Azerbaijan exported 6.4 bcm of gas to EU countries, about a quarter of its total production, according to Azeri government figures. Over the past three years Azerbaijan has increased its gas flows to the EU by 12 per cent.” +Azerbaijan hits out at EU for failing to agree long-term gas deals – FT Economic Calendar Wednesday – Weekly Crude Oil Storage Report Thursday – Weekly Natural Gas Storage Report, August 1 – OPEC+ ministers meet Drop The KnowledgeThanks for reading Energized! Be sure forward this email to any friends and colleagues that you think would enjoy it. |
