Oil prices stabilize as expected Russian oil ban from EU balances weak global demand

The energy sector is about to start higher, supported by a slight strength in the underlying commodities and the sign of a strong rise in the main stock indices. U.S. stock index futures advanced as growth stocks of banks and megacaps rose on the final day of a week that saw market volatility amid concerns over the impact of higher inflation and subsequent rate hikes to tame it.

WTI and Brent crude oil futures were largely flat and on track for little change during the week as a planned European ban on Russian oil offset investor concerns over a weakening price. economic growth affecting demand. Asian economies had to choose between supporting growth with more stimulus and withdrawing it to stabilize debt and inflation. China’s crude oil imports from Saudi Arabia, the top supplier, soared 38% in April from a year earlier, reaching the highest monthly volume since May 2020. The large purchases, with transactions concluded mainly in February, compares to 1.61 million bpd in March and 1.57 million bpd a year earlier. The Biden administration will propose a new five-year plan for offshore oil and gas development by June 30, when the current plan expires, Interior Secretary Deb Haaland said. The announcement comes as the administration has come under pressure from Republican lawmakers to expand national drilling to deal with soaring fuel prices. President Joe Biden, however, wants to reform the federal government’s oil and gas program to take into account its impacts on climate change.

Natural gas futures are trading lower as NOAA’s 6-10 day outlook shows near to above normal temperatures across much of the western United States and the High Plains , and near to below normal temperatures for the Pacific Northwest and parts of the MS Central Valley. . Above normal temperatures are observed in the southern plains extending eastward.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

ExxonMobil said it has signed an agreement with subsidiaries of BKV Corporation to sell operated and non-operated Barnett Shale gas assets in Texas for $750 million, with additional payments dependent on future natural gas prices.

INTERNATIONAL INTEGRATED

Equine engaged on February 9, 2022 a third party to effect repurchases of the company’s own shares to be used in the stock incentive programs for employees and management for the period from February 15, 2022 to January 13, 2023. The mandate was the May 20, 2022, and with effect from the same date, amended to reflect that the maximum price that can be paid per share purchased under the buyback program is increased from NOK 500 to NOK 1,000.

Equine announced on February 9, 2022 an ordinary dividend per share of $0.20 and an extraordinary dividend per share of $0.20 for the fourth quarter of 2021. The dividend in NOK per share is based on the average fixing rate in USDNOK of Norges Bank during the period plus/minus three business days from the record date of May 13, 2022, in total seven business days.

South Korea’s third-largest refiner, S-Oil Corp, suspended production at several processing units after an explosion at its Onsan refinery, it said, a move that could tighten oil supply. gasoline and increase refiner margins in Asia. S-Oil, a major exporter of products majority-owned by Saudi Arabiasuspended exits from units in the city of Ulsan as a precaution because they were in close proximity to the resulting fire, the company added in a regulatory filing.

CANADIAN INTEGRATED

No significant news.

E&PS United States

No significant news.

CANADIAN E&PS

No significant news.

OIL SERVICES

Core Laboratories SA announced that it will hold its annual meeting of shareholders on May 19, 2022 in Amsterdam, the Netherlands. During this meeting, the shareholders re-elected Ms. Martha Carnes and Mr. Michael Straughen and elected Ms. Katherine Murray to the Supervisory Board.

Granite announced that it has been awarded the contract for segment five of I-40 Median Fill PM 100-125 in San Bernardino County, California. The approximately $10 million contract was awarded by Caltrans and will be funded by a mix of state and federal sources. The price is expected to be included in Granite’s second quarter CAP.

Halliburton announced that at its annual meeting of shareholders held in Houston, Texas on May 18, 2022, shareholders elected all eleven nominees to the Company’s Board of Directors and ratified the selection of KPMG LLP as lead independent public accountants for 2022. Shareholders elected board members Abdulaziz F. Al Khayyal, William E. Albrecht, M. Katherine Banks, Alan M. Bennett, Milton Carroll, Earl M. Cummins, Murry S. Gerber, Robert A. Malone, Jeffrey A. Miller, Bhavesh V. Patel, and Tobi M. Edwards Young. The advisory resolution on executive compensation was not approved by shareholders. At the meeting of the Board of Directors following the Meeting of Shareholders, the Board declared a second quarter 2022 dividend of twelve cents ($0.12) per share on the common shares of the Company payable June 22, 2022 to shareholders of record at the close of business on June 1, 2022.

KBR announced that its board of directors has declared a regular quarterly dividend of $0.12 per share on the company’s common stock, with a par value of $0.001 per share, to be paid on July 15, 2022 to shareholders of record June 15, 2022.

Shawcor Ltd. announced that it had secured an early exit from its leased facility, which previously housed the company’s FlexFlow operations, in Calgary’s Oxford Airport Business Park. This exit will be completed in the third quarter of 2022 and will result in net savings of approximately $15 million over the next seven years. The Company’s Calgary-based operations will be consolidated into its remaining 54th Avenue location. The Company will incur one-time restructuring costs of approximately $2 million to complete this transaction, which will be reflected in the second quarter financial results. CBRE Group acted as real estate advisor to the Company in this transaction.

DRILLERS

No significant news.

REFINERS

Valero Energy and three contractors were fined a total of $1.75 million for safety violations related to the death of a worker on November 12, 2021 at its 145,000 barrel per day refinery in Benicia, Calif., a said a state regulator.

MLPS & PIPELINES

Enbridge announced that after considering all election notices received by 5:00 p.m. (EST) on May 17, 2022, 107,904 of its 18,269,812 Cumulative Redeemable Preferred Shares, Series B, have been tendered for conversion, at of one-for-one Cumulative Redeemable Preferred Shares, Series C of Enbridge and 1,188,789 of its 1,730,188 Series C Shares have been tendered for conversion, on a one-for-one basis, into shares of Enbridge’s Series B, effective June 1, 2022.

White Water, EnLink Midstream, LLC, Devon Energyand MPLX-LP have made a final investment decision to proceed with construction of the Matterhorn Express Pipeline after securing sufficient firm transportation agreements with shippers.

MARKET COMMENTARY

US stock index futures were higher and global equities rebounded after China cut a key lending index to support its economy, while investors remained cautious amid concerns over slowing growth and high inflation. Gold prices rose as the dollar’s pullback from two-decade highs and growing concerns over US economic growth boosted the metal’s appeal as a safe haven. Oil prices stabilized as a planned European ban on Russian oil offset investor concerns about weaker economic growth affecting demand.


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