US oil prices fell for the first time in three weeks on an OPEC plan to increase their production, after US markets switched to quoting the lower priced November oil contract, as trading in the contract for October US oil expired on Friday of last week with the contract priced at $71.92 a barrel, while November oil settled at $71…after rising 4.8% to $71.00 a barrel last week on increasing bloodshed in the Middle East, a larger than expected Fed rate cut, and on the ninth withdrawal from oil stores in ten weeks, the contract price for the benchmark US light sweet crude for November delivery rallied to a high of $71.81 by mid-day Monday, amid the concerns over Israel - Lebanon cross-border attacks, but turned lower on Iran’s willingness to de-escalate tensions, as long as it saw the same level of commitment on the other side, and settled 63 cents lower at $70.37 a barrel following a disappointing eurozone business activity report and continued signs of a weak Chinese economy…however, oil prices climbed two per cent to hit a three-week high on international markets early Tuesday following the Chinese government's announcement of its largest monetary stimulus package since the COVID-19 pandemic, combined with the sudden rise of geopolitical tension in the Middle East, and later settled the New York trading session $1.19 higher at $71.56 a barrel on the monetary stimulus from China, the continuing escalation of violence in the Middle East, and a tropical storm threatening supply in the Gulf of Mexico…oil prices slipped overnight, as traders weighed whether China's new stimulus measures would translate to higher energy demand in the world’s biggest oil importer, then were further pressured as concerns over output disruptions in Libya eased. and settled $1.87 lower at $69.69 a barrel, as an across the board weekly decline in U.S. crude and fuel inventories and storm-related disruptions to energy production in the Gulf of Mexico failed to provide support…oil markets sold off sharply early Thursday, following a Financial Times report that Saudi Arabia would give up its $100 price target and instead increase its output to gain market share, and finished the session $2.02 lower at $67.67 a barrel, after two OPEC+ sources told Reuters that the producer group was set to go ahead with a December oil output increase...oil prices continued to move lower in overseas markets early Friday, as the prospect of rising supply from Libya and Saudi Arabia more than offset falling inventories in the US, but recovered amid strong financial markets during the US session to settle 51 cents higher at $68.18 a barrel after China’s central bank cut interest rates and injected liquidity into the banking system, but still ended 4.0% lower on the week, while oil price quotes, comparing last week’s final October contract price to this week’s November contact settlement, were 5.2% lower..
meanwhile, natural gas prices rose for a fourth consecutive week and finished at a three month high, as Hurricane Helene reduced Gulf Coast production but had little impact on LNG exports…after rising 4% to a twelve week high of $2.434 per mmBTU last week as production was slow to recover after being impacted by Hurricane Francine during the prior week and supply balances tightened, the price of the contract for natural gas for October delivery opened at $2.500 on Monday as another tropical storm was about to enter the Gulf of Mexico, and surged higher as the threat of further disruptions to production left traders rattled, and settled the day’s trading 17.9 cents, or more than 7% higher at a new 12-week high of $2.613 per mmBTU on worries that Gulf Coast oil and gas producers would reduce output ahead of a hurricane that would hit the region later in the week week…natural gas prices were little changed in choppy trading throughout the morning on Tuesday, as traders positioned themselves ahead of Thursday’s impending contract expiration, then trended lower after midday and settled down 6.2 cents at $2.551 per mmBTU on forecasts for less demand over the next two weeks than was previously expected…natural gas prices opened 6 cents higher on Wednesday, as traders weighed the impact that the newly formed Hurricane Helene would have on natural gas infrastructure against the likelihood of dampened demand, and settled 8.6 cents higher at $2.637 per mmBTU on forecasts for higher demand over the next two weeks than was previously expected, and on a continued reduction in output ahead of Hurricane Helene, while the more actively-traded November natural gas contract traded on a similar path and ultimately closed 2.6 cents higher at $2.817 per mmBTU…the October natural gas contracted opened nearly 2 cents higher on its last day of trading on Thursday, but trended gradually lower throughout the day, as a bearish-leaning storage injection outweighed the expected impact of Hurricane Helene, and settled 5.2 cents lower at $2.585 per mmBTU, on worries Hurricane Helene would reduce the amount of gas power generators would burn by knocking out electric service to homes and businesses, while the more actively-traded November contract settled 6.4 cents lower at $2.753 per mmBTU…with markets quoting the price of the contract for natural gas for November delivery on Friday, prices rallied as traders looked past the demand destruction caused by Hurricane Helene and welcomed signs of supply/demand tightening ahead of winter, and settled 14.9 cents higher at $2.90 per mmBTU as Hurricane Helene battered the U.S. Southeast and knocked out power to millions, after causing Gulf of Mexico producers to cut output while leaving LNG exporters relatively unscathed…natural gas price quotes thus ended 19.2% higher on the week, largely on the shift to citing the more expensive November contract, while the November contract itself, which had finished the prior week priced at $2.719 per mmBTU, ended 6.7% higher..
The EIA’s natural gas storage report for the week ending September 20th indicated that the amount of working natural gas held in underground storage rose by 47 billion cubic feet to 3,492 billion cubic feet by the end of the week, after a reclassification of 8 billion cubic feet in the South Central salt storage region from working gas to base gas lowered working gas stocks, which left our available natural gas supplies 159 billion cubic feet, or 4.8% above the 3,333 billion cubic feet that were in storage on September 20th of last year, and 233 billion cubic feet, or 7.1% more than the five-year average of 3,259 billion cubic feet of natural gas that had typically been in working storage as of the 20th of September over the most recent five years…the net 55 billion cubic foot injection into US natural gas storage for the cited week was in line with the 53 billion cubic foot addition to storage that analysts polled by Reuters were forecasting ahead of the report, but was quite a bit less than the 82 billion cubic feet that were added to natural gas storage during the corresponding week in September of 2023, and also far less the average 88 billion cubic foot injection into natural gas storage that had been typical for the same late summer week over the past 5 years…
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending September 20th indicated that despite a sizable decrease in our oil exports and a further slowdown of our refining, we needed to pull oil out of our stored commercial crude supplies for the tenth time in eleven weeks, and for the 24th time in the past 41 weeks, largely due to an increase in demand for oil that the EIA could not account for...Our imports of crude oil rose by an average of 135,000 barrels per day to 6,456,000 barrels per day, after falling by an average of 545,000 barrels per day over the prior week, while our exports of crude oil fell by 692,000 barrels per day to 3,897,000 barrels per day, which, when used to offset our imports, meant that the net of our trade of oil worked out to a net import average of 2,559,000 barrels of oil per day during the week ending September 20th, 827,000 more barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supply from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 586,000 barrels per day, while during the same week, production of crude from US wells was unchanged at an average of 13,200,000 barrels per day. Hence our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 16,345,000 barrels per day during the September 20th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 16,353,000 barrels of crude per day during the week ending September 20th, an average of 124,000 fewer barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period the EIA’s surveys indicated that a net average of 455,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production during the week ending September 20th averaged a rounded 448,000 barrels per day more than what our oil refineries reported they used during the week. To account for that difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ -448,000 ] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus indicating there must have been an error or omission of that magnitude in the week’s oil supply & demand figures that we have just transcribed… Moreover, since 827,000 barrels per day of oil supplies could not be accounted for in the prior week’s EIA data, that means there was a 1,274,000 barrel per day difference between this week’s oil balance sheet error and the EIA’s crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week’s report are off by that much, making the week over week changes we have just cited nonsense….However, since most oil traders react to these weekly EIA reports as if they were accurate, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” demand, see this EIA explainer….there is also an aging twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had hoped to do about it)
This week’s net average 455,000 barrel per day decrease in our overall crude oil inventories came as an average of 639,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while an average of 184,000 barrels per day were being added to our Strategic Petroleum Reserve, the forty-second SPR increase in the past forty-nine weeks, following nearly continuous SPR withdrawals over the prior 39 months… Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports fell to 6,359,000 barrels per day last week, which was 9.5% less than the 7,025,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be unchanged at 13,200,000 barrels per day because the EIA’s rounded estimate of the output from wells in the lower 48 states was unchanged at 12,800,000 barrels per day, while Alaska’s oil production was 9,000 barrels per day higher at 420,000 barrels per day, but still added the same 400,000 barrels per day to the EIA’s rounded national total as it did every week this year….US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 0.8% higher than that of our pre-pandemic production peak, and was also 36.1% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 90.9% of their capacity while processing those 16,353,000 barrels of crude per day during the week ending September 20th, down from from their 92.1% utilization rate of a week earlier, but not an unusual decrease during September, when refineries typically schedule maintenance and seasonally change fuel blends…the 16,353,000 barrels of oil per day that were refined this week were 1.8% more than the 16,065,000 barrels of crude that were being processed daily during week ending September 22nd of 2023, but 1.0% less than the 16,513,000 barrels that were being refined during the prepandemic week ending September 20th, 2019, when our refinery utilization rate was at a prepandemic below normal 89.8% for mid September…
Even with the decrease in the amount of oil being refined this week, gasoline output from our refineries was higher, increasing by 176,000 barrels per day to 9,837,000 barrels per day during the week ending September 20th, after our refineries’ gasoline output had increased by 284,000 barrels per day during the prior week.. This week’s gasoline production was 7.6% more than the 9,139,000 barrels of gasoline that were being produced daily over week ending September 22nd of last year, but was 3.9% less than the gasoline production of 10,240,000 barrels per day during the prepandemic week ending September 20th, 2019….on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 158,000 barrels per day to 4,898,000 barrels per day, after our distillates output had decreased by 153,000 barrels per day during the prior week. Even after twenty production increases in the past thirty weeks, our distillates output was 0.7% less than the 4,932,000 barrels of distillates that were being produced daily during the week ending September 22nd of 2023, and 2.0% less than the 5,000,000 barrels of distillates that were being produced daily during the pre-pandemic week ending September 20th, 2019…
Even with this week’s increase in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the twenty-first time in thirty-four weeks, decreasing by 1,538,000 barrels to a 43 week low or 220,083,000 barrels during the week ending September 20th, after our gasoline inventories had increased by 69,000 barrels during the prior week. Our gasoline supplies fell this week because the amount of gasoline supplied to US users rose by 429,000 barrels per day to 9,205,000 barrels per day, and because our exports of gasoline rose by 110,000 barrels per day to 847,000 barrels per day, and even as our imports of gasoline rose by 279,000 barrels per day to 746,000 barrels per day.…After twenty-one gasoline inventory withdrawals over the past thirty-four weeks, our gasoline supplies were 0.2% below last September 22nd's gasoline inventories of 220,503,000 barrels, and were about 1% below the five year average of our gasoline supplies for this time of the year…
With this week’s decrease in our distillates production, our supplies of distillate fuels fell for the 20th time in the past thirty-six weeks, decreasing by 2,227,000 barrels to 122,921,000 barrels over the week ending September 20th, after our distillates supplies had increased by 125,000 barrels during the prior week. Our distillates supplies fell this week because the amount of distillates supplied to US markets, an indicator of domestic demand, rose by 224,000 barrels per day to 4,022,000 barrels per day, and because our imports of distillates fell by 36,000 barrels per day to 102,000 barrels per day, and even as our exports of distillates fell by 81,000 barrels per day to 1,297,000 barrels per day....Even after 20 inventory withdrawals over the past 36 weeks, our distillates supplies at the end of the week were 2.4% above the 120,064,000 barrels of distillates that we had in storage on September 22nd of 2023, while they are still about 9% below the five year average of our distillates inventories for this time of the year…
Finally, even after the decreases in our oil exports and in our refining, our commercial supplies of crude oil in storage fell for the 16th time in twenty-six weeks, and for the 28th time in the past year, decreasing by 4,471,000 barrels over the week, from 417,513,000 barrels on Sept 13th to a 74 week low of 413,042,000 barrels on September 20th, after our commercial crude supplies had decreased by 1,630,000 barrels over the prior week… With this week’s decrease, our commercial crude oil inventories fell to about 5% below the most recent five-year average of commercial oil supplies for this time of year, while they were still about 25% above the average of our available crude oil stocks as of the third week of September over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to higher exports relating to the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze offs, our commercial crude supplies as of this September 20th were 0.8% less than the 416,287,000 barrels of oil left in commercial storage on September 22nd of 2023, and 4.1% less than the 430,559,000 barrels of oil that we had in storage on September 23rd of 2022, and 0.2% less than the 413,964,000 barrels of oil we had left in commercial storage on September 17th of 2021…
This Week’s Rig Count
In lieu of a detailed report on the rig count, we are again just including a screenshot of the rig count summary from Baker Hughes…in the table below, the first column shows the active rig count as of September 27th, the second column shows the change in the number of working rigs between last week’s count (September 20th) and this week’s (September 27th) count, the third column shows last Friday’s September 20th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 29th of September, 2023…
++++++++++++++++++++++++++++++++++++++++++
Phase 1 of Austin Master Serv. Cleanup in Martins Ferry “Complete” -- In late July, the Ohio Dept. of Natural Resources (ODNR) opened up the shuttered Austin Master Services (AMS) radiological waste management solutions company in Martins Ferry (Belmont County), Ohio, to begin cleanup work at the facility (see Flurry of Activity at Austin Master Services Site in Martins Ferry). AMS is permitted by the ODNR to temporarily store up to 600 tons of fracking waste, like drill cuttings and wastewater. ODNR estimates there are (were) some 10,000 tons of fracking waste at the site. AMS ran out of money, and vendors quit accepting the waste. After failing to meet a court-ordered July 22 deadline, ODNR stepped in to handle the cleanup. The mayor of Martins Ferry reports that Phase 1 of the cleanup is already done, and work is now underway on Phase 2.
EPA and Justice Department announce settlement to reduce benzene and volatile organic compounds emissions from wastewater at Lima Refining Company’s refinery in Ohio -- The US Environmental Protection Agency (EPA) and the Department of Justice (DOJ) announced a settlement agreement with the Lima Refining Company (LRC) resolving alleged Clean Air Act violations for excess emissions from wastewater of benzene and other volatile organic compounds from its refinery in Lima, Ohio.Under the settlement, LRC will pay a civil penalty of $19 million and is required to reduce benzene and volatile organic compound (VOC) emissions by addressing its previous noncompliance and implementing compliance monitoring and training at Lima Refinery. The company will implement capital projects with an estimated value of $150 million to ensure it complies with the settlement requirements.The Lima Refinery in Lima, Ohio processes about 165,000 barrels per day of crude, as well as low-sulfur gasoline, gasoline blend stocks, ultra-low sulfur diesel, jet fuel, petrochemical feedstock and other byproducts. Refined products are transported via pipelines and rail cars to primary markets in Ohio, Illinois, Indiana, Pennsylvania, and southern Michigan. LRC is a wholly-owned subsidiary of Canadian-based Cenovus Energy Inc., which currently owns and operates two other petroleum refineries in Ohio and Wisconsin, and has a stake in two additional refineries in Illinois and Texas.Capital projects to reduce benzene, VOC, and other HAP emissions include:
- Install a flash column and either an oil/solids removal unit or a second flash column to reduce benzene in wastewater.
- Cease operation or replace the two induced nitrogen gas floatation units (IGFUs).
- Upgrade the collection lift station.
- Cease operation or implement required design changes to its existing E-Tank.
- Upgrade the flare gas recovery system by installing and operating new blowers and a new vapor header.
- Perform a flare gas recovery system capacity evaluation and increase capacity, if necessary.
- Replace emergency vents to reduce emissions on two units and replace pressure-vacuum vents to reduce emissions on other units.
River Commerce: Marietta Industrial Enterprises gets 1500 tons of drilling pipes -A Marietta company received a large shipment of pipe used for oil and gas transmission this week. On Monday Marietta Industrial Enterprises (MIE) Corp. started unloading a shipment of pipe from a barge that totals 1,500 tons, or 3 million pounds, according to the company’s Chief Executive Officer Scott Elliott. He said the barge brought 70-75 truckloads of pipe from Korea. “People don’t realize how much barges hold,” Elliott said. The pipes were loaded onto a large ship in Korea that then traveled across the Pacific Ocean, through the Panama Canal and finished its journey in New Orleans, according to Elliott. Marietta Industrial Enterprises workers load pipes from a barge onto a truck Monday so they can be stockpiled at a different part of its Ohio terminal. The company received 1,500 tons of six-inch pipe that will go to oil and gas drillers across West Virginia and Ohio. The pipes were then loaded on a barge that traveled up the Mississippi River and then they were put on a smaller push boat where they traveled up the Ohio River to MIE’s Ohio River terminal, he said. Unloading the pipe will be finished today, according to Elliott, and the six-inch pipes that weigh around 1 ton each will be stockpiled at a different part of the terminal. The pipes are used in natural gas as distribution lines and will be sent “all over the state of West Virginia and Ohio, “ Elliott said. Oil and gas drilling is down, including in West Virginia and “one of the reasons … is the transmission lines aren’t finished,” he said. The pipes are an “integral part of oil and gas” and they keep people who work in oil and gas drilling paid, Marietta Industrial Enterprises President Trent Elliott said. The pipes that make up the transmission lines “provide the gas needed for other industries to develop,” Trent Elliott said, adding the presence of oil and gas drilling and distribution attracts companies to locate to an area. There are different ways to move pipes from one place to another, including barge, rail and truck, according to Trent Elliott. He said shipping them by barge is the cheapest way, but it is also slow. MIE receives shipments of pipe like the one it received this week about once a year, Sott Elliott said. The company receives one million tons of freight every year, including grain, steel coils, coal, lime, rubber, fertilizer, furnace ore, frac sand and more, he said.
Williams donation equips Utica Shale Academy students - — A $5,000 contribution from Williams, a major energy infrastructure company, is supporting welding and heavy equipment students at the Utica Shale Academy (USA). Superintendent Bill Watson said the company allocated funds earlier this month through its annual charitable giving budget. This marks the second time the community school has benefitted from the energy firm, which presented another $5,000 last year for training equipment to enhance the Programmable Logic Controllers (PLC) program. “We will provide 110 pairs of steel-toe work boots for all of the kids participating in the welding and heavy equipment program,” Watson said. “It’s a yearly earmark and last year we received funding for a PLC trainer.” He said the latest windfall will provide safety for students as they train for the workplace. “We are very grateful and thankful, and this allows kids to learn while being safe,” he added. “It is important with career-tech education. You are not only training a student, but you are training a safety mindset also.” USA is a dropout recovery-and-retention school focusing on career-tech education for at-risk students who have obtained more than 1,100 certifications and graduated 150 pupils since 2021. About 145 students in grades 7-12 are enrolled during the 2024-25 school term, with the seventh- and eighth-graders housed at the Williams Collaboration Center to learn about career-tech opportunities and grades 9-12 lodged at the Hutson Building to gain hands-on learning in various trades. Courses include megatronics, hydraulics, pneumatics, AC/DC electric, PLC’s, diesel mechanics and horticulture. Since its inception roughly a decade ago, USA has established a campus in Salineville comprised of the Hutson Building, the Energy Training Center, the Williams Collaboration Center and an outdoor welding site along East Main Street, as well as the Utica Shale Academy Community Center on Church Street that provides a gym and community services.
Utica Shale Academy starting SkillsUSA team – The Utica Shale Academy is looking for welding students to show off their knowledge as part of the SkillsUSA program. Superintendent Bill Watson and instructors Matt Gates and John Wright will advise the team and hopes are to enter competitions over the next year. Watson learned of the program while attending a National Coalition of Certification Centers (NC3) Leadership Summit in Kenosha, Wisc., in July and believed it was the right fit for USA. “I heard a discussion on how it can showcase their skillsets,” he said. “I thought our students were putting in a lot of hard work and we should get them out there and have them be seen as much as possible.” According to its website, SkillsUSA is the No. 1 workforce development organization for students and empowers them to become skilled professionals, career-ready leaders and responsible community members. The organization represents more than 413,000 career and technical education students and teachers and has chapters in middle schools, high schools and college or post-secondary institutions across the country. The SkillsUSA framework incorporates personal skills, workplace skills and technical skills grounded in academics, which is integrated through a classroom curriculum. Students hone their hands-on skills against industry standards in more than 130 occupational areas, including 3-D animation and welding. SkillsUSA has served more than 14.6 million members since 1965 and its vision is to produce the most highly skilled workforce in the world, providing every member the opportunity for career success. Watson said officials were distributing information and seeking interest among the community school’s estimated 100 welding students in grades 9-12 to sign up for the program, after which they could take part in local competitions with chances to advance to state and even national contests. “The students have to complete their welding certificates to be allowed to compete for a spot in a local competition,” he added. “SkillsUSA is a competition platform to demonstrate capabilities and get kids engaged to do creative things that can be outside the box.” USA is a dropout recovery-and-retention school focusing on career-tech education for at-risk students who have obtained more than 1,100 certifications and graduated 150 pupils since 2021. Students in grades 7-12 undergo a blend of online education through the Virtual Learning Academy by the Jefferson County Educational Service Center with hands-on learning in various trades. Courses include welding, megatronics, hydraulics, pneumatics, AC/DC electric, Programmable Logic Controllers (PLC’s), diesel mechanics and horticulture.
32 New Shale Well Permits Issued for PA-OH-WV Sep 16 – 22 Marcellus Drilling News - There were 32 permits issued to drill new shale wells in Marcellus/Utica for the week of Sept. 16 – 22, more than doubling the 15 issued the prior week. The Keystone State (PA) had nine new permits, with five of them going to EQT in Greene County. The Buckeye State (OH) had 20 new permits. The floodgates opened up! The top recipient in OH was Encino Energy, which received eight permits divided between Guernsey and Carroll counties. EOG Resources received five permits in Harrison County. The Mountain State (WV) had three new permits after getting skunked the prior week. All three were issued to Northeast Natural Energy (NNE) in Monongalia County. ARMSTRONG COUNTY | BELMONT COUNTY | CARROLL COUNTY | COTERRA ENERGY (CABOT O&G) | ENCINO ENERGY | EOG RESOURCES | EQT CORP | GREENE COUNTY (PA) | GUERNSEY COUNTY | GULFPORT ENERGY | HARRISON COUNTY | INR/INFINITY NATURAL RESOURCES |MONONGALIA COUNTY | NORTHEAST NATURAL ENERGY | RANGE RESOURCES CORP | SNYDER BROTHERS | SUSQUEHANNA COUNTY | WASHINGTON COUNTY |
Officials working to clean up alleged fuel spill in Cambria County— Officials in Cambria County say what's believed to be hundreds of gallons of fuel was found spreading into a local stream on Wednesday.Now, officials and responders in Richland Township are working to clean up the spill.Authorities say the spill was discovered along the 1900 block of Oakridge Drive Wednesday afternoon, near Sandy Run.Officials say they were called to the scene after someone noticed a sheen in the water and the smell of oil.“Upon the fire department's arrival, we started setting out booms and creating underflow dams at the site, as well as below stream, as far down as where we thought the fuel had traveled,” said Richland Deputy Fire Chief Robert Heffelfinger.The Department of Environmental Protection and the Fish and Boat Commission were also called to assist, which officials say is standard protocol. They say the fuel, which could be as much as 400 gallons, is reportedly coming from a nearby home.
Natural gas CEO: Use AI to better guide energy policy -- The top executive of one of Pennsylvania’s largest natural gas producers said artificial intelligence and data should better guide the country’s energy policy in favor of natural gas, including allowing the energy-starved New England states to have access to more natural gas pipelines. Thomas Jorden, chairman and CEO of Coterra Energy (NYSE: CTRA), told the Marcellus Shale Coalition’s Shale Insight gathering in Erie on Wednesday that bad public policy wasn’t having the desired effects on climate. He cited a recently published Science magazine review of 1,500 climate policies established worldwide between 1998 and 2022 that found only 63 were successful and led to less than a 1.8 billion metric ton reduction in total carbon emissions. Earth’s total carbon emissions continue to climb and rose 1% in 2023 to 37.4 billion tons a year, according to the International Energy Agency. “Public policy is not having the effect it’s designed to have,” Jorden said. He urged a data-driven approach using the latest artificial intelligence advances to find new and unexpected ways to make a bigger difference, optimizing for a country-by-country approach at emissions reductions. “At Coterra, we put a lot of energy into machine learning over the last six or so years,” Jorden said. “We’ve had a lot of false starts, but we’ve really gained tremendous traction toward changing every element of our business.” Coterra is the combination of Cabot Oil and Gas Corp. and Cimarex, which occurred in 2021. He noted that New England states, other than Vermont, get about 50% of electricity from natural gas, but Coterra and others are prevented from building a pipeline from Pennsylvania that would allow more natural gas to flow more easily and more cheaply. “We’re unable to do that so I would call that a questionable energy policy,” Jorden said. Other speakers at this year’s Shale Insight, which is aimed at and for natural gas producers and the companies who serve the industry, also promoted the use of natural gas. CNX Resources Corp. (NYSE: CNX) told others in the industry that it needed to rededicate itself to a more transparent measure of air and water emissions in drilling and hydraulic fracturing. CNX in November 2023 forged a cooperative agreement with the Commonwealth of Pennsylvania and Gov. Josh Shapiro over extensive air and water monitoring. Another driller, privately held Encino Energy, also highlighted work toward environmental and operational improvements and cited its success in the primarily oil-rich play of the Utica Shale in Ohio as an example. Ray Walker, COO of Encino Energy and one of the pioneers of the Marcellus Shale when he was with Range Resources Corp., implored his fellow drillers to continue to improve environmental and sustainability performance. That would become even clearer as the country understands that it needs the natural gas that is produced. “We have to maintain our license to operate, and I know people don’t like it when I say that term, but that is the truth,” Walker said. “You’re licensed to operate. These people have to believe in what you’re doing.” Jeff Kotula, president of the Washington County Chamber of Commerce, said the Marcellus Shale provides a bedrock of national security and an affordable energy source in Washington County and beyond. “We must impress upon the public and its national leaders the importance of allowing energy production and producers to do what they do best, supply our country with clean-burning American natural gas, which is produced under the strictest environmental standards in the world and continues to innovate,” he said.
The Lying Nun Makes an Appearance at Shale Insight Event | Marcellus Drilling News - Some 800 delegates are attending the Shale Insight event held in Erie, PA, from Tuesday through today. It's the premier shale event in the Marcellus/Utica each year. While 800 talented, hardworking, intelligent people are inside listening to speakers, networking (talking to others), and learning how to make shale drilling better (safer, faster, cheaper)---in general, figuring out how to solve problems and move our industry and the world forward, making life better for everyone---there were a handful of protesters outside the event. The people outside don't create jobs but destroy them. They don't offer solutions, only criticism. Of course, the media was there to highlight these ne'er-do-wells, including comments from a lying nun.
Revealed: how the fossil fuel industry helps spread anti-protest laws across the US - Fossil fuel lobbyists coordinated with lawmakers behind the scenes and across state lines to push and shape laws that are escalating a crackdown on peaceful protests against oil and gas expansion, a new Guardian investigation reveals. Records obtained by the Guardian show that lobbyists working for major North American oil and gas companies were key architects of anti-protest laws that increase penalties and could lead to non-violent environmental and climate activists being imprisoned up to 10 years. Emails between fossil fuel lobbyists and lawmakers in Utah, West Virginia, Idaho and Ohio suggest a nationwide strategy to deter people frustrated by government failure to tackle the climate crisis from peacefully disrupting the expansion of fossil fuel infrastructure by enacting tough laws with lengthy jail sentences. “Draft bill attached,” wrote a lobbyist representing two influential fossil fuel trade groups to the lead counsel for the West Virginia state energy committee in January 2020. The law, which carries a maximum 10-year prison sentence, was later used to charge at least eight peaceful climate protesters including six senior citizens. Amid ongoing record oil and gas expansion in the US, activists say they have turned to protests and non-violent civil disobedience such as blocking roads and chaining themselves to trees, machinery and equipment as a way to slow down construction, raise public awareness, and press for more urgent climate action by governments and corporations. Civil disobedience is a form of political protest that involves breaking the law in a planned, symbolic way – which activists and rights experts say is part of the bedrock of a democratic society and in the tradition of civil rights movements.The months-long investigation by the Guardian found that companies and lawmakers sought to increase the threat of criminal action against activists to protect oil and gas expansion – even as deadly and destructive extreme weather events hit communities nationwide.Last year was the hottest on record, and wildfires, baking temperatures, deadly floods and rising sea levels struck communities across North America – and the rest of the world. Under the Biden administration, the US has handed out more than 1,450 new oil and gas licenses, accounting for half of the total globally, and 20% more licences than those issued by Donald Trump, who has promised to “drill, baby, drill” should he return to the White House.The findings from dozens of freedom of information requests suggest that the right to peaceful protest is under attack in the US – much like in other major democracies including the UK, Germany, Canada and Australia.These countries, which are the most responsible for greenhouse gas emissions, continue to back fossil fuel expansion fueling climate breakdown while cracking down on activists and groups sounding the alarm – a trend condemned by Mary Lawlor, UN special rapporteur on human rights defenders, as “unacceptable”.“People taking peaceful action to draw attention to global warming, and calling for governments to finally do something about it, are human rights defenders – who the US government states that it supports. [But] that must mean support for all human rights defenders, even where they challenge action by the US state itself or the interests of powerful companies,” said Lawlor.“Existing legislation is being misused or new legislation is being brought in to criminalise peaceful acts calling for real action to combat climate change. This is unacceptable.”In Utah, a major oil, coal and gas producer in the Rocky Mountain region, lawmakers passed an anti-protest law carrying up to five years’ jail time after discussing the need to protect fossil gas. “We’re being forced out of coal, which is cheap, reliable and plentiful, but have nowhere to go to find a replacement energy source because natural gas is also under attack,” a lawmaker wrote in an email in January 2023, obtained by the Guardian.Prosecuting non-violent climate protesters is “just legalised violence”, according to Bill McKibben, an environmentalist and grassroots organiser who has been arrested for participating in peaceful climate protests.“It’s disgusting, it’s deeply un-American, and in the end it won’t stop the transition to a cleaner world, but it will do great damage to good people and organizations in the next few years.”
Chesapeake Energy Corporation and Southwestern Energy Company Combination Expected to Close in the First Week of October -- Chesapeake Energy Corporation and Southwestern Energy Company announced the waiting period in connection with the companies' pending combination under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") has expired. The companies expect the merger to close in the first week of October. Upon closing, the combined company will be the largest natural gas producer in the U.S. and assume the name Expand Energy Corporation. It will commence public trading on the NASDAQ under the ticker symbol "EXE" at the open of trading the day after closing."The world is short energy," said Nick Dell'Osso, Chesapeake's President and Chief Executive Officer. "With a premium scaled position across leading natural gas basins in the United States, a peer-leading returns program and a resilient financial foundation, Expand Energy is uniquely positioned to compete on an international scale to expand America's energy reach and deliver opportunity for the world's energy customers." Headquartered in Oklahoma City, Chesapeake Energy Corporation (NASDAQ: CHK) is powered by dedicated and innovative employees who are focused on discovering and responsibly developing leading positions in top U.S. oil and gas plays. With a goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower carbon energy. Southwestern Energy Company (NYSE: SWN) is a leading U.S. producer and marketer of natural gas and natural gas liquids focused on responsibly developing large-scale energy assets in the nation's most prolific shale gas basins. SWN's returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength, and operational execution.
Chesapeake CEO Says LNG Worth the Risk if Deals Are Right -- Chesapeake Energy Corp. is exploring all the ways it can grow its LNG portfolio after entering the sector earlier this year, but the company’s top executive said the market is risky and its growth in the space is likely to take a long time.Graph from Shell plc showing global LNG supply and demand forecast through 2050.Chesapeake, an early mover among exploration and production companies on liquefied natural gas exports, is aiming to have 15-20% of its production volumes exposed to the international market.“That’s a lot of gas to put into LNG contracts or gain exposure to international prices,” CEO Nick Dell’Osso said last week during a panel discussion at the Gastech 2024 conference in Houston. “It will require a number of different avenues to do it. We won’t do it all with tolling. We would likely have a variety of approaches, which could include just simple financial contracting as well.”
Germany’s SEFE Contracting for Reliable LNG Supplies, With Venture Global Aiming to Deliver --The United States should maintain its status as a top LNG exporter for years to come, but partnerships with overseas customers would be key to ensure success, according to two top natural gas executives.Speaking at Gastech 2024 in Houston, Securing Energy For Europe (SEFE) CEO Egbert Laege, who oversees Germany’s state-owned midstream company, discussed the value of maintaining an open dialogue with liquefied natural gas suppliers. Venture Global LNG Inc. CEO Mike Sabel, whose company is contracted to sell SEFE some long-term supplies, shared the stage.For Germany, there have been a few “holy sh-t” moments since 2022, Laege told the audience. SEFE supplies natural gas to more than 50,000 industrial customers and municipal utilities in Germany. It was a subsidiary of Russia’s gas giant Gazprom PJSC until 2022. After Russia invaded Ukraine, Germany nationalized the midstream company.
Kimmeridge Extends Low-Cost Eagle Ford Strategy to Global Natural Gas Markets with Commonwealth LNG -- Kimmeridge Energy Management Co. LLC is aiming to push the Commonwealth LNG project past a year of regulatory setbacks into a final investment decision (FID) in 2025 with the help of renewed offtake interest and its low-cost model. Before the Biden administration announced a pause on new worldwide LNG export permits in January, the 9.5 million metric ton/year (mmty) project proposed for Cameron Parish, LA, looked poised to be the next Gulf Coast project to be financed. About six months and several industry-rattling federal decisions later, early equity investor Kimmeridge upped its stake in the Texas project to a 90% controlling interest. In the face of that regulatory uncertainty, Kimmeridge’s managing partner Ben Dell told NGI at the Gastech 2024 conference in Houston that the Commonwealth team has been continuing its marketing and permitting efforts by leaning on the same assets that attracted the firm to the project in the first place.
U.S. net natural gas exports remain flat in the first half of 2024 --In the first six months of 2024, U.S. net natural gas exports (exports minus imports) averaged 12.6 Bft3d, 1% (0.1 Bft3d) more than the same period last year and 2% (0.3 Bft3d) less than in 2023, according to the U.S. Energy Information Administration’s (EIA) Natural Gas Monthly.Since 2019, increases in liquefied natural gas (LNG) exports and exports by pipeline to Mexico have led the growth in U.S. natural gas exports. The U.S. has exported more natural gas than it imports since 2017.The U.S. trades natural gas by pipeline with Canada and Mexico and as LNG with more than 40 countries. The U.S. imports more natural gas by pipeline from Canada than it exports, and it exports more natural gas by pipeline to Mexico than it imports. The U.S. has been a net exporter of LNG since 2016.The large buildout of LNG export capacity enabled LNG exports to grow from an annual average of 0.5 Bft3d in 2016 to 11.9 Bft3d in 2023. Currently, the U.S. has seven LNG export terminals in operation and five terminals under construction. In 2023, the U.S. was the world’s largest LNG exporter. By the end of this year, the EIA expects two new LNG export facilities—Plaquemines LNG and Corpus Christi LNG Stage 3 (an expansion of the existing Corpus Christi LNG export terminal)—to start LNG exports.U.S. natural gas pipeline imports from Canada play an important role in balancing the U.S. natural gas market, particularly in the winter. Most natural gas imported by pipeline from Canada arrives in the Western and Midcontinent regions of the U.S.In 2023, net U.S. pipeline imports from Canada averaged 5.2 Bft3d, of which 83% was imported into the western U.S. In the first six months of 2024, net U.S. pipeline imports from Canada averaged 5.4 Bft3d, an increase of 11% (0.5 Bft3d) compared with the same period in 2023, mainly because of increased imports into the Midcontinent region.Since the end of natural gas production in eastern Canada (offshore Nova Scotia) and growth in production in the U.S. Appalachia region, U.S. exports of natural gas by pipeline into eastern Canada exceeded imports from eastern Canada, making the eastern U.S. a net exporter of natural gas by pipeline to eastern Canada for several years since 2017.U.S. net pipeline exports to Mexico averaged 6.3 Bft3d in the first six months of 2024, 7% (0.4 Bft3d) more than over the same period last year and 2% more (0.1 Bft3d) than the 2023 annual average.U.S.-Mexico cross-border pipeline capacity is set to expand as two new natural gas pipeline projects with a total capacity of 5.3 Bft3d have received regulatory approvals. These projects are primarily targeting LNG export capacity being developed in Mexico that will be supplied with natural gas sourced from the U.S.
US natural gas prices jump 7% to 12-week high on storm worries (Reuters) - U.S. natural gas futures jumped about 7% to a 12-week high on Monday on worries some Gulf Coast oil and gas producers would reduce output ahead of a possible hurricane that could hit the region later this week. Front-month gas futures for October delivery on the New York Mercantile Exchange rose 17.9 cents, or 7.4%, to settle at $2.613 per million British thermal units (mmBtu), their highest close since June 27. That was the contract's biggest daily percentage gain since late August and pushed the front-month into technically overbought territory for the first time since the middle of June. In the Atlantic basin, the U.S. National Hurricane Center (NHC) forecast a tropical disturbance in the Caribbean Sea would strengthen into a hurricane on Wednesday that would hit the Florida Panhandle on Thursday. Although storms are more likely to reduce gas demand and prices through power outages and shutting liquefied natural gas (LNG) export plants, analysts said this storm was currently on track to miss the LNG plants. That means demand for gas from those LNG export plants was likely to remain high at the same time some Gulf Coast producers cut output. More than 75% of U.S. gas production still comes from big inland shale basins like Appalachia in Pennsylvania, West Virginia and Ohio and the Permian in West Texas and eastern New Mexico, so most of the country's gas output should remain safe from the storm. That is very different from 20 years ago when roughly 20% of the nation's gas came from the federal offshore parts of the Gulf of Mexico. Back then, Gulf Coast hurricanes usually caused gas prices to spike higher. Now, however, the federal offshore region produces just about 2% of the country's gas. In Canada, meanwhile, next-day gas prices at the AECO hub in Alberta fell to 5 cents per mmBtu, their lowest level since hitting a record low of around 2 cents in August 2022, according to data from financial firm LSEG going back to 1993. LSEG said gas output in the Lower 48 U.S. states has slid to an average of 102.1 billion cubic feet per day (bcfd) so far in September, down from 103.2 bcfd in August. With milder autumn weather coming, LSEG forecast average gas demand in the Lower 48 states, including exports, will slide from 99.1 bcfd this week to 97.7 bcfd next week. Those forecasts were lower than LSEG's outlook on Friday. Gas flows to the seven big U.S. LNG export plants have eased to an average of 12.8 bcfd so far in September, down from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023. That reduction was due mostly to the planned Sept. 20 shutdown of Berkshire Hathaway Energy's 0.8-bcfd Cove Point LNG export plant in Maryland for around three weeks of annual maintenance.
US natgas prices slide 2% on lower demand forecasts, storm heads to Florida (Reuters) -U.S. natural gas futures slid about 2% on Tuesday on forecasts for less demand over the next two weeks than previously expected. Another factor weighing on gas prices was the latest forecasts for Tropical Storm Helene to miss most of the producing regions in the western and central Gulf of Mexico as it strengthens into a hurricane on Wednesday and hit the Florida Panhandle late Thursday. Over the past few days, severaloil companies paused some production ahead of Helene. But some firms, like Shell, started restoring oil and gas production as the forecasted storm movements shifted away from their offshore platforms. Front-month gas futures NGc1 for October delivery on the New York Mercantile Exchange fell 6.2 cents, or 2.4%, to settle at $2.551 per million British thermal units (mmBtu).On Monday, the contract closed at its highest level since June 27. With front-month gas prices up about 27% over the past five weeks, the premium of futures for November over October fell to just 24 cents per mmBtu, the lowest since September 2022. October is the current front-month. Analysts have said gas prices should trade at lower levels during the April-October summer cooling season than the November-March winter heating season since U.S. demand for gas peaks during the winter. Analysts said the recent output reductions were partly due to producers curtailing Gulf of Mexico oil and gas production ahead of Helene and lower flows on aNatural Gas Pipeline Co (NGPL) pipe in Texas after a force majeure event at a compressor. With milder autumn weather coming, LSEG forecast average gas demand in the Lower 48 states, including exports, will slide from 98.5 bcfd this week to 96.4 bcfd next week. Those forecasts were lower than LSEG's outlook on Monday. Gas flows to the seven big U.S. LNG export plants have eased to an average of 12.8 bcfd so far in September, down from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023. In other LNG news, a tanker docked for the past month at Venture Global LNG's Plaquemines export plant under construction in Louisiana left by Tuesday morning, according to data provider LSEG. Energy analysts said that was likely a sign Plaquemines was getting closer to producing and exporting its own LNG.
US natgas prices climb 3% to 12-week high on rising demand, less output ahead of hurricane (Reuters) - U.S. natural gas futures climbed about 3% to a 12-week high on Wednesday on forecasts for higher demand over the next two weeks than previously expected and a continued reduction in output ahead of Hurricane Helene. The U.S. National Hurricane Center (NHC) forecast Helene would strengthen into a major hurricane as it marches across the Gulf of Mexico before slamming into the Florida Panhandle late on Thursday. Although storms are more likely to reduce gas demand and prices through power outages and shutting of liquefied natural gas (LNG) export plants, analysts said this storm was on track to miss the LNG plants. That means demand for gas from those LNG export plants should remain high at the same time that some Gulf Coast producers have cut output ahead of the storm. More than 75% of U.S. gas production still comes from big inland shale basins like Appalachia in Pennsylvania, West Virginia and Ohio and the Permian in West Texas and eastern New Mexico, so most of the country's gas output should remain safe from the storm. On its second to last day as the front-month, gas futures for October delivery on the New York Mercantile Exchange rose 8.6 cents, or 3.4%, to settle at $2.637 per million British thermal units (mmBtu), their highest close since June 27. Futures for November , which will soon be the front-month, were trading up about 2 cents to $2.81 per mmBtu. LSEG said gas output in the Lower 48 U.S. states has slid to an average of 102.0 billion cubic feet per day (bcfd) so far in September, down from 103.2 bcfd in August. But on a daily basis, output was on track to drop by around 2.6 bcfd over the past five days to a preliminary three-month low of 100.2 bcfd. Analysts, however, noted preliminary data is often revised later in the day. Analysts said recent output reductions were partly due to producers curtailing Gulf of Mexico oil and gas production ahead of Helene and lower flows on a Natural Gas Pipeline Co (NGPL) pipe in Texas after a force majeure event at a compressor. With milder autumn weather coming, LSEG forecast average gas demand in the Lower 48 states, including exports, will slide from 98.8 bcfd this week to 97.6 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday. Gas flows to the seven big U.S. LNG export plants have eased to an average of 12.8 bcfd so far in September, down from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023. That reduction was due mostly to the planned Sept. 20 shutdown of Berkshire Hathaway Energy's 0.8-bcfd Cove Point LNG export plant in Maryland for around three weeks of annual maintenance.
US natgas prices slide 2% as Hurricane Helene targets Florida (Reuters) -U.S. natural gas futures slid about 2% on Thursday on worries Hurricane Helene will reduce the amount of gas power generators burn by knocking out electric service to homes and businesses. On its last day as the front-month, gas futures NGc1 for October delivery on the New York Mercantile Exchange fell 5.2 cents, or 2.0%, to settle at $2.585 per million British thermal units (mmBtu). On Wednesday, the contract closed at its highest since June 27. Futures for November NGX24, which will soon be the front-month, fell about 6 cents to settle at $2.753 per mmBtu. The price declines came despite an expected smaller-than-usual storage build last week, bullish forecasts for higher demand over the next two weeks than previously expected and a continued reduction in output ahead of Helene. The U.S. Energy Information Administration (EIA) said utilities added an implied 55 billion cubic feet (bcf) of gas into storage during the week ended Sept. 20. The net build after a reclassification was just 47 bcf. That implied number was in line with the 53-bcf build analysts forecast in a Reuters poll and compares with an increase of 82 bcf in the same week last year and a five-year (2019-2023) average rise of 88 bcf for this time of year. But energy analysts noted last week's build was smaller than normal for the 19th time in 20 weeks after drillers reduced output earlier this year when gas prices fell to mulityear lows. Average monthly spot prices at the U.S. Henry Hub benchmark in Louisiana fell from a 12-month high of $3.18 per mmBtu in January to a 44-month low of $1.72 in February and a 32-year low of $1.49 in March, according to Reuters and federal energy data.. The U.S. National Hurricane Center (NHC) forecast Helene would slam into the Florida Panhandle as a major hurricane later on Thursday. There were currently around 87,000 homes and businesses without power in Florida, according to PowerOutage.us. Althoughstorms are more likely to reduce gas demand and prices through power outages and shutting of liquefied natural gas (LNG) export plants, analysts said this storm was on track to miss the LNG plants. That means demand for gas from those LNG export plants should remain high at the same time that some Gulf Coast producers have cut output. The U.S.Bureau of Safety and Environmental Enforcement said producers shut about 0.4 billion cubic feet per day (bcfd) or 20% of gas production in the U.S. Gulf of Mexico for Helene. LSEG said gas output in the Lower 48 U.S. states has fallen to an average of 101.9 billion cubic feet per day (bcfd) so far in September, down from 103.2 bcfd in August. But on a daily basis, output was on track to drop by around 3.1 bcfd over the past six days to a preliminary four-month low of 99.6 bcfd. Analysts, however, noted preliminary data is often revised later in the day. With milder autumn weather coming, LSEG forecast average gas demand in the Lower 48 states, including exports, will drop from 99.5 bcfd this week to 98.5 bcfd next week. Those forecasts were higher than LSEG's outlook on Wednesday. Gas flows to the seven big U.S. LNG export plants have eased to an average of 12.8 bcfd so far in September, down from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023.
US natgas prices jump 5% to 14-week high as Helene batters US Southeast (Reuters) - U.S. natural gas futures jumped about 5% to a 14-week high on Friday as Hurricane Helene battered the U.S. Southeast after causing Gulf of Mexico producers to cut output and knocking out power to millions of customers in Florida, Georgia and the Carolinas. Energy traders noted that prices were also supported as the amount of gas flowing to Venture Global's Plaquemines LNG export plant in Louisiana was on track to match a high of around 35 million cubic feet per day that it hit in mid-August. That is still a very small amount of gas. The first phase of the Plaquemines project will have the capacity to turn about 1.8 billion cubic feet per day of gas into LNG. Analysts have said the plant could start producing LNG in test mode over the next month or so. Officials at Venture Global were not immediately available for comment. Another factor analysts have noted that has supported prices in recent weeks was that storage injections in July, August and so far in September were at record lows, according to federal energy data going back to 1997. That is because many producers cut output earlier this year after average spot monthly prices at the U.S. Henry Hub benchmark in Louisiana fell to a 32-year low. On its first day as the front-month, gas futures for November delivery on the New York Mercantile Exchange rose 14.9 cents, or 5.4%, from where they traded on Thursday to settle at $2.902 per million British thermal units (mmBtu) on Friday, their highest close since June 18. That, however, was up about 12% from where the less expensive October contract closed when it was still the front-month on Thursday. That expiration-caused price increase pushed the front-month back into technically overbought territory for the third time this week after hitting that level on Monday and Wednesday. For the week, the contract was up about 19%, putting it on track for a fifth week of gains for the first time since April 2022. During that time, the front-month has gained about 43%. The U.S. National Hurricane Center forecast the remnants of Helene, now a tropical depression, would remain over Tennessee and Kentucky over the weekend. There were currently about 4.6 million homes and businesses without power, mostly in Florida, Georgia and the Carolinas, from Helene. That is down from around 5.2 million affected by the storm as utilities in Florida, Georgia and South Carolina have been able to restore service to some customers since the storm slammed into the Florida Panhandle late Thursday. Although storms are more likely to reduce gas prices and demand through power outages and shutting of liquefied natural gas export plants, analysts said this storm was on track to miss the LNG plants. The U.S. Bureau of Safety and Environmental Enforcement said that about 18%, or 0.3 bcfd, of gas production in the U.S. Gulf of Mexico was still shut-in for Helene. More than 75% of U.S. gas production still comes from big inland shale basins like Appalachia in Pennsylvania, West Virginia and Ohio and the Permian in West Texas and eastern New Mexico, so most of the country's gas output should remain safe from the storm.
Uncertainty about price, policy spreading across oil patch, Dallas Fed says - U.S. oil and gas activity in the country’s most productive region dipped slightly in the third quarter while remaining near record highs as industry executives grew concerned about lower prices and economic uncertainty, the Federal Reserve Bank of Dallas said Wednesday. The bank’s latest energy survey includes responses collected earlier this month from 136 energy companies in Texas and parts of New Mexico and Louisiana as the global oil benchmark reached its lowest price in nearly three years. At the same time, natural gas prices at the main pricing hub for the prolific Permian Basin — located in Texas and New Mexico — have hovered near zero and even at times dipped into negative pricing territory throughout this year, reflecting a national supply glut and a lack of pipeline capacity to take natural gas from the Permian to market.“Overall, the key point from the survey is that oil and gas activity dimmed in third quarter as uncertainty rose,” Kunal Patel, a senior business economist with the Dallas Fed, told reporters during a press call Wednesday.
US crude oil inventories down 1.1% for week ending Sept. 20 - US commercial crude oil inventories decreased by 1.1% during the week ending Sept. 20, according to data released by the Energy Information Administration (EIA) late Wednesday. Inventories fell by around 4.5 million barrels to 413 million barrels, higher than the market prediction of about 1.3 million barrels draw. Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by approximately 1.3 million barrels to 381.9 million barrels last week, the data revealed. Over the same period, gasoline inventories fell by around 1.5 million barrels to 220.1 million barrels. EIA data showed that US crude oil production increased by about 9,000 barrels per day (bpd) to 13.62 million bpd during the week ending Sept. 20. US crude oil imports rose by 135,000 bpd to approximately 6.46 million bpd, while exports decreased by 692,000 bpd to around 3.9 million bpd over the same period. In the Short-Term Energy Outlook (STEO) released on Sept. 10, the EIA predicted that crude oil output in the country would reach an average of 13.3 million bpd this year. Next year, crude oil output in the country is expected to reach 13.7 million bpd.
Mexico Pacific Positions Saguaro LNG for Coming FID with Modular Design - Driven by a new modular upsized design and a full slate of customers for its Saguaro EnergÃa LNG export project, Mexico Pacific Ltd. LLC is honing in on a final investment decision (FID) next year. Saguaro LNG natural gas infrastructure and LNG plant showing industrial gas plant in the energy production facility and natural gas supply chain, including gas pipeline network. The Houston-based firm has been working for years to place all the pieces together for the 15 million metric tons/year (mmty) first phase proposed for Puerto Libertad, Sonora on Mexico’s Gulf of California. Now that one of those major pieces – optimizing the terminal’s design – has been put to bed, Senior Vice President of Government and External Affairs Patrick Hughes told NGI last week during Gastech 2024 in Houston that the final step is securing the roughly $15 billion needed for financing. More specifically, Mexico Pacific is awaiting the final approval of Mexico’s three development banks, which Hughes called a “focal point” of the liquefied natural gas export project.
Argentina, Brazil, Mexico and Trinidad Eyeing Big Share of Global Natural Gas Market -Could Mexico become one of the largest LNG exporters in the world? In a decade’s time, it could be a reality, a top executive overseeing a planned export project on the west coast said last week. Chart showing various LNG export projects under construction and proposed in Mexico, highlighting key market features. Energy companies working in Argentina, Brazil, Mexico, and the Republic of Trinidad and Tobago are unearthing opportunities to develop gas for their countries. Some already are exporting liquefied natural gas, while others are preparing for a potential windfall down the road. All of them are finding success by using one of the oldest management tricks in the book: collaborating with stakeholders.
At least two people dead after oil barge sinks in Venezuela, PDVSA says (Reuters) - At least two people died and four were declared missing following the sinking of an oil barge operated by a contractor of Venezuelan state-run energy company PDVSA at Lake Maracaibo, PDVSA said on Thursday.Sources and an internal report from the company had indicated four fatalities from the accident earlier on Thursday. But PDVSA said rescue work to find the four missing people has not finished."PDVSA reports the unfortunate sinking of barge Chantase G of company SOSCA, provider of oil well maintenance services, in Lake Maracaibo due to the poor weather conditions affecting the area," the company said in a release.Another 19 people were successfully rescued on Thursday morning at the accident site, the report said.Incidents involving barges that carry Venezuelan oil and fuel between domestic ports and to the Caribbean have become frequent. A large fuel oil spill near Tobago from a capsized barge navigating from Venezuela hit several Caribbean nations in March.
Fuel Slick From Sunken Ship Spreads to Greenland Fjord -- A team of firefighters tried to manage a spill of diesel fuel which leaked from a ship that sunk off the coast of Greenland, threatening the delicate marine ecosystem of the Arctic waters.The vessel had reportedly hit a reef and then ran aground on the night of Wednesday to Thursday. Police mentioned that hydrocarbon films could be seen on the water surface in Nanortalik Fjords in the south.Around 20,000 litres or 5300 gallons of fuel spilt and reached the fjord even though pumps and a floating barrage were installed.Elements including wind, tides and sea currents posed additional difficulties in efforts to contain the oil spill, said firefighters who had also received additional equipment.Luckily, all onboard the passenger vessel ‘Adolf Jensen’ evacuated safely.The 30 m long ship sailing the flag of Greenland, was loaded with 15,000 to 20,000 litres of diesel fuel in its tanks, apart from 1000 litres of engine oil.The Environment and Civil Protection Ministry requested help from the Arctic Command of the Danish Navy to help clean the leaked fuel.Police instructed all the ships in the area to be cautious and tread slowly to minimise the disturbance to water.
Oil pollution in UK waters far worse than reported, says conservation group --The true extent of oil pollution released into UK waters by the fossil fuel industry has been “significantly underestimated” and it is putting marine wildlife at risk, according to a report released today.The conservation group Oceana said chronic oiling, defined as frequent, small scale releases, into the North Sea was much higher than estimated due to an “opaque” system of reporting oil discharges and spills.Oil companies must report both accidental oil spills and intentional discharges of so-called produced water – a byproduct that can contain oil and other toxic chemicals. The companies are allowed to release a certain volume of produced water but breaches of permitted levels are reported separately so escape full scrutiny, according to Oceana’s report. This caused underreporting of the total amount of oil released into the sea, it claimed.Using official data, Oceana estimated that when accidental spills and breaches of permitted discharges were added together, the recorded volume of everyday oil pollution should be increased by 43% over the past decade.“The system has been set up in such an opaque way it makes it difficult to understand the full volume of oil that is being discharged via accidental spills and permit breaches,” said Hugo Tagholm, executive director of Oceana. “No one except oil insiders can be sure of the true scale of it.”“Given so few sites are actually inspected, it is out of sight out of mind,” he said. “Even if people are caught, there is little enforcement.”Tagholm accused regulators of inadequate oversight of the industry, describing fines as “a drop in the ocean” compared with corporate profits. Oceana is calling for an increase in inspections and enforcement measures to prevent spills and breaches.A freedom of information request by Oceana revealed only 15% of oil and gas installations had been inspected by the Offshore Petroleum Regulator for Environment and Decommissioning (Opred) in 2023, down from 25% in 2022, according to the oceans group.Over the past five years, there have been two recorded convictions or fines for oil pollution, one for £7,000 against BP for a spill of 95 tonnes of oil. BP said at the time it had “regrettably” fallen short of its “high standards”, and that the incident “should not have happened”.Just five companies accounted for 80% of oil spills between 2011 and 2024, the Oceana report found, the worst offender being Total E&P. Five companies also accounted for 84% of all oil discharged via permit breaches, the worst being the Spanish oil giant Repsol, it said.Oceana’s report found that 248 “permit breach” releases were in UK marine sanctuaries.Dr Rosie Williams, a postdoctoral researcher at the Zoological Society of London, said: “A growing body of research now recognises that the steady release of oil and other toxins into marine environments poses a huge threat to marine life.”
Trouble Deepens for North Sea Oil and Gas -- When the Labour Party came into power, it vowed to tax the oil and gas industry more. Warnings this might backfire fell on deaf years. Now, banks are refusing to lend to North Sea operators. It may well end with energy shortages.“To deliver our clean power mission, Labour will work with the private sector to double onshore wind, triple solar power, and quadruple offshore wind by 2030,” Labour said in a manifesto ahead of the elections. In contrast, their plan for oil and gas was an increased squeeze through taxation and regulation.Indeed, once the Keir Starmer government formed, the squeeze on oil and gas increased. The windfall tax that the previous Tory government had put in place was left in place, with an investment incentive that the Tories had implemented to prevent the industry from upping and leaving getting axed. Labour clearly wanted to have a transition, have it fast, and finance it with oil and gas tax money.Yet this tax caused a reaction among the industry, and it now appears in the banking sector, too. For starters, North Sea operators warned they may be forced to relocate in order to survive. “The UK is now fiscally more unstable than almost anywhere else on the planet,” the CEO of Serica Energy, one of the biggest regional oil and gas producers, said last month. “That means we are looking for new places to invest our money. And Norway is a place where potentially we could recreate our business model.” Now, it seems like banks are going to motivate even more energy companies to leave the UK because they have reduced the amount of money they are willing to lend to the industry—because of the windfall profit tax. That’s the same windfall profit tax that the Labour government wants to use as a cash cow for the energy transition, one of whose ultimate aims is to kill the oil and gas industry quite literally. “The North Sea oil and gas industry, particularly in Scotland, is being starved of financing,” one energy industry insidertold the Financial Times last week. “This financial strain extends beyond traditional banks because even insurance companies are beginning to withdraw support, which threatens the viability of many businesses,” David Larssen, CEO of Proserv, which provides offshore operators with subsea control systems, said.The windfall profit tax was imposed on the energy industry in 2022 amid record profits resulting from the supply uncertainty in oil and gas following the incursion of Russian troops into Ukraine. Originally, the size of that additional levy was 25%, only to be raised next year to 35%. That put oil and gas companies’ total tax burden at a quite sizable 75%.Yet the Tory government allowed for an exemption from the windfall profit tax in case the company reinvested its profits in more supply. Labour removed that exemption option. It also raised the windfall profit tax to 38%. Now, the state budget stands to lose tens of billions of pounds—and the country stands to lose energy supply security.According to data from Norwegian investment bank SpareBank 1 Markets, reserve-based lending to oil and gas operators in the UK’s North Sea had fallen by some 40-50% since the introduction of the windfall profit tax. That’s a sort of asset-backed lending, where oil companies get money based on future cash flows, the FT explains. But with future cash flows extremely uncertain, it was only to be expected that such financing would dry up.“We have recently found it very difficult because people who provide capital are very uncertain about whether they are going to get their money back because of changes in policy,” Robert Fisher, chairman of Ping Petroleum, told the FT.The ultimate problem with this situation is that when there is no money, energy companies will not work to expand or even maintain production. This means, on the one hand, lower income for the state coffers and, on the other, less supply of oil and gas—while they are still very much needed.“If the government implements the kind of windfall taxes they are talking about, then you end up with a cliff edge in UK energy production because the industry will be taxed into uncompetitiveness,” Stifel analyst Chris Wheaton told the Financial Times back in August. “That is going to cause a very dramatic decline in investment and therefore production and jobs, and a big hit to energy security.”It will also cause a dramatic decline in tax revenues from the energy industry, which last year almost hit 10 billion pounds, or $13.3 billion. That’s about to drop precipitously to just about 2 billion pounds in four years if the current tax policies remain in place. Those 2 billion pounds won’t go a very long way in funding a transition, while at the same time, they would make the UK more heavily reliant on energy imports, which is never a good idea when you have your own oil and gas. In that, the UK may be a unique case worth studying by future generations.
TTF Climbs Higher on Threats to Global Natural Gas Supplies – LNG Recap - European natural gas prices moved higher on Monday as tensions rose in the Middle East and Ukraine. Graph showing TTF natural gas prices rising amid global supply threats and LNG market trends, highlighting energy market volatility and supply chain disruptions in the European gas sector. Expand The November Title Transfer Facility (TTF) contract finished 3.5% higher on Monday to close above $12/MMBtu. Israel launched another round of air strikes on Monday against Hezbollah in southern Lebanon, raising the risk of a broader conflict in the region that could threaten global gas supplies. Ukrainian officials also warned that Russia could be planning strikes against nuclear power sites in the country and fighting continued in the Kursk region near the Sudzha gas transit point.
Lagging Demand for German LNG Import Capacity Reflects European Natural Gas Market Risks, Terminal Operator Says -- Germany’s efforts to scale up LNG import capacity following Russia’s invasion of Ukraine has helped stabilize natural gas supply to Europe, but maintaining a balanced independent market requires more work, according to the country’s state-owned terminal operator.Graph showing Germany's LNG imports by country for the year through September 2024.In response to an expected natural gas shortfall in Europe in the coming winter and massive price spikes, Germany – central Europe’s largest gas buyer – swiftly set up floating storage and regasification units (FSRU). The country went from importing its first cargo in 2022 to taking in more than 5.5 million metric tons (mmt) of liquefied natural gas last year, according to Kpler data. At the heart of Germany’s gas security strategy is Deutsche Energy Terminal GmbH (DET), a state-backed firm currently marketing the capacities of two FSRUs on the country's coasts and launching another two sometime this year.
TotalEnergies Signs LNG Supply Deal with South Korea’s HD Hyundai Chemical - TotalEnergies has signed a Heads of Agreement (HoA) with HD Hyundai Chemical for the delivery of 200,000 tons of liquefied natural gas (LNG) per year for seven years starting from 2027. Thanks to this agreement, with prices indexed both to Brent and Henry Hub, TotalEnergies strengthens its long-term position in South Korea, the world’s third-largest LNG importing country. In Asia, LNG serves as a true transition energy, mitigating the intermittency of renewable energy sources and reducing emissions when it replaces coal in electricity generation. “We are pleased with this agreement with HD Hyundai Chemical, which will supply natural gas to one of their industrial sites. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices,” said Gregory Joffroy, Senior Vice President, LNG at TotalEnergies.
Asian, European Buyers Secure Additional LNG Supplies in Series of Deals --Nearly a dozen market participants announced a series of deals at Gastech 2024 in Houston last week, landing more than 5 million metric tons/year (mmty) of global LNG export and import capacity as supplies are forecast to grow through the end of the decade. Commonwealth LNG, which is developing a 9.5 mmty export project in Louisiana, said it had signed a tentative deal to supply 2 mmty of the super-chilled fuel to commodity trader Glencore plc for 20 years. Kimmeridge Texas Gas LLC (KTG), which took a 90% stake in Commonwealth in June, said it would sell the same amount of natural gas to Glencore for liquefaction over the period. KTG produces 400 MMcfe/d in the Eagle Ford Shale. Commonwealth, which has one firm liquefied natural gas supply agreement with Woodside Energy Group Ltd., said it is aiming to finalize the Glencore deal by the end of the year. KTG expects to make a final investment decision on the project in the first half of next year, and plans to start producing LNG in 2028.
Russian shadow fleet poses major oil spill risk in Baltic Sea - A Greenpeace report shows that the ageing vessels are a major environmental concern in one of the busiest shipping regions in the world. The so-called Russian ‘shadow fleet’, consisting of outdated tankers that transport Russian crude as a means to bypass international sanctions, poses a significant risk of causing a major oil spill in the Baltic Sea, claims a just-released Greenpeace report. Greenpeace experts conducted a study analysing four years of vessel movement data, focusing on tankers leaving Russian Baltic Sea ports such as Primorsk, St. Petersburg, Ust-Luga and Vysotsk, and travelling along the German coastline. This is a primary route for ships transporting oil from Russian ports to international waters. Following the EU’s decision to stop importing almost all Russian oil, Russia has increased its maritime transportation of crude oil. A set of sanctions prevents Western shipping companies and insurers from dealing with Russian oil exports priced above $60 per barrel. However, Russia is circumventing these sanctions by utilising ships owned and insured by companies in countries that do not enforce them, and often lie outside of strict maritime regulations. Greenpeace used special buoys equipped with GPS trackers to simulate the potential impact of an oil spill along oil tanker routes. The buoys’ movements illustrated the potential extent of an oil slickalong the coast of Germany and pinpointed areas that could be at risk.
India will not buy from Russia's sanctioned Arctic LNG 2 project - India will not buy liquefied natural gas (LNG) produced from Russia's Arctic LNG 2 project, which is sanctioned by Western countries, Oil Secretary Pankaj Jain said on Friday. "We will not buy (supply from) Arctic LNG 2. We are not buying any sanctioned commodity. Something which has broad-based sanctions, we are not touching it," Jain told reporters. The Arctic LNG 2 project by Russia's Novatek is subject to Western sanctions over Russia's war with Ukraine. The U.S. has also imposed sanctions on hundreds of entities and individuals for supporting Russia's war effort including companies supporting the development of the Arctic LNG 2 project and its shipment of LNG. Novatek has said media allegations that the company was involved in establishing and managing a "shadow fleet" for the Arctic LNG 2 project were untrue.
Japan May Return to Spot Natural Gas Trades as Storage Falls Amid Hot Weather — Three Things to Know About the LNG Market --Persistently hot weather has forced Japan’s utilities to draw down LNG stocks as the winter heating season nears.Asia Spot Market Prices chart displaying trends in Natural Gas Prices across the Asian energy market with data points indicating fluctuations, suitable for energy market analysis.The country’s liquefied natural gas stocks fell 13% week/week on Sept. 22 to 1.64 million tons (Mt). According to the Japan Meteorological Agency, there’s a 70% probability of above normal temperatures across the country until Oct. 4. Temperatures for South Korea were also forecast to be hotter than normal through Oct. 6.“Although spot buying has been rather muted recently, cooling needs will continue to drain inventories through heightened gas-for-power demand,” said Rystad Energy analyst Christoph Halser on Thursday.
Turkey's Botas in talks with Iran's national gas company for long-term supply -- Turkish state energy company Botas said on Wednesday that it had held talks with Iran's national natural gas company NIGC for the long-term supply of natural gas from Iran to Turkey. Turkey consumes > 50 Bm3y of gas. It currently relies on a mix of pipeline gas from Russia, Azerbaijan and Iran, along with LNG imports from various suppliers. Long-term contracts for the supply of Iranian gas to Turkey, which is some 10 Bm3y of gas, expire in 2026. Officials from Turkey's Botas and Iran's NIGC discussed issues of cooperation between the two companies during their meeting in Tehran, Botas said in a statement. The two companies discussed the long-term supply of natural gas from Iran to Turkey and the transportation of Turkmenistan gas to Turkey via Iran, Botas also said, in its first public statement on talks for potential extension of the deal with Iran. Energy Minister Alparslan Bayraktar previously said that Turkey can buy up to 2 Bm3y of gas from Turkmenistan via Iran's natural gas network. Botas signed a 10-year supply agreement with France's TotalEnergies last week, in addition to earlier LNG deals with Oman, ExxonMobil and Shell.
OPEC Says Phasing Out Oil Is Just A Fantasy --OPEC's latest World Oil Outlook (WOO) 2024 makes it clear: peak oil demand is not on the horizon. Despite ongoing discussions around transitioning to renewable energy, OPEC forecasts global oil demand to grow significantly, reaching over 120 million barrels per day (mb/d) by 2050. This projection is driven by strong demand from non-OECD countries, which are expected to see the majority of growth. “What the Outlook underscores is that the fantasy of phasing out oil and gas bears no relation to fact,” OPEC said in its WOO forward. From 2023 to 2029, global oil demand is expected to increase by 10.1 mb/d, with non-OECD countries leading the way, adding 9.6 mb/d to reach 66.2 mb/d. Meanwhile, demand in OECD countries is projected to stagnate, oscillating around 46 mb/d. Long-term, non-OECD demand will continue to rise, adding 28 mb/d by 2050, while OECD demand is expected to decline. India, Other Asia, Africa, and the Middle East will be key drivers of this growth, with India alone expected to increase its demand by 8 mb/d. Sectors like petrochemicals, road transportation, and aviation are set to play a critical role in future demand. Petrochemicals alone are projected to account for an additional 4.9 mb/d of oil demand, driven by increasing demand for ethane and naphtha. Road transportation is forecast to grow significantly before stabilizing, while aviation demand will add another 4 mb/d by 2050. OPEC’s outlook also underscores that oil and gas will continue to dominate the global energy mix, accounting for over 50% through 2050. The organization stresses the importance of continued investment in the oil sector, estimating $17.4 trillion will be needed by 2050 to ensure stable supply. According to OPEC, oil demand will remain robust for decades, with growing demand in non-OECD regions and the continued need for investments in oil infrastructure. Despite the rise of renewables, OPEC’s view is that oil will continue to play a critical role in meeting the world’s energy needs for the foreseeable future.
WTI and Brent Decline as Iran Signals Easing Tensions | Rigzone -- Oil fell on a weak outlook for fuel demand and the potential for the conflict between Iran and Israel to de-escalate after its recent flare-up. West Texas Intermediate slipped almost 1% to settle below $71 a barrel while Brent retreated to settle below $74 a barrel. WTI had gained 4.8% last week in its biggest weekly jump since February. After days of Israel and Iran-backed Hezbollah trading rocket fire, Iranian President Masoud Pezeshkian said on Monday that his country is prepared to de-escalate tensions as long as it sees the same level of commitment on the other side. The overture is easing some concerns that the conflict will worsen, threatening oil output in a region that supplies about a third of the world’s barrels. Crude is also down this quarter on concerns that demand from China and the US will weaken at the same time that output from non-OPEC nations rises, creating an oversupplied market. The outlook for fuel demand is worsening, turning hedge funds the most bearish on diesel on record. Technical factors also are providing headwinds after crude rallied about 10% from its 2024 lows reached earlier this month. WTI for November delivery fell 0.9% to settle at $70.37 a barrel. Brent for November settlement slid 0.8% to settle at $73.90 a barrel. “Sentiment among energy investors has turned decisively bearish as OPEC+ now plans to add barrels into a surplus oil market,” Bank of America Corp. analysts including Francisco Blanch wrote in a note. In China, the world’s top oil importer, authorities announced plans for financial regulators to provide a rare briefing on the economy as the country cut a short-term policy rate. That fueled speculation officials are preparing more efforts to revive growth. Increased stimulus from China could improve demand for crude, said Robert Yawger, director of the energy futures division at Mizuho Securities USA. It’s “tough for crude oil to rally for size without China demand growth,” Yawger said. Meanwhile, from Mississippi to the Florida Panhandle, the US Gulf Coast is at risk of a hurricane strike by the end of the week as a patch of turbulent weather in the Atlantic becomes more organized. Ahead of the storm, Shell Plc has curtailed production at the Appomattox project and the Stones oil field in the Gulf, according to a company statement.
Oil settles lower on weak euro zone business activity (Reuters) - Oil prices closed lower on Monday as worries about demand were compounded by disappointing euro zone business activity and a weak Chinese economy. Brent crude futures for November settled 59 cents lower, or 0.8%, to $73.90 a barrel, while U.S. crude futures for November fell 63 cents, or 0.9%, to $70.37. Euro zone business activity contracted sharply and unexpectedly this month as the bloc's dominant services industry flatlined while a downturn in manufacturing accelerated. U.S. business activity was steady in September, but average prices charged for goods and services rose at the fastest pace in six months, potentially hinting at a pickup in inflation in the coming months.China, the world's top oil importer, is meanwhile battling deflationary pressures and struggling to lift growth despite a series of policy measures aimed at spurring domestic spending."Disappointing economic numbers flowing from China along with a surprise slowdown in European manufacturing is placing crude demand at the lowest levels so far this year," Supply concerns stemming from Israel's airstrikes on Hezbollah targets on Monday helped support oil prices.After almost a year of war in Gaza, Israel is shifting its focus to its northern border, across which Hezbollah has been firing rockets in support of its ally Hamas."More attacks from Israel on Lebanon spawn fear that Iran will become more involved, which raises the probability of oil exports being at risk," A tropical disturbance near the Gulf of Mexico also is threatening oil supply. Shell said on Sunday it would shut production at its Stones and Appomattox facilities in the region as a precautionary measure. Norwegian oil producer Equinor on Monday said it is evacuating some staff as a precaution from its Titan oil production platform in the U.S. Gulf of Mexico, while Chevron said it was evacuating nonessential personnel from its Gulf of Mexico platforms.U.S. crude oil stockpiles were expected to have fallen by about 1.2 million barrels last week, a preliminary Reuters poll showed on Monday. Both oil benchmarks rose more than 4% last week, buoyed by the U.S. Federal Reserve's decision to cut interest rates by 50 basis points and signal further reductions in borrowing costs by the end of the year. Chicago Fed President Austan Goolsbee on Monday said he expects "many more rate cuts over the next year" as the U.S. central bank seeks a "soft landing" for the economy, where it controls inflation without crashing the labor market.
Oil prices rise 2% to hit 3-week high on China stimulus, supply worries by MidEast conflict; Brent reclaims $75 - International crude oil prices climbed two per cent to hit a three-week high on Tuesday, September 24, after the monetary stimulus from China, the world's top importer, and concerns that conflict in the Middle East could hit regional supply. At the same time, another hurricane (after the recent storm Francine) threatened supply in the US, the world's biggest crude oil producer.Brent futures were last up $1.14, or 1.5 per cent, to $75.04 a barrel, while US West Texas Intermediate (WTI) crude rose $1.16, or 1.7 per cent, to $71.53. That put the Brent crude benchmark on track for its highest close since September 2. Back home, crude oil futures last traded 1.46 per cent higher at ₹5,985 per barrel on the multi commodity exchange (MCX). What's driving crude oil prices?
- -Analysts said the Chinese government's announcement of its largest stimulus package since the COVID-19 pandemic, combined with the sudden rise of geopolitical tension in the Middle East dealt a blow to the bearish sell-off sentiment that dominated the crude oil markets in the past three weeks.
- -China's central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target. Still, analysts warned more fiscal help was vital to hit these goals.
- -In the Middle East, a key oil-producing region, an Israeli airstrike on the southern suburbs of Beirut killed a Hezbollah commander as fears of a full-fledged war in the region mounted. The strikes risk pulling Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), closer to a conflict with Israel. Iran supports the Lebanese militant group.
- -The Israeli military chief stated that attacks on Hezbollah would continue to accelerate. Analysts said this has struck new fears of the possibility of an all-out war in the Middle East, which could completely destabilize the region.
- -Jake Sullivan, the White House national security adviser, said US President Joe Biden is determined to bring about a Gaza ceasefire and hostage deal with the Palestinian militant group Hamas while also seeking to de-escalate tensions on Israel's border with Lebanon.
- -Meanwhile, US oil producers were scrambling to evacuate staff from oil production platforms in the Gulf of Mexico as a second hurricane --after the recent storm Francine, could tear through offshore oilfields in two weeks.
- -Several oil companies paused some of their production even though Tropical Storm Helene is currently on track to miss most of the producing regions in the western and central Gulf of Mexico. They hit the Florida Panhandle as a hurricane late on Thursday.
On Monday, crude oil prices were volatile and slipped from their highs after mixed US economic data. The US manufacturing activities slipped to 17-month lows and pushed prices lower. The US dollar index also rebounded which also triggered profit taking. The escalating tensions in the middle-east after Israel fired missiles on Lebanon and declared an emergency for the week, supported prices. "Possible fresh storms in the Gulf of Mexico could also support prices at lower levels. In today's session, crude oil is having support at $70.00-69.40 and resistance at $71.10-71.70. In INR terms, crude oil has support at₹5,840-5,780 while resistance is at ₹5,960-6,050''
Oil climbs 2% to three-week high on China stimulus, Mideast conflict | Reuters (Reuters) - Oil prices climbed about 2% to a three-week high on Tuesday on news of monetary stimulus from China, the world's top crude importer, and amid concerns that growing conflict in the Middle East could hit regional supply.Oil markets gave up some earlier gains as it became more clear that a hurricane threatening the U.S. Gulf Coast later this week would likely miss most offshore oil and natural gas producing regions and hit Florida. The region accounts for 15% of the country's oil and 2% of natural gas production.Brent futures rose $1.27, or 1.7%, to settle at $75.17 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.19, or 1.7%, to settle at $71.56.That was the highest close for Brent since Sept. 2. "The Chinese government's announcement of its largest stimulus package since the pandemic, combined with the sudden rise of geopolitical tension in the Middle East ... has dealt a blow to the bearish sentiment that dominated the oil markets in the past three weeks," Claudio Galimberti, global market analysis director at Rystad Energy, said in a note.China's central bank unveiled its biggest stimulus since the COVID-19 pandemic to pull the economy out of its deflationary funk and back towards the government's growth target, but analysts warned more fiscal help was vital to hit these goals.In the Middle East, a key oil-producing region, an Israeli airstrike on Beirut killed a senior Hezbollah commander as cross-border rocket attacks by both sides increased fears of a full-fledged war in the region.The strikes risk pulling Iran, a member of the Organization of the Petroleum Exporting Countries, closer to a conflict with Israel. Iran supports the Lebanese militant group.OPEC, meanwhile, raised its forecasts for world oil demand for the medium and long term in an annual outlook, citing growth led by India, Africa and the Middle East and a slower shift to electric vehicles and cleaner fuels. In the U.S., the world's biggest oil consumer and producer, several energy firms paused some production even though Tropical Storm Helenewas currently expected to miss most of the producing regions in the western and central Gulf of Mexico and hit the Florida Panhandle as a major hurricane late Thursday.But some firms, like Shell, started the process of restoring oil production as the storm forecasts shifted away from their offshore platforms.Another factor that helped pare earlier oil price gains was news of a drop in U.S. consumer confidence by the most in three years in September amid mounting fears over the labor market.
WTI Leaks Lower As Crude Inventories Hit Lowest Since March 2022 -- Oil pries are lower overnight, despite API reporting an across the board inventory draw, as traders weigh up whether China's new stimulus measures will translate to higher energy demand in the world’s biggest oil importer.Geopolitics also remained in focus as Iranian President Masoud Pezeshkian said that Israeli attacks in Lebanon “cannot go unanswered.”"Though oil rebounded last week, we do not see the current price as accurately reflecting a wider Middle East war scenario. Many market participants have seemingly written off a threat to regional oil supplies," Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a note."While we are not forecasting a closure of the Strait of Hormuz, we do think that direct Iranian involvement would raise the prospect of a repeat of the 2019 scenario when the IRGC (Islamic Revolutionary Guard Corps) and allies targeted tankers and critical energy infrastructure in the region," she wrote. API
- Crude -4.34mm (-800k exp)
- Cushing -26k
- Gasoline -3.44mm (-500k exp)
- Distillates -1.12mm (-1.2mm exp)
DOE
- Crude -4.47mm (-800k exp)
- Cushing +116k - first build in seven weeks
- Gasoline -1.54mm (-500k exp)
- Distillates -2.23mm (-1.2mm exp)
The official DOE data confirmed sizable inventory draws for crude and products but saw a small build in stocks at the Cushing Hub (its first build in seven weeks)... Graphs Source: Bloomberg Total crude stocks are at their lowest since March 2022...The Biden admin added a large 1.287mm barrels to the SPR last week...US Crude production was flat, just off record highs...
Concerns Over Output Disruptions in Libya Eased - The crude oil market on Wednesday retraced some of its previous gains despite the weekly petroleum stocks reports showing a larger than expected draw in crude stocks. The market was pressured as concerns over output disruptions in Libya eased. The oil market posted a high of $71.72 in overnight trading before it started to retrace its previous gains. The market mostly dismissed the API report, which showed a larger than expected draw of 4.34 million barrels in crude stocks as well as draws in distillate and gasoline stocks. The market was also pressured as the market reassessed whether China’s latest stimulus plan would be enough to support its economy and a change in the forecast track for Tropical Storm Helene that had it moving away from oil and gas producing areas in Texas, Louisiana and Mississippi. The crude market traded below the $70.00 level early in the morning before it bounced off its lows and traded over the $71.00 level following the EIA report, which showed a large draw of over 4.4 million barrels in crude stocks and draws in products stocks. However, the market failed to sustain any of its gains and extended its losses to over $2.30 as it posted a low of $69.23 in afternoon trading. It retraced more than 38% of its move from a low of $64.61 to a high of $72.40. The market traded lower after Libya’s factions signed an agreement, an initial step in resolving the dispute that caused a cut in Libya’s output and exports. The crude market later traded in a sideways trading range ahead of the close. The November WTI contract settled down $1.87 at $69.69 and the November Brent contract settled down $1.71 at $73.46. The product markets also ended lower, with 2.98 cents at $1.9999. U.S. Secretary of State, Antony Blinken, said the risk of escalation in the Middle East was “acute” and that both the U.S. and its allies were working to avoid a full-blown war between Israel and the Lebanon’s armed group Hezbollah. Earlier, White House national security spokesperson, John Kirby, said the United States is deeply concerned by reports of a Hezbollah rocket attack aimed at Israel’s intelligence service, but still believes a diplomatic solution can de-escalate tensions on the Lebanon-Israel border. The Bureau of Safety and Environmental Enforcement said that about 29% of crude production and 17% of natural gas output in the U.S. Gulf of Mexico were shut in response to Hurricane Helene. Energy companies shut in 511,000 bpd of oil production and nearly 313 million cubic feet of natural gas from Gulf waters. Shell said that following a change in the forecast track of Tropical Storm Helene, it has started to restore production at the Appomattox platform in the Gulf of Mexico to normal levels. However, Equinor shut in operations and evacuated staff at its Titan platform in the Gulf of Mexico as of Tuesday morning due to approaching Hurricane Helene. Also, Chevron said it was shutting in production at its Gulf of Mexico facilities and evacuating all associated personnel due to the approaching hurricane. The United Nations Libya mission said Libya’s factions signed an agreement on the procedures, criteria and timelines for appointing a governor, deputy governor and board of directors for the country’s central bank. The agreement could help defuse a crisis over control of the central bank and oil revenue that has caused a cut in Libya’s oil output and exports. IIR Energy reported that U.S. oil refiners are expected to shut in about 1.03 million bpd of capacity in the week ending September 27th, cutting available refining capacity by 36,000 bpd.
Oil falls on easing Libya supply concerns, lingering China demand worries (Reuters) - Oil prices slumped over 2% on Wednesday as worries over supply disruptions in Libya eased and demand concerns continued despite China's latest stimulus plans. Still, falling crude inventories in the United States and rising tensions in the Middle East provided some support. Brent crude futures fell $1.71, or 2.27%, to settle at $73.46 a barrel. U.S. West Texas Intermediate crude slipped $1.87, or 2.61%, to settle at $69.69 per barrel. Libya's factions signed an agreement on the process for appointing central bank governor, an initial step to resolve the dispute over control of the central bank and oil revenue that has slashed Libya's oil output and exports. "A pending resolution to Libya's central bank crisis would restore significant oil supply, while U.S. Gulf production outages are seen as very temporary," A hurricane threatening the U.S. Gulf Coast has changed course, toward Florida and away from oil and gas-producing areas near Texas, Louisiana and Mississippi.Despite a slew of monetary support measures announced by China's central bank on Tuesday, the boldest since the pandemic, analysts warned that more fiscal help was needed to boost activity in the world's largest crude importer."Concerns lingered that more fiscal support would be needed to boost confidence in the Chinese economy. This uncertainty raised doubts about sustained demand growth, weighing on crude prices," Oil prices rose by about 1.7% on Tuesday after China announced sweeping interest rate cuts and more funding.Meanwhile, crude inventories in the U.S. fell by 4.5 million barrels to 413 million barrels in the week ended Sept. 20, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.4 million-barrel draw. Gasoline and distillate inventories also declined last week. "The trend of falling supplies is getting too big to ignore. We hear how bad demand can be and have mixed signals," "The weakness of demand doesn't fit with this falling inventory situation," he added. The intensifying conflict between Iran-backed Hezbollah in Lebanon and Israel also supported crude prices, with cross-border rockets launched by both sides increasing fears of a wider conflict. Although Iran's leadership has shown restraint, an attack is probably on the cards in order to save face, but without enraging its European allies and disrupting the main oil trade routes.
Saudi Arabia Prepares to Increase its Output and Gain Market Share - The oil market on Thursday continued on its recent downtrend following a Financial Times report that Saudi Arabia will give up its $100 price target as it prepares to increase its output and gain market share. The crude market, which initially traded sideways and posted a high of $70.01, sold off sharply to $67.16 on the Financial Times report. It retraced more than 62% of its move from a low of $64.61 to a high of $72.40. The market bounced off its lows but was once again pressured and sold off to a low of $66.95 by mid-morning. OPEC+ sources said that the producer group was set to proceed with a December oil output increase. The market was also pressured as the shutdown of Libya’s oil output looked set to end within days after representatives of Libya’s rival eastern and western legislative bodies agreed to appoint a new central bank governor. The market later saw some choppy trading within a range from $67.25 to $68.50 during the remainder of the session. The November WTI contract settled down $2.02 at $67.67 and the November Brent contract settled down $1.86 at $71.60. The product market also ended the session lower, with the heating oil market settling down 2.41 cents at $2.1361 and the RB market settling down 3.86 cents at $1.9613. The Bureau of Safety and Environmental Enforcement said about 441,923 bpd or 25% of crude oil production and 363.4 million cubic feet or 20% of natural gas output in the U.S. Gulf of Mexico was shut due to Hurricane Helene.The Financial Times reported that Saudi Arabia is preparing to abandon its unofficial oil price target of $100/barrel as it prepares to increase output to gain back market share, even if it means lower prices. The Financial Times reported that OPEC+ is committed to increasing production as planned on December 1st, even if that means a longer period of low oil prices. The newspaper reported that Saudi Arabia has decided that it is unwilling to continue to cede market share to other oil producers and believes it has enough funding options, including foreign reserves and debt, to withstand a period of lower crude prices. Saudi Arabia has shouldered a large share of OPEC+ output cuts, reducing its own output by about 2 million bpd since late 2022.Two OPEC+ sources said OPEC+ is set to go ahead with a December oil output increase as its impact will be small should a plan for some members to make larger cuts to compensate for overproduction be delivered in September and later months. OPEC+ is scheduled to raise output by 180,000 bpd in December, part of a plan to start unwinding its most recent layer of output cuts. Two OPEC+ members, Iraq and Kazakhstan, have pledged to make extra cuts totaling 123,000 bpd in September and additional cuts in future months, to compensate for previously producing above agreed levels. Top ministers from OPEC+ are scheduled to meet on October 2nd to review the market and are not expected to make any changes to policy. Another OPEC+ source said the ministers could meet again in November.U.S. Secretary of State, Antony Blinken, said countries around the world, including leading Arab nations, those in the G7 and the European Union, want a halt to hostilities between Israel and Hezbollah along Israel’s northern border with Lebanon. He said he is scheduled to meet with Israeli officials in New York later on Thursday.
Oil prices slide 3% on prospect of more OPEC+ oil (Reuters) - Oil prices fell more than 3% on Thursday on a Financial Times report that Saudi Arabia, the world's top crude exporter, will give up its $100 price target in preparation for raising output, along with OPEC members and allies in December.Brent crude futures settled down $1.86, or 2.53%, to $71.60 a barrel. U.S. West Texas Intermediate crude finished down $2.02, or 2.90%, at $67.67 per barrel.Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output, the Financial Times reported on Thursday, citing people familiar with the matter.Meanwhile, two OPEC+ sources told Reuters on Thursday that the producer group is set to go ahead with a December oil output increase because its impact will be small should a plan for some members to make larger cuts to compensate for overproduction be delivered in September and later months."They are over-reacting to the story from FT," Tamas Varga, analyst at PVM, said the report is about a preplanned unwinding of production cuts that will if implemented add 180,000 barrels per day (bpd) of extra crude oil supply each month."No doubt, it will loosen the global oil balance but at the same time it will reduce OPEC’s spare production capacity," Varga said. "It will most probably lead to stock builds in 2025 and keep prices under moderate pressure. What is perhaps more important is whether it is the harbinger of a supply war within and outside the organization. If the answer is yes, a painful plunge to the $40/bbl area cannot be ruled out."The Organization of the Petroleum Exporting Countries, along with the group's allies including Russia, together known as OPEC+, have been cutting oil output to support prices.However, prices are down nearly 6% so far this year, amid increasing supply from other producers, especially the U.S., as well as weak demand growth in China."The prospect of additional supply from Libya and Saudi Arabia has been the main driver behind the latest weakness," A United Nations statement on Wednesday said delegates from Libya's divided east and west regions agreed on the process of appointing a central bank governor, a step which could help resolve the crisis over control of the country's oil revenue that has disrupted exports.Libya's crude exports have averaged about 400,000 barrels per day (bpd) in September, down from more than 1 million bpd in August, shipping data show.News of a new Chinese stimulus package, however, limited further losses.Top government officials in China, the world's largest crude oil importer, pledged on Thursday to deploy "necessary fiscal spending" to meet this year's economic growth target of roughly 5%, acknowledging new problems and raising market expectations for fresh stimulus in addition to measures announced this week.
Oversupply Fears Are Pushing Oil Prices Lower - Fear of an oversupply of oil on the back of reports that Saudi Arabia is considering returning to its strategy of pursuing market share rather than supporting prices has sent both WTI and Brent falling this week.China’s economic stimulus measures and US hurricanes have provided firm fundamental support for oil prices; but the big story of this week has come from Saudi Arabia, with media outlets alleging Riyadh is considering a strategy revamp of retaking market share in the oil markets. Fearing oversupply, market participants witnessed a $3 per barrel drop from a week ago, with WTI dipping below $70 per barrel again.According to the FT, Saudi Arabia is preparing to raise its crude oil production to win back market share, abandoning its unofficial $100 per barrel oil price target even if that means lower prices, raising hopes that OPEC+ would go ahead with its December hikes. The UN-brokered negotiations between Libya’s rival governments have made substantial headway this week, reportedly agreeing on the procedures of Central Bank staffing and decision-making, seeking to defuse the ongoing oil blockade..Port authorities in New York, New Jersey, Virginia, New Orleans, Louisiana and Texas have started to inform customers that some operations will stop effective September 30 as a regionwide strike of port workers risks debilitating container cargo traffic.. The two largest upcoming oil and gas projects in the UK’s continental shelf, Shell’s Jackdaw, and Equinor’s Rosebank, might be stalled after environmental campaign group Greenpeace initiated a legal review of the two fields in Scottish courts. The US Federal Trade Commission is expected to prohibit Hess CEO John Hess from taking a board seat at US major Chevron as a condition of the latter’s $53 billion purchase of Hess, just as Pioneer CEO Scott Sheffield was barred from Exxon’s board.The chief executive of EQT confirmed that the United States’ largest gas producer would be reversing some output curtailments implemented earlier in 2024 on the back of lower gas prices, preparing for a surge in LNG feedgas demand.Kazakhstan’s Energy Ministry said it expects preliminary results of multi-billion arbitration proceedings by the end of this year, launching claims against stakeholders of the Kashagan and Karachaganak fields, worth $13 and $3.5 billion, respectively.. Brazilian upstream firm Prio reached an agreement with Chinese state-controlled major Sinochem to buy its 40% stake in the offshore Peregrino oil field for $1.92 billion, boosting its proprietary output with the 110,000 b/d field. British oil major BP (NYSE:BP) has reportedly put its US onshore wind business up for sale in a bid to attract investor interest as it rethinks its vast portfolio of low-carbon assets, selling 1.7 GW of gross generating capacity across seven US states.Copper futures for December delivery surged past the $10,000 per metric tonne threshold as China unveiled wide-ranging stimulus measures to breathe life into its ailing real estate market, settling above $10,200/mt and sending mining stocks up by 6-7% this week. Belgium, the fourth largest recipient of Russian LNG in 2023, has called for a coordinated EU approach to end the imports of Russian LNG into the European Union, over and above the expected ban on transshipment, set to take effect from the end of March 2025.. At the peak of Hurricane Helene, some 30% of US offshore oil output was offline as 27 producing platforms were evacuated, equivalent to an outright impact of 510,000 b/d, but shut-ins had dropped by Friday as oil companies resumed operations.
Crude Oil Prices Rebound As China Stimulus Dims Fears Of Rising Supply - Crude oil prices rebounded on Friday amidst global cheer at the stimulus measures rolled out by China. Concerns over firmer supply that had dragged down prices heavily during the week took backstage on Friday amidst overwhelming hopes of a demand rebound in China.Brent Oil Futures for December settlement is currently trading at $71.34, having gained 0.35 percent from the previous close of $71.09. Prices had slipped more than 2 percent each on Wednesday and Thursday.The day's trading ranged between $70.25 and $73.28 whereas the 52-week trading range was between $68.68 and $96.26.West Texas Intermediate (WTI) Crude Oil Futures for November settlement also increased 0.46 percent from the previous close of $67.67 to trade at $67.98. Prices had slipped more than 2 percent each on Wednesday and Thursday.Prices ranged between a high of $68.14 and a low of $67.06. Trading ranged between $65.27 and $93.1 over the past 52 weeks.
Oil Jumps as Middle East Tensions Ignite Supply Fears - Crude prices are seeing a sharp rise today, with WTI trading at $68.52 per barrel, up 1.26%, and Brent crude at $72.27 per barrel, up 0.94%. These gains are driven primarily by escalating tensions in the Middle East, particularly the intensifying conflict between Israel and Hezbollah. This volatility is prompting fears of further disruptions to oil supply and maritime routes.Israel recently launched an airstrike targeting Hezbollah's central headquarters in Beirut, marking the heaviest attack in almost a year of ongoing conflict. Although the fate of targeted Hezbollah leader Hassan Nasrallah is unconfirmed, the strikes have heightened geopolitical concerns. With Hezbollah retaliating through rocket fire and maritime security warnings issued for vessels in Israeli ports, the conflict poses a direct risk to regional shipping lanes. The Houthis in Yemen have also increased attacks on U.S. vessels and Israeli targets, further destabilizing the area.The growing uncertainty in the region, coupled with fears of more direct strikes on ports like Haifa and Eilat, has led to heightened risk assessments for shipping and oil transport. Insurance premiums are expected to rise as the potential for collateral damage to Israeli and neighboring maritime infrastructure looms. Investors are responding by pushing up oil prices, anticipating supply disruptions and increased demand for secure oil reserves amid the instability. The situation remains fluid, and continued price increases are likely if the conflict escalates further. Brent crude has been trading down since last week, with Sunday’s price at $74.47 per barrel. Brent is also down even more sharply compared to a month ago, when prices were closer to $78 per barrel.
Oil settles higher but falls on the week on firmer supply outlook (Reuters) - Oil prices settled higher on Friday but fell on the week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China. Brent crude futures settled up 38 cents, or 0.53%, at $71.89 per barrel. Front-month U.S. West Texas Intermediate crude futures settled up 51 cents, or 0.75%, at $68.18. On a weekly basis, Brent settled down around 3%, while WTI fell by around 5%. China's central bank on Friday lowered interest rates and injected liquidity into the banking system, aiming to pull economic growth back toward this year's target of roughly 5%. More fiscal measures are expected to be announced before Chinese holidays starting on Oct. 1 after a meeting of the Communist Party's top leaders showed an increased sense of urgency about mounting economic headwinds. "Despite aggressive Chinese stimulus, concerns of oversupply from OPEC’s plan to bring production back have pushed prices lower," . The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will go ahead with plans to increase production by 180,000 bpd each month starting from December, two OPEC+ sources said. A Financial Times report on Wednesday said the planned increase is due to Saudi Arabia's decision to abandon a $100 oil price target and gain market share. Saudi Arabia has repeatedly denied targeting a certain oil price, and sources at the wider group told Reuters that the plans to raise output from December do not represent any major change from existing policy. And more barrels can be expected to enter the global market, after rival factions staking claims for control of the Central Bank of Libya signed an agreement to end their dispute on Thursday. The row had seen crude exports fall to 400,000 barrels per day (bpd) this month from more than 1 million last. In the U.S., some operators have begun to resume operations in the Gulf of Mexico after Hurricane Helene made landfall in Florida on Thursday night, with Chevron on Friday redeploying personnel and restoring production at company-operated platforms. Meanwhile, the destruction of the hurricane, counted as the seventh most powerful to slam into Florida, could weigh on fuel demand in the state, which is the third-largest gasoline consumer in the U.S. "The aftermath of the hurricane is bearish really for demand, a large amount of the state got battered enough that demand should take a hit," said John Kilduff, partner at Again Capital in New York. Meanwhile, U.S. consumer spending edged higher in August in a sign that the world's largest economy carried on momentum in the third quarter, as inflation pressures steady. "U.S. inflation data opens the door for further Fed rate cuts," UBS analyst Giovanni Staunovo said. The U.S. Federal Reserve cut interest rates by half of a percentage point last week, kicking off what was expected to be a steady easing of monetary policy. Putting a floor on prices, Lebanon's caretaker Prime Minister Najib Mikati said Israel's attacks on Beirut's southern suburbs on Friday show it "does not care" about efforts to bring about a ceasefire. Rising tensions in the Middle East could pose a threat to global crude supplies.
Iranian President Says Israel Laying 'Traps' To Draw Iran Into War - Iranian President Masoud Pezeshkian said Monday that Israel is setting “traps” to drag Iran into war, comments that came amid a dramatic escalation of Israel’s bombing campaign in Lebanon.Pezeshkian, who is in New York for the UN General Assembly, told reporters that Iran wants peace in the region while Israel wants war.“We don’t want to fight,” he said. “It’s Israel that wants to drag everyone into war and destabilize the region. … They are dragging us to a point where we do not wish to go.”Pezeshkian also discussed the July 31 Israeli assassination of Hamas’s political chief, Ismail Haniyeh, in Tehran, warning it will not go “unanswered” but also adding that Iran does not wish to be “the causes of instability in the region.”The Iranian leader said that Iran waited to respond due to US warnings that it could disrupt ceasefire negotiations between Israel and Hamas. “They told us earlier to prevent a larger war to wait another week or so for peace to be obtained,” Pezeshkian said. “Clearly the politicians that lie to us these days … lie to you as well.”Back in April, the US directly intervened to defend Israel and intercepted Iranian missiles and drones that were fired in response to the Israeli bombing of Iran’s consulate in Damascus, which killed several Iranians, including a senior Quds Force commander.The US is vowing to defend Israel from any future attacks, whether launched by Iran or if Israel requests help with Hezbollah attacks. “We’re obviously supporting the defense of Israel, should they be threatened or attacked and call upon us for support, which could include the kinds of scenarios you saw on April 14, when Iran conducted its drone and missile attack,” Pentagon spokesman Maj. Gen. Pat Ryder said on Monday.
Israel massively expands Middle East war, killing nearly 500 in Lebanon -- Israel launched a massive attack on Lebanon on Monday killing 492 people, including 35 children, 58 women and two medics in over a thousand separate airstrikes. Monday’s mass killing far outstripped the intensity of Israel’s 2006 invasion of Lebanon, during which 1,000 people were killed during an entire month. Israel’s bombings followed its mass terror attack last week, in which thousands of pagers and other communication devices exploded throughout Lebanon, killing 37 people and injuring thousands. In language echoing that used to justify the ongoing Gaza genocide, which has already officially killed more than 41,000 people, Israeli Defense Forces (IDF) spokesman Daniel Hagari declared, “Hezbollah uses the civilian population and civilian homes as a human shield for its terrorist activity.” Israel’s massacre in Lebanon prompted mass evacuations from Southern Lebanon to the capital city of Beirut. Israeli Prime Minister Benjamin Netanyahu called on the population of Southern Lebanon to evacuate, claiming that they would be allowed to return to their homes. But the real plans of the Netanyahu government and its imperialist backers were spelled out by Amichai Chikli, Israel’s Minister of Diaspora and Combating Antisemitism, who called for Israel to carry out a land grab in Southern Lebanon. “Lebanon, even though it has a flag and even though it has political institutions, does not meet the definition of a country,” he said. “The drawing lines of Sykes and Picot, which were based on the distribution of areas of influence and resources between Great Britain and France, did not survive the test of time.” In a testament to the scale of the military operation now being conducted, Israel’s National Unity Party Chairman MK Benny Gantz declared, “We must act not only against Hezbollah but also against the sovereign state of Lebanon, which bears responsibility for terrorism emanating from its territory.” This massive escalation is being coordinated in real time with the United States, which is funding, arming and politically supporting it. In a press briefing Monday, Pentagon spokesman Maj. Gen. Pat Ryder reported that “Secretary [of Defense Lloyd] Austin spoke with Israeli Defense Minister Yoav Gallant on Saturday and Sunday evenings Eastern Time. “During both calls, Secretary Austin reaffirmed the United States’ commitment to Israel’s right to defend itself,” said Ryder. “The Secretary also made clear that the United States remains postured to protect US forces and personnel in the region.” Ryder announced that the United States would be sending additional US troops to the region. Currently, about 40,000 US troops are deployed throughout the Middle East, including in Iraq and Syria. The USS Abraham Lincoln aircraft carrier is currently deployed in the region, while the USS Harry S. Truman is currently underway to the area. While the Biden administration has publicly claimed that it is seeking a de-escalation of tensions and a “ceasefire,” the reality is that it is funding, enabling and encouraging Israel’s role in both the Gaza genocide and its wider attacks in the Middle East. In July, Israeli Prime Minister Benjamin Netanyahu received a standing ovation from Democratic and Republican members of both houses of Congress, followed by separate meetings with US President Joe Biden and Vice President Kamala Harris. After her meeting with Netanyahu, Harris, the Democrats’ candidate for president, declared, “I will always ensure that Israel is able to defend itself, including from Iran and Iran-backed militias, such as Hamas and Hezbollah”—an effective green light to expand the war beyond Gaza. The US press, moreover, is beginning to give a hint about the scale of Israel’s plans. In an article published Monday, New York Times chief Washington correspondent David Sanger wrote, “Netanyahu is no longer satisfied with carrying out periodic brush-backs of Hezbollah’s power. In his view, Oct. 7 changed everything and the time has come to solve the problem once and for all—both in Gaza and in Lebanon.” In other words, Israel and its imperialist backers have seized upon the October 7 attacks to carry out not only their “final solution” of the Palestinian question but to completely reorganize the Middle East under imperialist domination by provoking a region-wide war. US imperialism sees this war as one front in a global struggle targeting Russia and China, aimed at securing US domination all over the globe.
Israeli Diaspora Minister Says Lebanon Isn't a State, Advocates Taking South - Tensions between Israel and Hezbollah are escalating substantially, with scores of people killed in Lebanon in the past week. Israel’s far-right government is stepping up the rhetoric and talking war. Diaspora Minister Amichai Chikli is the latest voicing pro-war rhetoric, declaring overnight in comments on X.com that Lebanon does not, in his opinion, fit the definition of a state, and that this gives Israel every right to invade and seize southern Lebanon. Chikli said that southern Lebanon is essentially under the control of “a hostile Shi’ite population.” He added that he believes neither Syria nor Iran counts as states, and so don’t merit protection for their status as sovereign nations. Israel is generally not overly concerned about violations of sovereignty through its military actions, but what Chikli is advocating is overt military action against other nations in the region. Chikli was one of several government ministers who recently urged the Israeli government to cut off all access to humanitarian aid to northern Gaza, and argued that the military should conduct operations to “cleanse” the region. The proposal prescribed similar cleansings of other areas.
Deadly Israeli attack on residential area in Beirut leaves carnage (photo essay) At least six people have been killed and 15 wounded in an Israeli air attack targeting Beirut’s southern suburb of Ghobeiri according to Lebanon’s Ministry of Public Health. The initial toll from the attack on Tuesday is expected to rise as emergency services continue their work at the scene. Reporting from Beirut, Al Jazeera correspondent Dorsa Jabbri said it was the third Israeli attack on that area of Beirut since Friday.“There was an attack yesterday with Israel claiming to have targeted a high-ranking member of Hezbollah and that assassination was unsuccessful. And all this is happening as the country is in a state of high alert, with a huge crisis in terms of internally displaced people,” she said.The Israeli military said it had “conducted a targeted strike in Beirut” on a senior Hezbollah commander on Tuesday. Hezbollah has not commented on whether he was killed. An AFP photographer at the site of the attack said it had destroyed two floors of a building located in a densely packed residential area, and damaged dozens of nearby cars and motorbikes.A crane was brought in to evacuate residents stranded in their apartments in nearby damaged buildings, the photographer said, with other cranes moving vehicles and removing rubble.Hezbollah security cordoned off the site of the attack while rescuers looked for survivors amid the rubble of damaged buildings, water tanks and torn electric wires. Hezbollah and its longtime foe Israel have been exchanging near-daily cross-border fire since the Gaza war erupted last October. But on Monday, Israel launched devastating attacks across Lebanon’s south and east, killing more than 550 people according to the Health Ministry – the deadliest single-day toll since Hezbollah and Israel last went to war in 2006. The attacks came after coordinated explosions of communication devices killed 39 people and wounded thousands on Tuesday and Wednesday last week. Israeli forces have killed at least 558 people, including 50 children and 94 women, in air raids it conducted across Lebanon since September 23. At least 1,835 Lebanese people were wounded in the attacks, the country’s health ministry said.
Israeli Strikes Kill at Least 558 in Lebanon - Israel dramatically escalated its military operations in Lebanon on Monday, launching strikes against residential areas across the south and east of the country, killing hundreds of people.According to Lebanon’s health minister, at least 492 people were killed in the Israeli strikes, including 38 children and 58 women, and another 1,645 people were wounded. Al Mayadeen reported that it’s estimated thatIsraeli warplanes launched 1,100 airstrikes.Israel also launched an airstrike in Beirut and said it targeted Ali Karaki, the head of Hezbollah’s southern command. But Hezbollah said Karaki was “fine and God willing is in full health and wellness” and that he was “transported to a safe area.”Tens of thousands of residents of southern Lebanon fled the Israeli bombardment and headed north. The Israeli military threatened that it would expand strikes to eastern Lebanon’s Bekaa Valley and told residents to leave. Later in the day, it began bombing the area.To justify its bombing of civilian homes in Lebanon, the Israeli military claimed Hezbollah was storing large missiles and missile launchers inside houses. Israel offered no evidence for the claim besides animated videosand overhead footage that purported to show airstrikes on homes in Lebanon, but it was unclear.Hezbollah fired dozens of rockets into northern Israel in response to the Israeli bombardment. Some rockets landed in Israeli settlements in the Israeli-occupied West Bank.Israel is expected to continue escalating its attacks on Lebanon, but Lebanese security sources told Middle East Eye that a ground invasion is not likely even though Israel is amassing troops. “Israel knows that if it infiltrates Lebanon, the Lebanese army and Hezbollah will have military superiority on the ground,” one source said. “If the Israeli army carries out a ground invasion, the Lebanese army will participate with Hezbollah in confronting and defending.”
Lebanon Health Minister: 'Majority, If Not All' of 558 Killed by Israel Were Civilians - Lebanese Health Minister Dr. Firass Abiad told The New York Times on Tuesday that the “overwhelming majority, if not all,” of the people killed and wounded by Israel’s bombardment in Lebanon on Monday were civilians.The death toll from Lebanon’s Health Ministry puts the number of killed by the Monday bombing at 558, which includes 50 children and 94 women. Nearly 2,000 were wounded in the attack.The Times notes that Lebanon’s Health Ministry’s figures have historically been viewed as reliable. The ministry is not run by Hezbollah but is overseen by the Lebanese government and collects its data using an emergency operations center that gathers casualty figures from private and state-run hospitals.Israel targeted residential areas of southern and eastern Lebanon on Monday, claiming Hezbollah missiles were being hidden inside houses. The Israeli military said that it hit more than 1,600 targets, and experts say it’s one of the heaviest single-day bombings in modern warfare. The toll in Israel’s bombardment is about half of the toll for the entire 2006 Lebanon War, which lasted 34 days.“Prior to the Gaza war, munitions deployed with this intensity and with this frequency would have been almost unheard-of,” Emily Tripp, director of the monitoring group Airwars, told the Times. “There is no comparison in terms of death toll or munitions use with previous 21st-century air campaigns of this nature, as far as we know.”
Hezbollah Says It Has Entered a 'New Phase' of Fighting With Israel Following Israeli Escalations - Sheikh Naim Kassem, the deputy leader of Hezbollah, said Sunday that the Lebanese group is in a “new phase” of its fight with Israel following a series of Israeli escalations in Lebanon.Kassem described the new phase as an “open-ended battle of reckoning” and said Hezbollah attacks on Israel wouldn’t stop until there was a ceasefire in Gaza. “The Israeli settlers will not return to the North before the Israeli enemy accepts a ceasefire in Gaza,” he said.Kassem made the comments at a funeral for Ibrahim Aqil, a senior Hezbollah commander who was killed in an Israeli airstrike on a southern suburb of Beirut. Lebanon’s Health Ministry said Sunday that the death toll in the Friday strike rose to 45, which includes three children and seven women.Hezbollah confirmed 16 of its members were killed in the attack, including Aqil and another senior commander. The Beirut bombing came a few days after Israel blew up pagers and beepers belonging to Hezbollah members, killing dozens, including at least two children, and wounding thousands.Hezbollah fired dozens of rockets into northern Israel on Saturday and Sunday in response to the Israeli airstrike in Beirut and said it targets several military sites, including the Ramat David Airbase, an Israeli Air Force base near Haifa. According to Israeli media, three people were wounded by Hezbollah rocket fire on Sunday.Israeli airstrikes continued to pound Lebanon on Saturday and Sunday. According to CNN, an Israeli military spokesman said Israel launched 300 strikes against Hezbollah targets in southern and eastern Lebanon. At least two people were reported killed by the Israeli strikes on Sunday.Herzi Halevi, the chief of staff of the Israeli Defense Forces, said Sunday that the strikes would continue. “The price that Hezbollah is paying has increased, our attacks will increase,” he said. “We will safely return the residents to their homes, and if Hezbollah has not understood this yet, it will get another blow and another blow – until the organization understands.”Axios reported on Saturday that US officials support Israel’s strategy of escalation. Israeli officials claim the purpose of the escalation is to de-escalate the situation and not provoke a full-blown war, but there’s no sign Hezbollah will back down.
Hezbollah Fires First Ballistic Missile On Tel Aviv, Targets Mossad Headquarters -Yesterday marked a first where Hezbollah targeted an Israeli naval base south of Haifa with a missile salvo. And today marks another new major first: Israel says it has intercepted a Hezbollah ballistic missile aimed at Tel Aviv. It marks a first of the war and the deepest Hezbollah has ever tried to send a projectile into Israel."The Israeli military said it intercepted the surface-to-surface missile, which set off air-raid sirens in Tel Aviv and across central Israel,"Associated Press reports. "There were no reports of casualties or damage." In retaliation Israel's military (IDF) said it struck a site in south Lebanon from where the missile was launched.Hezbollah later said it was targeting the command headquarters of Israel’s Mossad spy agency. Given the intercept, the effort didn't appear to come close, but it strongly suggests there could be more waves of strikes targeting Tel Aviv to come. The projectile was reportedly intercepted by Israel's David's Sling system, a medium-range defense system.Israeli military spokesperson Nadav Shoshani characterized the missile as "heavy" and "long range." He described, "It’s the first time that Hezbollah has fired toward Tel Aviv." According to more confirmation of the unprecedented action from CNN:The Iran-backed militant group Hezbollah confirmed it launched a Qadr 1 ballistic missile targeting the headquarters of Israel’s intelligence service Mossad, which it blames for attacks targeting its members, including the coordinated explosions of thousands of pagers and walkie-talkies last week. The attempt to attack Tel Aviv appeared a retaliation effort for the Tuesday death of Hezbollah’s top missile commander Ibrahim Muhammad Qabisi. Israeli jets struck his home in a southern Beirut neighborhood, in a strike which Lebanese officials said killed six and wounded 15. An IDF spokesman described that in total on Tuesday Hezbollah fired 300 projectiles into Israel, resulting in six people wounded. In Lebanon, Monday marked the single deadliest day since the 2006 war with Israel. The Health Ministry said over 490 people were killed, among these 90 women and children. It is unclear how many of the total were militants, with some reports saying the majority of casualties are civilians.
Israel Rejects US-Backed Ceasefire Proposal, Continues To Pound Lebanon - Israel on Thursday rejected a US and French proposal for a ceasefire in Lebanon and continued to launch heavy airstrikes in the country. Later in the day, Lebanon’s Health Ministry said Israeli strikes killed 92 people in the previous 24-hour period.The US and France are calling for a 21-day ceasefire, but the US continues to provide military aid to Israel and is vowing to defend Israel if the situation escalates, giving Prime Minister Benjamin Netanyahu no incentive to stop his new bombing campaign.Netanyahu’s office released a statement denying reports that there’s been progress on a ceasefire and vowed to continue hitting Lebanon hard and keep up the onslaught in Gaza. “The report about a ceasefire is incorrect. This is an American-French proposal that the Prime Minister has not even responded to,” the statement said.“The report about the purported directive to ease up on the fighting in the north is the opposite of the truth. The Prime Minister has directed the IDF to continue fighting with full force, according to the plan that was presented to him. The fighting in Gaza will also continue until all the objectives of the war have been achieved,” the statement added.Israeli Foreign Minister Israel Katz also rejected the idea of a ceasefire. “There will be no ceasefire in the north,” he wrote on X. “We will continue to fight against the terrorist organization Hezbollah with all our might until victory and the safe return of the residents of the north to their homes.”Lebanon’s Health Ministry said that overnight Israeli airstrikes in eastern Lebanon killed 20 people, almost all Syrian nationals. According to AFP, the ministry said, “Israeli enemy strike on the village of Yunin” killed “20 people, including 19 Syrian nationals.”Israel also bombed Beirut again in a strike that targeted a residential area of the southern suburb of Dahiyeh. Lebanon’s Health Ministry said two people were killed in the strike, and 15 were wounded.Around 700 people have been killed by Israeli strikes in Lebanon since Monday. The Monday bombing killed over 550 people, the majority being civilians, according to Lebanese Health Minister Dr. Firass Abiad.
Netanyahu Considers Ethnic Cleansing Plan for North Gaza - Israeli Prime Minister Benjamin Netanyahu is considering a plan that would result in the ethnic cleansing of Palestinian civilians from northern Gaza, CNN reported on Sunday.The report, citing the Israeli broadcaster Kan, said that during a closed-door meeting of the Knesset’s Foreign Affairs and Defense Committee, Netanyahu said the plan “makes a lot of sense.”Netanyahu added, “It is one of the plans being considered, but there are several others. We are committed to dismantling the civilian control of Hamas.”The ethnic cleansing plan is known as the “General’s Plan” since it was drawn up by retired Israeli generals, including Giora Eiland, who released a video on YouTube where he outlined the idea. The plan involves four steps:
- Transferring the civilian population in northern Gaza to the south of the Netzarim Corridor
- Blocking all aid and imposing a full siege of northern Gaza and pronouncing it a “closed military zone”
- Preventing deliveries to the area until it is “cleansed” and the remaining Hamas fighters are defeated by applying “intense” military pressure
- Conducting a similar procedure in other areas of the Gaza Strip
In his video, Eiland said the evacuation order for civilians would not be optional. “The right thing to do is to inform the approximately 300,000 residents who remained in the northern Gaza Strip, citizen residents, of the following: Not that we are suggesting you leave the northern Gaza Strip, we are ordering you to leave the northern Gaza Strip,” he said.“In a week, the entire territory of the northern Gaza Strip will become military territory. And this military territory, as far as we are concerned, no supplies will enter it. That is why 5,000 terrorists who are in this situation, they can either surrender or starve,” Eiland added.Many Palestinian civilians in northern Gaza would likely ignore any evacuation order since there’s nowhere for them to go, and Israel has repeatedly bombed so-called “safe zones” throughout the genocidal war. That means any remaining Palestinian civilians in the north would be killed or starved to death by the Israeli military.If completed, the ethnic cleansing could pave the way for Jewish settlements. Many Israeli ministers and Knesset members openly support re-establishing settlements in the Gaza Strip, after exterminating those living there now.
Israel Sends Truck Full of Bodies of Unidentified Palestinians Into Gaza - Israel sent a truck full of 88 dead Palestinians into the Gaza Strip on Wednesday and provided no information about their identities or how they were killed.Gaza’s Health Ministry is demanding answers from Israel and refused to bury the bodies before they were identified.The Health Ministry said in a statement that it had suspended the procedure for taking the bodies until “all data and information about these bodies are completed to identify their owners and their names, considering this to be the minimum rights of these people and their families.”The ministry called on international aid organizations, including the Red Cross, to help get information from Israel. “We also emphasize the necessity of receiving the bodies according to humanitarian and international standards and in a manner that preserves the rights and dignity of the owners of these bodies,” the ministry said.Middle East Eye reported that the truck driver, who entered Gaza from the Kerem Shalom crossing, was not allowed to enter the Nasser Hospital in Khan Younis and was told to go back to Israel.Israel has sent hundreds of decomposed and unidentifiable bodies into Gaza over the past year. Gaza health officials said the truck sent in on Wednesday was the fifth one. On August 2, a truck carrying 90 bodies entered the Strip, and the Health Ministry said they were returned as “bones and decomposed bodies in an inhumane manner.”
Turkey's Erdogan Says UN, Western Values Dying in Gaza (Reuters) - Turkish President Tayyip Erdogan said on Tuesday that the values of the United Nations' system and the Western world are dying in Gaza as the conflict continues there, calling for an "alliance of humanity" to stop Israel. In a speech at the United Nations General Assembly, Erdogan reiterated his harsh criticism on Israel over its military campaign in the Gaza strip and on the Western countries for their support to Israel. "Along with children in Gaza, the United Nations system is also dying, the truth is dying, the values that the West claims to defend are dying, the hopes of humanity to live in a fairer world are dying one by one," Erdogan said. NATO member Turkey has condemned Israel's military campaign in the Gaza Strip, which came in retaliation for Palestinian militant group Hamas' cross-border attack on Oct. 7 last year. Turkey halted all trade with Israel and applied to join a genocide case against Israel at the World Court. Israel has repeatedly dismissed the genocide case as baseless, arguing in the court that its operations in Gaza are self-defence and target Gaza's ruling Hamas group. "Those who are supposedly working for a ceasefire continue to send weapons and ammunition to Israel behind the stage, so that it can continue its massacres. This is inconsistency and insincerity," Erdogan said. Erdogan also said that Turkey stands with the people of Lebanon as Israel targets Hezbollah fighters with airstrikes there.
Key Ukrainian Stronghold About To Fall To Russia As Zelensky Touts 'Victory Plan' In D.C. --Having been in the United States since Sunday, Ukrainian President Volodymyr Zelensky is about to present his 'victory plan' to President Biden, as well as VP Kamala Harris and former President Donald Trump, likely in that order as the meetings unfold this week. He said in an ABC News interview published Tuesday, "I think that we are closer to peace than we think." But he caveated this by saying this will only be assured if Ukraine comes from a "strong position" with the help of Western backers.He described his so-called victory plan as not being focused on seeking to negotiate with Russia, but rather it is "a bridge to a diplomatic way out, to stop the war.""We just have to be very strong, very strong," Zelensky said, and this is largely dependent on the "quick decisions". He has also of late said that "bold" decisions must be made by Washington, in reference to the request for NATO to greenlight long-range missiles strikes on Russia."Everybody's looking up to [Biden], and we need this to defend ourselves," he told ABC, in an obvious effort to increase pressure on a somewhat hesitant White House. Ukraine also wants a firm path to NATO membership. He further said his plan is about "the strengthening of Ukraine, Ukrainian army and Ukrainian people. Only in the strong position we can push [Russian President Vladimir] Putin to stop the war - diplomatic way." He emphasized: "That is why we are asking our friend." Despite this optimism about Ukraine's battlefield chances from Zelensky, Reuters on Tuesday has more bad news for Kiev, centering on rapid gains in Donetsk as another key town is about to fall. Zelensky is pulling out all the stops in a final push to wring U.S. taxpayers for more money. He knows the policies of unlimited funding and escalation supported by the Harris-Biden Admin have an expiration date. https://t.co/GeeUC6lMEA— Rep. Eli Crane (@RepEliCrane) September 24, 2024 "Russian forces have begun storming the eastern Ukrainian town of Vuhledar, a stronghold that has resisted Russian attack since the beginning of the 2022 war, according to Russian war bloggers and state media," Reuters writes.
