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Oil jumps 3% on US debt ceiling progress, OPEC+ in focus
that is a good find gator
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Colombia is getting help from external actors to develop its renewable energy sector. In February, the Climate Investment Funds (CIF), one of the world’s largest multilateral climate funds, announced it would be lending Colombia $70 million at a low interest rate, to invest in its green transition
This month, Colombia’s National Hydrocarbons Agency (ANH) is expected to invest over $135 million in gaining a better understanding of the country’s renewable energy potential. This funding is part of the government’s four-year development plan, currently being debated in Congress
Investing.com -- Oil prices rose in Asian trade on Monday as U.S. lawmakers said they had reached a provisional agreement to raise the debt ceiling, with focus now turning to key Chinese data this week for cues on the world’s largest oil importer.
Oil rises on tentative U.S. debt deal; China, Fed in focus
Less covered by international media, however, was a discussion between the two presidents about the possibility of forgiving Colombian public debt in return for climate action and conservation efforts.
Petro, in statements the following day, said that the two countries will work together to build “a renewed Alliance for Progress with a view to developing clean energy in the Americas,” part of which could include a US proposal to the International Monetary Fund (IMF) to help secure financing. He called the debt relief conversation "the most important agreement with President Biden; it could quite literally change the world."
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman warned short sellers to "watch out" earlier in the week, raising expectations that Saudi Arabia, the de facto leader of the OPEC+ cartel, would seek another production cut in order to boost prices.
Adding to the optimism is a report by Reuters indicating that congressional Republicans and the White House are very close to agreeing on a deal to lift the U.S. debt ceiling before the June 1 deadline, averting a catastrophic default that would severely hit global economic activity, and thus crude demand.
Crude oil higher; U.S. demand stays healthy ahead of OPEC meeting
Investing.com
Fri, May 26, 2023 at 5:33 AM EDT·2 min read
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Investing.com -- Oil prices rose Friday, heading towards their second consecutive week of gains on signs of tightening U.S. supply and improving fuel demand in the world’s largest oil consumer.
The government hopes that the funding will help to attract a further $280 million from development banks and carbon finance markets. Based on this figure, it expects to stop 1.6 million tonnes of carbon dioxide from being released, or around 1 percent of Colombia’s annual carbon emissions.
Agree bball,
thank your son for his service and good luck to the longs here.
growing up in a military family i wish to thank and morn all those who have served or have family serving in our military or are alive or passed.
good luck to my fellow longs here,
have a blessed Memorial day to all
NEW YORK (Reuters) -Oil prices rose about 2% on Wednesday, after a large unexpected drawdown in U.S. crude inventories and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production cuts.
The Memorial day holiday, this year on May 29, traditionally marks the beginning of U.S. peak summer travel. U.S. gasoline futures rose 2% on Tuesday after the API data.
Production cuts by some OPEC+ members take effect this month. Fears of a supply squeeze mounted after Saudi Arabia's energy minister said he would keep short sellers - those betting that prices will fall - "ouching" and told them to "watch out".
The comments could mean the Organization of Petroleum Exporting Countries and allies including Russia will consider further output cuts at a meeting on June 4, said OANDA analyst Craig Erlam.
Colombia has significant potential to develop its renewable energy sector and has already introduced favorable policies to support this development. However, with an economy that continues to rely heavily on fossil fuels, President Petro will have to ensure economic stability and alternative employment to achieve a successful green transition. Further, while the country is attracting high levels of investment in its renewable energy sector, it must improve its complex regulatory and tax systems if it hopes to accelerate the development of its green energy capacity.
Oil prices rose on Tuesday on forecasts for a tighter gasoline market and a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ output cuts.
A warning from the Saudi Arabian energy minister against shorting oil also pushed up prices. This came as the effects of recent production cuts by the OPEC began to be felt, which, coupled with signs of increasing demand, pushed up expectations of a near-term supply crunch.
Oil prices rose in Asian trade on Wednesday as industry data signaled a sharp drop in U.S. inventories, heralding tighter supplies,
Colombia, which generates nearly half of its export revenues from oil and coal, will not rush to drastically reduce exports in an energy transition the new president has pledged. Energy exports “would have to be gradual” and place gas self-sufficiency as a priority, Ocampo told FT.
Last week, Andres Bitar, acting president of the National Hydrocarbons Agency, ANH, told Reuters that the government hadn’t taken any decision regarding the idea of blocking new oil and gas exploration projects.
“The main message that is very clear from the government is that it’s not a decision that’s written in stone,” Bitar said.
Natural gas is an essential part of Colombia’s overall energy mix, providing 28% of all energy consumed in the country.
Andres Bitar, acting president of the National Hydrocarbons Agency, ANH, told Reuters that the government hadn’t taken any decision regarding the idea of blocking new oil and gas exploration projects.
“The main message that is very clear from the government is that it’s not a decision that’s written in stone,” Bitar said.
“The decision on whether or not to sign new contracts or open a bidding round hasn’t been made,” the acting head of the national regulator told Reuters.
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Asia will lead oil demand growth of around 2 million bpd in the second half of the year, a senior executive at Vitol said, an increase that could potentially lead to a shortage of supply and drive up prices.
Last week, both oil benchmarks gained about 2%, their first weekly rise in five, after wildfires shut in large amounts of crude supply in Alberta, Canada.
the International Energy Agency (IEA) warned of a looming shortage in the second half of the year when oil demand is expected to eclipse supply by almost 2 million barrels per day (bpd), the Paris-based agency said in its latest monthly report.
Oil prices traded either side of unchanged on Monday as the market waited for news on the U.S. debt ceiling talks and as a stronger dollar offset support from lower supplies from Canada and OPEC+ producers.
Given the costs of the technologies involved, some level of government support will be required for carbon capture, utilisation and storage (CCUS) to see a return on capital. Colombia has yet to announce any CCUS projects, even though it has a net zero target in place and CCUS storage potential. Colombia’s government has indicated policy support for low-carbon hydrogen – to meet its net zero pathway, CCUS has to be part of the equation in Colombia too.
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Colombia produced around one million barrels a day (mb/d) of oil in 2022 and has valuable product exports to the United States, according to Wood Mackenzie findings. But US efforts under the Inflation Reduction Act (IRA) are designed to propel decarbonisation towards a 1.5 degree pathway. On this pathway – which we explore in our AET-1.5 scenario – oil demand in the US transport sector could fall to less than 1 mb/d by 2050. That would put Colombia’s liquids exports at significant risk.
Colombia’s National Hydrocarbons Agency (ANH) is expected to invest over $135 million in gaining a better understanding of the country’s renewable energy potential. This funding is part of the government’s four-year development plan, currently being debated in Congress. The government has already pledged not to grant any new hydrocarbon exploration and production contracts, although it will allow companies to continue operations under existing licenses.
Currently, between 40% and 50% of the country’s oil exports come from coal and oil, and taxes from oil firm Ecopetrol provide around 9 percent of the government’s income.
Despite its ambitions, a recent report showed that nearly two-thirds of Colombia’s renewable energy projects due online in 2023 and 2024 are currently facing delays.
Colombia is getting help from external actors to develop its renewable energy sector. In February, the Climate Investment Funds (CIF), one of the world’s largest multilateral climate funds, announced it would be lending Colombia $70 million at a low interest rate, to invest in its green transition
The government hopes that the funding will help to attract a further $280 million from development banks and carbon finance markets. Based on this figure, it expects to stop 1.6 million tonnes of carbon dioxide from being released, or around 1 percent of Colombia’s annual carbon emissions.
Colombia has been gradually developing its renewable energy capacity for almost a decade, with Congress passing a law to promote the building of renewable energy projects in 2014. But by 2021, less than 1% of energy in the country came from renewable sources. And while former president Iván Duque introduced a general energy transition policy, his government also continued to promote the production of fossil fuels to support the economy.
On Tuesday, the International Energy Agency flagged “all-time record” demand from China in March, as the country’s recovery “continues to surpass expectations.” In its closely watched monthly oil market report, the agency predicted global demand will climb by 2.2 million barrels of oil equivalent per day this year, with supply conditions tightening in the back half of 2023.
Oil could climb above $US100 per barrel by late summer before rallying to more than $US115 in 2024, according to Amrita Sen, chief oil analyst at Energy Aspects.
Sen outlined an “extremely bullish view for oil” in a virtual presentation hosted by Wells Fargo last week, according to Michael Blum, managing director of Wells Fargo Securities.
Stay ahead of the market
Sen sees global oil demand growing by 1.5 million barrels of oil equivalent per day in 2023, led by China’s reopening. On the supply side, she notes the recent OPEC+ production cuts aimed at supporting the market have yet to take effect.
Extremely bullish’: Oil could hit US$100 per barrel this summer
Oil prices have gone on a roller-coaster ride this year. The firm recently released its May report, which noted that global oil demand is stronger than expected. With expectations for muted supply, oil prices could heat up this summer
Oil Prices Are Primed to Rally