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ENERGY MARKETS REPORT INCLUDING: Shell’s CFO has reported a 35% rise in exploration for 2012 and is expecting overall output growth by the end of 2012

2nd Feb 2012, 11:45 am
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WTI Crude is trading downwards ahead of the North American open following an unexpected glut in US energy supplies reported yesterday. Bank of America have released comments concerning forecasts for WTI in Q1 2012 to be around USD 100/BBL.

Oil & Gas News:

• Iran has agreed to accept 45% of the payment for its oil exports to India in rupees after recent negotiations with Indian officials during their visit to Tehran, the Daily Indian Express reported quoting unnamed sources. 

•  Iraq oil exports in January fell 1.9% M/M to 2.106MBPD, according to source close to the State Oil Marketing Organization. 

•  JP Morgan have said commodities may “bottom out” in Q2 when the Chinese government steps in to boost growth.

•  Iraq have resumed Northern Crude oil exports via Turkey after a technical halt. 

•  BofA raise Q1 WTI price forecast to USD 100 from USD 92.

•  BofA raise Q1 Brent price forecast to USD 108/BBL from USD 100/BBL.

•  BofA lowers US Q1 gas forecast to USD 2.90 from USD 3.40.

•  BofA lowers US gas output forecast to 2BCF/D from 2.4BCF/D.

•  BofA says cuts Q1 2012 US natural gas price forecast to USD 2.90/MMBTU from USD 3.40/MMBTU

Geopolitical News: 

•  German Chancellor Merkel has urged China to further pressure Iran to be more “open and transparent” over its nuclear program. 

•  Citi have reported that the Iranian oil embargo will remove 500,000-700,000BBL/D.

•  Chinese Premier Wen has said China supports further discussion between Iran and international organisations, and does not support any Middle-Eastern nation developing nuclear weaponry.

Corporate News: 

•  China National Offshore Oil Corporation aims to double its oil and gas production by 2020 and triple it by 2030 against its 2010 levels, company chairman Wang Yilin said.

• Shell has sold off a 20% stake in a Canadian shale gas play to PetroChina in a deal rumoured to be worth over USD 1bln, according to numerous reports.

• Shell’s CFO has reported a 35% rise in exploration for 2012 and is expecting overall output growth by the end of 2012.

•  ExxonMobil has awarded a licence for a steam injection system and production method it says can improve oil sands production to oilfield services company Baker Hughes.

Weather news:

Weather Derivatives forecast sees average temp. in the US for the next 6-10 days to be 2.9% above the average at this time of the year. The data is accurate as of 1st February, 2012. There are no tropical cyclones at this time.

All 12 regions in Japan are expected to experience below-average temperatures in the month from January 28 to February 27, the weekly weather forecast released Friday by the Japan Meteorological Agency showed.

 

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