This week blogging services may be intermittent due to travel commitments and today we only have time for a short “flash” blog
Crude prices fell back in London overnight, with Brent down ~0.7% to close at US$47.31. Following Monday’s public holiday, New York managed to post a gain (catching up with Brent basically), finishing up at US$44.86.
The OPEC Ice wore off a bit in London, notwithstanding acres of news-print previously devoted to nebulous promises from Russia and Saudi Arabia about freezes (how generous we say given they are currently maximising production).
We noted with amusement a story yesterday about OPEC member Indonesia being comfortable with sub US$50 oil – that is of course because the archipelago nation is a significant net importer of crude. It rejoined OPEC last year notwithstading this position, presumably because it seemed like the only policy action it could take (closing its eyes and wishing) to go back to its glory exporting days.
Henry Hub was down ~2% to US$2.72.
Quote of the day
Shell’s CEO, Ben van Beurden seems to be the most quotable of the Super-Major chiefs – the following recent utterance pointing out the risk of blow-back from what seems the inexorable widening of the areas that the financial industry do not like for green-wash reasons:
“….weaponize the banking system against oil and gas, [and if they succeed] those parts of the hydrocarbon system that are most capital intensive will be penalized first. The most capital intensive development of the hydrocarbon system is gas – you will have yet another unintended consequence – promoting coal.”