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China Returns to Buy Winter Gas Supply in Risk to Global Balance
China is looking to stock up on liquefied natural gas for winter, returning to the spot market in a move that risks reducing supply to other importers.
Unipec, the trading arm of Sinopec, released a tender to purchase more than a dozen shipments for this winter, in addition to deliveries through the end of 2024, according to traders with knowledge of the matter.
This is the biggest push by a state-owned Chinese importer to procure LNG from the spot market since February.
The nation’s potential return to the market could curb the availability of LNG for Europe, which is turning to the super-chilled fuel to replace pipeline gas deliveries from Russia.
Risks from frigid weather to strikes and China’s appetite for fuel threaten to disrupt the LNG/Gas market’s delicate balance, according to executives and analysts at the Gastech conference
Oil prices had been coiling for a few days ahead of this data and are breaking out now after OPEC reports that global oil markets face a supply shortfall of more than 3 million barrels a day next quarter - potentially the biggest deficit in more than a decade.
If realized, it could be the biggest inventory drawdown since at least 2007, according to a Bloomberg analysis of figures published by OPEC’s Vienna-based secretariat.
OPEC’s 13 members have pumped an average of 27.4 million barrels a day so far this quarter, or roughly 1.8 million less than it believes consumers needed, according to the report.
WTI pushed above $88 on the news, its highest since Nov 2022...
wti 88.4 ⬆️
brent 91.4 ⬆️
https://www.zerohedge.com/energy/wti-breaks-out-new-nov-highs-after-opec-data-shows-huge-supply-shortfall
Record high oil demand, record low oil inventories, and "we do not need oil to go any higher for energy companies to do egregiously well"
We've never consumed more oil in history than we have today:
https://www.bnnbloomberg.ca/video/we-ve-never-consumed-more-oil-in-history-than-we-have-today-eric-nuttall~2764707
Https://twitter.com/surprised_trade/status/1701333786158371285
Free cash flow, profits, divis all very healthy at $80+ oil, at $90+ exceptionally healthy
Https://twitter.com/surprised_trade/status/1700113579318366494
Free cash flow generating at even higher levels for SQZ with Oil and Gas increases
Https://twitter.com/surprised_trade/status/1700059410083557633
sp dropped from 2050p+ on vet review by CMA news - 'The Times understands that the CMA assessed the announcement and deemed it not to be market-moving'....market providing opportunity.
The Times understands that the CMA assessed the announcement and deemed it not to be market-moving, largely because it had not yet made findings or used its formal powers. Yet shares in CVS Group fell by a third in the morning.
The CMA called for pet owners and vet practitioners to write in with their experiences of pricing, how prescriptions are sold, choosing a surgery, and use of out-of-hours services.
The news triggered the share price of CVS Group, the vet network, to drop by more than a third in morning trading...
The company later issued a response to the review, saying: “There continues to be a significant shortage of vets in the UK and employment costs represent the most significant proportion of our cost base. Our pricing reflects this and other inflationary pressures experienced in recent years. “We have a clear strategy to continue to expand our network and to improve clinical care through investment in facilities, equipment, technology and our people.”
Analysts at Jefferies said that “much of the inflation in the cost of vet services is being driven directly by the shortage of vet practitioners and the, justified in our view, inflation in vet salaries.”
RBC analysts said: “CVS generally seeks 5 per cent per annum increases (two increases in 2022 due to inflation), but that it tends to achieve a net 3 per cent rise as some services are more price competitive. This does not seem egregious to us.”
The Times understands that the CMA assessed the announcement and deemed it not to be market-moving, largely because it had not yet made findings or used its formal powers. Yet shares in CVS Group fell by a third in the morning.
https://www.thetimes.co.uk/article/competition-review-leaves-veterinary-group-looking-poorly-bz67tj5nx
Broker report - all on track and Oil rising
i3 Energy announced solid results, beating our earnings forecast with significant cost reductions. The company produced 20,640 boe/d (WHIe: 20,716 boe/d) in the half, generating revenues net of royalties of £75.5m (WHIe: £75.7m), net operating income of £38.9m (WHIe: £34.4), profit before tax of £14.5m (WHIe: £9.9m) and profit after tax of £10.9m (WHIe: £5.3m). Both operating and general & administrative costs were significantly lower than in the prior half-year and relative to our xpectations.
Effectively, i3 Energy has more than managed cost inflation by significantly reducing costs.
We expect oil prices to rise significantly in 2H 2023 and into early 2024, due to a significant tightening of the oil market. We therefore see a strong 2H 2023 for i3 Energy and anticipate increasing our fair value estimate as oil prices increase relative to our conservative WTI oil price assumption of $77.89/b for 2023.
Strong production in July: The company stated that production in July averaged 22,065 boe/d, which indicates that 20 operated turnarounds and curtailments related to third party infrastructure and wildfires are all in the rear-view mirror. The company is well positioned to benefit fully from rising oil prices.
Oil price outlook: According to the International Energy Agency’s August 2023 Oil Market Report, if OPEC+ maintains its current targets, demand for oil is expected to exceed the supply of oil by 2.2 mmb/d in 3Q 2023 and by 1.2 mmb/d in 4Q 2023 – expect staggering inventory declines. The tightness in the market is already translating into both lower inventories and higher prices. That trend of lower inventories and higher prices will amplify in 2H 2023 .
Https://twitter.com/surprised_trade/status/1699047457848529377
SAUDI TO EXTEND VOLUNTARY CUT OF 1M B/D UNTIL END OF DEC. 2023
Brent $90
Crude $86.7
Https://www.ft.com/content/3a80d337-cd09-4d16-94f7-ec7e08720669
Lord Lee adds Chesnera to his portfolio as a consistent dividend payer with the potential for sp growth....
Https://www.thetimes.co.uk/article/hydrogen-pick-up-for-toyota-plant-6jfdhv2w8
Hydrogen is seen as a much better zero-emission alternative to battery electric for heavy-duty, high-payload vehicles such as pick-up trucks, as well as lorries and buses
The likelihood of Toyota building a hydrogen version of its bestselling Hilux pick-up truck in Britain has taken a big step forward after the Japanese motor group’s factory in Derbyshire said it had completed the assembly of ten fuel-cell prototype vehicles.
From the end of this year, the zero-emission prototypes will go out for testing to Hilux fleet customers........