Oil & Gas

Surging Tanker Rates Make U.S Oil Too Expensive for Asia

U.S. crude can’t compete now in Asia because freight rates have made it too expensive.
Due to the higher freight costs, WTI Crude is now $1 a barrel more expensive than Abu Dhabi’s Murban, versus small discounts or parity in prices last week.
For example, India is looking to buy more term supplies from Saudi Arabia and from West African producers as the world’s third-largest crude oil importer is always on the hunt for bargains for its crude supply.

Oil Demand Balance More Bullish Than 2023

Commodity analysts at Standard Chartered have reported that silver and distillates are the only commodities whose investor positioning has changed significantly from a year ago.
Standard Chartered: oil could be undervalued by at least $10 per barrel.
Supply and demand balances are significantly more bullish compared to a year ago, when an outsized January surplus of 3.5 mb/d led to a large 1.6 mb/d Q1-2023 surplus.

Nigeria Oil and Gas Upstream Market Booms as Key Players Drive Growth in Every Sector

The Nigerian oil and gas upstream market are anticipated to register a Compound Annual Growth Rate (CAGR) of over 2.0% during the period from 2021 to 2026. As of January 2021, the offshore and onshore rig count experienced a significant reduction in the country due to project scarcity and the adverse impacts of the COVID-19 pandemic.

Evolution Petroleum Announces Acquisition of Non-operated Oil and Gas Assets

Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) announced today that it has entered into definitive agreements to acquire non-operated oil and natural gas assets in the SCOOP and STACK plays in central Oklahoma (the “Acquisitions”) from Red Sky Resources III, LLC, Red Sky Resources IV, LLC, and Coriolis Energy Partners I, LLC. The combined purchase price of the Acquisitions is $43.5 million in cash, subject to customary closing adjustments, with an effective date of November 1, 2023, and an expected closing date in mid-February during the Company’s third quarter of fiscal 2024. Evolution expects to fund the acquisition with cash on hand and borrowings from EPM’s revolving credit facility.