Daily Archives: July 22, 2009

Kate Mackenzie

Nothing bullish in crude

Markets: Crude slips ahead of US inventories

Prepare for more China resources deals

France’s complicated relationship with energy efficiency

Geoengineering to get mainstream scientific support

Exelon walks away from NRG

Carbon capture and storage gets a good rap from Harvard

Further reading:

Coal stocks: the real economic indicator (SeekingAlpha)

Is speculation a (good) reason to oppose cap and trade? (TNR)

Congress may restore hydrogen car funding (NY Times)

Steven Chu is on Facebook, for reals (Infrastructurist)

The obesity-gasoline price relationship (Forbes)

Stephen Fry and living buildings at TED (Guardian)

Waxman-Markey is boring, and Steven Chu interviewed (The Daily Show)

Those great EIA renewable electricity figures are not so green (Atomic Insights)

China’s struggle with market coal prices and controlled electricity prices (Energy Tribune)

By Izabella Kamkinska

Stephen Schork of the Schork report makes an excellent point regarding recent large US inventory crude draws.

As he explains, with reference to contango:

In other words, the market is paying you to build supplies by virtue of the discount on nearby material. If the recent run-up in price was based on real demand for wet barrels, then this discount would disappear, i.e. the market would be moving from contango toward backwardation. That is not the case at this time. Thus, the ongoing drawdown in U.S. crude oil supplies (outside of Cushing) is not demand driven, but rather a function of lower domestic production and fewer imports. In other words, refiners, as any good grocer would tell you, are aggressively emptying the shelves, as it were, of surplus material.

Oil prices fell on Wednesday ahead of the latest US weekly inventories data, while base metals were mixed and gold consolidated below the $950 an ounce level.

Nymex September West Texas Intermediate fell 89 cents to $64.72 a barrel while ICE September Brent lost 57 cents at $66.30 a barrel.

WTI has been trading at a discount to Brent, reflecting weak US demand conditions.

Kate Mackenzie

China will use its foreign exchange reserves to make more overseas acquisitions, the country’s premier Wen Jiabao said in an interview.

Wen told diplomats he wanted China to hasten its ‘going out’ strategy, which refers to big investments and acquisitions overseas. Although China has made many big acquisitions in recent months, HSBC’s chief China economist Qu Hongbin said this was the “first official articulation” of a policy to directly support Chinese companies make foreign acquisitions.

Kate Mackenzie

There is minor outrage over the French energy regulator’s decision that Voltalis, a company that installs energy-saving devices in homes, should pay electricity companies for the power it saves.

Voltalis was up in arms over the decision, as was the anti-nuclear power group Sortir du Nucléaire. But it’s not initially clear what the regulator’s rationale for the decision was.

Exelon calls off hostile bid for NRG
NRG Energy votes to install own nominees to board (FT)

CFTC to hold first speculation hearing on July 28: Gensler
WIll focus on using commodities to hedge other risks

Tata and Suzlon rush to raise funds
More than $600m raised via GDRs (FT)

Petrobras case threatens Brazil’s boom
Allegations of fraud set to slow group’s expansion plans (FT)

Scottish & Southern in Uskmouth talks
Final negotiations to acquire plan (FT)

Vestas workers protest at plant closure
Workers demand nationalisation of UK wind turbine plant (FT)

Planning shake-up raises energy supply fears
Investment held up for Britain’s energy and carbon cutting (FT)

Suncor clears last hurdle for Petro-Can takeover
Suncor, Petro-Canada say deal effective August 1 (Reuters)

Sunoco Logistics profit beats Wall Street view
Oil and gas pipeline operator’s Q2 profit up 30% (Reuters)

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