Coquest Daily Energy Report
Crude Oil Futures for May 2023 settled up $3.55 @ $72.81/bbl. trading in a $3.97 range including the overnight-RBOB settled up 9.57/cpg and Heating Oil settled up 7.52/cpg. Saudi Aramco signed an agreement with Chinese partners on Sunday for an oil refinery and petrochemical project in northeast China that is expected to start in 2026 to meet the country’s growing demand for fuel and chemicals. The project in Liaoning province’s city of Panjin will be Aramco’s second major refining-petrochemical investment in China. Joint venture Huajin Aramco Petrochemical Company will build and operate the complex that will house a 300,000 bpd oil refinery and a cracker with annual production capacity of 1.65 million tonnes of ethylene and 2 million tonnes of paraxylene, state-owned Aramco said in a statement. The project is expected to cost 83.7 billion yuan ($12.2 billion US), partner Panjin Xicheng Industrial Group said. Construction at the complex will start in the second quarter after the project secures the required administrative approvals.
Natural Gas Futures for April 2023 settled down $0.128 @ $2.088/mmbtu trading in a 0.084 cent range including the overnight session. During a visit to Algeria earlier this month, the European Union’s foreign policy chief, Josep Borrell, called for closer energy cooperation between the EU and the North African country, which also happens to be the largest natural gas exporter on the continent. To the east of Algeria, in Libya, oilfield majors Halliburton and Honeywell International are in talks with the National Oil Company to develop an oil field and build a refinery in the war-torn country. The talks concern deals worth $1.4 billion, according to NOC’s chairman. Market analysts however, were quick to point out that Algeria can hardly replace Russian gas volumes.
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