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The Eurozones February PPI and retail sales figures will be released in ten minutes.April 8 - According to Iranian sources, an explosion occurred at the Ravan oil refinery in Iran on April 8 local time. The cause of the explosion is still unclear.The Israeli military issued a warning that it would evacuate seven neighborhoods in the southern suburbs of Beirut in light of the possibility of an attack.April 8th - On March 31st, the National Energy Administration held a monthly (March) scheduling meeting for the development and construction of renewable energy power nationwide. The meeting emphasized that this year, the first year of the 15th Five-Year Plan, requires focusing on the following key tasks: First, continue efforts to further expand investment. Second, coordinate and improve the integration of new energy sources. Local energy authorities should coordinate the development of imported electricity and local new energy sources, strengthen the fulfillment of long-term power purchase agreements, and stabilize expectations for new energy power consumption; power grid companies should increase grid investment, optimize dispatch management, and continuously improve the capacity for new energy consumption; power generation companies should make rational judgments and plan project layouts appropriately. Third, promote the development of new models and new business formats based on local conditions. Local energy authorities should explore new models and new business formats such as green power direct connection and zero-carbon industrial parks, based on local energy endowments and industrial structures, and continuously expand the space for non-electricity consumption of new energy. Fourth, enhance the market competitiveness of new energy enterprises through both internal and external efforts. The full participation of new energy enterprises in market transactions is an inevitable trend.According to Irans Mehr News Agency, an explosion occurred at Irans Ravan oil refinery, but the source of the explosion is still unclear.

The global energy crisis threatens supply, and U.S. oil has risen by 5% this week and once rose to the 80 mark

Eden

Oct 26, 2021 11:00

On Friday (October 8) U.S. crude oil rose 1.29 US dollars in late trading, or 1.65%, to close at 79.59 US dollars per barrel. The cumulative increase this week was 5.08%, marking the seventh consecutive week of gains, the longest consecutive week since December last year. rise. Oil prices rose by 0.63 US dollars, an increase of 0.77%, to close at 82.58 US dollars per barrel, a cumulative increase of 4.22% this week. US gasoline futures also closed at their highest level since October 2014. While the global energy crisis boosted demand, OPEC+ oil-producing countries still maintained tight supply. At the same time, the US Department of Energy stated that it has not announced immediate actions to lower oil prices, such as releasing strategic oil reserves. This further supports the oil market.

In the face of improving fuel demand, the energy market has tightened, and many people worry that the cold winter may further tighten the supply of natural gas. The rise in oil prices was stimulated by the soaring prices of natural gas in Europe, which prompted power generation companies to switch to oil for power generation. There are many signs this week that supply will still be restricted. Saudi Aramco said the global natural gas shortage has boosted crude oil demand for power generation and heating.

John Kilduff, a partner of Again Capital in New York, said that the fundamental background is tight supply, which will continue to push crude oil prices to rise steadily. The soaring natural gas price indicates a surge in demand for crude oil this winter.

On Friday, the call option premium exceeded the put option premium for the first time since October 2019. The bullish trade in the oil options market has been very active in recent weeks. Thousands of contracts were traded last week. If the oil price rises to US$100 or even US$200 per barrel, profits will be made. On Tuesday, WTI call options volume reached its highest level since March 2020. In the past 7 days, the open interest of call options with strike prices ranging from $90 to $95 has increased by approximately 23,000.

ICAP energy expert Scott Shelton said that severe winter weather "increased the upside potential of this market, and this skew will last for several months." The so-called call skew means that call options are more expensive than similar put options. The situation is extraordinary in the crude oil market. Generally, put options are more expensive, which partly reflects the tendency of producers to buy put options to hedge their output.

According to the US Commodity Futures Trading Commission (CFTC) data, as of the week of October 5, the speculative net long position of WTI crude oil futures increased by 8,902 to 325,578. The Brent crude oil net long position held by speculators on the Intercontinental Exchange (ICE) increased by 3,723 contracts to 332,677 contracts, a record high in more than six months.

US Baker Hughes Oil Services said that as of October 8, the total number of wells drilled in the United States was 533, which is the fifth consecutive week of adding rigs. The total number of oil rigs was 433, an increase of 5 from last week.

(U.S. Oil Hour Chart)

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