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TOKYO, June 7 (Reuters) - Oil prices steadied on Wednesday after the previous session's losses, as demand concerns owing to slow global economic growth were offset by fears of tighter global supply following Saudi Arabia's pledge to deepen output cuts. Meanwhile, the U.S. Energy Information Administration (EIA) said on Tuesday that U.S crude oil production this year will rise faster and demand increases will cool compared to prior expectations. A reduction in the U.S. crude stocks also lent support to the oil market, NS Trading's Kikukawa said. U.S. crude oil inventories fell by about 1.7 million barrels last week, while fuel inventories rose, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts forecast U.S. energy firms added about 1.0 million barrels of crude into storage during the week ended June 2, according to a Reuters poll.

Persons: Saudi Arabia's, paring, Hiroyuki Kikukawa, Brent, Kikukawa, Yuka Obayashi, Shri Navaratnam Organizations: Saudi, Brent, U.S . West Texas, NS, Nissan Securities, Strategic Petroleum Reserve, Saudi Arabia's, Organization of, Petroleum, Citi, UBS, U.S . Energy Information Administration, American Petroleum Institute, Thomson Locations: TOKYO, U.S, United States, China, Russia, OPEC

☆ Oil falls as economic fears overshadow Saudi output cut
▼ + stars: | 2023-06-06 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

Brent crude futures were down $1.50, or 1.96%, to $75.21 a barrel by 1046 GMT. U.S. West Texas Intermediate crude fell $1.47, or 2.04%, to $70.68 a barrel. Backwardation in Brent crude oil futures — where the current value is higher than in later months — steepened after the weekend announcement with the six-month spread hitting a five-week high of $2.20/bbl on Monday. The U.S. services sector barely grew in May as new orders slowed, and market participants are waiting to see if the U.S. Federal Reserve will hike or hold interest rates in June. Higher interest rates could curb energy demand.

Persons: Brent, Backwardation, — steepened, Ole Hansen, Tamas Varga, PVM, Rowena Edwards, Arathy Somasekhar, Trixie Yap, Sriraj Kalluvila, Jason Neely Organizations: EIA, LONDON, Saudi, Brent, . West Texas, Citi, bbl, PMI, Saxo Bank, The, U.S . Federal, U.S . Energy Information Administration, Thomson Locations: Saudi Arabia, OPEC, U.S, Europe, China, Brent, The U.S, London, Houston, Singapore

LONDON, June 2 (Reuters) - U.S. manufacturing and freight activity has declined for seven months running, reflected in falling consumption of diesel and other distillate fuel oils as well as industrial electricity sales. Chartbook: U.S. manufacturing and energy useBecause manufacturing output is closely correlated with consumption of distillate fuel oils and industrial electricity use, the downturn is filtering through into significant reductions in energy consumption. Electricity sales to industrial customers also fell in seven of the eight months ending in February 2023, again the most recent data available (“Monthly energy review”, EIA, May 25). Between December 2022 and February 2023, industrial power sales were down more 2.4% compared with a year earlier (14th percentile for all three-month periods since 1980). Only the residual strength of service sector spending has so far prevented the “industrial recession” becoming a whole-economy recession.

Persons: John Kemp, David Evans Organizations: Manufacturers, Institute for Supply Management, “ Petroleum, U.S . Energy Information Administration, U.S, Thomson, Reuters Locations: U.S

☆ Opinion | Congress Is Turning Climate Gaslighting Into Law
▼ + stars: | 2023-06-01 | by ( Jonathan Mingle | ) www.nytimes.com time to read: +2 min

If completed, the Mountain Valley Pipeline will be a very large and long-lived methane delivery device. At the end of the line, the methane will be burned in power plants and furnaces, producing carbon dioxide. But now that wind, solar and battery storage are indeed quite ready and, in many places, cheaper than gas, the jig is up. Though the assertions that the pipeline is necessary and good for the climate defy logic, the political calculus is clear enough. Mr. Manchin was also a supporter of another large gas pipeline that would have originated in his state: the Atlantic Coast Pipeline, which I have been reporting on since 2019.

Persons: Biden, Manchin Organizations: U.S . Energy, Administration, Congressional, Atlantic Coast Pipeline, Federal Energy Regulatory Commission

LONDON, June 1 (Reuters) - U.S. oil and gas production continued to rise strongly in March - the delayed impact of very high prices that prevailed until the third quarter of 2022. Gas output climbed to a record 9,180 billion cubic feet in the first quarter and was also 7% higher than a year before. The lagged impact of these earlier high prices should start to fade from the third quarter, and especially the fourth quarter. The contrast between fairly average crude inventories and a large surplus in gas explains why oil prices are close to the post-2000 average in real terms while gas prices are still trading near to their lowest point. Related columns:- U.S. oil and gas output growth set to slow sharply (May 3, 2023)- U.S. gas prices slump after mild winter leaves big surplus (March 24, 2023)- U.S. oil drilling falls in response to lower prices (February 27, 2023)John Kemp is a Reuters market analyst.

Persons: John Kemp, Sriraj Organizations: U.S . Energy Information Administration, Petroleum, Thomson, Reuters Locations: Gulf of Mexico, Alaska

[1/5] Arlo Brownlee, an engineer, checks battery banks at GlidePath's Byrd Ranch energy storage facility in Sweeny, Texas, U.S., May 23, 2023. The battery rush also puts the Republican-controlled state at the forefront of President Joe Biden's push to expand renewable energy use. Reuters drew on previously unreported data and interviewed more than a dozen executives from private equity firms, utility companies and energy storage providers involved in some of the biggest battery storage deals for this report. But the legislation also contains provisions that industry groups said could encourage investment in battery storage. Miller said he expects ancillary market prices to "collapse" as more battery storage comes online.

Persons: Arlo Brownlee, Adrees Latif, Rhett Bennett, ”, Joe Biden's, Wood Mackenzie, Andrew Waranch, David Miller, Miller, Waranch, Dick Lewis, Andrew Tang, Chris McKissack, you've, McKissack, Nichola Groom, Laila Kearney, Richard Valdmanis, Suzanne Goldenberg Organizations: REUTERS, Korea's SK, Switzerland's UBS, Black, Energy, Texans, Republican, Reuters, U.S . Energy Information Administration, Developers, BlackRock, Jupiter, EnCap Investments, Korea's SK E, Vision Ridge Partners, UBS, SK E, SK, Mercom Capital Group, Reliability, of Texas, Spearmint Energy, Inc, Wartsila, Thomson Locations: Sweeny , Texas, U.S, BlackRock, Texas, California, Gridmatic

☆ Oil gains after Saudi warns short-sellers: 'watch out'
▼ + stars: | 2023-05-23 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose on Tuesday on forecasts for a tighter gasoline market and a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ output cuts. Brent crude futures rose 85 cents, or 1.1%, to settle at $76.84 a barrel, while the U.S. West Texas Intermediate (WTI) crude futures settled at $72.91 a barrel, up 86 cents, or 1.2%. On Monday, prices rose 1% on optimism fed by a surge in U.S. gasoline futures. Gasoline futures rose 1.2% on Tuesday, with analysts expecting a third straight weekly decline in inventories ahead of peak summer travel season which starts on the U.S. Memorial Day holiday on May 29. Erlam added Brent crude prices need to rise above $77.50 a barrel to signal a sentiment shift.

Persons: U.S ., Craig Erlam, Erlam, Brent, haven't, Rob Haworth Organizations: Brent, U.S . West Texas, U.S, U.S . Memorial, American Petroleum Institute, U.S . Energy, Administration, of Petroleum, Strategic Petroleum Reserve, Bank Wealth Management Locations: Saudi, U.S, Russia, OPEC

☆ Column: World can't afford US-style home energy consumption habits
▼ + stars: | 2023-05-19 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +6 min

HOMES RULEA key driver behind America's outsized electricity consumption is the preference for single family homes over all other types of residences. For many in the United States, owning your own home is a key part of the so-called American Dream. According to the EIA's latest Residential Energy Consumption Survey 57% of electricity used by detached households is used for space heating, and 64% for air conditioning. OTHER WAYS OF LIVINGThe United States is not alone in facing rising living costs while trying to improve the efficiencies of buildings. Similarly, a vast majority of China's population lives in apartments, and apartments are more popular than individual houses in the cities of India, Japan and Southeast Asia.

LONDON, May 19 (Reuters) - U.S. oil refinery margins have halved since the middle of 2022 but they are still at historically high levels and will be supported through the summer of 2023 by high operating rates and low fuel stocks. Even at this reduced level, however, margins are in the 95th percentile for all trading days since 2001, which is underpinning refinery profitability and encouraging high levels of capacity utilisation. After adjusting for the impact of inflation, real margins are at the highest levels for almost eight years since July 2015. Gross margins have to cover operating expenses, including fuel, electricity and catalysts, as well as labour and capital costs. Related columns:- Low U.S. fuel stocks support prices and cracks (May 17, 2023)- U.S. diesel stocks tighten but fear of shortage eases (April 21, 2023)John Kemp is a Reuters market analyst.

The settlement between BP Products North America Inc., the Justice Department and the Environmental Protection Agency will also require the company to invest approximately $197 million in new technology and other capital improvements to reduce air pollution. The BP refinery near Lake Michigan released nearly 16 times the legal limit of benzene allowed by the Clean Air Act, the EPA said in 2009. Following the EPA's investigation, BP spent about $4 billion to expand the Whiting refinery to process heavy Canadian crude. The company also agreed to undertake a $5 million supplemental environmental project to reduce diesel emissions in the communities surrounding the Whiting Refinery and install 10 air pollutant monitoring stations. Reporting by Sarah N. Lynch and Laura Sanicola in Washington; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. refiners build new oil processing as travel rises
▼ + stars: | 2023-05-16 | by ( Erwin Seba | ) www.reuters.com time to read: +3 min

HOUSTON, May 16 (Reuters) - U.S. oil refiners aim to run at up to 94% of a total 17.9 million barrels per day processing capacity this quarter, according to company forecasts and analysts, driven in part by expectations of seasonal travel demand. This quarter is traditionally one of the year's hottest for demand as companies build gasoline and jet fuel output for the summer vacation season. He estimates refiners overall will run at 94% utilization rate this quarter, matching the 2017-19 average for the period. High prices will keep U.S. refinery utilization rates at levels near last year's about 91.7% this year and next, the U.S. Energy Information Administration forecast in January. Refiners will add the capacity to process an additional 328,000 bpd in this quarter, increasing gasoline and diesel supplies this summer.

Inventories of gasoline and diesel are particularly low for the time of year, which has kept prices firm even as crude prices have slipped back since the middle of April. Total inventories stood at 1,597 million barrels on May 5, which was -289 million barrels (-15% or -2.52 standard deviations) below the prior ten-year seasonal average. Commercial crude inventories remained close to the long-term average owing to the large-scale drawdown from the strategic reserve. Commercial crude stocks were +7 million barrels (+1% or +0.12 standard deviations) above the prior ten-year seasonal average on May 5. But the overall picture is one in which fuel inventories are low, supporting prices despite the deteriorating economic outlook.

☆ One worker dies after fire at Marathon's Texas refinery
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: +1 min

Companies Marathon Petroleum Corp FollowMay 15 (Reuters) - A Marathon Petroleum <MPC.N> worker has died from injuries suffered in a fire that broke out on Monday at the company's giant Galveston Bay Refinery in Texas City, Texas, the company said. "A Marathon employee has passed away as a result of the fire today at Marathon Petroleum's Galveston Bay refinery," company spokesperson Jamal Kheiry said in an emailed response to Reuters. The Texas City Emergency Management Department said on Twitter earlier that a shelter-in-place order was not needed. A contract worker died in March after receiving an electric shock at the refinery. Texas City is located 42 miles (68 km) southeast of Houston.

☆ Recycling 'end-of-life' solar panels, wind turbines, is about to be climate tech's big waste business
▼ + stars: | 2023-05-13 | by ( Bob Woods | ) www.cnbc.com time to read: +13 min

watch nowIndeed, the market for recycled solar panel materials is expected to grow exponentially over the next several years. One recipient of this federal funding is First Solar, the largest solar panel manufacturer in the U.S. Massive wind turbines, blades are almost all recyclableRetired wind turbines present another recycling challenge, as well as business opportunities. How the circular renewable energy economy worksPlayers in the circular economy are determined not to let all that waste go to waste. Vestas Wind Systems has committed to producing zero-waste wind turbines by 2040, though it has not yet introduced such a version.

☆ Fact Check-Five Donald Trump statements examined after CNN town hall
▼ + stars: | 2023-05-11 | by ( Reuters Fact Check | ) www.reuters.com time to read: +6 min

Former U.S. President Donald Trump took questions from CNN’s Kaitlan Collins and audience members during a televised town hall on Wednesday, with the 2024 Republican front-runner pressing for a second White House term. Trump received 74.2 million votes in the 2020 presidential election, surpassing former President Barack Obama’s record number of votes for an incumbent candidate. State governments, courts and members of Trump’s administration have repeatedly rejected claims made by the former president that the 2020 election was stolen (here). CLAIM“We were energy independent” during the Trump administration. For more details on the U.S. border wall during the Trump administration, see (here).

☆ Oil prices climb on positive US fuel demand data
▼ + stars: | 2023-05-11 | by ( Jeslyn Lerh | ) www.reuters.com time to read: +2 min

May 11 (Reuters) - Oil prices bounced back on Thursday after dropping by more than a dollar a barrel the previous day, supported by stronger fuel demand data from the United States, the world's top oil consumer. Brent crude futures rose by 56 cents, or 0.7%, to $76.97 a barrel by 0330 GMT, while U.S. crude futures rose 53 cents, also up 0.7%, to $73.09. A sharper-than-expected drop in U.S. gasoline inventories boosted prices, reflecting stronger demand for transport fuels in the U.S. The latest U.S. data showed consumer prices rose in April, increasing the likelihood that the Federal Reserve will maintain higher interest rates, which can have the knock-on effect of reducing oil demand. Distillate stocks also declined, while U.S. jet fuel demand rose to its highest level since December 2019.

May 11 (Reuters) - Oil prices rose in early Asian trade on Thursday after strong demand for fuels in the U.S. outweighed concerns about the possibility of the world's biggest oil producer and consumer defaulting on its debt. Latest U.S. data showed consumer prices rose in April, increasing the likelihood that the Federal Reserve will maintain higher interest rates which can have the knock-on effect of reducing oil demand. Rising global interest rates have weighed on oil prices in recent months, with traders concerned about recession. However, fuel demand in the U.S. is showing signs of strength. U.S. jet fuel demand rose to its highest level since December 2019.

☆ Column: Drive to keep cool kicks off peak US power emissions season
▼ + stars: | 2023-05-10 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +4 min

Around 416 million air conditioner units are estimated to be in use in the U.S., or more than three per household. This results in the U.S. power system having a higher carbon intensity during the summer period than over winter months. Carbon intensity measures the amount of carbon dioxide (CO2) that is discharged to generate each unit of energy. US power sector emissions seasonallyThat difference in carbon intensity during the summer versus the yearly average is roughly 3%, and so may not appear to be particularly significant. However, given that production of non-emitting solar power peaks during the summer, the fact that power producers must also deploy large volumes of fossil fuels highlights just how much extra power is needed during the air conditioning season.

☆ Column: Texas trumps California as key US energy transition driver
▼ + stars: | 2023-05-04 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +6 min

Texas vs California vs Rest of USA electricity generation mixSince 2018, Texas has also outpaced California and the national average in both total electricity generation additions and in cuts to power emissions, making the Lone Star state a key beacon for others looking to reduce emissions but increase power generation totals. Texas vs California electricity generation by sourceThe rapid renewable energy capacity development is also a major driver of jobs growth in the state, which is helping to offset potential concerns about stranded assets and reduced demand for energy sector workers once global energy systems transition away from fossil fuels. A heavy historic reliance on natural gas and coal for electricity generation has also meant that Texas has one of the most carbon-intensive power systems in the United States. TEXAS TEMPLATEWhile California is losing its lustre as a model for power sector planners elsewhere, Texas has shown it is possible to boost electricity generation totals while reducing emissions in recent years. But many states will be able to learn from Texas' evolving mix of generation sources that have been harnessed to push electricity generation levels higher while curbing emissions.

But growth is set to decelerate sharply as the more recent slump in prices curtails new drilling and well completions, with the impact evident by the fourth quarter of 2023. Chartbook: U.S. oil and gas productionMuch of the increase was the lagged effect of high prices and additional drilling during the first nine months of 2022. Slower drilling will filter through into slower production growth before the end of 2023, helping offset slower consumption growth as a result of the business cycle downturn. GAS PRODUCTIONU.S. gas production increased to a record 5,984 billion cubic feet in the first two months of 2023, up from 5,600 billion cubic feet in the same period in 2022, an increase of almost 7%. Working gas inventories in underground storage amounted to 2,009 billion cubic feet on April 21 compared with 1,484 billion cubic feet at the same point a year earlier.

☆ Oil extends losses as investors brace for more rate hikes
▼ + stars: | 2023-05-03 | by ( ) www.cnbc.com time to read: +2 min

Oil prices extended losses on Wednesday, after slumping about 5% to a five-week low in the previous session, as investors braced for more rate hikes this week that could dent energy demand. Both benchmarks closed at their lowest since March 24 in the previous session, when they also recorded their biggest one-day percentage declines since early January. Concerns about diesel demand in recent months, meanwhile, have pushed down U.S. heating oil futures to their lowest level since December 2021. Energy prices are also under pressure after data from China over the weekend showed manufacturing activity fell unexpectedly in April. Official stockpile data from the U.S. Energy Information Administration (EIA) is due at 10:30 a.m. EDT on Wednesday.

☆ New York poised to pass first statewide law banning natural gas in new buildings
▼ + stars: | 2023-05-02 | by ( Emma Newburger | ) www.cnbc.com time to read: +2 min

The law would likely take effect in 2026 for most new buildings under seven stories and in 2029 for larger buildings. The statewide ban would follow legislation passed by New York City in 2021 that bans natural gas hookups in new buildings by the end of this year. New York was the sixth-largest natural gas consumer among the states in 2020, according to the U.S. Energy Information Administration. And in 2021, the residential sector — where three out of every five households use natural gas for heating — comprised over one-third of the natural gas delivered to New York residents, the agency found. "New York state is leading the way in ending America's devastating addiction to fossil fuels," said Food & Water Watch Northeast Region Director Alex Beauchamp.

☆ Is this solar panel American? Companies eyeing US subsidy await rules
▼ + stars: | 2023-04-24 | by ( Nichola Groom | ) www.reuters.com time to read: +4 min

[1/2] Solar panels are set up in the solar farm at the University of California, Merced, in Merced, California, U.S. August 17, 2022. Their main question: will solar panels qualify if they are assembled in the United States using components made overseas? In February, top U.S. solar manufacturer First Solar Inc (FSLR.O) said it would delay further expansion decisions until Treasury releases its guidelines. A manufacturing group, Solar Energy Manufacturers for America (SEMA), said both manufacturers and developers want clear rules that will fuel growth. A potential approach could be to allow the bonus credit to apply to domestically available goods, with that standard changing over a set timeline.

Most new gas plants currently do not pay for emitting carbon, so the rules could make it harder for them to compete with solar and wind power. Second, the Inflation Reduction Act created tax credits making carbon capture and hydrogen more affordable and affirmed EPA's authority to regulate power plants. Existing technology can capture and store approximately 90% of carbon emissions, Lynch said. The EIA projected that this year, 54% of new generation (21GW) will be solar and 14% will be natural gas (7.5GW). Southern, which also runs the National Carbon Capture Center with the Department of Energy, said commercial deployment of carbon capture technology "is many years away" despite the cost-reduction potential of the Inflation Reduction Act.

Distillate stocks stood at 112 million barrels on April 14, down from 122 million on March 3, according to the U.S. Energy Information Administration (“Weekly petroleum status report”, EIA, April 19). The recent run-down in inventories has partially reversed the previous accumulation, which had seen the deficit narrow from -31 million barrels (-22% or –2.05 standard deviations) on October 7. CYCLICAL SLOWDOWNThe broader picture is still that U.S. distillate consumption is falling in line with the slowdown in manufacturing and freight activity. For now, inventories are still well below the long-term average, ensuring prices, calendar spreads and cracks have remained elevated. Related columns:- Global diesel prices fall as economic slowdown intensifies (April 5, 2023)- U.S. diesel consumption falls as economy slows (March 1, 2023)- U.S. diesel stocks start the year critically low (February 2, 2023)John Kemp is a Reuters market analyst.

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