Oil prices moved higher on the eve of a highly anticipated meeting between Donald Trump and Xi Jinping, which could result in a breakthrough in trade negotiations, an agreement to resume talks, or a collapse and subsequent increase in tariffs. On Monday, OPEC kicks off its meeting in Vienna. “The next few days will provide a much needed dose of clarity for the oil balance over the coming months,” PVM’S Stephen Brannock said in a note. “Market bulls will be (hoping) that the G20 summit will provide a trade breakthrough … All the while, the supply side of the oil coin continues to display bullish signals,” he added.
Europe sprinting to keep Iran on board. European governments will “double down” on efforts to keep economic ties alive with Iran, in an effort to keep the nuclear deal on
life support, according to the Wall Street Journal. The EU has tried to develop a financing mechanism to circumvent U.S. sanctions but few foreign companies are willing to do business in Iran. Iran said that it would breach limits on uranium stockpiles as soon as this weekend. The last-ditch effort looks set to fail.
U. S. to assemble naval watch in Persian Gulf. The U.S. is hoping to enlist other nations in an effort to keep an eye on the Persian Gulf, according to the Wall Street Journal. The U.S. would contribute ships and aircraft but operational control would be headed by another nation. The plan aims to present deterrence to Iran, securing oil shipment lanes through the Strait of Hormuz.
Saudi investment to bring Russia on board. Saudi Arabia is set to invest $5 billion in Russia this year, and many analysts believe that Saudi investments are inducements to keep Russia on board with an extension of the OPEC+ production cut agreement.
Philadelphia refinery set to close. Philadelphia Energy Solutions may permanently shut down its damaged refinery, decimated from a series of explosions last week. PES may try to sell the complex as well.
Drillers use gas for electricity. Permian drillers are beginning to use some of their surplus gas to power their operations, a practice that will save on costs, reduce flaring and emissions, according to Bloomberg.
Kinder Morgan wins court decision for gas pipeline. Kinder Morgan won a court decision that will allow them to move forward with a natural gas pipeline, easing the company’s way to plan its own route and acquire land without a landowner’s consent.
