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Oil Prices Extend Gains as Saudi Arabia and U.A.E. Unlikely to Boost Output

The energy sector is poised for a higher start, backed by further strength in the crude complex and in the major equity futures. Markets ticked higher following yesterday’s losses on moderately improving sentiment and on news China is relaxing some of its COVID-19 quarantines. WTI and Brent crude oil futures extended their gains for the third-straight session, lifted by reports that major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil. Leaders of the G7 said they will explore a potential ban on transporting Russian oil that has been sold above a certain price as they seek to step up pressure on Moscow over its invasion of Ukraine. Saudi Arabia and the U.A.E. have been seen as the only two countries in the OPEC with spare capacity to make up for lost Russian supply and weak output from other member nations. On the final day of trading for the front month contract, July natural gas futures edged up about 1% in early trading, backed by a preliminary drop in daily output and forecasts for hotter weather over the next two weeks that will prompt power generators to burn more gas to keep air conditioners humming. BY SECTOR: US INTEGRATEDS Worley entered into a global master services agreement with Chevron covering Chevron’s upstream, midstream, and downstream business needs. ExxonMobil, Shell, CNOOC, and Guangdong Provincial Development & Reform Commission have signed a Memorandum of Understanding to evaluate the potential for a world-scale carbon capture and storage project to reduce greenhouse gas emissions at the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province, China. INTERNATIONAL INTEGRATEDS bp has won gas exploring rights in Egypt's offshore King Mariout concession in the western Mediterranean, the British-based company said in a statement. bp's AMPLY Power products and services are now available to federal fleets through a Blanket Purchase Agreement (BPA) by the U.S. General Services Administration (GSA) Office of Fleet Management, made available through a partnership with Verdek Green Technologies, a nationally-known provider of EV charging stations. The 60-month agreement offers a streamlined ordering process and reduced administrative burden for U.S. federal agencies transitioning to electric-powered transportation solutions. SSE Thermal and Equinor have entered into an agreement to acquire Triton Power Holdings Ltd from Energy Capital Partners for a total consideration of £341m shared equally between the partners. Petrobras informed that it has restarted the processes for the sale of Refinaria Abreu e Lima (RNEST), in Pernambuco, Refinaria Presidente Getúlio Vargas (REPAR), in Paraná, and Refinaria Alberto Pasqualini (REFAP), in Rio Grande do Sul, as well as the logistics assets integrated to these refineries. Brazil President Jair Bolsonaro said that Petrobras will have a "new dynamic" on fuel issues under its incoming chief executive officer. Caio Paes de Andrade was elected earlier Monday as CEO, as Petrobras nears the end of a messy management transition. Repsol and Kraft Heinz have reached a long-term virtual power purchase agreement (VPPA) under which the Spanish multi-energy company will supply 100% renewable electricity generated by 34.2 MW of capacity. This is the first wind energy investment signed by the multinational food and beverage company, one of the largest in the world. Ceres Power Holdings plc announced that it has signed an agreement with Shell to deliver a megawatt scale solid oxide electrolyser (SOEC) demonstrator in 2023. CANADIAN INTEGRATEDS No significant news. U.S. E&PS The Norwegian Petroleum Directorate (NPD) has granted ConocoPhillipsSkandinavia AS drilling permit for well 25/7-10, cf. Section 13 of the Resource Management Regulations. Earthstone Energy announced that it has entered into an agreement to acquire the New Mexico assets of Titus Oil & Gas Production, LLC and Titus Oil & Gas Production II, LLC and their affiliates located in the northern Delaware Basin. Titus is privately held with sponsorship by investment funds managed by NGP Energy Capital Management, LLC. The aggregate purchase price of the Titus Acquisition is approximately $627 million consisting of $575 million in cash and approximately 3.9 million shares of Earthstone's Class A common stock valued at $52 million based on a closing share price of $13.51 on June 24, 2022, both subject to customary closing adjustments. The effective date of the Titus Acquisition will be August 1, 2022, with closing anticipated in the third quarter of 2022. Murphy Oil announced that the Board of Directors has elected Paul D. Vaughan to serve as Vice President and Controller effective July 1, 2022. Mr. Vaughan succeeds Christopher D. Hulse, who is currently serving as Vice President and Controller and has notified the company of his decision to leave Murphy to pursue other opportunities. Mr. Hulse will relinquish his Controller position as of July 1, 2022, and remain in active service to assist in the transition through August 5, 2022. The Board of Directors has also elected Leyster L. Jumawan to serve as Vice President, Corporate Planning and Treasurer. In conjunction, John B. Gardner, who currently serves as Vice President, Marketing and Treasurer, will assume supply chain responsibilities and relinquish his role as Treasurer. His new title will be Vice President, Marketing and Supply Chain. Both Mr. Jumawan’s and Mr. Gardner’s new positions will be effective July 1, 2022, and they will report to Mr. Mireles. Warren Buffett's Berkshire Hathaway said it has purchased another 794,389 shares of Occidental Petroleum, giving the conglomerate a nearly 16.4% stake in the Houston, Texas-based oil company. JPMorgan upgraded Ovintiv to Overweight from Neutral. CANADIAN E&PS No significant news. OILFIELD SERVICES NOV has been awarded contracts for the equipment and design of Cadeler's first F-class jack-up vessel. The new F-class is a bespoke version of the GustoMSC NG-20000X model specially designed as a hybrid wind turbine and foundation installation jack-up vessel. In addition to the first two X-class units, this will be Cadeler's third GustoMSC-designed jack-up vessel under construction at COSCO Heavy Industries. DRILLERS No significant news. REFINERS No significant news. MLPS & PIPELINES Enterprise Products Operating LLC, a subsidiary of Enterprise Products Partners L.P., recently filed applications for tax abatements for six proposed projects, including a proposed ethane to ethylene cracker that could be located in one of at least three jurisdictions. None of the six projects and their locations have been finalized, approved or sanctioned at this time. Furthermore, to clarify multiple media reports, while Enterprise has been working to develop and commercially underwrite an ethane to ethylene facility for a number of years, the company has neither approved nor sanctioned the construction of such a facility. MARKET COMMENTARY Wall Street futures gained on hopes for stronger growth and a revival in demand for commodities. European equities rose, led by commodity-linked stocks and automakers, with investors eyeing the European Central Bank's annual forum for cues. In Asian equity markets, Japan's Nikkei ended up as energy shares surged, while Chinese shares hit a four-month high after Beijing relaxed its COVID-19 quarantine mandate. Gold edged up as the dollar weakened. Oil prices rallied as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly. Nasdaq Advisory Services Energy Team is part of Nasdaq's Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner. This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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