No Wells Coming Off Confidential List Today; WTI Down -- July 19, 2022

Keystone force majeure: cuts flow to the US. I doubt this will turn into much of a story. Later: back up and running in less than a week or thereabouts.

HAL: link here. And here.

• EPS grew 88% in 2Q22

IBM: link here.

• forecast: Second-quarter revenue is expected to come in at $15.18 billion, up 6.9% sequentially but down 19.0% year over year. Adjusted EPS are forecast at $2.29, up 63.5% sequentially and 1.7% lower year over year. The current full-year estimates call for EPS of $9.76, up 23.1%, on sales of $60.93 billion, up about 6.3%.
• actual: $2.31 per share
  

JNJ: link here.

Stranded: scores of fuel ships off Mexico as Pemex debt mounts. Link here.

An estimated 60-plus vessels carrying imported gasoline, diesel and fuel are stranded off the coast of Mexico due to storage bottlenecks. 

Unable to unload due to a backlog reminiscent of the height of the COVID pandemic when Mexico declared force majeure, fuel importers are paying some $40,000 a day per vessel in the waiting line, while Mexican state-run Pemex struggles in the red. 

The vessels stuck in this holding pattern presently contain approximately 60% of Mexico’s monthly fuel demand. At the same time, oil exports by Mexico’s state-run Pemex continue to plummet. 

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Back to the Bakken

Far Side: link here.

WTI: $101.40.

Natural gas: $7.212.

NDIC GIS map: remains in-op.

Active rigs: 42 or thereabouts.

No wells coming off confidential list today.

RBN Energy: the combined impact of Russia and China on global products markets. 

As the world economy tries to dust itself off after COVID, increased demand for transportation fuels coupled with tight supplies has become a pain. The shortage escalated to crisis levels this spring and summer when, in response to Russia’s invasion of Ukraine, sanctions eliminated Russian exports of crude oil and intermediate feedstocks to the U.S. and severely reduced flows to Europe. While Russia has been able to find some alternate markets, its overall product exports are down significantly. Adding to these product-supply reductions are policy decisions by Putin’s allies in China to reduce their product exports to a trickle. Chinese exports had been an important part of regional supply in recent years, but authorities there have decided to decrease the number and size of export quotas issued, leaving many refineries in China operating at rates well below their capabilities. In today’s RBN blog, we take a closer look at how developments in Russia and China have played a major role in the current global shortage of refined products.