Demand worries fade Oil market sentiment turns optimistic

Oil markets look increasingly optimistic as analysts believe the impact of the new variant on global oil demand will be limited
, as oil prices reported on Jan.
5 today.

Persian Gulf Energy borrowed $30.
5 billion in 2021, the highest level in at least 25 years, as national oil companies in the region sought foreign investment to fund their ambitious plans
, Bloomberg reported.

Qatar Energy, the leader among all national oil companies, sold US$12.
5 billion in bonds in July 2021, last year's largest emerging market bond, as part of
financing its LNG capacity expansion.

Saudi Aramco, which dominated the borrowing list in previous years, ranked third in 2021 behind QE and ADNOC, raising "only" $6.
5 billion, a third
of 2020.

The global energy transition is softening the traditionally self-sufficient position of Middle Eastern oil producers, who are choosing more to sell and share while seeking to maximize the benefits
of their vast oil and gas reserves.

Market mover

U.
S.
oil giant ExxonMobil said it expects fourth-quarter profit in 2021 to rise $1.
9 billion
from the previous quarter, buoyed by a $1 billion windfall from higher natural gas prices.

For the second time
, U.
S.
LNG developer NextDecade Corp said its final investment decision for its $15.
7 billion Rio Grande LNG project will be delayed again as relatively low natural gas prices have hampered the signing of long-term supply contracts.

The European Court of Human Rights has intervened to assess whether Norwegian oil giant Equinor's exploitation in Arctic waters is infringing, and the company's production plans may be at risk
.

On January 4, there was a marked shift in sentiment in the oil market, with growing predictions that the Omega variant would not disrupt demand as badly
as the previous variant due to the absence of a widespread lockdown.
Sure enough, cases have been climbing in key areas, but governments are reluctant to repeat the 2020/2021 policy
again.
Oil demand remained stable in December, essentially close to November levels, while global manufacturing activity strengthened
on the backdrop of easing supply chain bottlenecks.
So bullish expectations for more OPEC+ crude are by no means contradictory, especially given supply disruptions
elsewhere.
As a result, ICE Brent crude traded above the $80 per barrel mark this week, while U.
S.
benchmark WTI crude hovered around
$77.
5 a barrel.

OPEC+ agreed to increase production
again in February.
The oil-producing bloc, made up of non-members such as OPEC and Russia, agreed to extend the supply increase of 400,000 barrels per month until February 2022, citing excessive concerns about Omega that would not have a significant impact
on future global demand.

OPEC's new secretary-general has vowed to keep the OPEC+ deal.

Kuwaiti oil industry veteran Haitham al-Ghais, OPEC's newly elected secretary-general, will succeed Nigeria's Mohammad Barkindo on August 1, 2022, who has vowed to keep OPEC+ in place
after the phase-out at the end of 2022.

McDermott wins Qatar LNG expansion deal
.
US engineering firm McDermott (OTCMKTS: MCDIF) has been awarded a major construction contract (13 wellhead platforms and surrounding infrastructure) for the Qatar liquefaction facility, which will increase the company's capacity to 126 million tonnes per annum
.

ADNOC will soon complete the cave oil
storage.
UAE national oil company ADNOC will soon undergo a major expansion of crude storage capacity in the country's largest port, Fujairah, which is housed in underground caverns with a total of 42 million barrels
of storage space.

Warm weather helps Europe's pressurized gas market
.
Temperatures well above historical averages eased pressure on tight gas stocks in Europe and pushed TTF spot gas prices below €70/MMBtu ($24/MMBtu) a few days ago, but rebounded
today on news that Russian supplies remain tight.

Indonesia's coal export ban shakes up the market
.
Fearing the Southeast Asian country would not be able to meet its electricity needs, government companies in Indonesia, the world's leading thermal coal exporter, banned all coal exports, pushing up coal prices while natural gas prices fell
.

BP and Eni became the focus
of licensing negotiations in Egypt.
British energy company BP and Italian oil giant ENI were among the most active in Egypt's latest upstream licensing round, allocating a total of 8 blocks and committing $250 million
in investment commitments.

Germany is only one step away
from completely phasing out nuclear energy.
By shutting down the Brockdorf, Groender and Gunderremingen nuclear reactors on New Year's Eve, Germany currently has only three nuclear power plants in operation and will phase them out completely by the end of 2022, just as the European Union recognizes nuclear energy as a sustainable energy source
.