Energy News Today

ASX cautiously higher; Star struck by AML allegations; ACCC drops action vs Qube; $A flirts with US74¢; BoE tightens; TerraCom sells single coal cargo for $US300/t.

The heavy fall in oil prices over the past week will be short-lived, investors and analysts predict, forecasting both the Brent and WTI crude benchmarks to remain above $US100 ($135) a barrel for the rest of the year.

Oil could even hit $US200 a barrel this year, according to one hedge fund manager.

Extreme prices are not just the domain of oil and gas. Australian coal producer TerraCom told investors on Friday it had struck a deal to sell a single cargo of coal mined at its Blair Athol mine in central Queensland for $US300 a tonne.

Brent crude staged a comeback on Thursday, rising 8.8 per cent to $US106.64 a barrel, after falling more than 25 per cent in the previous six sessions. This was driven by hopes Ukraine and Russia could reach a diplomatic solution. On Thursday, a Kremlin spokesman said reports of major progress in negotiations were wrong, and oil markets reacted accordingly.

While there is some uncertainty whether Brent can reclaim the 14-year-high of $US139 a barrel it hit earlier this month near-term, analysts are counting on structurally higher valuations in oil.

“Our current balances indicate continued stock draws during the remainder of 2022, and possibly into 2023 as well,” Martijn Rats, Morgan Stanley’s chief commodity strategist, told clients on Thursday.

Read the full story at afr.com.

Read More: ASX cautiously higher; Star struck by AML allegations; ACCC drops action vs Qube; $A flirts with US74¢; BoE tightens; TerraCom sells single coal cargo for $US300/t.

2022-03-18 00:19:00

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