Hedge Fund Launches Bid to Split Shell - Energy Intelligence
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October 27, 2021
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CONTENTS Hedge Fund Launches Bid to Split Shell
Hedge Fund Launches
Bid to Split Shell Hedge fund titan Third Point has taken a large stake in Royal Dutch Shell and is pushing to break the
Gazprom to Start oil and gas giant up into multiple public companies to boost its valuation.
European Gas Storage
Injections Shell's share price performance has been hampered by a strategy and company structure that tries
Iran Willing to Restart to please too many competing interests with different priorities for growth, shareholder returns
Nuclear Talks Next and decarbonization, Third Point founder Daniel Loeb argued in a letter to the fund's investors.
Month
Equinor Steps Up Gas "Shell's board and management have responded to this with incrementalism and attempts to 'do it
Exports to Europe all,'" Loeb said.
Ministry: Nord Stream
2 Won't Undermine "In trying to do so, Shell has ended up with unhappy shareholders who have been starved of returns
Security and an unhappy society that wants to see Shell do more to decarbonize."
US Inventory Build
Upsets Oil Price Rally The bid by Third Point is one more illustration of the potential for further massive changes at the
largest Western energy companies as they grapple with their place in the energy transition.
In Brief
China Caps Refining Shell has resisted such ideas, arguing that its integrated, marketing-focused model is well-suited to
Capacity adapt to the changing energy mix.
Russian Draft Carbon
Strategy Ready But earlier this year, little-known investment fund Engine No. 1 unseated three members of Exxon
Fighting Damages Mobil's board in a push to sharpen its energy transition strategy.
Libyan Refinery
Elsewhere, Italy's Eni has already committed to an initial public offering (IPO) of its renewables and
Eni Eyes IPO for Var
Energi retail gas and power unit, while Spain's Repsol is analyzing a similar approach.
Wintershall Dea
Loeb proposes that Shell should split itself up and create "multiple standalone companies" housing
Reports Strong
Quarter the varied parts of its portfolio that could appeal to investors with different desires.
Data Snapshot He suggests that Shell's legacy oil-related businesses could essentially be wound down by scaling
back investment, selling assets and returning cash to shareholders, while the natural gas and
Oil and Gas Prices,
Oct. 27, 2021 renewables businesses could offer lower shareholder payouts but higher growth.
Equity Markets, Oct.
"Pursuing a bold strategy like this would likely lead to an acceleration of CO2 reduction as well as
27, 2021
significantly increased returns for shareholders, a win for all stakeholders," Loeb wrote.
Shell responded that it "regularly reviews and evaluates the company's strategy with a focus on
generating shareholder value."
"Shell's Investor Relations team has had preliminary conversations with Third Point and we will engage with them, as we do with all of
our shareholders," the supermajor said in a statement after news of Third Point's proposal became public.
Shell executives have pushed back against suggestions that the company would be more valuable if it were split into its different
business units.
"I fully believe this is the right model for the energy transition," Shell CFO Jessica Uhl has said of Shell's integrated structure.
TotalEnergies CEO Patrick Pouyanne has expressed similar sentiments, saying a spinoff of the French major's sizable energy transition
businesses is "not on the table."
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Strategic Differences
Others, however, have embraced the idea — albeit in a less dramatic form.
Eni announced earlier this month that it would begin the process for an IPO of a minority stake in its Eni R&R unit, which houses its
retail power and gas business and its renewable power generation business.
Repsol is entertaining a similar approach for its own renewable power division, alongside the possibility of bringing in a strategic
financial partner for the business.
Eni has also sought out different corporate structures for some of its legacy upstream assets.
It combined its Norwegian offshore business with private equity-backed Point Resources to form Var Energi. The two announced on
Wednesday that they are considering strategic options for Var, including a potential IPO.
But Shell has approached the transition with a significantly different strategy than Eni or Repsol.
Unlike many of its competitors, Shell has largely steered clear of renewable power generation and instead focused on selling power to
customers, regardless of where it is generated, rather than setting lofty targets for its own renewable power capacity.
Existential Questions
The question of what the energy company of the future should look like is often pondered by analysts and investment bankers, but
there is little consensus about which of the various models is likely to prove most successful.
European utilities faced similar questions much earlier than the oil sector. Many splintered into companies specializing either in
renewable or fossil-fuel power and sold off their upstream oil and gas units.
The pure-play renewables companies that emerged from this process have flourished but the benefits haven't always come back to the
parent company.
"Historically, European oil companies and utilities which sell down assets at a premium to fair value do not see sustained share price
performance beyond the very short term," the analysts at investment bank HSBC said in a note.
But Loeb's overture, coming on the heels of an investor-driven shakeup of the board at Exxon Mobil, shows that companies themselves
may not have as much choice in the matter as they would like.
Oil majors were once seen as impenetrable fortresses where investors rarely dared to challenge board decisions.
The scale of change in the energy transition, ongoing efforts to develop convincing strategic responses, and lagging share values have
opened them up to criticism — and made them more vulnerable to interference from activist investors.
Wire service reports estimated the value of Third Point's investment in Shell at between $500 million and $750 million against Shell's
total market capitalization of around $190 billion. But Engine No. 1 succeeded with a similarly small holding in Exxon.
Noah Brenner, London
Gazprom to Start European Gas Storage Injections
Gazprom will start injecting gas into its depleted storage facilities in Europe on Nov. 8 in response to a request from Russian President
Vladimir Putin.
By then the Russian gas giant will have completed its domestic injection campaign, which has been a top priority ahead of the cold
winter months.
The effort to stockpile enough winter gas at home has strained Gazprom's production capacity in recent months. That could help to
explain why the Russian company did not ship more gas to the European market in recent weeks as prices spiked because of tight
supplies.
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During an online meeting in Moscow on Wednesday to discuss gas issues, Putin said Gazprom's injections into European storage
facilities will help to keep European buyers supplied during the winter and should provide some relief to the European gas market.
But injections could also lead to a temporary lack of pipeline capacity for export flows to Europe, potentially further restricting near-
term supplies to Europe and keeping prices high. That could give Gazprom and Russia additional grounds to push for speedier
certification of the company's controversial Nord Stream 2 pipeline so that it can start shipping gas to Germany.
Accusations Against Gazprom
Some European politicians have previously accused Gazprom of deliberately restricting exports of gas to the region and pushing up
prices to expedite final approval of the pipeline by Germany. The company denied this.
Gazprom has booked only limited pipeline transit capacity via Ukraine and Poland and will likely find it difficult to hit its European gas
export target of 183 billion cubic meters for this year.
During the online meeting with Putin, CEO Alexei Miller acknowledged that the company's current storage volumes in Europe are
"insignificant, literally very, very low — slightly less than 190 million cubic meters."
The company's key Rehden storage facility in Germany, for example, was only 21% full as of Tuesday, compared with Europe's overall
storage level of 77%, which is significantly below the five-year average for this time of year. Gazprom depleted its European stocks by
withdrawing a record 10.6 Bcm of gas in the winter of 2020-21. That was driven in part by its decision to sell gas from storage, rather
than increasing transit flows via neighboring Ukraine, with which it has a difficult relationship.
Minimal Summer Injections
Gazprom did not inject much gas into storage during the summer — it even withdrew some gas when it slashed flows via the Yamal-
Europe pipeline — and it has recently prioritized its domestic storage campaign over exports.
Miller said Gazprom expects to reach its targeted level of 72.6 Bcm for domestic stocks by Nov. 1, but will continue to inject gas until
Nov. 8 before switching its focus to replenishing its European stocks.
Last winter, Gazprom withdrew a record 60.6 Bcm from domestic storage, drawing down 84% of its stocks.
Completion of domestic injections will free up 200 MMcm-300 MMcm/d of production capacity and will add almost 850 MMcm/d of
withdrawal capacity from storage to cover winter demand at home and abroad.
Putin said last week that Russia is ready to start supplying additional gas to Europe via the Nord Stream 2 pipeline as soon as Germany
certifies a Gazprom subsidiary as an authorized pipeline operator.
One of the twin Nord Stream 2 lines has already been filled with gas and is ready to start operations, while the second will follow in
December, Putin said.
Gazprom's Gas Storage Capacity in Europe
Gazprom's
Equity Stake Total Active Gazprom's Daily Withdrawal Capacity Used by Daily Withdrawal Capacity Used by
Country Storage (%) Capacity (Bcm) Capacity (Bcm) Gazprom Group (MMcm/d) Gazprom Export (MMcm/d)
Austria Haidach 55.5% 3.10 2.40 24.5 24.5
Banatski
Serbia 51.0 0.55 0.28 2.5 2.5
Dvor
Germany Jemgum 83.3 0.90 0.80 19.9 0.0
Germany Katharina 50.0 0.52 0.52 25.8 25.8
Germany Rehden 100.0 4.24 4.24 50.5 50.4
Germany Etzel 33.0 1.00 0.30 6.9 0.0
Netherlands Bergermeer 0.0* 4.60 1.85 26.1 26.1
Czech
Damborice 50.0% 0.37 0.30 6.9 6.9
Republic
Total -- -- 15.28 10.69 163.1 136.2
*Gazprom provided the necessary volume of cushion gas to get access to Bergermeer capacity. Source: Gazprom
Vitaly Sokolov, Moscow
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Iran Willing to Restart Nuclear Talks Next Month
Iran is willing to resume multilateral talks about its nuclear program "before the end of November," its top negotiator at the talks said
on Wednesday. The talks in Vienna have stalled since the June elections in Iran.
Ali Bagheri-Kani's statement via Twitter followed a meeting in Brussels this week with Enrique Mora, the top EU diplomat involved in
the talks about reviving the 2015 Iran nuclear deal.
He called the meeting with Mora a "very serious and constructive dialogue," adding that "We agree to start negotiations before the end
of November."
The declaration of willingness to take part in a seventh round of negotiations in Vienna comes as US officials have warned that the
window of opportunity for reaching an agreement to revive the nuclear deal is narrowing.
The Vienna talks were intended to secure a commitment from Iran to return to compliance with the deal's restrictions on the country's
nuclear program in return for the lifting of US sanctions on its oil exports.
But US Secretary of State Antony Blinken and other US officials have argued that Iran's nuclear program could advance beyond the
point where a return to the deal would not yield sufficient nonproliferation benefits.
US negotiator Rob Malley told reporters on Monday that the US is "in a critical phase" when it comes to determining whether the deal
— formally known as the Joint Comprehensive Plan of Action (JCPOA) — can be revived.
"We’ve been at this now for — we had six rounds of talks and now we've had a hiatus of many months, and the official reasons given by
Iran for why we're in this hiatus are wearing very thin," he said.
Malley met with EU officials last week after a Mideast visit that included stops in the United Arab Emirates, Qatar and Saudi Arabia.
In his remarks to reporters on Monday, Malley reiterated what he and other US diplomats have said before — that at some point the
window for returning to the deal, and a path for lifting sanctions on Iran's oil sector, will close.
"At some point, the JCPOA will have been so eroded because Iran will have made advances that cannot be reversed, in which case we
can't be talking. You can't revive a dead corpse."
He stressed that the Biden administration would still prefer to see a meaningful return to the deal. But he added that if this were not
possible, it would not necessarily mean that the door for diplomacy with Iran closes.
Bridget DiCosmo, Washington
Equinor Steps Up Gas Exports to Europe
Norway's Equinor plans to step up its gas exports over the next six months to provide additional supplies to a tight European gas
market.
The company will take gas that is normally injected into the Gina Krog field to boost oil production and sell it instead, thereby
increasing exports by about 170 million cubic feet per day (4.8 million cubic meters per day).
"This is an extraordinary measure," CFO Ulrica Fearn said on Wednesday during the company's third-quarter earnings call.
"Why six months? We want to make sure we know how this works ... This is temporary for now, but we need to revisit the situation as
we go along."
The company is looking across its upstream portfolio to see whether it can do something similar at other fields, she added.
Gas Ramp-Up
Equinor reported its strongest quarterly results since 2012, driven by record gas prices that have remained buoyant in October.
"This generates higher revenues for Equinor, but also serves as a reminder of the level of volatility in our markets," Fearn said.
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"At present, European inventories are low, and we expect the market to remain tight and subject to volatility going into the winter."
Equinor started to ramp up output at its Oseberg and Troll fields this month after getting the green light from Oslo to produce an
additional 2 billion cubic meters of gas to help ease Europe's current gas shortage.
Output from the two fields can be raised or lowered, depending on prices.
“We are now flexing to produce as much as we can and turning every valve to produce and export more gas to meet European demand,"
Fearn said.
Buyback Boost
Equinor shareholders are also set to pluck the fruits of higher oil and gas prices.
The company has increased the size of its fourth-quarter share buyback program to $1 billion from a previously planned $300 million.
Fearn also highlighted strong cash flow and an adjusted net debt ratio of 13.2%.
Equinor will maintain quarterly dividend payments of $0.18 per share. Fearn said there are no plans to change the dividend policy in
the short term. "We are in a comfortable place where we are."
The company has lowered its capital spending guidance for this year to $8 billion from an earlier range of $9 billion-$10 billion. This
was attributed in part to delayed projects and cost savings.
Capex guidance for the next few years remains unchanged at $9 billion-$10 billion in 2022 and around $12 billion per year in both
2023 and 2024.
Supply Chain Cost Pressures
Fearn also flagged general concerns about the current cost pressures in global supply chains. She said that while the company has not
seen any direct impact yet in its own business, "It feels like there [are] some outstanding risks that might be coming our way."
Equinor's third-quarter earnings got a boost from mark-to-market gains on derivatives contracts in its marketing and midstream and
processing segment, which were related to European gas sales.
However, it said the gains in the third quarter are likely to be offset by similar losses in the final quarter of this year and the first quarter
of next year.
Equinor Q3'21 Earnings Results
($ million) Q3'21 Q3'20 %Chg. Q2'21
Revenue 23,264 11,339 >100% 17,462
Operating Cash Flow 8,039 2,632 >100 6,643
Net Income 1,409 -2,124 NA 1,943
Adjusted Income 2,777 271 >100 1,578
Exploration & Production Norway* 6,760 773 >100 3,964
Exploration & Production Intl.* 556 -104 NA 399
Exploration & Production US* 288 -193 NA 230
Marketing, Midstream & Processing* 2,187 262 >100 144
Renewables* -28 15 NA -31
Liquids Production ('000 b/d) 1,048 1,076 -3 1,052
Gas Production (MMcf/d) 948 918 3 945
Oil and Gas Output ('000 boe/d) 1,996 1,994 0% 1,997
*Adjusted earnings. Source: Equinor
Deb Kelly, London
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Ministry: Nord Stream 2 Won't Undermine Security
Germany's economy and energy ministry has concluded that regulatory approval of Gazprom's Nord Stream 2 natural gas pipeline
would not pose a threat to the energy security of Germany or the EU.
The ministry carried out an energy security analysis as part of an ongoing certification process that is required before the pipeline can
start delivering Russian gas to Germany.
The pipeline is ready to start shipping gas, but Gazprom's Switzerland-based affiliate Nord Stream 2 AG is still waiting for Germany's
Bundesnetzagentur (BNetza) to decide whether to certify it as an independent system operator.
EU regulations require a network operator from a non-EU country to be certified to operate a pipeline in an EU member state.
Nord Stream 2 AG submitted an application to BNetza in June for certification to operate the German section of the pipeline, which
originates in Russia and runs to Germany via the Baltic Sea, thereby avoiding transit routes through Ukraine and Poland.
The ministry noted that while its analysis is part of the certification process, it will not determine the outcome of the decision to be
made by BNetza, which is an independent federal agency.
The ministry added that it had consulted nine other EU countries including Poland and Italy before embarking on the analysis.
BNetza is expected to make a preliminary decision by early January, which will then be reviewed by the European Commission to check
that it complies with EU law. That can up to two months to the certification process.
However, it is difficult to map out a precise timeline for certification, prompting US President Joe Biden's Energy Security Adviser
Amos Hochstein to express frustration about the lack of clarity around the duration of the process.
Jaime Concha, Copenhagen
US Inventory Build Upsets Oil Price Rally
Oil prices recoiled on Wednesday, mostly in response to a US crude inventory build that scared investors away from their bullish
wagers.
In London, the December Brent contract was down $1.82 and settled at $84.58 per barrel, a deep dive from its intraday high of
$86.28/bbl.
In New York, the front-month Nymex West Texas Intermediate (WTI) December contract lost $1.99 and settled at $82.66/bbl.
ICE BRENT VS. NYMEX WTI FUTURES
Front Month Contracts
88
86
($/bbl)
84
82
80
14. Oct 16. Oct 18. Oct 20. Oct 22. Oct 24. Oct 26. Oct
Nymex Light Sweet ICE Brent
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Back to the Future
Brent's cresting of $85 in recent days has captured the market’s attention, but the real action is in the future time spreads.
The Brent forward structure has blown out in response to fast-drawing oil inventories and the expectations of tighter winter supply.
This response has been compounded by recent supply frictions in the European and Asian power markets.
The scarcity premium of prompt Brent barrels over deliveries in six months is nearly $5.50, its widest since September 2013.
With the exception of the front time spread, the other Brent intermonth spreads out to six months are hovering around $1.
Thinning Cushing Cushion
This widening is even more conspicuous in WTI futures, where the spreads over the first six months are closer to $1.20.
The situation clearly reflects the low oil inventory levels at Cushing, Oklahoma, the main pricing point for WTI futures.
Data from the US Energy Information Administration (EIA) showed that Cushing crude stocks drew by 3.9 million barrels in the week
ended Oct. 22 — the fourth-largest weekly stockdraw since 2004 — to 27.3 million bbl, less than half of the 60 million bbl in storage at
the same time last year.
Crude inflows to Cushing are lower than usual, partly as a collateral effect of the imminent restart of the reversed Capline pipe,
analysts said. The new pipeline route through Patoka, Illinois, which bypasses Cushing, is already driving some oil volumes away.
US & CUSHING CRUDE OIL STOCKS
560 72
520 60
million bbl
million bbl
480 48
440 36
400 24
Jan '20 Apr '20 Jul '20 Oct '20 Jan '21 Apr '21 Jul '21 Oct '21
Cushing Total US
Source: EIA
Unwarranted Panic
“At this rate of decline, Cushing could hit its operational floor within a few weeks,” said Ole Hansen, head of commodity strategy at
Saxo Bank.
If anything, this is a “stunning reversal from last year, when the pandemic prompted a glut of crude oil so big that it exhausted storage
capacity and briefly forced WTI below zero,” he added.
But despite the Cushing concerns, US commercial crude inventories gained 4.3 million bbl on the week, showing a healthy 430.8 million
bbl, which does not seem to warrant bullish panic — at least not immediately.
Oil prices responded to the US inventory increase with a sell-off.
With US refinery throughputs standing at 15 million b/d and an average utilization rate in excess of 85%, last week’s relatively large
crude build was unexpected, which partly explains the temporary pullback.
Meanwhile, gasoline inventories shed about 2 million bbl during the week to 215.7 million bbl, while distillates stockpiles decreased by
400,000 bbl to 125 million bbl.
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But as more US refining capacity comes back on line in the coming weeks, crude draws are expected to resume and deepen in
November.
Julien Mathonniere, London
IN BRIEF
China Caps Refining Capacity
China has set a cap for its oil refining capacity to help achieve its goal of halting the rise in the country's carbon emissions by 2030.
Refining capacity will be capped at 20 million b/d by 2025 and there will be a strict ban on building new refineries with a capacity of less
than 200,000 b/d, the National Development and Reform Commission (NDRC) said.
The NDRC — China's top economic planning agency — said it would continue its policy of closing down refineries with a capacity of less
than 40,000 b/d, as Beijing embraces big new integrated refining and petrochemical complexes.
China National Petroleum Corp. (CNPC) said earlier this year that it expects China's refining capacity to reach 19.68 million b/d by
2025 — up from 17.79 million b/d last year — which more of less aligns with the cap set by the NDRC.
China's refining capacity greatly exceeds its oil demand which has recently been running at around 14 million b/d.
Dawn Lee, Beijing
Russian Draft Carbon Strategy Ready
Russia's economic development ministry has submitted a draft strategy for lowering the country's carbon emissions to the government
for approval.
Economic Development Minister Maxim Reshetnikov said the strategy document sent to the government shows how Russia can attain
net-zero carbon emissions.
He said it should be possible to achieve carbon neutrality by the target date of 2060, which was recently announced by President
Vladimir Putin.
The strategy describes two scenarios — a passive one in which Russia takes no policy measures to reduce carbon emissions, and an
active one in which it does take such measures.
Both scenarios envisage a reduction in the country's energy exports by 2050. And both also assume that absorption of carbon dioxide
by Russia's vast forests will make a major contribution to reducing the country's net emissions.
The ministry calculates that under the passive scenario, Russia's annual net emissions would fall by 460 million tons of CO2 equivalent
by 2050, while under the active scenario, annual net emissions would decrease by 1.57 billion tons of CO2 equivalent. Russia currently
emits around 1.6 billion tons of CO2e per year.
Reshetnikov, Natural Resources Minister Alexander Kozlov and Putin's Special Climate Envoy Ruslan Edelgeriyev will be among the
senior officials who will represent Russia at the upcoming COP26 climate conference in Glasgow.
Nadezhda Sladkova, Moscow
Fighting Damages Libyan Refinery
Damage caused by clashes between armed groups halted the operations of the 120,000 b/d Zawiya refinery complex in Libya this
week, the country's National Oil Corp. (NOC) said.
Eight storage tanks holding crude oil and refined products were damaged, as were five base oil and chemicals storage tanks and an
electrical transformer, NOC said.
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The clashes at the complex occurred ahead of elections scheduled for Dec. 24, which have sparked hopes of a return to political
stability and an enduring recovery of its oil industry.
Despite occasional outbreaks of unrest, Libya has been able to maintain crude crude production in a recent range of 1.1 million-1.2
million b/d.
NOC said all production units were undergoing inspection "to determine the extent of damage resulting from the clashes."
Rafiq Latta, Nicosia
Eni Eyes IPO for Var Energi
Italy's Eni and private equity-backed Point Resources are looking at strategic options for their Var Energi joint venture, including a
possible initial public offering (IPO) of shares.
The company was formed in 2018 when Eni merged its Norwegian operations with Point Resources, a portfolio company of Norwegian
private equity fund Hitec Vision. Its ownership is split between Eni with just under 70% of the equity and Point with just over 30%.
Regardless of the path the pair chooses, Eni said it intends to remain the majority owner of Var.
Var produced 239,000 boe/d in the first half of this year and claims to be the largest independent producer on Norway's Continental
Shelf.
Earlier this month, Eni announced it would move ahead with plans for an IPO of its retail gas and power and renewable power
generation business — colloquially referred to as Eni R&R.
Noah Brenner, London
Wintershall Dea Reports Strong Quarter
Wintershall Dea reported a surge in revenues and earnings for the third quarter of 2021 on the back of strong oil and gas prices.
The German independent drives 71% of its upstream production from natural gas, mainly in Russia and Northern Europe.
Its quarterly adjusted net income rose 244% year on year to €234 million as revenues more than doubled to €1.98 billion.
The strong performance was achieved despite a fire at a gas condensate treatment plant in Russia during the quarter, which took a bite
out of the company’s production, which came in at 588,000 boe/d for the quarter. Wintershall's production guidance for the full year is
615,000-630,000 boe/d.
Capital spending for the quarter came in 17% lower than in the third quarter of 2020 at €210 million. Full-year capex is therefore
expected to come in at the low end of management's guidance of €1 billion-€1.1 billion.
Wintershall said it continues to make progress on carbon capture and storage and hydrogen initiatives.
During the quarter the company signed a cooperation agreement with VNG to build a "turquoise" hydrogen production facility in
Germany, while a CCS project in Denmark has moved forward to its next phase, which will see offshore carbon dioxide injection start in
late 2022.
Jon Mainwaring, London
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DATA SNAPSHOT
Oil and Gas Prices, Oct. 27, 2021
All data are produced by Energy Intelligence in cooperation with Reuters.
CRUDE OIL FUTURES
($/bbl) Chg. 1st Mth. 2nd Mth.
ICE Brent -1.82 84.58 83.87
Nymex Light Sweet -1.99 82.66 81.48
DME Oman -2.08 82.52 81.95
ICE Murban -1.54 84.52 83.12
INTERNATIONAL SPOT CRUDES
($/bbl) Chg. Price Prior Close
Brent (Dated) -0.98 84.12 85.10
Dubai -0.46 83.45 83.91
Forties -0.68 83.85 84.53
Bonny Light -0.68 84.85 85.53
Urals -0.68 83.10 83.78
Opec Basket* 84.52
*Opec price assessed.
NORTH AMERICAN SPOT CRUDES
($/bbl) Chg. Price Prior Close
WTI (Cushing) -2.98 82.66 85.64
WTS (Midland) -2.11 81.54 83.64
LLS -2.78 83.16 85.94
Mars -2.98 78.26 81.24
Bakken -2.98 83.26 86.24
ICE BRENT CRUDE FUTURES
$100
$80
$60
($/bbl)
$40
$20
$0
May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 Sep '21 Nov '21
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NYMEX LIGHT CRUDE FUTURES
$100
$75
$/bbl
$50
$25
$0
May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 Sep '21 Nov '21
Nymex Light crude Futures
Energy Intelligence
REFINED PRODUCT FUTURES
Nymex Chg. 1st Mth. 2nd Mth.
Gasoline (¢/gal) -6.71 244.97 237.92
ULSD Diesel (¢/gal) -6.25 251.48 250.62
ICE
Gasoil ($/ton) -16.25 726.75 721.25
Gasoil (¢/gal) -5.19 231.95 230.20
ICE GASOIL FUTURES
$800
$600
($/ton)
$400
$200
$0
May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 Sep '21 Nov '21
ICE Gasoil
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NYMEX GASOLINE FUTURES
300
250
200
(¢/gallon)
150
100
50
0
May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 Sep '21 Nov '21
US SPOT REFINED PRODUCTS
New York (¢/gal) Chg. Price Prior Close
Regular Gasoline -8.29 250.82 259.11
No.2 Heating Oil -6.81 236.83 243.64
No.2 ULSD Diesel -6.81 250.48 257.29
No.6 Oil 0.3% * 99.56
No.6 Oil 1% * 84.76
No.6 Oil 3% * 75.06
Gulf Coast (¢/gal)
Regular Gasoline -8.29 246.92 255.21
No.2 ULSD Diesel -6.81 244.33 251.14
No.6 Oil 0.7% * 86.26
No.6 Oil 1% * 86.26
No.6 Oil 3% * 73.46
*Price in $/bbl. Percentages refer to sulfur content.
INTERNATIONAL SPOT REFINED PRODUCTS
Rotterdam ($/ton) Chg. Price Prior Close
Regular Gasoline -6.70 820.30 827.00
ULSD Diesel -18.63 719.50 738.13
Singapore ($/bbl)
Gasoil -0.66 94.65 95.31
Jet/Kerosene -0.69 94.56 95.25
VLSFO Fuel Oil ($/ton) -2.87 604.42 607.29
HSFO Fuel Oil 180 ($/ton) -8.74 471.53 480.27
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NYMEX NATURAL GAS FUTURES
$8
$6
($/MMBtu)
$4
$2
$0
May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 Sep '21 Nov '21
Natural Gas Futures
Refinitiv
NATURAL GAS PRICES
($/MMBtu) Chg. Price
Henry Hub, Nymex +0.32 6.20
Henry Hub, Spot +0.26 5.85
Transco Zone 6 - NY NA NA
Chicago Citygate +0.28 5.86
Rockies (Opal) +0.21 5.95
Southern Calif. Citygate +0.22 6.91
AECO Hub (Canada) +0.90 5.00
Dutch TTF (euro/MWh) -2.88 84.95
UK NBP Spot (p/th) -10.00 201.00
US/Canada spot prices from Natural Gas Week
Equity Markets, Oct. 27, 2021
All data are produced by Energy Intelligence in cooperation with Reuters.
EQUITY MARKET INDEXES
Chg. Index YTD %Chg.
EIF Global* +0.36 311.04 +36.67
S&P 500 -23.11 4,551.68 +22.13
FTSE All-World* +2.29 881.28 +16.90
*Index for previous day
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EIF INDEX
320 900
280 800
FTSE All-World
EIF Index
240 700
200 600
160 500
Jul '20 Oct '20 Jan '21 Apr '21 Jul '21 Oct '21
EIF Index FT All World
EIF Global Oil and Gas Index of 21 traded equities
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