RJ's notes 3-15-2023

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RJ's notes 3-15-2023

Post by dan_s »

Raymond James Energy Daily Update on March 15, 2023 < Early this morning, before the big drop in oil prices

Here is a reminder that bank balance sheets are not the only thing happening in the world: a U.S. drone and a Russian fighter jet collided over
the Black Sea. No, this won’t start World War III in and of itself, but geopolitical risk is far from over. And yet, there is a nine-week low in oil prices
alongside steep declines in coal and European natural gas. Brent fell by 4.1%, settling at $77.45/bbl, while WTI dropped 4.6% to settle at $71.33/

Yesterday's release of the Monthly Oil Market Report by OPEC showed optimism regarding China , with an upward revision of Chinese oil
demand by 590 thousand bpd, as compared to last month's report. The report also highlighted a decrease in demand from North America and

Turning to another natural resource – water – the EPA is proposing a first-ever national standard for PFAS chemicals in water supply. As
it happens, we will be hosting a webinar about water issues on March 21 – contact us for details. Following the recent banking-induced selloff,
the markets rebounded, with the S&P 500 rising by 1.7%. The energy indexes all ticked higher with E&P rising 0.4%, Midstream and Clean Tech
both gaining 0.3%, while Oilfield Services was flat on the day. Ahead of the open, equity futures are down while oil futures are up.

"Chinese Refinery Throughput Climbs As Fuel Demand Rebounds”
"Chinese refinery throughput climbed in January and February, both compared with a year earlier and compared with December 2022. The increase was driven by a recovery in Chinese demand, particularly demand for gasoline and jet fuel as travel picks up. "
"Saudi Arabia’s Energy Minister Slams NOPEC Bill And Price Caps”
"The NOPEC bill, which was recently reintroduced in Congress by a group of legislators, and price caps on oil will only serve to increase instability and uncertainty in oil markets rather than solve any problems.
Dan Steffens
Energy Prospectus Group
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