Energy stocks and broader stocks fell sharply after 8:30 a.m. ET in September. The CPI showed a larger-than-expected price increase, signaling that the Federal Reserve won’t back down on its monetary tightening anytime soon. Consumer prices rose 0.4% in September, better than estimates of 0.3%, and year-over-year inflation rose 8.2% from its peak of around 9% in June, but still near the highest levels in 40 years. The 10-year Treasury yield climbed 4% and is now up 3.1% at ~4.025%. S&P 500 futures were down 2.0% at 8:55 a.m. ET.

Oil and natural gas prices are lower, following the risk aversion sentiment. Prices rose overnight, finding continued support from an OPEC+ decision last week to cut supplies, with the International Energy Agency warning the cuts could push the global economy into the recession. However, all risk assets immediately reacted negatively to the inflation data.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

Chevron expects high European liquefied natural gas (LNG) prices to attract the majority of U.S. LNG exports in the near term, a senior executive told Reuters.

A local representative of France’s Cgt Union told Reuters it would end a strike at Exxon Mobil’s The Fos-sur-Mer refinery after several weeks, confirming a media.

INTERNATIONAL INTEGRATED

Scotiabank downgraded PB sector performance from sector outperformance.

Two Enel Green Power projects and Eni to develop green hydrogen will benefit from public funding approved by the European Commission under the IPCEI Hy2Use. Jointly prepared and notified by 13 EU Member States, this Project of Common European Interest will allocate up to €5.2 billion to support research and innovation, first industrial application and infrastructure construction related in the hydrogen value chain. South Italy Green Hydrogen, the joint venture created by the two companies to further develop the projects, will be the beneficiary of the funding provided.

Equine announced that on October 10 at 8:00 p.m. local time, the new platform in Brazil, Peregrino C, produced its first-ever oil. Phase 2 of Peregrino will extend the life of the Peregrino field to 2040. Phase 2 adds 250-300 million barrels of oil, while halving projected CO2 emissions per barrel over the remaining life of the field.

Repsol takes a new step in its strategic commitment to the circular economy by becoming a reference shareholder in the Spanish company Acteco, which specializes in the collection, management, recycling and recovery of waste in Spain, after acquiring a stake by 27%.

Peter Medlam has been appointed Chief Operating Officer, Repsol Sinopec Resources UK Limited, effective November 1, 2022. Mr. Medlam replaces Mr. Nicolas Foucart who held the position since August 2018, and brings with him over 30 years of work experience in operations, maintenance and projects worldwide.

Shell reported flaring at its 404,000 barrel per day (bpd) Pernis refinery in the Netherlands due to a malfunction at one of the site’s facilities on October 12.

Shell CEO Ben van Beurden told a Dutch parliamentary panel investigating problems with natural gas production at the large Groningen gas field in the Netherlands that the company should have pulled out of the project sooner.

Shell and The Kansai Electric Power Co., Inc. have signed a memorandum of understanding, building on their longstanding LNG relationship. Under this MoU, Shell and Kansai will explore and cooperate on business opportunities in liquid hydrogen (LH2) supply chains to promote business decarbonization.

As part of the hearings scheduled today before the Civil Court of Paris, TotalEnergies regrets that the NGOs involved in the proceedings refused to participate in the mediation process proposed by the court and accepted by TotalEnergies. Following this refusal, the court decided that the pleadings would take place on December 7, 2022.

Five workers on strike TotalEnergies’ depot in Dunkirk, northern France, were ordered back to work on Thursday, a local union representative said, adding that the orders were notified to workers as the country grapples with a shortage of gasoline supply.

TotalEnergies said the conditions were not met to open talks with all the unions to end the refinery strike which has been going on for weeks in France and which is weighing on the country’s gasoline supply.

The government is always ready to launch a requisition procedure to a TotalEnergies storage site in northern France if the showdown with the striking CGT union does not end, the French energy minister told RMC radio.

TotalEnergies must raise its wages and reach an agreement with the CGT union to end the strikes that are weighing on the country’s fuel supply, said French Finance Minister Bruno Le Maire.

The strikes affecting four refineries of TotalEnergies will continue on Thursday, a representative of the CGT union told Reuters, adding that they would also affect a storage site while another recharging point for petrol shipments was reopened.

The Malaysian Petronas has signed a production sharing contract with subsidiaries of TotalEnergies and Shell for an ultra-deep boulder located off Sabah. TotalEnergies EP Malaysia will be the operator, with a 34.9% stake, while Petronas Carigali will hold a 40% stake, Petronas said.

Siemens has signed a partnership agreement with Automotive Cells Company (ACC) to provide equipment and technology to new electric vehicle battery manufacturing plants, the German engineering company said. ACC, a joint venture of Stellantis, Mercedes Benz and TotalEnergieshas a more than 7 billion euro ($6.79 billion) plan to build the three giga-factories with a capacity of 40 gigawatt hours (GWh) each by 2030, to support growing vehicle production electrified.

Norwegian police responded to a threat made by telephone against the Nyhamna gas processing plant, one of Europe’s largest energy export facilities, and later said the incident had been resolved. The threat came amid heightened concerns over the security of oil and gas infrastructure following the alleged sabotage of Russia’s Nord Stream gas pipelines to Europe, although plant operator Gassco and offshore producers Shell and Equine said outing had not been interrupted.

CANADIAN INTEGRATED

Scotiabank downgraded Imperial Oil sector performance from sector outperformance.

E&PS United States

Dutch gas network operator Gasunie said its German subsidiary has signed agreements related to the development of a new LNG terminal in Brunsbuettel with a throughput capacity of 8 billion cubic meters, which should be completed by 2026. In a statement, Gasunie said that CS Gas North SA would build the terminal near Hamburg, and that ConocoPhilipsIneos and RWE Supply & Trading have been signed as initial customers.

Scotiabank downgraded Enerplus sector performance from sector outperformance.

CANADIAN E&PS

No significant news.

OIL SERVICES

Seaport Research Partners demoted Mineral Technologies to Neutral to Buy.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

The board of directors of Antero Midstream declared a cash dividend of $0.225 per share for the third quarter of 2022, or $0.90 per share on an annualized basis. The dividend will be payable on November 9, 2022 to shareholders of record on October 26, 2022.

Governor John Bel Edwards and leaders of the world’s leading energy companies CF Industries, ExxonMobil and Intermediate EnLink announced an “unprecedented” decarbonization collaboration aimed at dramatically reducing industrial CO2 emissions in Louisiana. The announcement — described as a potential commercial prototype for industrial-scale carbon capture and sequestration projects — was made Wednesday at the State Capitol.

MARKET COMMENTARY

Stock markets nosedived after the September CPI turned hotter than expected, indicating inflation remains a lingering issue and the Federal Reserve will remain on its rate hike path. Asian markets ended in negative territory. The US dollar erased its losses and rallied, while the price of gold fell slightly.

The Nasdaq Advisory Services Energy Team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.

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