Connect with us

Business

U.S. Refiners to Urge Biden Administration Not to Ban Fuel Exports – Reuters

Daniel

Published

on

AvigatorPhotographer/iStock via Getty Images

U.S. oil refiners will try to convince the Biden administration not to ban exports of domestic fuel to combat record-high gasoline prices during tomorrow’s scheduled meeting with Secretary of Energy Jennifer Grandholm, Reuters reported on Wednesday.

Refining executives reportedly will seek to make the case that an export ban would anger allies and lead to refining production cuts as companies lose access to global markets that have become crucial to revenues, ultimately raising prices.

Potentially relevant tickers include (NYSEARCA:XLE), (NYSEARCA:CRAK), (XOM), (CVX), (VLO), (MPC), (PSX), (PBF), (DK), (CVI)

The U.S. is the world’s biggest exporter of refined products, and Mexico, Canada and Japan are among the top buyers of those partners, while Europe has increased purchases in recent weeks to make up for lost Russian supply.

“If refiners aren’t allowed to export, they’re just going to slow down production and cut the refinery utilization rate,” Mizuho’s director of energy futures Bob Yawger told Reuters, adding that excess products likely would be sent into inventories, which are at multi-year lows.

U.S. capacity to refine crude oil into fuel and other products has dropped below 18M bbl/day to hit its lowest level since 2014, according to the Department of Energy’s latest annual refinery capacity report.

Read More

Original Source: seekingalpha.com

Business

Great Panther to Sell Mexican Mining Assets in $14.7M Deal

Daniel

Published

on

RHJ/iStock via Getty Images

Great Panther Mining (NYSE:GPL) +12.2% post-market after saying Wednesday it agreed to sell the Guanajuato mine complex, the Topia mine, and the El Horc?n and Santa Rosa projects, all located in Mexico, to Guanajuato Silver Company for $14.7M plus up to $2M in potential additional payments.

Great Panther (GPL) said the sale of the Mexican mines will allow it to focus on maximizing the full potential of the Tucano gold mine in Brazil and complete the pivot to gold started in 2019.

The company said it expects Tucano will return to steady-state production in this year’s H2 and plans to continue investing to unlock value both from the underground as well as the regional potential of the district.

While production is expected to rise sharply in H2, Great Panther (GPL) “will still have some of the weakest margins sector-wide, making it much higher risk than its junior producer peers,” Taylor Dart writes in an analysis published recently on Seeking Alpha.

Read More

Source Here: seekingalpha.com

Continue Reading

Business

Turbulent Oil, Gas Markets to Persist ‘for Some Time to Come,’ Shell CEO Says

Daniel

Published

on

Sharkyjones/iStock Editorial via Getty Images

The world is headed for a “turbulent period” in oil and gas markets “for some time to come,” as “spare capacity is running very, very low,” Shell (NYSE:SHEL) CEO Ben van Beurden said Wednesday.

Global demand for oil and gas is still recovering despite economic and COVID-19 challenges, but the world’s oil refining system is running flat out, van Beurden said, driving up refining margins and prices of gasoline and diesel.

Russia has curbed gas supplies to Europe, forcing buyers to turn to liquefied natural gas imports and causing concerns about supplies ahead of peak demand this winter, but van Beurden believes “it will be impossible to cover the entire pipeline gas capacity out of Russia with LNG.”

LNG export capacity amounting to 32M tons are set to come onstream this year, with possibly another 30M in the next few years, resulting in a “very significant shortfall.”

Europe could extract as much as 50B cm/year of additional gas from the controversial Groningen gas field in The Netherlands, but that would be a last resort for the Dutch government, the Shell (SHEL) CEO said.

Van Beurden’s outlook for oil is not much better, saying spare capacity from OPEC “isn’t as much as the market thinks or hopes,” while demand has reached pre-pandemic levels and will continue to increase for years.

The CEO also pointed to a $1T decline in investment in the oil and gas industry during the past three years that would have happened in “normal circumstances.”

Exxon CEO Darren Woods indicated recently that energy prices likely will remain elevated, but “the cure for high prices is high prices.”

Read More

Source: seekingalpha.com

Continue Reading

Business

Kohl’s Plunges on Report Bidder Considers Lowering Offer to $50/share (update)

Daniel

Published

on

Justin Sullivan/Getty Images News

Update 9:40pm: Adds reporting from NY Post on meetings this week.

Kohl’s (NYSE:KSS) dropped 9% on a report Wednesday that bidder Franchise Group (NASDAQ:FRG) is considering lowering its offer to $50/share from $60/share. Franchise Group ticked up 0.6%.

Franchise Group is evaluating whether acquiring Kohl’s (KSS) is the best way to deploy the firm’s capital, according to a CNBC report, citing a person close to the deal talks. FRG appears to be worried that certain retailers may be hurt if the economy gets weaker and goes into a recession.

Franchise Group (FRG) CEO Brian Kahn is said to have told investors in private meetings this week that he may try to negotiate the deal price, though he hasn’t spoken to Kohl’s (KSS) yet, according to a NY Post report.

The update comes after Kohl’s (KSS) announced earlier this month that it entered exclusive talks with Franchise (FRG) for a potential $60/share sale of the department store chain. The Kohl’s board announced it entered exclusive negotiations with FRG for a period of three weeks.

The latest news also follows a Reuters report from Tuesday that FRG is said in talks to retain Kohl’s (KSS) management, including the department store’s CEO Michelle Gass, if a planned sale is completed.

A week ago the NY Post reported that Vitamin Shoppe parent Franchise Group (FRG) was still committed to the $60/share deal.

Read More

Source Here: seekingalpha.com

Continue Reading

Trending

MQRV.com