Oil Prices Up After Iran Warning
Oil futures rose Monday after Iran warned Saudi Arabia and neighboring Islamic states not to make up for any shortfalls caused from an embargo on its crude oil exports. Meanwhile, concerns over shipments from two other major exporters, Nigeria and Sudan, contribute to a spike in prices.
In the face of Iran's threats to close the Straight of Hormuz, Saudi Arabia said it could 'almost immediately' increase its production by some 2 million barrels per day, according to Saudi Oil Minister Ali al-Naimi in an interview with CNN. Saudi Arabia's doubts that Iran will shut down the straight followed a warning from Tehran that any move to replace Iranian oil on the markets would “not be perceived as friendly,” the country's OPEC governor told the press.
With Brent crude futures trading 80 cents higher at $111.22 a barrel, after hitting an intra-day high of $111.67, Saudi Arabia aims to stabilize prices to around $100 a barrel.
As the US continues to pressure nations to stop importing oil from the Islamic Republic, some of Iran's top Asian buyers are starting to look at alternative suppliers in the region.
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In Nigeria, trade unions have called off strikes against the government after president Goodluck Jonathan partially reversed the detrimental effects of an end on fuel subsidies that more than doubled gas prices for locals. Meanwhile, Sudan started confiscating some oil exports over the weekend from its southern region to meet unpaid transit fees.
Throughout the remainder of the week, investors will be watching China, the world's second largest oil consumer, where the economy is expected to slow for a fourth successive quarter as global demand weakens, according to a Reuters poll.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.