Daily Brief Energy/Materials: CPMC Holdings, Crude Oil, SGX Rubber Future TSR20, OCI NV, Reliance Industries, Ocean Power Technologies, Sintana Energy and more

• ORG Technology Co., Ltd. A (002701 CH)’s offer for CPMC Holdings (906 HK) has received SAFE approval. Therefore, the precondition is satisfied. 
• The offer and response document will be despatched by 20 December and 3 January 2025, respectively. The Board will recommend the offer. 
• The offer should be declared unconditional by the first closing date. At the last close and late-January 2025 payment, the gross/annualized spread was 7.3%/88.0%.

• OPEC cut its 2024 demand growth forecast for the fifth consecutive time this year. It lowered its 2024 and 2025 forecast 11.5% and 5.8%, respectively.
• The EIA and IEA lowered their 2024 demand projections by 10.1% and 8.7%, respectively. However, they raised their 2025 projections by 5.7% and 11.1%, respectively.
• The EIA reduced 2024 and 2025 price forecasts for WTI and Brent, citing higher non-OPEC+ production and subdued demand, which are expected to drive global inventory builds after Q1 2025.

• For the week ending 06/Dec, US crude inventories fell by 1.4m barrels, beating expectations of a 1m barrel decrease. However, gasoline and distillate stocks rose more than expected again.
• US natural gas inventories fell by 190 Bcf for the week ending 06/Dec, beating analyst expectations of a 175 Bcf drawdown. Inventories are 4.6% above the 5-year seasonal average.
• Wells Fargo raised its 12-month PT for Chevron but lowered targets for Shell and Occidental. Exxon targets a CAGR of 10% in earnings and 8% in cash flow through 2030.

• 79% of ELTs consumed by end-use markets, up 10.5%
• Tire-derived fuel tops ELT use, followed by ground rubber
• Sumitomo Rubber USA announces closing of Buffalo plant

• OCI undergoing solvent liquidation process, sparking interest in updating story and economics
• Focus on latest updates on OCI and PF capital structure, equity thesis, credit thesis
• Multiple disposal transactions in past 10 months, including sale of businesses and retaining European nitrogen business

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In the US, initial jobless claims increased to a two-month-high of 242 k (220 k e / 225 k p), likely due to the Thanksgiving holiday.
• The PPI (final demand) came in at 3.0% y-o-y in November (2.6% e / 2.6% p), while core PPI (final demand) stood at 3.4% (3.2% e / 3.4% p).
• US Treasuries were sold off for the second consecutive day, with the yields gaining 4-6 bps across the curve.

• Ocean Power Technologies has secured a new partnership in Latin America with $3 million in purchase order commitments over three years.
• This new agreement adds to a previous $1.5 million order, bringing the total to $4.5 million.
• The partnership will involve the deployment of OPT’s WAM-V unmanned surface vehicles (USVs) for hydrographic applications and other diverse tasks.

• The Mopane-2A appraisal well (the 4th well to be drilled at Mopane) has been spud.
• The purpose of the well is to appraise the AVO-3 that had been discovered at Mopane-2X located ~8km to the northeast.
• This appraisal well has been prioritized following the Mopane-1A success.