Updated: WTI tops $80 - OPEC, Kazakhstan, GS energy conference, freezing temps, DOE
Andrii Zorii/iStock via Getty Images


Update: Operator Chevron (NYSE:CVX) and partner Exxon (NYSE:XOM) have reported logistical issues limiting production at the giant, 600kb/d Tengiz oilfield in Kazakhstan, as protests continue at the site.
West Texas oil prices (NYSEARCA:USO)
(CL1:COM) topped $80 this morning, rallying almost 3% as a confluence of supply factors pull the commodity higher.

Top of mind is a survey released this morning pointing towards another production miss by OPEC, as the Member States delivered only 70kb/d of production growth in December, well below the budgeted 253kb/d, raising questions around the Cartel's ability to deliver on promises for production growth in January, February and beyond.
The more acute risk of a production outage in Kazakhstan has market commentators hanging on every update from the OPEC+ nation, particularly following news of workers at Chevron's (CVX) TCO 600kb/d megaproject joining protests.
The usual suspects, CEOs from Diamondback (NASDAQ:FANG) Devon (NYSE:DVN) and Pioneer (NYSE:PXD) headed a panel at Goldman Sachs energy conference this week; all stuck to the script of capital discipline leading to slower production growth and higher shareholder returns; all three noted service cost inflation from high-single digits to mid-teens impacting 2022 plans.
Bitter temps in Alberta and North Dakota have caused issues in the oil patch closer to home, as the Keystone pipeline went down for minor maintenance but has struggled to get back online in the past 48 hours, while weather in North Dakota has sent oil crews home and led to in-basin pricing reaching the highest levels seen in two months.
Finally, the market is steamrolling through a bearish DOE report from yesterday, as many view the exceedingly large build in gasoline inventories to be more related to holidays and year-end accounting, than an indication of faltering demand.
The energy sector (NYSEARCA:XLE)
(NYSEARCA:XOP) led the S&P in 2021, and is up almost double digits in 2022 versus the broader index (NYSEARCA:SPY) down ~1%; with coal export bans in Indonesia
(NYSE:BTU)
(OTCPK:WHITF)
(NYSE:ARCH) and an energy crisis in Europe
(NYSE:EQNR)
(NYSE:VET)
(NYSE:NRT), there's no shortage of places to look for energy investment ideas.