LNG: Potential LNG Cargo Reload from Brazil: Platts

Jan-23 11:36

The Cool Rider departed laden from Brazil and is currently heading to the Mediterranean , with an estimated arrival date of Jan. 27, Platts said.

  • The tanker, which sources previously indicated is one of two chartered by Petrobras, appears to have reloaded volumes from the Guanabara Bay terminal in Rio de Janeiro.
  • The last volumes delivered in Guanabara Bay came from a cargo reloaded at the Sergipe terminal when the latter’s FSRU was offline.

Historical bullets

US TSY OPTIONS: Large Feb'25 10Y Put Spread

Dec-24 11:31
  • 20,000 TYG5 107.5/108.5 put spread, around 24 ref 108-16.5

US-RUSSIA: Biden Weighing New Sanctions Against Russian Energy Sector

Dec-24 11:24

The Washington Post reports, citing sources 'familiar with the matter', that US President Joe Biden is weighing 'major new sanctions' against Russia's energy sector, potentially handing President-elect Donald Trump leverage over Russian President Vladimir Putin in Ukraine negotiations, expected to take place shortly after Trump takes office on January 20. 

  • The Post reports the sanctions would target the "so-called “dark fleet” of international ships carrying Russian oil to non-Western countries as well as targeted Russian oil exporters, who have not been sanctioned up to now... The options also include revoking a license enabling banks to process Russian energy transactions..."
  • Peter Harrell, a former senior Biden administration official now at the Carnegie Endowment for International Peace, said: “The goal of a new major sanctions action should be a double-digit decline in [Russia's] export revenue, over a period of six to 12 months,”
  • Edward Fishman, an advocate for harsher measures targeting Russia's energy revenue at Columbia University’s Center on Global Energy Policy, said: "The Biden administration has been worried about increasing gas prices and worsening inflation. That was the main constraint on their Russia sanctions policy — the domestic ramifications. But the election is over and inflation is under control. The reasons to be this cautious on sanctions don’t apply anymore.”
  • Bob McNally at Rapidan Energy Group said that although, “...softer global fundamentals... leave room for President Biden and President Trump to tighten sanctions on Russia and Iran, that room is not unlimited,” 

US: Johnson Remains Favourite To Retain Speakership On Janaury 3

Dec-24 11:04

House Speaker Mike Johnson (R-LA) appears likely to win re-election to speaker on January 3, despite criticism from President-elect Donald Trump for his handling of a short-term government funding package. According to Polymarket, Johnson is assigned a 73% implied probability of retaining his gavel, down from roughly 95% ahead of the funding crisis.

  • On January 3, Johnson will require near-unanimous support from House Republicans. Consistent with previous speaker votes when the minority party votes for their own candidate, Democrats are expected to whip against Johnson’s re-election. House Minority Leader Hakeem Jeffries (D-NY) told MSNBC on Sunday that there is a "real risk" of Johnson failing to become speaker, adding “there will be no Democrats available to save him or the extreme MAGA Republicans from themselves…”
  • One Republican Rep, Thomas Massie (K-KY), who backed an effort to oust Johnson earlier this year, is again likely to oppose Johnson’s bid, with a handful of other hardline conservatives reportedly undecided.   
  • The baseline expectation is that Johnson is likely to be insulated from a major challenge to his speakership as there is no replacement candidate with a clear path to the gavel. Trump’s decision to endorse or oppose could smooth the path for Johnson’s re-election. Trump is likely to balance his dissatisfaction with Johnson’s failure to legislate a debt ceiling suspension with the necessity of stability in the House.

 Figure 1: Next Speaker of the House of Representatives

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Source: Polymarket