▌Cold weather in Jan. affects electricity generation mix in Northeast, Mid-Atlantic. Earlier this month, the bomb cyclone resulted in record levels of US natural gas demand and high natural gas and power prices around the country. Day-ahead daily average peak-period power prices for Jan. 5, 2018, rose to $247 MWh in New England and New York and $262 MWh in the Mid-Atlantic, compared to $30 MWh-$40 MWh average prices in the preceding six weeks. Power markets in the Northeast have become more dependent on natural gas following the retirement of electricity generators that use fuels other than natural gas. Despite the elevated natural gas price hikes, the relative moderation in power price spikes during the cold snap reflects the actions of grid operators to improve winter reliability.

EIA Jan. 23, 2018

▌BP, Kosmos win rights to two oil blocks in Sao Tome and Principe. The tiny island nation in Africa's Gulf of Guinea, surrounded by oil rich nations such as Nigeria and Cameroon, has its 129,000 sq. km exclusive economic zone divided into 19 blocks. BP and Kosmos Energy won blocks 10 and 13 in a restricted tender, beating a second consortium of Portugal's Energia and Total. Despite its lack of significant discoveries, several firms are exploring the island's waters for oil.

Reuters Jan. 23, 2018

▌Valero abandons US ethanol trade group. The largest American oil refiner has left a biofuels lobbying group, known as Renewable Fuels Association, due to cost cutting. This comes just over a year after joining in an effort to revamp the US renewable fuel program. The refiner saw that complying with the Renewable Fuel Standard program was too expensive. The program required oil refiners to mix ethanol with gasoline or buy paper credits to comply. As a result, Valero spent $750M in 2016 buying the fuel credits.

Reuters Jan. 22, 2018 

▌Puerto Rico to sell PREPA utility. Puerto Rico’s governor said Mon., he plans to sell the utility in a process that could take 18-months. PREPA has yet to recover from the late Sept. hurricane that left 3.4M residents without power. Today less than 64% of homes and businesses are receiving power. The plan to break up the company will at present occur over three phases, moving toward a “consumer-centered model”. Phase one consists of defining a legal framework via legislation, phase two evaluating bids and phase three negotiating the terms of awarding and hiring the selected companies to modernize the energy system. Currently, PREPA is working through a bankruptcy filing and all dealings must go through the federally appointed Financial Oversight and Management Board for Puerto Rico. The company is $9B in debt.

Reuters Jan. 22, 2018

▌Asphalt: East Coast asphalt prices firmed in some areas last week, with flux retail prices steady for the week. 
▌LNG: Five vessels were on subjects for single trips loading Far East and the Atlantic on the back of ongoing disucssions last week.
▌LPG: As last week ended, the East position list for 1H Feb. appeared tighter (especially when compared to the Atlantic positions), with owners asking levels set in the mid-$30 basis Baltic. 
▌Oil prices rebound on the back of upbeat IMF world growth outlook.
▌European stocks rally after US shutdown deal, DAX hits record.