Latest news with #TortoiseCapital
CTV News
21-07-2025
- Business
- CTV News
‘Global oil market is oversupplied': expert expects oil prices to fall
A commodities expert expects the price of oil to fall as energy producers ramp up supply while countries around the world brace for less severe tariffs from U.S President Donald Trump's administration. Rob Thummel, senior portfolio manager and managing director at Tortoise Capital says oil prices are down a little bit but have seen a slight increase as a result of an improved global economic outlook. 'They're about flat today, maybe down just a little bit, but we've seen a nice little rise in the oil price over the last couple of weeks as a result of an improving outlook for the global economy tied to probably a less, I guess, less tariffs than really were expected in the long run,' Thummel told in a Monday interview. West Texas Intermediate (WTI) crude was hovering above US$67 a barrel in early afternoon trading on Monday while Brent crude was trading just above $68. The Organization of Petroleum Exporting Countries (OPEC) agreed to provide more than 500,000 additional barrels per day around global markets in August, in a bid to regain market share lost to other oil producers. 'The global oil market is oversupplied right now,' said Thummel. 'It's going to be oversupplied for the second, half of the year, because OPEC+ is bringing back oil volumes back to the market. They've accelerated the pace at which they're unwinding some of their previous cuts, and that's going to result in an oversupplied oil market. And typically, when you have an oversupplied oil market, inventories rise, and then prices fall, and that's exactly what we've seen.' The Strait of Hormuz, a sea passageway for large volumes of crude, was under threat of closure during the conflict between Iran and Israel. After the U.S. military strikes on three nuclear strikes, the dispute came to an end after the Americans brokered a deal between the two Middle East countries effectively ending tensions. 'The biggest geopolitical risk to focus on still is Iran and the Strait of Hormuz, and any implications of a closure of the Strait of Hormuz, which we don't think is going to happen, or just a lowering of the export volumes that come out of Iran on a daily basis that could, you know, cause oil prices to rise,' said Thummel. 'But right now, we don't see any of those geopolitical risks really rising that high.' About 20 million barrels of oil per day, or around 20 per cent of the world's oil passed through the strait in 2024. 'Accelerated electricity growth' The expected drop in oil prices comes as the demand for electricity surges. Thummel said there has been flat electricity demand for the last 20 years but that is changing. 'AI changed the game,' said Thummel. 'We're going to now start to have accelerated electricity growth in the U.S. and probably Canada, and likely globally and so that's why we think electricity is the new oil. It's going to be the growth driver going forward and there are a lot of opportunities as a result of that.' Canada's electricity demand is projected to significantly increase in the coming years, potentially more than doubling in the next 25 years, according to Canada Energy Regulator. The growth is driven by population increase, electrification of the economy, including electric vehicles and industrial processes, and the need to replace aging infrastructure. Thummel says there is going to be massive electricity demand over the next several decades tied to AI, industrialization, manufacturing and EVs. 'All of these captured together, are really going to expand the amount of electricity demand dramatically,' said Thummel. 'It could be over 1000 terawatt hours of electricity.' 'It's a massive amount of electricity that's going to be needed to be generated really, not just in the next decade, but really in the next five or six years,' said Thummel. 'And so that's why we're so excited about it Tortoise, and it creates opportunities to invest in natural gas, nuclear, because those two are going to really be the primary fuel source just to generate this electricity going forward.'
Yahoo
07-07-2025
- Business
- Yahoo
Oil Prices Expected to Stay Under $70
Despite heightened tensions in the Middle East, oil prices are likely to remain capped below $70 per barrel for the rest of the year amid ample supply and uncertainties about demand. Unless actual supply disruptions occur in and around the hotspots in the Middle East, the price of oil will be a function of supply and demand, analysts and investment banks say. Growing supply from the OPEC+ group, although not as high as the monthly headline figure of 411,000 barrels per day (bpd) suggests, is set to create an oversupply on the market going into autumn, even if summer demand holds strong. On the demand side, peak summer travel season may justify higher supply, but lingering trade and economic uncertainties may cap upside to prices. As a result, most analysts expect oil prices to hover around the current levels in the mid-$60s per barrel and average below $70 a barrel for 2025. Currently, oil's 'normal' price would be in the $70s range, but the market oversupply is keeping prices in the $60s, Rob Thummel, senior portfolio manager of Tortoise Capital, told BNN Bloomberg this week. 'In order for oil prices to return to what we think is the $70s, kind of normal price, you need the market to really rebalance,' Thummel said. 'What that means is either oil production in other locations is going to fall, and, or effectively, demand for oil is probably going to rise more than what people expect in the second half of the year.' According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, crude oil may face headwinds in the second half of the year amid rising output and economic growth concerns. 'OPEC8+ continues to ramp up production in an effort to punish overproducing quota cheaters, and to reclaim market share from higher-cost producers which may eventually have to dial down production amid lower price expectations,' Hansen said in a weekly commodities commentary. Major investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, expect Brent crude prices to average $66.32 a barrel and WTI Crude to average $63.03 per barrel this year, according to a June survey by The Wall Street Journal. The responses in June were slightly higher compared to those in the May poll, but the analysts continue to see fundamentals as key for prices, and right now these fundamentals point to an oversupply amid uncertain economic prospects with the U.S. tariff policies. The Reuters survey of 40 analysts and economists in June also saw a slight increase in the price forecasts. Brent is seen averaging $67.86 per barrel in 2025, up from $66.98 a barrel expected in May. WTI is expected to average $64.51, up from $63.35 per barrel in May. However, analysts concur that the glut would cap rallies unless the Middle East conflict broadens and leads to more volatility and price spikes. In case an oversupply overwhelms the market if summer demand disappoints, OPEC+ is likely to act swiftly to put a floor under prices by pausing production increases. 'We expect OPEC+ to exert caution in raising production, even putting plans on hold indefinitely at the first signs that prices may fall significantly,' Matthew Sherwood, lead commodities analyst at EIU, told Reuters. Next week could remove some uncertainty over the global economy and oil demand as July 9 is the end of President Trump's 90-day pause on the so-called 'reciprocal' tariffs. 'We could see tariff increases reinstated on some US trading partners if trade deals are not concluded. This leaves a fair amount of uncertainty going into next week,' ING strategists Warren Patterson and Ewa Manthey wrote in a note on Thursday. The oil market is full of uncertainties, but current supply and demand balances point to an oversupply and subdued oil prices in the coming months, barring a supply disruption in the Middle East. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
CTV News
03-07-2025
- Business
- CTV News
‘Electricity is the new oil': Expert anticipates oil prices to stay below US$70
Sorry, we're having trouble with this video. Please try again later. [5006/404] Amid ongoing tensions in the Middle East between Israel and Iran, a commodities expert says he expects oil prices to remain relatively steady, as the conflict isn't likely to cause any major supply disruptions even if the current ceasefire is broken. Rob Thummel, senior portfolio manager of Tortoise Capital, said prices should be in the US$70 range but are down a little bit due to an oversupply of oil in the global market. 'In order for oil prices to return to what we think is the $70s, kind of normal price, you need the market to really rebalance,' Thummel told BNN Bloomberg Wednesday. 'What that means is either oil production in other locations is going to fall, and, or effectively, demand for oil is probably going to rise more than what people expect in the second half of the year.' Brent crude hovered around $68 per barrel on Thursday morning while West Texas Intermediate was changing hands at $67. Members of the Organization of the Petroleum Exporting Countries (OPEC+) are expected to meet this week to determine output levels for August. Member countries produced an estimated 28.7 million barrels per day of crude oil in 2022, which was 38 per cent of total world oil production that year, according to the U.S. Energy Information Administration. The largest producer and most influential member of OPEC is Saudi Arabia, which was the world's second-largest oil producer in 2022, after the United States. 'OPEC+ has added back oil production throughout the year, and the anticipation is that OPEC+ will add back additional oil supply over the next several months,' said Thummel. 'The oil market is currently oversupplied, and that ultimately means oil prices have come down and have been pushed down.' OPEC+ remains ready and able to increase oil production if the conflict between Israel and Iran escalates, he noted. 'Iran exports one and a half million barrels a day of oil by one and a half per cent of global oil consumption. If there would have been disruptions in Iran's exports, then Saudi Arabia and other OPEC countries were prepared to step in and fill that supply gap that would potentially have materialized should Iran exports be less and Saudi Arabia is still ready and willing to be able to do that,' said Thummel. 'We'll see how the second half unfolds. We don't expect any disruptions in the Middle East because of the conflict, and so as a result of that, we continue to expect the oil market to be oversupplied in 2025 and we will then expect to see oil prices right around the $65 range where they are currently, for the rest of the year.' Oil market watchers have been fixated on Iran after it suspended cooperation with the International Atomic Energy Agency, the United Nations' nuclear watchdog, following U.S. airstrikes to dismantle nuclear facilities in the country. According to the Associated Press, the suspension will likely limit the ability of inspectors to track the nuclear program that had been enriching uranium to near weapons-grade levels 'Electricity is the new oil' Recent oil market volatility comes as the demand backdrop for crude is undergoing major changes, Thummel said. 'Electricity is the new oil, and so from our perspective, natural gas and nuclear are the future for the energy supply. Oil still plays a role, but it plays a lesser role. So natural gas and nuclear are ways to play it,' he said. 'There's plenty of really quite high-quality natural gas stocks in the U.S. and Canada as well and then natural gas will really be the big supply source, energy supply source in the near term. In the medium term, nuclear will start picking up in terms of its market share, probably in 2030 and beyond. So that's the way we look at it.' With files from Reuters
Yahoo
01-07-2025
- Business
- Yahoo
Tortoise Capital Provides Unaudited Balance Sheet Information and Asset Coverage Ratio Updates as of June 30, 2025, for TYG and TEAF
OVERLAND PARK, KS / / July 1, 2025 / Tortoise Capital today announced the following unaudited balance sheet information and asset coverage ratio updates for closed-end funds TYG and TEAF. Tortoise Energy Infrastructure Corp. (NYSE:TYG) today announced that as of June 30, 2025, the company's unaudited total assets were approximately $1.0 billion and its unaudited net asset value was $800.0 million, or $46.41 per share. As of June 30, 2025, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 635%, and its coverage ratio for preferred shares was 495%. For more information on the company's coverage ratios, please refer to the leverage summary web page at Set forth below is a summary of the company's unaudited balance sheet at June 30, 2025. Unaudited balance sheet (in Millions) Per Share Investments $ 1,007.8 $ 58.47 Cash and Cash Equivalents 0.1 0.01 Current Tax Assets 0.4 0.02 Other Assets 3.8 0.22 Total Assets 1,012.1 58.72 Short-Term Borrowings 72.7 4.22 Senior Notes 85.1 4.94 Preferred Stock 44.9 2.60 Total Leverage 202.7 11.76 Other Liabilities 3.8 0.23 Deferred Tax Liability 5.6 0.32 Net Assets $ 800.0 $ 46.41 17.24 million common shares currently outstanding. Tortoise Sustainable and Social Impact Term Fund (NYSE:TEAF) today announced that as of June 30, 2025, the company's unaudited total assets were approximately $214.6 million and its unaudited net asset value was $181.2 million, or $13.43 per share. As of June 30, 2025, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 659%. For more information on the company's coverage ratios, please refer to the leverage summary web page at Set forth below is a summary of the company's unaudited balance sheet at June 30, 2025. Unaudited balance sheet (in Millions) Per Share Investments $ 212.7 $ 15.76 Cash and Cash Equivalents 1.0 0.07 Other Assets 0.9 0.07 Total Assets 214.6 15.90 Margin Loan Facility Borrowings 32.4 2.40 Other Liabilities 1.0 0.07 Net Assets $ 181.2 $ 13.43 13.49 million common shares outstanding. The top 10 holdings for TYG and TEAF as of the most recent month-end can be found on each fund's portfolio web page at TEAF also provides update on direct investments. TEAF provides an update on the fund's direct investments on the company website at Details on each private deal that has taken place over the prior month will be published on the website at The list includes all deals completed since the fund's inception. About Tortoise Capital With approximately $8.9 billion in assets under management as of May 31, 2025, Tortoise Capital's record of investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise Capital believes it is well-positioned to be at the forefront of the global energy evolution that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. is an SEC-registered fund manager that invests primarily in publicly traded companies in the energy and power infrastructure sectors-from production to transportation to distribution. For more information about Tortoise Capital, visit Tortoise Capital Advisors, L.L.C. is the adviser to Tortoise Energy Infrastructure Corp. and Tortoise Sustainable and Social Impact Term Fund. For additional information on these funds, please visit Cautionary Statement Regarding Forward-Looking Statements This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement. Safe harbor statement This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. Media Contacts Craft & Capital Chris Sullivan chris@ Rob Jesselson rob@ SOURCE: Tortoise Capital View the original press release on ACCESS Newswire
Yahoo
23-06-2025
- Business
- Yahoo
What is the Strait of Hormuz and why is it so significant?
While there have been no major disruptions to the global oil supply so far, the attacks on Iran – by Israel and then the US – have rattled investors, sending oil futures soaring by around 10%, among fears Iran could retaliate by disrupting shipping in the Strait of Hormuz. From the perspective of the global economy, there are few places as strategically important. The waterway, located between the Persian Gulf and the Gulf of Oman, is only 21 miles wide at its narrowest point. It's the only way to ship crude from the oil-rich Persian Gulf to the rest of the world. Iran controls its northern side. About 20 million barrels of oil, about one-fifth of daily global production, flow through the strait every day, according to the US Energy Information Administration (EIA), which called the channel a 'critical oil chokepoint.' On Sunday evening, following US airstrikes on three of Iran's nuclear facilities, Brent crude, the global benchmark, briefly surged above $80 per barrel, according to Refinitiv data, the first time that's happened since January. Before the conflict, prices had largely hovered between $60 and $75 a barrel since August 2024. Brent last traded at $78.2 per barrel, while WTI, the US benchmark, was at $75.06. Whether oil prices will climb further now depends on Iran's response. Rob Thummel, senior portfolio manager at energy investment firm Tortoise Capital, told CNN that a potential disruption to the Iran-controlled sea route would cause oil prices to surge toward $100 per barrel. A functioning Strait of Hormuz is 'absolutely essential' to the health of the global economy, he said. A prominent adviser to Iran's supreme leader, Ayatollah Ali Khamenei, has already called for the closure of the Strait. 'Following America's attack on the Fordow nuclear installation, it is now our turn,' warned Hossein Shariatmadari, the editor-in-chief of the hardline Kayhan newspaper, a well-known conservative voice who has previously identified himself as a 'representative' for Khamenei. Geographic leverage over global shipping gives Iran the 'capacity to cause a shock in oil markets, drive up oil prices, drive inflation, collapse Trump's economic agenda,' Mohammad Ali Shabani, an Iran expert and editor of the Amwaj news outlet, told CNN. When it comes to moving oil, the Strait is actually much narrower than its 21-mile official width. The navigable shipping lanes for massive supertankers are only about two miles wide in each direction, requiring vessels to pass through both Iranian and Omani territorial waters. But Vandana Hari, founder and CEO of Vanda Insights, which tracks energy markets, sees Iran's blocking of the Strait as a 'remote tail risk.' The presence of a beefed-up US naval fleet in the region is both a deterrent and a response tool, she said. 'Iran has a lot to lose and very little, if anything, to gain by attempting to close the Strait,' Hari said. 'Iran cannot afford to turn its oil-producing neighbors, who have been neutral or even sympathetic towards the Islamic Republic as it faced Israeli and US attacks, into enemies, any more than trigger the ire of its main crude market, China.' A closure of the Strait would be particularly detrimental to China and other Asian economies which rely on the crude oil and natural gas shipped through the waterway. The EIA estimates that 84% of the crude oil and 83% of the liquefied natural gas that moved through the Strait of Hormuz last year went to Asian markets. China, the largest buyer of Iranian oil, sourced 5.4 million barrels per day through the Strait of Hormuz in the first quarter this year, while India and South Korea imported 2.1 million and 1.7 million barrels per day, respectively, according to the EIA's estimates. In comparison, the US and Europe imported just 400,000 and 500,000 barrels per day, respectively, in the same period, according to the EIA. On Sunday, India's Minister for Petroleum and Natural Gas Hardeep Singh Puri sought to reassure jittery investors on X that the country has 'diversified' its oil supplies in the past few years. On Sunday, India's Minister for Petroleum and Natural Gas Hardeep Singh Puri said on X that the country has 'diversified' its oil supplies in the past few years. 'A large volume of our supplies do not come through the Strait of Hormuz now. Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes,' he said. 'We will take all necessary steps to ensure stability of supplies of fuel to our citizens.' CNN's John Towfighi, Nadeen Ebrahim, and Rhea Mogul contributed reporting.
