NZ to release more oil reserves? Glance at 3 fuel stocks- ZEL, NZO, CHI

Highlights

• NZ will release more of its emergency oil stocks due to energy security concerns.
• NZ has contributed 369K barrels of oil in March as part of the IEA’s pledge to release 60 million barrels.
• Global oil markets are facing extreme volatility since Russia’s invasion of Ukraine. 

The International Energy Association (IEA) held a special meeting on 4 April. The meeting reached the conclusion that more barrels of oil would be released to counterbalance the loss of Russian oil exports.

Russia is the third-largest producer of crude oil across the world. The country has withdrawn its supply to Europe because of the sanctions imposed due to Russia’s invasion of Ukraine.

NZ has contributed 369K barrels of oil in March as part of the IEA’s pledge to release 60 million barrels, as per NZ’s Energy and Resources Minister Megan Woods.

NZ will release more of its emergency oil stocks due to energy security concerns and the size of the release will be revealed this week.

On this note, here’s a look at how these 3 NZX fuel stocks are doing.

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Z Energy Limited (NZX:ZEL, ASX:ZEL) 

Z Energy shareholders cast a vote in favour of the scheme under which, all shares of ZEL will be attained by Ampol Holdings NZ Limited. The scheme is subject to authorisation from the Overseas Investment Office (OIO) and the outcome is likely to be taken by OIO in mid-April.

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Final Court Orders on the scheme’s authorisation are planned to be deemed before the judge on 13 April 2022.

ZEL ended the day flat to close at $3.74.

Channel Infrastructure NZ Limited (NZX:CHI)

Channel Infrastructure began its 1^st day of trading on 1 April after completing a safe closure of refining operations at Marsden Point over the last 2 weeks. The terminal services agreement with customers has already begun and the first import consignment is likely to be carried out at Marsden Point in days ahead.

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CHI also appointed Anna Molloy and Andrew Holmes to its Board effective 4 April 2022 and will be subject to re-election at the next annual meeting on 10 May 2022.

CHI ended the day flat to close at $1.05.

New Zealand Oil & Gas Limited (NZX:NZO) 

NZO’s subsidiary Cue Energy began an evaluation of the reserves and recoverable quantities in the Mahato PSC on 1 January this year.

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CEO Andrew Jefferies stated that the results converted a prospect into reality. At a time of high oil prices, NZO looks to deliver on its upcoming drilling programme at Palm Valley and Dingo and other projects as it completes funding options.

NZO ended the day 3.67% in red to close at $0.525.

Bottom Line

Global oil markets are facing extreme volatility since Russia’s invasion and release of oil reserves by various countries can provide some energy security to the market.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)