Opening Prices:
> WTI oil price is down $1.10 to $38.75
> HH natural gas price (DEC20) is up $0.071 to $3.266
My October newsletter will be published today. In it I list the five upstream companies that I believe will benefit the most from higher natural gas and NGL prices this winter.
Oil & Gas Prices - Oct 26
Oil & Gas Prices - Oct 26
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Oct 26
Last week's global oil and gas market news:
On October 22 Reuters reported Russian President Vladimir Putin said on Thursday that Russia saw no need for now for global oil producers to change their existing deal on global supply, but did not rule out extending deep oil cuts for longer if market conditions warranted. His comments are the clearest signal yet from Russia, one of the world's top oil producers, that it is ready to continue with unprecedented output cuts in the face of a sluggish oil market beset by the coronavirus pandemic and overproduction. Putin said on Thursday he had been in contact with Saudi Arabia, OPEC's top producer, as well as the United States. "If need be, maybe, we can take other decisions on further reductions. But we don't see such a necessity now," he added.
October 23 Reuters is reporting that Russian oil exports in 2020 are expected to fall 16.4% compared with last year to 4.51 b/d, Energy Minister Alexander Novak told Russia's lower house of parliament. Russia’s oil and condensate output this year is seen at 10.15 b/d, down from a planned level of 11.18-11.22 b/d. This implies oil and condensate production for 4Q20 to be around 9.58 b/d, which would put Russia below its OPEC+ quota in 4Q2020.
On October 23 IHS Markit reported that Eurozone’s flash Manufacturing PMI index rose to 54.4 in October vs. September’s mark of 53.7.
On October 23 Reuters reported that Asian spot prices for LNG jumped to their highest in more than 20 months this week on a robust buying appetite ahead of a colder than expected winter, according to trade sources. The average LNG price for December delivery into northeast Asia was estimated at about $6.90 per MMBtu, jumping $1.10 from the previous week.
On October 23 Reuters reported Libya's National Oil Corp (NOC) has lifted force majeure on oil exports from the ports of Es Sider and Ras Lanuf, it said on Friday, adding that output would reach 800,000 b/d within two weeks and 1 million b/d in four weeks. Al Waha Oil Co, the NOC company that runs Es Sider, said the port would start operating again on Saturday with the first tanker expected within 48 hours. A blockade by the eastern-based Libyan National Army (LNA) halted most Libyan crude output and exports from January until it was lifted in September, but not all fields and ports have resumed operations. An NOC statement said that foreign forces had left the ports, allowing it to recommence operations.
On October 22 Reuters reported Russian President Vladimir Putin said on Thursday that Russia saw no need for now for global oil producers to change their existing deal on global supply, but did not rule out extending deep oil cuts for longer if market conditions warranted. His comments are the clearest signal yet from Russia, one of the world's top oil producers, that it is ready to continue with unprecedented output cuts in the face of a sluggish oil market beset by the coronavirus pandemic and overproduction. Putin said on Thursday he had been in contact with Saudi Arabia, OPEC's top producer, as well as the United States. "If need be, maybe, we can take other decisions on further reductions. But we don't see such a necessity now," he added.
October 23 Reuters is reporting that Russian oil exports in 2020 are expected to fall 16.4% compared with last year to 4.51 b/d, Energy Minister Alexander Novak told Russia's lower house of parliament. Russia’s oil and condensate output this year is seen at 10.15 b/d, down from a planned level of 11.18-11.22 b/d. This implies oil and condensate production for 4Q20 to be around 9.58 b/d, which would put Russia below its OPEC+ quota in 4Q2020.
On October 23 IHS Markit reported that Eurozone’s flash Manufacturing PMI index rose to 54.4 in October vs. September’s mark of 53.7.
On October 23 Reuters reported that Asian spot prices for LNG jumped to their highest in more than 20 months this week on a robust buying appetite ahead of a colder than expected winter, according to trade sources. The average LNG price for December delivery into northeast Asia was estimated at about $6.90 per MMBtu, jumping $1.10 from the previous week.
On October 23 Reuters reported Libya's National Oil Corp (NOC) has lifted force majeure on oil exports from the ports of Es Sider and Ras Lanuf, it said on Friday, adding that output would reach 800,000 b/d within two weeks and 1 million b/d in four weeks. Al Waha Oil Co, the NOC company that runs Es Sider, said the port would start operating again on Saturday with the first tanker expected within 48 hours. A blockade by the eastern-based Libyan National Army (LNA) halted most Libyan crude output and exports from January until it was lifted in September, but not all fields and ports have resumed operations. An NOC statement said that foreign forces had left the ports, allowing it to recommence operations.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Oct 26
Lower oil prices is actually bullish for natural gas and NGL prices. Why? because low oil prices reduces the chance of more associated gas coming on-line.
Natural gas and to a lesser extent NGL prices are set on regional market supply/demand and this region is going to be VERY TIGHT this coming winter.
Natural gas and to a lesser extent NGL prices are set on regional market supply/demand and this region is going to be VERY TIGHT this coming winter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group