Oil & Gas Prices - Sept 25

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Oil & Gas Prices - Sept 25

Post by dan_s »

Opening Prices:
> WTI is down 24c to $40.07/Bbl, and Brent is down 11c to $41.83/Bbl.
> Natural gas (OCT) is down 4.1c to $2.207/MMBtu. < NOV20 is trading at $2.84
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - Sept 25

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Energy & Power - Stifel's Crude But Refined Thoughts: Playbook for Energy Transition - Derrick Whitfield
To quote Matthew Gallagher, CEO of Parsley Energy, "North American E&Ps are in a battle for investment relevance, not a battle for global market share." In our view, this best summarizes the challenges faced by industry executives today as a result of the sector's checkered history in generating equity returns, the dual supply and demand shocks that occurred in the first half of 2020, the regulatory uncertainties facing the sector in a U.S. presidential election year, and the heightened ESG requirements the sector is expected to face during the transition to a low-carbon economy. Despite these negative headwinds, we are constructive on the sector as we believe its value proposition (versus other industries) is quickly becoming competitive and could further improve based on evolving macro (supply/demand fundamentals, regulatory, ESG) and market conditions (shift from tech-heavy momentum stocks to value stocks, supported by a weak dollar).
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - Sept 25

Post by dan_s »

Note from BofA Equity Research Team
• Francisco Blanch and his team's Brent crude oil forecasts for 2020, 2021 and 2022 are $44, $50, and $55/bbl respectively.
• Their bullish outlook reflects confidence in the ongoing global oil demand recovery and in the damage to supply due to capex curtailment.
The OPEC+ agreement to curb output also helps.
• These factors should help tip the oil balance into a supply deficit, leading to inventory draws of 2.5mn b/d in 2H 2020 and 1.7mn b/d in 2021.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - Sept 25

Post by dan_s »

Closing Prices:
> WTI prompt month (NOV 20) was down $0.06 on the day, to settle at $40.25/Bbl.
> NG prompt month (OCT 20) was down $0.109 on the day, to settle at $2.139/MMBtu. < NOV 20 closed at $2.88 and DEC 20 closed at $3.27.

Load up on CRK, EQT and RRC before the Wall Street Gang figures this out.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - Sept 25

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WTI crude futures settled at $40.25 per barrel on Friday, falling 2.6% for the week, the third weekly loss in four as concerns over fuel demand recovery mounted after a spike in global coronavirus infections led some countries to reimpose restrictions, including the UK and France. Pressuring prices further were worries about the resumption of exports from Libya. Royal Dutch Shell has provisionally booked a tanker to load a 1 million barrel crude cargo at Libya’s Zueitina terminal on October 3th, Refinitiv Eikon shipping data showed. Earlier this week, Libya’s National Oil Corporation lifted force majeure on crude loadings.
Dan Steffens
Energy Prospectus Group
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