Oil & Gas Prices - Nov 2

[dan_s]

Posted late because I drove to Dallas this morning.

Opening Prices:
>WTI is down 35c to $83.70/Bbl, and Brent is down 28c to $84.43/Bbl.
> Natural gas is up 15.4c to $5.340/MMBtu.

AEGIS Notes
oil

BP says oil demand is back to 100 MMBbl/d

Oil’s rally has given consuming countries concern, Japan’s Trade and Industry Minister Koichi Hagiuda said (Bloomberg)
Hagiuda told reports that Tokyo was coordinating with the IEA and the U.S. on ways to address the global energy crisis and high oil prices
Japan also called on OPEC+ to stabilize the oil market; a plea echoed recently by President Biden

BP says oil demand is back near the pre-pandemic level above 100 MMBbl/d
A resurgence in fuel consumption has pushed oil prices to multiyear highs
“Somewhere next year we will be above pre-Covid levels, “ BP CFO Murray Auchincloss said on a conference call on Tuesday (BBG)
The surge back to 100 MMBbl/d has happened even though air travel has yet to recover fully

Natural Gas

Russia declined to book more pipeline capacity later this winter
While Russian President Vladimir Putin has said, his country is ready to deliver all of the gas Europe needs, especially when demand peaks. Still, the country did not reserve any extra capacity to send fuel to Europe in 1Q2022 via Ukraine and Poland
The move has worsened accusations that the country is withholding its gas to get the Nord Stream 1 approval process accelerated

El Paso Natural Gas extended ongoing pipeline maintenance work on its westbound mainline through the end of this month
The extended outage has kept flows from the Permian Basin 600 MMcf/d lower
The unscheduled maintenance began in mid-August after a segment of El Paso’s Line 2000 near Coolidge, Arizona, suffered a failure, triggering the ongoing force majeure