Oil & Gas Prices - Nov 3

[dan_s]

Opening Prices:
> WTI is down $1.88 to $82.03/Bbl, and Brent is down $1.58 to $83.15/Bbl.
> Natural gas is up 3.9c to $5.581/MMBtu.

AEGIS Notes
Oil

Oil futures fell Wednesday morning as the Federal Reserve is expected to tighten policy at its meeting today (BBG)
The Fed is likely to begin winding down the bond-buying program put in place last year as an initial step toward eventually increasing interest rates

EIA U.S. oil inventory data due out at 9:30 a.m. CST
Mexico is in the process of executing its annual hedge program, in what is a closely watched deal among the world’s energy traders (Bloomberg)
The country, and OPEC “plus” member, has been purchasing put options, at a price range of about $60 to $65/Bbl
Mexico’s hedge program is usually negotiated with secrecy among only a few counter parties so that the amount of volume does not disrupt the market
In recent years, Mexico has shelled out more than $1 billion annually on the program (Reuters)

EIA U.S. crude inventories
Bloomberg survey
U.S. crude inventories: +1,746 MMBbl
U.S. gasoline inventories: -1,239 MMBbl
U.S. distillate inventory: -870 MMBbl
U.S. refinery utilization (change): +0.53%

Natural Gas

Nord Stream 2 may be months away from final approval, despite the supply crunch (Bloomberg)
The pipeline may not be in service until May if regulators take all the time allowed
The recent flows below-capacity from Russia have incited accusations that the country is withholding gas to accelerate approval
Several eastern EU countries, like Poland, still oppose the pipeline, which will likely delay approval. Just last month, the EU government launched a probe into possible market manipulation by Gazprom

Transco’s Leidy South expansion will be in service “before the winter heating season,” according to Williams CEO (Platts)
The company said the second phase of the expansion project is currently ahead of schedule on its 3Q 2021 earnings call
The project is expected to add around 580 MMcf/d of firm transportation capacity from the Leidy Hub in NE Pennsylvania to points downstream in Transco’s Z-5 & Z-6 market areas

[dan_s]

Closing Prices:
> WTI prompt month (DEC 21) was down $3.05 on the day, to settle at $80.86/Bbl.
> In contrast, NG prompt month (DEC 21) was up $0.128 on the day, to settle at $5.670/MMBtu.

I am in Dallas and I can tell you that all the homes up here have their gas furnaces on today. It is cold and wet.

[Fraser921]

Crude opened higher to 83.42 then fell to 79.34 bounced back to 80.95 at 12:20 pm est
Interestingly, the back of the 1 year curve is up about 1 buck to 71.24