Oil & Gas Prices - May 20

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Oil & Gas Prices - May 20

Post by dan_s »

Opening Prices:
> WTI is up $0.13 to $112.34/bbl, and Brent is up $0.16 to $112.20/bbl.
> Natural gas is down -30.2c to $8.006/MMBtu.

AEGIS Notes
Oil

Oil to finish higher for a fourth consecutive week with modest gains
> WTI traded in a $7 range on Thursday in a volatile session
> China is in talks with Moscow about replenishing its strategic crude stockpiles with cheaper Russian oil < Since China is not WOKE, they can do smart stuff like this.
> Even though Chinese domestic demand slowed due to COVID resurgence, purchases of oil, gas, and coal increased by 75% to over $6 billion in April

G-7 officials addressed the possibility of using secondary sanctions against Russian oil, said U.S. Treasury Secretary Janet Yellen on Thursday (BBG)
> The U.S. has already banned Russian oil, and the EU is considering the same by the end of the year
> Forming a buyers' cartel to impose a set price for Russian oil could curtail Russia’s revenue

The U.S. House passed a bill prohibiting "excessive" gasoline prices yesterday in the face of rising gasoline prices across the country (BBG)
> The bill gives President Biden the authority to set a cap on gasoline prices while also giving the FTC the authority to impose penalties
> Following that, the Senate is due to consider the bill, as the average retail gasoline price hit new highs over the past ten days
> President Biden will make a price cap a priority of his trip to Asia and the EU is expected to back it when meets in Brussels at the end of May to address Ukraine
MY TAKE: The Low IQ people running this country seem to have now ideal how the oil market works and how crap like this could impact supply. This is just more political BS to put the blame of high gasoline prices on the "Bad Oil Companies" when it is Team Biden's policies that have contributed to this mess.

Natural Gas

Natural gas futures are trading lower this morning, but are still up about 34.3c weekly at $8.006
> Weather forecasts cooling down again for most of the country with the total lower-48 pop-weighted temperature average (1-15 day range) falling 13.4°F. The 6-10 day range saw the most change, with the South Central region cooling by around 11.4°F
> Lower-48 dry gas production is steady at around 95.2 Bcf/d. Production is currently on track for a 400 MMcf/d weekly decline, thanks to changes in the South Central, and Northeast region
> LNG feedgas demand is back above 13.2 Bcf/d, which is the highest in weeks, and only 700 MMcf/d removed from its all-time record on March 19
> U.S. LNG feedgas nominations have the potential to set new records once trains that are currently down for maintenance return

The EIA reported an injection of 89 Bcf for the week ending May 13
> Responses to the survey ranged from 61 Bcf to 82 Bcf
> It was larger than the five-year average injection of 87 Bcf and above the 71 Bcf addition reported during the corresponding week in 2021
> Current inventory levels increased to 1.732 Tcf, while the deficit to last year narrowed to 358 Bcf, and the deficit to the five-year average narrowed to 310 Bcf
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - May 20

Post by dan_s »

HELSINKI, May 20 (Reuters) - Russia's Gazprom (GAZP.MM) has informed Finland it will halt flows of natural gas from Saturday morning, Gasum said on Friday, after the Finnish state-owned gas wholesaler refused to pay its Russian supplier in roubles.

Gazprom Export has demanded that European countries pay for Russian gas supplies in roubles because of sanctions imposed over Moscow's invasion of Ukraine.

Most supply contracts are denominated in euros or dollars and Moscow has already cut off gas to Bulgaria and Poland last month after they refused to comply with the new payment terms.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - May 20

Post by dan_s »

Closing Prices:
> Prompt-Month WTI (Jun 22) was up $1.02 on the day, to settle at $113.23
> Prompt-Month Henry Hub (Jun 22) was down $-0.225 on the day, to settle at $8.083
Dan Steffens
Energy Prospectus Group
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