Oil & Gas Prices - May 6
Posted: Thu May 06, 2021 8:29 am
Opening Prices:
> WTI is down 62c to $65.01/Bbl, and Brent is down 53c to $68.43/Bbl.
> Natural gas is down 1.5c to $2.923/MMBtu.
AEGIS Notes
Crude Oil
Oil prices weakened despite the large inventory drawdown reported by the EIA on Wednesday
The EIA reported a draw of (-) 7,990 MBbls for the week ending April 30, well above the estimate of a (-) 2,644 MBbls draw
Inventories for the U.S. are now at a deficit of 42.514 MBbls to last year and a deficit of 9.69 MBbls to the five-year average
Iraq brokers secret Saudi—Iran talks, as nuclear pact negotiations remain underway
World powers are currently holding talks to resurrect the 2015 nuclear deal with Iran, where Iran will limit its nuclear activity in exchange for sanctions relief
Iraq has served as a mediating force in the region recently, brokering talks between the U.S. and Tehran administrations, and other regional powers
Jet fuel demand is set to see a 30% demand spike, as pent-up demand returns this summer (Bloomberg)
The EIA projects that jet fuel demand will be up 30% from 1Q2021 levels and is projected to reach 1.47 MMBbl/d in 3Q2021
According to the TSA, the number of passengers to pass through security checkpoints has increased from an average of 913k in January to over 1,377k in the last 30 days
Natural Gas
Haynesville producer Comstock Resources (CRK) plans to grow production as the company looks to capitalize on prices supported by LNG and industrial demand (Platts)
On the company’s Q1 earnings call, Comstock looks to take advantage of Enterprise Pipeline’s Acadian Extension project, which is expected to enter service during Q4. Comstock entered into an agreement to be a major shipper on the Enterprise extension. CEO Jay Allision said, “Our outlook for the remainder of 2021 provides for modest production growth”
Sempra to further delay a final investment decision on its proposed 11 million mt/year Port Arthur LNG project in Texas to 2022
The company says it faces commercial challenges a year after the pandemic began to affect the global marketplace
US LNG developers have had a tough time sanctioning the construction of new facilities over the past year or so despite strong near-term prices and high LNG demand. The only firm supply deal tied to Port Arthur LNG announced so far is a 2 million mt/year sales and purchase agreement that Poland’s PGNiG signed in December 2018
> WTI is down 62c to $65.01/Bbl, and Brent is down 53c to $68.43/Bbl.
> Natural gas is down 1.5c to $2.923/MMBtu.
AEGIS Notes
Crude Oil
Oil prices weakened despite the large inventory drawdown reported by the EIA on Wednesday
The EIA reported a draw of (-) 7,990 MBbls for the week ending April 30, well above the estimate of a (-) 2,644 MBbls draw
Inventories for the U.S. are now at a deficit of 42.514 MBbls to last year and a deficit of 9.69 MBbls to the five-year average
Iraq brokers secret Saudi—Iran talks, as nuclear pact negotiations remain underway
World powers are currently holding talks to resurrect the 2015 nuclear deal with Iran, where Iran will limit its nuclear activity in exchange for sanctions relief
Iraq has served as a mediating force in the region recently, brokering talks between the U.S. and Tehran administrations, and other regional powers
Jet fuel demand is set to see a 30% demand spike, as pent-up demand returns this summer (Bloomberg)
The EIA projects that jet fuel demand will be up 30% from 1Q2021 levels and is projected to reach 1.47 MMBbl/d in 3Q2021
According to the TSA, the number of passengers to pass through security checkpoints has increased from an average of 913k in January to over 1,377k in the last 30 days
Natural Gas
Haynesville producer Comstock Resources (CRK) plans to grow production as the company looks to capitalize on prices supported by LNG and industrial demand (Platts)
On the company’s Q1 earnings call, Comstock looks to take advantage of Enterprise Pipeline’s Acadian Extension project, which is expected to enter service during Q4. Comstock entered into an agreement to be a major shipper on the Enterprise extension. CEO Jay Allision said, “Our outlook for the remainder of 2021 provides for modest production growth”
Sempra to further delay a final investment decision on its proposed 11 million mt/year Port Arthur LNG project in Texas to 2022
The company says it faces commercial challenges a year after the pandemic began to affect the global marketplace
US LNG developers have had a tough time sanctioning the construction of new facilities over the past year or so despite strong near-term prices and high LNG demand. The only firm supply deal tied to Port Arthur LNG announced so far is a 2 million mt/year sales and purchase agreement that Poland’s PGNiG signed in December 2018