Oil & Gas Prices - May 26
Posted: Thu May 26, 2022 9:00 am
Opening Prices:
> WTI is up $0.86 to $111.19/bbl, and Brent is up $0.65 to $114.68/bbl.
> Natural gas is up 22.5c to $9.196/MMBtu. < What is stunning about this is that May is the month with the lowest demand for natural gas in the U.S.
AEGIS Notes
Oil
The U.S.'s top envoy to the Iran nuclear talks, Robert Malley, said that efforts to revive the 2015 Iran nuclear deal are unlikely and that the chances of reaching a deal are "tenuous at best" (BBG)
> Malley added that he believes the U.S. and its EU partners may provide a small sanctions relief package in exchange for Iran's nuclear program being rolled back, which could save the deal
< Meanwhile, negotiations to reach the deal have stalled since March, and other diplomats have cautioned that progress is becoming increasingly unlikely
The EU can still reach an agreement on a Russian oil embargo in the next few days or resort to "other instruments" if no agreement is reached said Germany's economy minister, Robert Habeck, during G7 talks on Thursday
> The European Council is set to meet on May 30 and its President, Charles Michel, said on Wednesday that he believes an agreement may be reached before then
> Hungary, on the other hand, continues to be a stumbling block to the EU sanctions needed for consensus, insisting on energy investment before supporting the Russian ban
Natural Gas
Natural gas futures are up above $9 for the second consecutive session, as it heads for expiry < A lot of this is "short covering" as traders who sold shorts, expecting the price of gas to go down in May are getting hammered.
> Weather forecasts were unchanged, with the total lower-48 population-weighted temperature average (1-15 day range) rising 0.3°F
> Lower-48 dry gas production is steady at around 95.3 Bcf/d, which is only 0.3 Bcf/d higher than last week, while LNG feedgas nominations are still above 13 Bcf/d
> The EIA is expected to report an injection of 90 Bcf < The 5-year average build for the week ending May 20 is 101 Bcf.
> Estimates ranged from 80 to 103 Bcf, according to the Wall Street Journal
> WTI is up $0.86 to $111.19/bbl, and Brent is up $0.65 to $114.68/bbl.
> Natural gas is up 22.5c to $9.196/MMBtu. < What is stunning about this is that May is the month with the lowest demand for natural gas in the U.S.
AEGIS Notes
Oil
The U.S.'s top envoy to the Iran nuclear talks, Robert Malley, said that efforts to revive the 2015 Iran nuclear deal are unlikely and that the chances of reaching a deal are "tenuous at best" (BBG)
> Malley added that he believes the U.S. and its EU partners may provide a small sanctions relief package in exchange for Iran's nuclear program being rolled back, which could save the deal
< Meanwhile, negotiations to reach the deal have stalled since March, and other diplomats have cautioned that progress is becoming increasingly unlikely
The EU can still reach an agreement on a Russian oil embargo in the next few days or resort to "other instruments" if no agreement is reached said Germany's economy minister, Robert Habeck, during G7 talks on Thursday
> The European Council is set to meet on May 30 and its President, Charles Michel, said on Wednesday that he believes an agreement may be reached before then
> Hungary, on the other hand, continues to be a stumbling block to the EU sanctions needed for consensus, insisting on energy investment before supporting the Russian ban
Natural Gas
Natural gas futures are up above $9 for the second consecutive session, as it heads for expiry < A lot of this is "short covering" as traders who sold shorts, expecting the price of gas to go down in May are getting hammered.
> Weather forecasts were unchanged, with the total lower-48 population-weighted temperature average (1-15 day range) rising 0.3°F
> Lower-48 dry gas production is steady at around 95.3 Bcf/d, which is only 0.3 Bcf/d higher than last week, while LNG feedgas nominations are still above 13 Bcf/d
> The EIA is expected to report an injection of 90 Bcf < The 5-year average build for the week ending May 20 is 101 Bcf.
> Estimates ranged from 80 to 103 Bcf, according to the Wall Street Journal