Oil & Gas Prices - June 10

Oil & Gas Prices - June 10

Postby dan_s » Thu Jun 10, 2021 12:07 pm

Opening Prices:
> WTI is up 13c to $70.09/Bbl, and Brent is up 20c to $72.42/Bbl.
> Natural gas is up 2.4c to $3.153/MMBtu.

AEGIS Notes

Crude Oil

West Texas Intermediate erased overnight losses and traded above $70/Bbl Thursday morning
Oil prices fell yesterday following mixed oil inventory data reported by the EIA
The EIA reported over a 5 MMBbl draw in U.S. crude inventories on Wednesday, but petroleum products had outsized builds – offsetting the positive crude oil decline

OPEC on Thursday left its forecast for oil demand growth this year unchanged
In its monthly report, OPEC said it expects demand to grow by 6 MMBbl/d
For supply, the group said it raised its 2021 estimate of non-OPEC liquids by 100 MBbl/d. The upward revision now pegs non-OPEC supply to grow 0.8 MMBbl/d this year
The report cited “faster-than-expected recovery in U.S. liquids production of 2.5 MMBbl/d in March,” for the revision
International buyers of U.S. crude are starting to shy away from Permian oil as the WTI-Brent spread narrows, according to market participants talking with Bloomberg

On Tuesday, WTI settled at $2.35/Bbl below Brent, the smallest spread since November
Crudes such as Abu Dhabi’s Murban are starting to look better as an alternative, Bloomberg reports
WTI Midland prompt cargoes from sellers are being offered at 85c-80c/Bbl under ICE Brent, FOB Houston, versus $1.35-$1.25/Bbl below last week

Natural Gas

The EIA is expected to report a 95-Bcf injection for the week ending June 4, which would match last year’s corresponding build
Analysts estimates ranged from a build of 91 Bcf to 110 Bcf
A build within this range would bring total stocks near 2.408 Tcf and the deficit to the five-year average near 58 Bcf
The current end-of-season storage number is being offered on ICE at 3.66 Tcf

Gas flows to LNG facilities have risen over the last few days after reaching a three-month low on Monday
According to Bloomberg, 9.5 Bcf/d of gas is expected to flow to facilities today, up from 8.5 Bcf/d on Monday
Sempra Energy said that they expect flows to the Cameron LNG facility to return to normal before the weekend
Flows to Cameron LNG are currently at around 1.27 Bcf/d, down from 1.95 Bcf/d last week
Corpus Christi feed-gas volumes are up by 0.69 Bcf/d today, at around 2.39 Bcf/d
Dan Steffens
Energy Prospectus Group
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Re: Oil & Gas Prices - June 10

Postby dan_s » Thu Jun 10, 2021 5:44 pm

Trading Economics:
"WTI crude futures rebounded to above $70 a barrel on Thursday, hovering at levels not seen since 2018, as investors focus on prospects of a strong oil demand. OPEC said in its June report that oil demand would rise by 5.95 million bpd this year, unchanged from its May forecast. The cartel also added that "Overall, the recovery in global economic growth, and hence oil demand, are expected to gain momentum in the second half". Meanwhile, investors shrug off a surge in US gasoline stocks last week which pointed to weaker-than-expected fuel demand at the start of summer and a plunge in India fuel demand to its lowest since August 2020, amid stalling mobility due to a harsh resurgence of COVID-19 cases."

"Natural gas futures hit $3.15 per million British thermal units, their highest since mid-February, in anticipation of the coming summer period of high demand for air-conditioning. Demand for US exports of liquified natural gas is also expected to remain strong as supplies in Europe and parts of Asia were depleted. Meanwhile, the EIA report showed last week that working gas held in storage facilities in the US increased by 98 billion cubic feet in the week ending May 28 of 2021, above market forecasts of 95 bcf."
Dan Steffens
Energy Prospectus Group
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Posts: 25621
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - June 10

Postby Fraser921 » Thu Jun 10, 2021 7:17 pm

NG 3.26 after hours!! Biden is helping us , bigly. Thank you Joe
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