View from Puerto Vallarta - Sept 26

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

View from Puerto Vallarta - Sept 26

Post by dan_s »

We had a great day in PV. Lots of sun until about 4:30.

I need you guys to do a better job tomorrow of getting the oil and gas prices up. We will get thru the Shoulder Season.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: View from Puerto Vallarta - Sept 26

Post by dan_s »

Oil prices plunged to nine-month lows on Monday
> The U.S. dollar is stronger against a backdrop of an overall weaker macroeconomic environment, which puts downward pressure on crude prices. The USD Index (DXY – a proxy for U.S. Dollar strength against a basket of other int’l currencies) reached a new 20-year high this morning. A more expensive dollar can cause foreign buyers of dollar-denominated commodities to pay more for the same amount of goods.

Nigeria's oil minister Sylva indicated that OPEC would increase output cuts if prices continued to drop below present levels after prices fell by almost $6/bbl last week (BBG)
Additionally, Sylva's stated that current prices are " affecting budgets of certain member countries," but the group does not "exactly know " how to address the issue, and the only solution could be to cut production
The remarks follow OPEC+'s assertion that there are stark dislocations within crude markets

The Biden administration may rule out price caps for Russian petroleum products and plans to release comprehensive guidelines on Russian crude price caps before December 5 (Reuters)
Catherine Wolfram, a deputy assistant secretary at the U.S. Treasury, said on the sidelines of the APPEC 2022 conference that the proposed price cap on Russian crude would not include refined products
"Once oil is substantially transformed, then price cap no longer applies," said Wolfram

Even if traders profit from trading these products, the revenue is still not going to Moscow, she added
A number of Indian and Chinese companies, according to Wolfram, would find it in their economic interests to continue using trade services provided by G7 countries after the price cap is in place, even though she does not expect China and India to formally join the coalition at the government level because it would not be in their self-interest
She also added that the U.S. and OPEC are in talks regarding the cap's potential effects on prices
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: View from Puerto Vallarta - Sept 26

Post by dan_s »

Natural Gas

Prompt-month natural gas prices were lower by 2.5% this morning, but bounced off the lows in the afternoon.

Temperatures across the lower 48 are expected to average below the 10-year normal over the next two weeks, which should keep demand relatively muted
Hurricane Ian has formed in the Gulf of Mexico, with forecasts showing the storm is likely to make landfall in Florida
Dan Steffens
Energy Prospectus Group
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