Oil & Gas Prices - June 3

[dan_s]

Opening Prices:
> WTI is up 14c to $68.97/Bbl, and Brent is up 14c to $71.49/Bbl.
> Natural gas is down 1.7c to $3.058/MMBtu.

AEGIS NOTES

The global benchmark, Brent crude, closed above the $70/Bbl level for two consecutive days for the first time in two years
Oil’s gains have come as demand growth optimism has outweighed concerns around pending Iranian supply and COVID-19 cases
Schlumberger expects the economic recovery to trigger an energy-industry supercycle that will fatten margins for the world’s biggest oilfield services company (Bloomberg)
“In the context of the growing economic rebound, this upcoming industry cycle can potentially be characterized as a supercycle, “CEO Olivier Le Peuch said Wednesday in a slide presentation for investors

Government crude inventory data due to 10:00 AM CST
Bloomberg survey
U.S. crude oil inventories: -2,409
U.S. gasoline inventories: -1,836
U.S. distillate inventory: -2,054
U.S. refinery utilization change: 0.69%

NATURA[ GAS

FERC granted certificate authorizations to three natural gas projects (Platts)
WBI Energy Transmission’s 92.5-mile, 250 MMcf/d North Bakken Expansion, which would provide incremental firm capacity from six gas processing facilities to the Northern Border Pipeline

FERC also approved Enable Gas, and Enable Gulf Run Transmission projects that would add a combined 134 miles of pipeline and allow bi-directional flows and shipments of about 1.65 Bcf/d of gas to a delivery point in Calcasieu Parish, Louisiana

Tellurian agrees to 10-year LNG deal with Vitol, for .39 Bcf/d (Bloomberg)
The LNG would be delivered from Driftwood LNG, a 3.6 Bcf/d liquefaction facility it proposed near Lake Charles, Louisiana
The company last week said its proposed Driftwood export plant in Louisiana was positioned for first quarter of 2022 commerciality

The EIA is expected to report a 87-Bcf injection for the week ending May 28, which would be more than the 103-Bcf build in the corresponding week of last year
Analysts estimates ranged from a build of 82 Bcf to 101 Bcf
A build within this range would bring total stocks near 2.302 Tcf and the deficit to the five-year average near 72 Bcf
The current end-of-season storage number settled at 3.6 Tcf on ICE

[dan_s]

Closing Prices:
> WTI prompt month (JUL 21) was down $0.02 on the day, to settle at $68.81/Bbl.
> NG prompt month (JUL 21) was down $0.034 on the day, to settle at $3.041/MMBtu.