Oil & Gas Prices - Feb 22

[dan_s]

Opening Prices:
> WTI is up $2.73 to $93.80/bbl, and Brent is up $2.02 to $97.41/bbl.
> Natural gas is up 12.1c to $4.552/MMBtu.

AEGIS Notes
Oil

Oil prices surged after Vladimir Putin signed an order to send forces into separatist regions of eastern Ukraine (Bloomberg)
> Western leaders responded with sanctions and a halt to the certification process for the Nord Stream 2 pipeline
> President Joe Biden issued an executive order prohibiting U.S. investment, trade, and financing to separatist regions of Ukraine
> Ambassador Linda Thomas-Greenfield said additional American sanctions against Russia would be coming Tuesday

Brent crude traded just shy of $100/Bbl overnight before paring back gains to trade in the upper $90’s Monday morning
> Oil may jump $10/Bbl if Russian crude exports are sanctioned due to the Ukraine crisis, according to Sri Paravaikkarasu, director of Asia oil at FGE
> Although all Russian oil exports of about 7 MMBbl/d are not expected to be affected, many refiners, especially in Europe, are already shying away from those barrels, Paravaikkarasu said (Bloomberg)

Natural Gas

German Chancellor Olaf Scholz halted the Nord Stream 2 gas pipeline project
> The project was a potential target for sanctions if Russia decided to invade Ukraine
> Russia formally recognized two breakaway regions in eastern Ukraine, which led to the move against the pipeline
> The pipeline has the ability to move up to 5.3 Bcf/d of Russian gas to Europe

The prompt-month Henry Hub (Mar ‘22) contract is up 12.1c, near $4.552
> The February gas-weighted heating degree day forecast was nearly unchanged over the long weekend as the total gain was around 2 HDDs to 769 HDDs
> LNG feedgas demand is down to 11.6 Bcf/d, with Sabine Pass sliding from 5 Bcf/d to 3.3 Bcf/d

[dan_s]

Closing Prices:
> Prompt-Month WTI (Mar 22) was up $1.28 on the day, to settle at $92.35 < APR22 closed at $91.66
> Prompt-Month Henry Hub (Mar 22) was up $0.067 on the day, to settle at $4.498 < APR22 closed at $4.467