Oil & Gas Prices - April 26

[dan_s]

Opening Prices:
> WTI is up $0.64 to $99.18/bbl, and Brent is up $0.76 to $103.08/bbl.
> Natural gas is up 25.3c to $6.922/MMBtu.

AEGIS Notes
Oil

Oil prices fluctuate as demand slowdown in China weighs on market
> After a 3.5 % drop during yesterday's volatile trading session, oil prices rallied this morning before falling back to $99.18
> China's central bank pledged to bolster support for the economy as authorities in Beijing expanded COVID testing to the majority of Shanghai
> Retail gasoline prices rose 1.1% to $3.959/gal from $3.915/gal, and Diesel fuel prices rose 1.2% to $5.160/gal from $5.101/gal

Rosneft, Russia's largest state oil company, failed to win a contract to sell up to 37 million barrels of Urals crude.
> India is still the most active buyer of Russian Urals, with little interest from the rest of Asia and Europe
> European buyers have continued to shun Russian cargoes due to Russia's invasion of Ukraine, according to traders (BBG)
> Asian refiners are also avoiding the Sokol grade from Russia's Far East following sanctions imposed on a tanker company

The EU is considering imposing price caps and tariffs on Russian oil to put pressure on Moscow's budget
> Russia supplies nearly a quarter of the EU's oil imports
> Germany warned that a complete ban on Russian oil imports would be disastrous for the economy

Natural Gas

Gas prices are up by 25.3c this morning, near $6.992
> Lower-48 dry gas production is down by 2.86 Bcf/d since Friday, at 91.6 Bcf/d, as severe weather has led to a drop in Williston (Bakken) basin supply
> Rockies production accounts for around 1.6 Bcf/d of the fall, while the Northeast and South-central regions fell by 0.5 and 0.36 Bcf/d
> LNG feedgas demand is at around 12.58 Bcf/d.
> Freeport LNG flows are still reduced due to maintenance on train 1, but should have the work wrapped up by April 27
> AEGIS notes that there will likely be more maintenance in the coming weeks that will limit LNG feedgas demand

European natural gas prices fall to their lowest since February 16
> Northwest Europe’s imports of liquefied natural gas are on course to match the record levels seen in January, with at least a dozen new cargoes expected by the end of April
> Still, pipeline supplies have been lower. Shipments from Norway are about 10% lower than last month’s average due to maintenance, according to nominations from operator Gassco AS. In addition, flows from Ukraine have fallen far below early-April levels
> President Vladimir Putin has demanded payment in rubles from “unfriendly” buyers, threatening to cut flows if refused. European buyers have refused to pay for its energy in Roubles < The idiots in Europe better be careful. If Mr. Putin decides to cut off gas and oil going to Germany, the entire European economy is totally screwed. Europeans are finding out what happens when you make "Deals with the Devil".

[dan_s]

Closing Prices:
> Prompt-Month WTI (Jun 22) was up $3.16 on the day, to settle at $101.70
> Prompt-Month Henry Hub (May 22) was up $0.181 on the day, to settle at $6.850

[uberCOAT]

Russia halted gas supplies to Bulgaria and Poland on Wednesday for rejecting its demand to pay in roubles, taking direct aim at European economies in its toughest retaliation so far against international sanctions over the war in Ukraine.

https://www.reuters.com/world/poland-bu ... 022-04-26/