Oil & Gas Prices - April 29

[dan_s]

Opening Prices:
> WTI is up $0.99 to $106.35/bbl, and Brent is up $1.93 to $109.52/bbl.
> Natural gas is up 8.6c to $6.974/MMBtu.

Diesel prices touch all-time highs | WTI on track for $4.50 weekly gain

AEGIS Notes
Oil

Diesel futures jumped 12% on Thursday to $5.135, the highest since the contract's inception in 1986
> Diesel has become the world’s most in-demand fuel since the invasion of Ukraine < This world runs on diesel.
> Buyers have been competing for supplies as fast as refiners on the U.S. Gulf Coast can make them, and refining utilization is above 90%
> PADD I (East Coast) Diesel stocks which include both diesel and heating oil are at their lowest since 1996

On Thursday, German Economy Minister Robert Habeck stated that Germany is not opposed to an EU oil embargo on Russia (BBG)
> He said, "We have made a lot of progress on oil and could join an embargo if it happened." "Germany will not stand in the way"
> The statement comes after Habeck said on Tuesday that an embargo would be "manageable" because Russia's proportion of Germany's oil imports has dropped to approximately 12%, down from 35% before the invasion of Ukraine

Exxon Mobil triples its buybacks and Chevron reported its best quarterly profits since 2012
> Exxon’s Mikells said the company was “on track” to meet previous plans to lift output from the Permian Basin 25% this year
> Exxon declared a force majeure at its Sakhalin -1 project which produces 220 MBbbl/d

Natural Gas

The prompt-month (Jun' 22) gas contract is up by 8.6c this morning, near $6.974
> Lower-48 dry gas production is up by 0.63 Bcf/d this morning at 92.7 Bcf/d, as Bakken and Appalachian volumes increase < During Antero's Q1 CC presentation yesterday they put up a slide that showed that U.S. dry gas production must increase to 97 Bcf per day in order to rebuild storage to 3,500 Bcf before the beginning of the next winter heating season (mid-Nov). Obviously, we cannot increase ngas production that much this year. So, the only way to rebuild ngas storage to a safe level is to significantly reduce exports. That will crush Europe's economy. This world has a real ENERGY CRISIS.
> LNG feedgas demand is at around 12.2 Bcf/d. Freeport LNG feedgas flows are still reduced, but maintenance has wrapped up on Train 1
> Calcasieu Pass feedgas volumes hit a new record-high of 1 Bcf/d

The EIA reported an injection of 40 Bcf Bcf for the week ending April 22
> Responses to the survey ranged from 20 Bcf to 50 Bcf
> It was lower than the five-year average injection of 53 Bcf but larger than the 18 Bcf addition reported during the corresponding week in 2021
> Current inventory levels fell to 1.490 Tcf, while the deficit to last year narrowed to 406 Bcf, and the deficit to the five-year average expanded to 305 Bcf

Italy's Eni presses ahead with plans to replace Russian gas
> The Russian invasion of Ukraine will permanently change the landscape of European energy markets as European countries look for ways to replace the international pariah's gas
> Eni has signed deals in Algeria, Angola, Egypt, Congo Republic to replace Russian gas so far
> It is weighing its options currently, as Russia has issued demands that the country pay for its gas in Roubles while the European Union claims that governments who do so are breaching sanctions

[Fraser921]

I can’t believe some in the eu shut down their nuclear plants, coal plants
Then relied on Russia for their energy needs and windmills

Push comes to shove let them suffer for their moronic climate policies

Same crap in USA

[dan_s]

Closing Prices;
> Prompt-Month WTI (Jun 22) was down $-0.67 on the day, to settle at $104.69.
> Prompt-Month Henry Hub (Jun 22) was up $0.356 on the day, to settle at $7.244. < To someone that has been in this business for over 40 years, ngas trading for over $7.00 the last week of April is incredible. If we get to the end of May and June with storage more than 300 Bcf below the 5-year average, we will see the NOV22 to MAR23 NYMEX contract trading for over $10.00.