Oil & Gas Prices - July 19

[dan_s]

Trading Economics: Wild Ride for oil prices this week.

WTI Oil Price
WTI crude futures fell more than 2.5% to around $80.5 per barrel on Friday, extending losses from the previous session and heading for their second consecutive weekly loss.
> The decline was driven by a stronger dollar and concerns over China's economy, which offset a tighter supply outlook. The greenback rose following stronger-than-expected data on the U.S. labor market and manufacturing earlier in the week. A stronger U.S. currency reduces demand for dollar-denominated oil from buyers using other currencies.
> Recent data showed China's economy grew by a slower-than-expected 4.7% in the second quarter, adding to concerns about oil demand from the world's top oil importer.
> Renewed hopes of a ceasefire in Gaza also influenced market dynamics. U.S. Secretary of State Antony Blinken indicated that a long-sought ceasefire between Israel and Hamas was within sight. The ongoing conflict in Gaza had led investors to price in a risk premium for oil, as tensions threatened global supplies.

HH Natural Gas Price
US natural gas futures fell by over 10% to below $2.1/MMBtu this week, influenced by milder weather forecasts and reduced feedgas to LNG export plants.
> Gas flows to US LNG export facilities decreased to 11.6 bcfd so far in July, down from 12.8 bcfd in June, primarily due to the Freeport LNG shutdown and cuts at Cheniere Energy's Corpus Christi plant. Freeport LNG has been offline longer than anticipated after halting for Hurricane Beryl, delaying seven to ten shipments. One processing unit will restart this week, with others following at reduced capacity.
> Additionally, the EIA reported that US utilities added 10 billion cubic feet (Bcf) of gas into storage last week, below the expected 28 Bcf increase, bringing total stockpiles to 3,209 Bcf, 16.9% above the 5-year average.
> Meteorologists forecast near-normal weather across the Lower 48 states through July 24, followed by hotter-than-normal conditions until August 1.

[dan_s]

Venture Global LNG will soon be opening their 2 Bcfpd LNG export facility in Plaquemines Parish, Louisianna. See pictures at the link below.

https://venturegloballng.com/project-plaquemines/

Cheniere is expected to open Train 3 at Corpus Christi, Texas in the 4th quarter adding 1.5 Bcfpd of additional LNG export capacity.

By December, 2024 the U.S. should have 17.8 Bcfpd of LNG export capacity, up from 14.5 Bcfpd at the end of 2023.