Oil Price - Sept 18
Posted: Wed Sep 18, 2019 9:11 am
At the open:
WTI is down $1.01 to $58.33/Bbl, and Brent is down 70c to $63.85/Bbl.
Natural gas is up 2.4c to $2.692/MMBtu.
WTI is down $1.01 to $58.33/Bbl, and Brent is down 70c to $63.85/Bbl
Crude oil price is down this morning for the second straight day, but still higher than last Friday’s settle
Both Brent and WTI are up about $4/Bbl since attacks on Saudi infrastructure occurred
Saudi Arabia has restored half of the 5.7 MMBbl/d of crude production that was knocked out after drone/missile attacks targeted key infrastructure, according to the country’s oil minister
Production could rise to 11 mmb/d by end of Oct and 12 mmb/d by end of Nov, but this seems to be productive capacity, not actual production
Saudi had previously warned customers that some export cargoes would be delayed, and there could be substitutions with different crude grades (Bloomberg)
The immediate plan is apparently to reduce domestic consumption, draw from inventories, and increase production elsewhere to be certain that net exportable crude oil is increased
The attacks on Saudi facilities are believed to have come from Southwest Iran, a US official told Reuters
US officials said the attacks involved cruise missiles and drones, an indication of a higher degree of sophistication than initially thought (Reuters)
Closing prices:
WTI prompt month (OCT 19) was down $1.23 on the day, to settle at $58.11/Bbl.
Also, NG prompt month (OCT 19) was down $0.031 on the day, to settle at $2.637/MMBtu.
Based on the chart, it looks like buyers came in on each dip this afternoon with stair step up into the close. The move off the low for the day of $57.67 looked good.
> Small build in crude oil inventories was no big deal after four weeks of rather large draws. Tropical storm activity this week should slow imports for next weeks report.
> Plus, the small build in crude oil inventories coupled with higher imports and lower inputs by refineries tells me that U.S. crude oil production continues to fall (despite the fact that EIA's detailed report shows domestic crude oil production flat at 12.4 million barrels per day).
> IMO the odds of Saudi Arabia launching a drone attack on Iranian targets within ten days is over 90%. If so, the geopolitical risk premium will go up.
WTI is down $1.01 to $58.33/Bbl, and Brent is down 70c to $63.85/Bbl.
Natural gas is up 2.4c to $2.692/MMBtu.
WTI is down $1.01 to $58.33/Bbl, and Brent is down 70c to $63.85/Bbl
Crude oil price is down this morning for the second straight day, but still higher than last Friday’s settle
Both Brent and WTI are up about $4/Bbl since attacks on Saudi infrastructure occurred
Saudi Arabia has restored half of the 5.7 MMBbl/d of crude production that was knocked out after drone/missile attacks targeted key infrastructure, according to the country’s oil minister
Production could rise to 11 mmb/d by end of Oct and 12 mmb/d by end of Nov, but this seems to be productive capacity, not actual production
Saudi had previously warned customers that some export cargoes would be delayed, and there could be substitutions with different crude grades (Bloomberg)
The immediate plan is apparently to reduce domestic consumption, draw from inventories, and increase production elsewhere to be certain that net exportable crude oil is increased
The attacks on Saudi facilities are believed to have come from Southwest Iran, a US official told Reuters
US officials said the attacks involved cruise missiles and drones, an indication of a higher degree of sophistication than initially thought (Reuters)
Closing prices:
WTI prompt month (OCT 19) was down $1.23 on the day, to settle at $58.11/Bbl.
Also, NG prompt month (OCT 19) was down $0.031 on the day, to settle at $2.637/MMBtu.
Based on the chart, it looks like buyers came in on each dip this afternoon with stair step up into the close. The move off the low for the day of $57.67 looked good.
> Small build in crude oil inventories was no big deal after four weeks of rather large draws. Tropical storm activity this week should slow imports for next weeks report.
> Plus, the small build in crude oil inventories coupled with higher imports and lower inputs by refineries tells me that U.S. crude oil production continues to fall (despite the fact that EIA's detailed report shows domestic crude oil production flat at 12.4 million barrels per day).
> IMO the odds of Saudi Arabia launching a drone attack on Iranian targets within ten days is over 90%. If so, the geopolitical risk premium will go up.