Oil & Gas end of day prices - Sept 19
Posted: Thu Sep 19, 2019 3:30 pm
WTI prompt month (OCT 19) was up $0.02 on the day, to settle at $58.13/Bbl.
NG prompt month (OCT 19) was down $0.099 on the day, to settle at $2.538/MMBtu.
It appears that WTI has found a base of support at $58/bbl, but oil prices are going to react to every headline and tweet from now on. Tension in the Middle East could not be higher. Saudi Arabia and the U.S. are building a strong case against Iran and planning an appropriate response to the massive attack on Saudi Arabia's infrastructure. Iran is threatening an all out war if attacked. Expect lots of name calling and threats to continue. Iran's economy and leadership team are under tremendous pressure and "wackos" tend to do really stupid stuff when under pressure.
IMO the fact that Saudi Arabia is out in the market trying to buy shipments of fuel is a good indication that their production problems are not going to be solved quickly.
--------------------------------
Investing.com - Oil prices ended higher Thursday as Saudi Arabia tapped other oil-producing nations to ensure no default in its fuel delivery to customers. That came just days after the kingdom declared little fallout from an attack on its energy infrastructure.
WTI futures settled up 2 cents at $58.13 per barrel. It slumped 2% on Wednesday on the notion that Saudi Arabia would not be stretched in meeting customer obligations, particularly after it said half of the production lost from the weekend attack had been restored and the balance would be back by November.
Brent futures gained 72 cents, or 1.1%, to $64.33. < Our Eagle Ford companies are getting close to Brent for their oil.
Saudi Arabia’s state-owned Aramco was scouring global fuel markets for cargoes in the wake of the unprecedented attacks on its oil facilities, Bloomberg reported. It said Saudi Arabia purchased diesel cargoes and also sought one-off supplies of aviation fuel this week, according to the report.
Platts, meanwhile, said Riyadh had approached Iraq's State Oil Marketing Organization to buy Iraqi crude, but SOMO later denied there was such a request.
“These plans suggest Saudi Arabia will have no spare capacity for at least the next two-and-a-half months and therefore no way to absorb any further shocks,” consultancy Energy Aspects said in a note.
Until last week, Saudi Arabia was not only the world’s No. 1 crude exporter, but also its most reliable source of spare crude supply in the event of any global emergency. Over more than four decades it has built up an unshakable reputation for being able to deliver contracted oil cargoes in any situation, even war.
Thursday’s rally in oil was also driven by saber-rattling by Iran, the United States and Saudi over responsibility for the attack and the likely response.
Yemen-based Houthi rebels say they carried out Saturday’s drone-based attack on the Abqaiq crude processing complex and Khurais oilfield that initially knocked out 5.7 million barrels of Saudi output, accounting for 5% of daily world oil supply. But U.S. Secretary of State Mike Pompeo and officials in Riyadh said evidence showed the weapons used were fired from southwest Iran instead.
Pompeo, visiting Saudi Arabia on Wednesday, said the attack constituted an "an act of war". < No kidding!.
Iranian Foreign Minister Javad Zarif said Pompeo’s remarks may be aimed at deceiving President Donald Trump into going to war against Tehran. Trump has already said he had no wish to engage in a military battle with Iran, although he said earlier this week that Washington was “locked and loaded” to respond,
The Washington Post, in a report on Tuesday, interpreted the president’s remarks as meaning that the United States would support Saudi Arabia with intelligence, targeting information and surveillance capabilities to strike back at Iran, though the U.S. itself would not fire any weapon.
Zarif told CNN that the Iranian response to a U.S. or Saudi military strike on the Islamic Republic would be "all-out war".
“’Act of war’ or AGITATION for WAR? Remnants of #B_Team (+ambitious allies) try to deceive @realdonaldtrump into war. For their own sake, they should pray that they won't get what they seek. They're still paying for much smaller #Yemen war they were too arrogant to end 4yrs ago,” Zarif tweeted.
------------------------------------
MY TAKE: The "Persian Gulf Drone War" is just getting started.
NG prompt month (OCT 19) was down $0.099 on the day, to settle at $2.538/MMBtu.
It appears that WTI has found a base of support at $58/bbl, but oil prices are going to react to every headline and tweet from now on. Tension in the Middle East could not be higher. Saudi Arabia and the U.S. are building a strong case against Iran and planning an appropriate response to the massive attack on Saudi Arabia's infrastructure. Iran is threatening an all out war if attacked. Expect lots of name calling and threats to continue. Iran's economy and leadership team are under tremendous pressure and "wackos" tend to do really stupid stuff when under pressure.
IMO the fact that Saudi Arabia is out in the market trying to buy shipments of fuel is a good indication that their production problems are not going to be solved quickly.
--------------------------------
Investing.com - Oil prices ended higher Thursday as Saudi Arabia tapped other oil-producing nations to ensure no default in its fuel delivery to customers. That came just days after the kingdom declared little fallout from an attack on its energy infrastructure.
WTI futures settled up 2 cents at $58.13 per barrel. It slumped 2% on Wednesday on the notion that Saudi Arabia would not be stretched in meeting customer obligations, particularly after it said half of the production lost from the weekend attack had been restored and the balance would be back by November.
Brent futures gained 72 cents, or 1.1%, to $64.33. < Our Eagle Ford companies are getting close to Brent for their oil.
Saudi Arabia’s state-owned Aramco was scouring global fuel markets for cargoes in the wake of the unprecedented attacks on its oil facilities, Bloomberg reported. It said Saudi Arabia purchased diesel cargoes and also sought one-off supplies of aviation fuel this week, according to the report.
Platts, meanwhile, said Riyadh had approached Iraq's State Oil Marketing Organization to buy Iraqi crude, but SOMO later denied there was such a request.
“These plans suggest Saudi Arabia will have no spare capacity for at least the next two-and-a-half months and therefore no way to absorb any further shocks,” consultancy Energy Aspects said in a note.
Until last week, Saudi Arabia was not only the world’s No. 1 crude exporter, but also its most reliable source of spare crude supply in the event of any global emergency. Over more than four decades it has built up an unshakable reputation for being able to deliver contracted oil cargoes in any situation, even war.
Thursday’s rally in oil was also driven by saber-rattling by Iran, the United States and Saudi over responsibility for the attack and the likely response.
Yemen-based Houthi rebels say they carried out Saturday’s drone-based attack on the Abqaiq crude processing complex and Khurais oilfield that initially knocked out 5.7 million barrels of Saudi output, accounting for 5% of daily world oil supply. But U.S. Secretary of State Mike Pompeo and officials in Riyadh said evidence showed the weapons used were fired from southwest Iran instead.
Pompeo, visiting Saudi Arabia on Wednesday, said the attack constituted an "an act of war". < No kidding!.
Iranian Foreign Minister Javad Zarif said Pompeo’s remarks may be aimed at deceiving President Donald Trump into going to war against Tehran. Trump has already said he had no wish to engage in a military battle with Iran, although he said earlier this week that Washington was “locked and loaded” to respond,
The Washington Post, in a report on Tuesday, interpreted the president’s remarks as meaning that the United States would support Saudi Arabia with intelligence, targeting information and surveillance capabilities to strike back at Iran, though the U.S. itself would not fire any weapon.
Zarif told CNN that the Iranian response to a U.S. or Saudi military strike on the Islamic Republic would be "all-out war".
“’Act of war’ or AGITATION for WAR? Remnants of #B_Team (+ambitious allies) try to deceive @realdonaldtrump into war. For their own sake, they should pray that they won't get what they seek. They're still paying for much smaller #Yemen war they were too arrogant to end 4yrs ago,” Zarif tweeted.
------------------------------------
MY TAKE: The "Persian Gulf Drone War" is just getting started.