Energy Prospectus

Opening Prices:
> WTI is up $2.11 to $22.42/Bbl, and Brent is up $2.43 to $27.17/Bbl.
> Natural gas is up 0.8c to $1.595/MMBtu.

AEGIS Alerts - Crude prices soar on Trump claims of Saudi/Russia production cuts

Closing Prices:
> WTI prompt month (MAY 20) was up $5.01 on the day, to settle at $25.32/Bbl.
> In contrast, NG prompt month (MAY 20) was down $0.035 on the day, to settle at $1.552/MMBtu.

Note from Scotiabank:
Hope for OPEC+ Returns! Oil Up +$5 bbl

[Positive] Trump tweeted that he expects Russia and OPEC to cut 10 million bbld of supply. Oil prices have shot up +25% on the news. Very little is known at this point, but it appears that we're seeing similar compromising words from both Russia's Novak and Saudi Arabia's MBS.

Caveat: There is no official press release from OPEC+ members, only Bloomberg and Reuters headlines, along with President Trump's Tweets. If this tweet is credible, then we would expect to see an impromptu OPEC+ meeting shortly.

Keep in mind, COVID-19 demand destruction has not gone away. A potential 10-15 million bbld supply cut would go a long way to rebalance the market and prevent some tank-top concerns, but we're not out of the woods yet. A global economic slowdown is taking place.

Trump to host oil meeting today at WH: Who's going and why it matters . E&E News .

The White House is inviting the country's top oil executives to a meeting tomorrow about the oil crisis as a wave of layoffs, spending cuts and bankruptcies send shock waves through the industry. The meeting is intended to discuss the Trump administration's response to the novel coronavirus epidemic that has sapped demand for energy and comes amid an international oil price war, a double punch that has caused chaos in the drilling industry, sources said. Trump told reporters yesterday that he may meet with independent oil producers over the weekend as well. "We have a great oil industry, and the oil industry is being ravaged," Trump said. Expected to attend the White House tomorrow are Exxon Mobil Corp. CEO Darren Woods, Chevron Corp. CEO Mike Wirth, Occidental Petroleum Corp. CEO Vicki Hollub and Energy Transfer Partners CEO Kelcy Warren, according to sources familiar with the discussions.

The Saudi Press Agency in a series of tweets, confirmed the talks between Trump and Saudi Crown Prince Mohammad bin Salman. It also said MBS’ father, King Salman, had requested the enlarged OPEC+ group, that includes ally Russia, to gather for a new discussion on how to support the market amid the demand destruction caused by the coronavirus pandemic.

“The Kingdom calls for an urgent meeting for OPEC+ states and another group of countries, with aim of reaching a fair solution to restore a desire balance of the oil markets,” the press agency tweeted. “This invitation comes within (the) framework of the Kingdom's constant efforts to support the global economy in this exceptional circumstance, and in appreciation of the US President's request and the US friends' request.”

Nice note from Hart Energy today: "NGL Prices Rise, but Outlook Joyless"

With the exception of isobutane and natural gasoline at Conway, Kan., NGL prices rose across the board at Mont Belvieu, Texas, and Conway last week and, with the exception of Conway isobutane, margins improved as well.

One of our members called me from Midland this afternoon. He said that he has friends in the supply chain management that are telling him that inventories of building supplies and other stuff we use a lot of are running extremely low. If we can get past the FEAR of COVID-19 we have a lot of work to do and that means high demand for raw materials and energy.