Oil & Gas Prices - May 28

[dan_s]

Opening Prices:
> WTI is down 34c to $32.47/Bbl, and Brent is down 6c to $34.68/Bbl.
> Natural gas is down 0.2c to $1.884/MMBtu.

Stifel: Oil & Gas Exploration and Production - 1Q20 Review: U.S. E&Ps Contribute to OPEC+ Cuts and Suggest New Phase for Shale - Michael S. Scialla
In the wake of a third oil price cycle within the past 12 years, U.S. E&P managements appear to have resigned themselves to a model that prioritizes FCF and balance sheet strength. While most companies have committed to full-cycle returns over growth, many spent the vast majority of their cash flow or raised capital to outspend cash flow chasing returns based on oil prices that did not materialize. 1Q20 conference calls revealed a changing mindset, especially among the bellwether management teams, that suggests U.S. shale growth rates of 1 MMBopd+/yr may not return. Calls also indicated that government intervention was not needed for the U.S. to contribute to the April OPEC+ agreement, as market forces caused U.S. companies to shut-in more than 2 MMBopd in May. A nearly 3-fold increase in near-month oil prices over the past month, however, is likely to undo curtailments during June.

June 10th OPEC+ Meeting: Where Next For Oil Production Policy, Saudi-Russia Rift?
By Ellen R. Wald, Ph.D. https://www.investing.com/analysis/june ... -200525958

[dan_s]

Closing Prices:
> WTI prompt month (JUL 20) was up $0.90 on the day, to settle at $33.71/Bbl.
> NG prompt month (JUL 20) was down $0.059 on the day, to settle at $1.827/MMBtu.

In the EIA detailed petroleum report
> Relentless decline in U.S. oil production
> Obviously imports of oil is what caused crude in storage to increase. IMO that is just moving oil from offshore storage to onshore storage and not an increase in actual supply.
> Everyone sees signs of demand increasing and supply falling