Oil & Gas Prices - June 29

[dan_s]

Opening Prices:
> WTI is up 42c to $38.91/Bbl, and Brent is up 30c to $41.32/Bbl.
> Natural gas is up 8.6c to $1.630/MMBtu.

On June 26 Bloomberg reported that Russia’s exports of its flagship Urals crude oil grade are set to plunge next month, underscoring the nation’s commitment to helping OPEC and allied producers to avert a global glut. Exports of the grade from its three main western ports will fall 40% month-on-month to about 785,000 Bopd in July, according to loading plans seen by Bloomberg.

June 24 Bloomberg is reporting that U.S. gasoline demand has improved to nearly 80% of where it was at the same time last year, according to IHS Markit. A survey of retail gasoline sales show that demand at the end of June’s second week was 22% below year-ago levels.

June 24 Reuters is reporting that South Korea’s oil imports rose by 7.3% in May vs. April levels to 2.543 MMBopd (down 6.3% y/y), according to Korea National Oil Corp. Additionally, oil consumption rose by 10.4% in May vs. April levels to 2.552 MMBopd (up 8.3% y/y), and refinery throughput fell by 0.3% in May vs. April to 2.609 MMBopd (down 6.7% y/y).

June 24 Reuters is reporting that China's electricity consumption is expected to grow 7.1% and 6.8% y/y in 3Q20 and 4Q20, respectively, as the coronavirus outbreak eases and Beijing's economic stimulus policies take effect, according to an expert from the State Grid. Power consumption was down 2.8% y/y for the first five months of 2020.

June 24 Bloomberg is reporting that Europe’s electricity consumption is steadily recovering with France and Germany within reach of normal levels. German power gained 21% this month and French increased 26%, according to broker data.

On June 26 Reuters reported Libya's National Oil Corporation (NOC) said on Friday Russian and other foreign mercenaries had entered the Sharara oilfield on Thursday, adding that it completely rejects "attempts by foreign countries to prevent the resumption of oil production." It said the mercenaries had entered Sharara in a convoy of vehicles and met with representatives of the Petroleum Facilities Guard (PFG), a force established to maintain security at the oil fields. Oilfields and export facilities are mostly located in territory controlled by the eastern-based Libyan National Army.

[dan_s]

Closing Prices:
> WTI prompt month (AUG 20) was up $1.21 on the day, to settle at $39.70/Bbl.
> NG prompt month (AUG 20) was up $0.165 on the day, to settle at $1.709/MMBtu.

There is resistance for WTI at $40.00 and $41.40.