Oil & Gas Prices - Feb 4
Posted: Thu Feb 04, 2021 9:28 am
Opening Prices:
> WTI is up 35c to $56.04/Bbl, and Brent is up 27c to $58.73/Bbl.
> Natural gas is up 2.1c to $2.810/MMBtu.
AEGIS Morning Notes:
Crude Oil
OPEC+ ministers pledge to keep pushing for expedient market re-balancing (Bloomberg)
The OPEC+ countries have taken a two-month pause, continuing to increase production by the amount set during the last meeting. The group will reconvene in early March
Iraq will be forced to compensate by 576 MBbl/d for producing above its quota again. Iraq pumped 3.807 MMBbl/d in January
Aggregate open interest in WTI reached a two-and-a-half-year high, as prices eclipse $55/Bbl, According to preliminary CME data
Open positions climbed to 2.44MM lots, compared with 2.39 MM lots
JPM, and BAML have both come out in favor of commodities to hedge against inflationary pressures < Opens the gate for the "herd" to rotate more money into energy stocks.
Saudi Arabia kept oil pricing unchanged for its crude grades bound for Asia, raises U.S., and Europe pricing (Bloomberg)
Saudi Arabia increased pricing to the U.S. by 10c on all crude grades, while increasing prices to Europe by $1.30 or $1.40
Natural Gas
Natural gas for March traded a few pennies higher Thursday morning with overnight weather models showing a gain of about 6.1 HDDs (CWG)
The longer-dated 11-15 day forecast window showed colder changes in the Midwest, East, and South
New England spot gas prices remain elevated after this week’s Nor’easter blew through the Northeast.
The freezing temperatures are likely to persist as Algonquin city-gates gas rises to $11.97/MMBtu, according to Platts data
Ten Day forecast is bullish for natural gas demand: https://weather.com/maps/tendayforecast
The PennEast Pipeline will have its day at the Supreme Court (Bloomberg Law)
The court will hear an appeal by the pipeline developer of the lower court’s decision that blocked PennEast from seizing state lands in New Jersey
The case is based on a September 2019 decision of the 3rd Circuit of Appeals that questioned the route of the 116-mile PennEast pipeline
PennEast project is a 1.1 Bcf/d natural gas pipeline that would connect Marcellus gas in Northeast Pennsylvania to markets in Pennsylvania, New York, and New Jersey
A decision from the high court is expected by the end of June, according to ClearView Energy Partners
> WTI is up 35c to $56.04/Bbl, and Brent is up 27c to $58.73/Bbl.
> Natural gas is up 2.1c to $2.810/MMBtu.
AEGIS Morning Notes:
Crude Oil
OPEC+ ministers pledge to keep pushing for expedient market re-balancing (Bloomberg)
The OPEC+ countries have taken a two-month pause, continuing to increase production by the amount set during the last meeting. The group will reconvene in early March
Iraq will be forced to compensate by 576 MBbl/d for producing above its quota again. Iraq pumped 3.807 MMBbl/d in January
Aggregate open interest in WTI reached a two-and-a-half-year high, as prices eclipse $55/Bbl, According to preliminary CME data
Open positions climbed to 2.44MM lots, compared with 2.39 MM lots
JPM, and BAML have both come out in favor of commodities to hedge against inflationary pressures < Opens the gate for the "herd" to rotate more money into energy stocks.
Saudi Arabia kept oil pricing unchanged for its crude grades bound for Asia, raises U.S., and Europe pricing (Bloomberg)
Saudi Arabia increased pricing to the U.S. by 10c on all crude grades, while increasing prices to Europe by $1.30 or $1.40
Natural Gas
Natural gas for March traded a few pennies higher Thursday morning with overnight weather models showing a gain of about 6.1 HDDs (CWG)
The longer-dated 11-15 day forecast window showed colder changes in the Midwest, East, and South
New England spot gas prices remain elevated after this week’s Nor’easter blew through the Northeast.
The freezing temperatures are likely to persist as Algonquin city-gates gas rises to $11.97/MMBtu, according to Platts data
Ten Day forecast is bullish for natural gas demand: https://weather.com/maps/tendayforecast
The PennEast Pipeline will have its day at the Supreme Court (Bloomberg Law)
The court will hear an appeal by the pipeline developer of the lower court’s decision that blocked PennEast from seizing state lands in New Jersey
The case is based on a September 2019 decision of the 3rd Circuit of Appeals that questioned the route of the 116-mile PennEast pipeline
PennEast project is a 1.1 Bcf/d natural gas pipeline that would connect Marcellus gas in Northeast Pennsylvania to markets in Pennsylvania, New York, and New Jersey
A decision from the high court is expected by the end of June, according to ClearView Energy Partners