Oil & Gas Prices - Feb 9
Posted: Tue Feb 09, 2021 10:02 am
Opening Prices:
> WTI is down 10c to $57.87/Bbl, and Brent is down 1c to $60.55/Bbl.
> Natural gas is down 7.6c to $2.806/MMBtu.
AEGIS Morning Notes
Crude Oil
Oil prices sustained their rally to set another 13-month high yesterday and held gains overnight
The dollar has weakened further from its recent high of $91.52 on 02/04, by 90 pips to $90.61
Brent and WTI were at their most overbought levels since 2012 and 2017, respectively, on a relative strength index basis
Trading house, Trafigura Group, calls for a bull run even as rivals urge caution (Bloomberg)
Vitol and Gunvor Group presented more cautious outlooks, saying prices may have returned to $60 too quickly. They also said that an influx of shuttered oil production could flood the market
Co-head of oil, Luckock, said in an interview that he expects physical crude stocks to tighten as a return in fuel demand prompts refiners to purchase crude to boost runs to meet the increase in demand
Iran’s foreign minister Mohammad Javad Zarif said it is “inevitable” that the U.S. will return to the nuclear agreement (Argus)
The U.S. has insisted otherwise, with President Biden saying he would not lift sanctions on Iran as recently as February 5. The yet-unscheduled next meeting of the JCPOA Joint Commission likely will include presence from the U.S. for the first time since 2018, giving the first opportunity for U.S. and Iranian officials to meet
U.S. officials say they have already started talks with allies in Europe and other JCPOA members and plan to brief Congress on Biden’s approach to Iran before talks resume with Tehran
Any new agreements would require Iran to bring its ballistic missile program to the negotiating table, which Iran has said will only be an option if the U.S. is prepared to discuss limitations to its military activity in the Middle East
Natural Gas
Freezing temperatures continue to ice the U.S., resulting in another price hike
Polar Vortex conditions continue to move through the central U.S. as temperatures in International Falls, Minnesota, reached negative 36 degrees Fahrenheit on the morning of Feb. 8 (AccuWeather)
Prices in the PJM (Pennsylvania, Jersey, Maryland Power Pool) region, whose electricity grid spans a total of 15 states, have increased $3/MMBtu since last week, with Tetco M3 trading near $4/MMBtu (Platts)
Asian LNG prices lower, but continue to support full U.S. LNG utilization
Despite being off their record highs of last month, spot LNG prices continue to incentivize LNG cargoes to be shipped to Asia, as JKM prices sit at $8.430/MMBtu, which is more than four times the record low of $1.825/MMBtu seen last April
As prices in Asia return to normal, more cargoes head to Europe, who saw their LNG volumes reduced during Asia’s price surge, as TTF for March deliveries settled at $7.132/MMBtu on Feb. 8
Nord Stream 2 pipelaying resumes in Danish waters despite mounting U.S. pressure
A Russian-owned Fortuna vessel resumed work in the Danish Exclusive Economic Zone, defying US sanctions imposed on Jan. 19 against both the vessel and its Russian owner
A little over 93 miles remain in the project, through both Danish and German waters before making landfall on the northern German coast
U.S. President Joe Biden has said he believes Nord Stream 2 is a “bad deal for Europe” < Does anyone think the Russians or China are afraid of Biden?
> WTI is down 10c to $57.87/Bbl, and Brent is down 1c to $60.55/Bbl.
> Natural gas is down 7.6c to $2.806/MMBtu.
AEGIS Morning Notes
Crude Oil
Oil prices sustained their rally to set another 13-month high yesterday and held gains overnight
The dollar has weakened further from its recent high of $91.52 on 02/04, by 90 pips to $90.61
Brent and WTI were at their most overbought levels since 2012 and 2017, respectively, on a relative strength index basis
Trading house, Trafigura Group, calls for a bull run even as rivals urge caution (Bloomberg)
Vitol and Gunvor Group presented more cautious outlooks, saying prices may have returned to $60 too quickly. They also said that an influx of shuttered oil production could flood the market
Co-head of oil, Luckock, said in an interview that he expects physical crude stocks to tighten as a return in fuel demand prompts refiners to purchase crude to boost runs to meet the increase in demand
Iran’s foreign minister Mohammad Javad Zarif said it is “inevitable” that the U.S. will return to the nuclear agreement (Argus)
The U.S. has insisted otherwise, with President Biden saying he would not lift sanctions on Iran as recently as February 5. The yet-unscheduled next meeting of the JCPOA Joint Commission likely will include presence from the U.S. for the first time since 2018, giving the first opportunity for U.S. and Iranian officials to meet
U.S. officials say they have already started talks with allies in Europe and other JCPOA members and plan to brief Congress on Biden’s approach to Iran before talks resume with Tehran
Any new agreements would require Iran to bring its ballistic missile program to the negotiating table, which Iran has said will only be an option if the U.S. is prepared to discuss limitations to its military activity in the Middle East
Natural Gas
Freezing temperatures continue to ice the U.S., resulting in another price hike
Polar Vortex conditions continue to move through the central U.S. as temperatures in International Falls, Minnesota, reached negative 36 degrees Fahrenheit on the morning of Feb. 8 (AccuWeather)
Prices in the PJM (Pennsylvania, Jersey, Maryland Power Pool) region, whose electricity grid spans a total of 15 states, have increased $3/MMBtu since last week, with Tetco M3 trading near $4/MMBtu (Platts)
Asian LNG prices lower, but continue to support full U.S. LNG utilization
Despite being off their record highs of last month, spot LNG prices continue to incentivize LNG cargoes to be shipped to Asia, as JKM prices sit at $8.430/MMBtu, which is more than four times the record low of $1.825/MMBtu seen last April
As prices in Asia return to normal, more cargoes head to Europe, who saw their LNG volumes reduced during Asia’s price surge, as TTF for March deliveries settled at $7.132/MMBtu on Feb. 8
Nord Stream 2 pipelaying resumes in Danish waters despite mounting U.S. pressure
A Russian-owned Fortuna vessel resumed work in the Danish Exclusive Economic Zone, defying US sanctions imposed on Jan. 19 against both the vessel and its Russian owner
A little over 93 miles remain in the project, through both Danish and German waters before making landfall on the northern German coast
U.S. President Joe Biden has said he believes Nord Stream 2 is a “bad deal for Europe” < Does anyone think the Russians or China are afraid of Biden?