Oil & Gas Prices - March 23
Posted: Tue Mar 23, 2021 8:31 am
Opening Prices:
> WTI is down $2.20 to $59.36/Bbl, and Brent is down $2.40 to $62.23/Bbl.
> Natural gas is down 2.8c to $2.554/MMBtu.
AEGIS Notes
Crude Oil
Saudi Arabia seeks U.S. help combatting attacks on oil sites
On Sunday, the Saudi navy began drills in the Persian Gulf to enhance the security of “Vital installations” and safe navigation of vital shipping passages
The military exercises follow three attacks on Aramco sites this month, alone. On Monday, Saudi-led coalition planes struck military positions belonging to the Iran-backed Houthi rebels responsible for the attacks
Barclays revises its 2021 oil price forecast, supply outlook
Barclays increased its price forecast for Brent and WTI by $4, to $66 and $62, respectively.
Further, the bank expects prices to average $5-$6 higher y-o-y in 2022
The bank noted that private operators can still drive U.S. supply higher, but prices will need to strengthen.
U.S. oil output is expected to be 5% below the 4Q2019 level at the end of 2022
Oil prices have weakened this morning as renewed lockdowns in Europe signal demand recovery may still be vulnerable to spikes in virus cases
A new variant of COVID-19 has led to a third-wave, causing countries to lockdown their population to mitigate the spread of the virus
Germany, Europe’s biggest oil customer, has extended its lockdown until April 18
Natural Gas
Annova LNG has backed-out of its proposed 6.5 million export facility in Brownsville, Texas, citing “changes in the global LNG market” (Energy Voice)
The Annova LNG facility was slated to receive natural gas from the Agua Dulce, Texas, region
Commissioning on the project was expected in 2024, with commercial operations in 2025.
The facility was expected to receive 900 MMcf/d of feed gas through an intrastate pipeline
The decision to discontinue the liquefaction project came after power generator Exelon failed to sell its majority stake in the project, an Exelon spokesman told Platts
FERC has received numerous comments from conservation and community groups and individuals regarding MVP’s new amendment
On March 22, opposing groups filed comment on the Mountain Valley Pipeline (MVP) certificate amendment request to change the crossing method at 120 locations
MVP has faced a litany of opposition over the past few years, and its project cost have soared to $6 billion from the original $3.25 billion estimate
Higher cost due to challenges and delays is what scrubbed the Atlantic Coast Pipeline (ACP) – a pipeline that was slated to run on a similar path to MVP
> WTI is down $2.20 to $59.36/Bbl, and Brent is down $2.40 to $62.23/Bbl.
> Natural gas is down 2.8c to $2.554/MMBtu.
AEGIS Notes
Crude Oil
Saudi Arabia seeks U.S. help combatting attacks on oil sites
On Sunday, the Saudi navy began drills in the Persian Gulf to enhance the security of “Vital installations” and safe navigation of vital shipping passages
The military exercises follow three attacks on Aramco sites this month, alone. On Monday, Saudi-led coalition planes struck military positions belonging to the Iran-backed Houthi rebels responsible for the attacks
Barclays revises its 2021 oil price forecast, supply outlook
Barclays increased its price forecast for Brent and WTI by $4, to $66 and $62, respectively.
Further, the bank expects prices to average $5-$6 higher y-o-y in 2022
The bank noted that private operators can still drive U.S. supply higher, but prices will need to strengthen.
U.S. oil output is expected to be 5% below the 4Q2019 level at the end of 2022
Oil prices have weakened this morning as renewed lockdowns in Europe signal demand recovery may still be vulnerable to spikes in virus cases
A new variant of COVID-19 has led to a third-wave, causing countries to lockdown their population to mitigate the spread of the virus
Germany, Europe’s biggest oil customer, has extended its lockdown until April 18
Natural Gas
Annova LNG has backed-out of its proposed 6.5 million export facility in Brownsville, Texas, citing “changes in the global LNG market” (Energy Voice)
The Annova LNG facility was slated to receive natural gas from the Agua Dulce, Texas, region
Commissioning on the project was expected in 2024, with commercial operations in 2025.
The facility was expected to receive 900 MMcf/d of feed gas through an intrastate pipeline
The decision to discontinue the liquefaction project came after power generator Exelon failed to sell its majority stake in the project, an Exelon spokesman told Platts
FERC has received numerous comments from conservation and community groups and individuals regarding MVP’s new amendment
On March 22, opposing groups filed comment on the Mountain Valley Pipeline (MVP) certificate amendment request to change the crossing method at 120 locations
MVP has faced a litany of opposition over the past few years, and its project cost have soared to $6 billion from the original $3.25 billion estimate
Higher cost due to challenges and delays is what scrubbed the Atlantic Coast Pipeline (ACP) – a pipeline that was slated to run on a similar path to MVP