Oil & Gas Prices - Mar 29
Posted: Mon Mar 29, 2021 9:44 am
Opening Prices:
> WTI is up 45c to $61.42/Bbl, and Brent is up 49c to $65.06/Bbl.
> Natural gas is up 1.5c to $2.572/MMBtu.
AEGIS Notes
Crude Oil
Despite increased volatility, the Trend remains UP and Buyers are in Control above $59.50. Market-Driven hedges are available at current prices. Use the Control for an assessment of stability- above $59.50 the market has the opportunity to test $62-$65, whereas closings below $59.50 put a change of Trend ($57.25) at risk.
At around 4:30am CT, the Suez Canal Authority said the downed vessel in the Suez Canal, the Ever Given, had been partially re-floated
The ships’ stem (bow) is still stuck, and will be harder to free, according to the salvage team responsible for clearing the obstruction
Around 96 tankers carrying oil, LNG, LPG, and other fuels have been affected by the Suez Canal blockage, according to Vortexa
Russia supports holding OPEC+ output stead, seeks small rise for itself (Reuters)
According to Reuters, the group is expecting a decision like last month, where most members held production steady except for Russia and Kazakhstan
AEGIS notes, the recent sell-off has likely strengthened the need for caution moving forward by the group
The Baker Hughes oil rig count gained six rigs to bring the total oil rig count to 324
The Permian basin added five rigs, while the Eagle Ford lost one rig, and the Denver-Julesburg rig count remained unchanged
The recent rig additions have helped the total oil-directed drilling rig count to increase by 152, from a bottom of 172 rigs during the week ending August 14, 2020 to 324 rigs during the week ending March 26, 2021
Natural Gas
The Trend is DOWN with Buyers in Control above $2.53. A bounce in spot to $2.66-$2.70 would present a better place to add producer hedges. Thus far, our view of positive seasonality in the Spring shoulder and supportive fundamentals are working to limit the downside. Indeed, the Trend Change will change again to UP just a few cents away at/above $2.60. Welcome to noisy shoulder trading.
Cheniere Energy announced a Substantial Completion of Train 3 at its Corpus Christi liquefaction facility
Cheniere’s contractor Bechtel has turned over care, custody, and control of Train 3 to Cheniere
Train 3 at Corpus Christi adds to the seven other liquefaction trains Cheniere operates along the Gulf Coast
AEGIS notes that Train 3 has been liquefying gas for some time now and has helped flows into U.S. LNG facilities recently reach record rates of near 12 Bcf/d
The Suez Canal blockage has had minimal impact on the LNG market, according to shipping brokerage SSY
LNG vessels have only had minor delays due to the blocked ship Ever Given
“The favored LNG route that travels through the Suez originates in the Arabian Gulf to moves to Northwest Europe. An approx. two-day delay could be eliminated by a simple speed adjustment. So at this point in time, the LNG market remains relatively calm, “ said Toby Dunipace, Head of Gas shipping at SSY
> WTI is up 45c to $61.42/Bbl, and Brent is up 49c to $65.06/Bbl.
> Natural gas is up 1.5c to $2.572/MMBtu.
AEGIS Notes
Crude Oil
Despite increased volatility, the Trend remains UP and Buyers are in Control above $59.50. Market-Driven hedges are available at current prices. Use the Control for an assessment of stability- above $59.50 the market has the opportunity to test $62-$65, whereas closings below $59.50 put a change of Trend ($57.25) at risk.
At around 4:30am CT, the Suez Canal Authority said the downed vessel in the Suez Canal, the Ever Given, had been partially re-floated
The ships’ stem (bow) is still stuck, and will be harder to free, according to the salvage team responsible for clearing the obstruction
Around 96 tankers carrying oil, LNG, LPG, and other fuels have been affected by the Suez Canal blockage, according to Vortexa
Russia supports holding OPEC+ output stead, seeks small rise for itself (Reuters)
According to Reuters, the group is expecting a decision like last month, where most members held production steady except for Russia and Kazakhstan
AEGIS notes, the recent sell-off has likely strengthened the need for caution moving forward by the group
The Baker Hughes oil rig count gained six rigs to bring the total oil rig count to 324
The Permian basin added five rigs, while the Eagle Ford lost one rig, and the Denver-Julesburg rig count remained unchanged
The recent rig additions have helped the total oil-directed drilling rig count to increase by 152, from a bottom of 172 rigs during the week ending August 14, 2020 to 324 rigs during the week ending March 26, 2021
Natural Gas
The Trend is DOWN with Buyers in Control above $2.53. A bounce in spot to $2.66-$2.70 would present a better place to add producer hedges. Thus far, our view of positive seasonality in the Spring shoulder and supportive fundamentals are working to limit the downside. Indeed, the Trend Change will change again to UP just a few cents away at/above $2.60. Welcome to noisy shoulder trading.
Cheniere Energy announced a Substantial Completion of Train 3 at its Corpus Christi liquefaction facility
Cheniere’s contractor Bechtel has turned over care, custody, and control of Train 3 to Cheniere
Train 3 at Corpus Christi adds to the seven other liquefaction trains Cheniere operates along the Gulf Coast
AEGIS notes that Train 3 has been liquefying gas for some time now and has helped flows into U.S. LNG facilities recently reach record rates of near 12 Bcf/d
The Suez Canal blockage has had minimal impact on the LNG market, according to shipping brokerage SSY
LNG vessels have only had minor delays due to the blocked ship Ever Given
“The favored LNG route that travels through the Suez originates in the Arabian Gulf to moves to Northwest Europe. An approx. two-day delay could be eliminated by a simple speed adjustment. So at this point in time, the LNG market remains relatively calm, “ said Toby Dunipace, Head of Gas shipping at SSY