Oil & Gas Prices - April 9
Posted: Fri Apr 09, 2021 9:19 am
Opening Prices:
> WTI is down 14c to $59.46/Bbl, and Brent is down 29c to $62.91/Bbl.
> Natural gas is up 0.2c to $2.524/MMBtu.
AEGIS notes
Oil
Biden administrations expected to unveil its position on the Dakota Access Pipeline today in court
The Justice Department, Energy Transfer LPO, and American Indian tribes are set to appear in court today, where a ruling on whether the Dakota Access Pipeline can continue operating without a permit while the U.S. Army Corps of Engineers conducts its environmental review
AEGIS notes the removal of DAPL would decrease pipeline takeaway capacity by 570 MBbl/d for the Bakken region, redirecting barrels to leftover space on other outbound pipes and more expensive crude-by-rail. If the pipeline is taken out of service, Bakken Clearbrook basis prices could weaken significantly
Iranian oil output could rise by 1.5 MMBbl/d in 2H if the country is able to reach a new nuclear agreement with the U.S. – (Bloomberg)
Under the prior agreement, Iran had produced nearly 3.8 MMBbl/d, which would be a 1.5 MMBbl/d increase from current levels
Iran’s chief negotiator for the nuclear talks said the sides were focused on removing the sanctions in a single step; however, the U.S. has not responded to the comments
Permian output expected to grow in Q2 as fracking reaches a 12-month high – Bloomberg
According to Rystad Energy, the number of completed wells in the Permian basin exceeded the required output maintenance level in 1Q2021 and expected to continue in 2Q2021
Nearly all basins are expected to at least maintain current output levels in 2Q2021, with the Bakken and Anadarko regions serving as an exception – Rystad Energy
Natural Gas
The EIA reported a 20 Bcf increase in gas inventories for the week ended April 2, slightly lower than the 22 Bcf average analyst estimate from Bloomberg survey
US gas inventories now stand at 1.784 Tcf, 235 Bcf below the same time in 2020 and 24 Bcf below the five-year average
Inventory gains were concentrated in the South Central
Natural gas flows into US LNG facilities bounced back from a six week low of 9.46 Bcf/d observed on April 8
The demand was down due to the Corpus Christi Pipeline performing its annual Emergency Shut Down (ESD) test at its Sinton Compressor Station yesterday. The station is upstream of Cheniere’s Corpus Christi LNG facility and reduced consumption by the terminal
Looking ahead, Cheniere’s Creole Trail Pipeline, which feeds the company’s Sabine Pass facility in Louisiana, has scheduled maintenance at its Gillis compressor station from May 3-7 (Platts)
AEGIS notes that LNG maintenance is typically taken in the spring, resulting in more feedgas demand volatility
> WTI is down 14c to $59.46/Bbl, and Brent is down 29c to $62.91/Bbl.
> Natural gas is up 0.2c to $2.524/MMBtu.
AEGIS notes
Oil
Biden administrations expected to unveil its position on the Dakota Access Pipeline today in court
The Justice Department, Energy Transfer LPO, and American Indian tribes are set to appear in court today, where a ruling on whether the Dakota Access Pipeline can continue operating without a permit while the U.S. Army Corps of Engineers conducts its environmental review
AEGIS notes the removal of DAPL would decrease pipeline takeaway capacity by 570 MBbl/d for the Bakken region, redirecting barrels to leftover space on other outbound pipes and more expensive crude-by-rail. If the pipeline is taken out of service, Bakken Clearbrook basis prices could weaken significantly
Iranian oil output could rise by 1.5 MMBbl/d in 2H if the country is able to reach a new nuclear agreement with the U.S. – (Bloomberg)
Under the prior agreement, Iran had produced nearly 3.8 MMBbl/d, which would be a 1.5 MMBbl/d increase from current levels
Iran’s chief negotiator for the nuclear talks said the sides were focused on removing the sanctions in a single step; however, the U.S. has not responded to the comments
Permian output expected to grow in Q2 as fracking reaches a 12-month high – Bloomberg
According to Rystad Energy, the number of completed wells in the Permian basin exceeded the required output maintenance level in 1Q2021 and expected to continue in 2Q2021
Nearly all basins are expected to at least maintain current output levels in 2Q2021, with the Bakken and Anadarko regions serving as an exception – Rystad Energy
Natural Gas
The EIA reported a 20 Bcf increase in gas inventories for the week ended April 2, slightly lower than the 22 Bcf average analyst estimate from Bloomberg survey
US gas inventories now stand at 1.784 Tcf, 235 Bcf below the same time in 2020 and 24 Bcf below the five-year average
Inventory gains were concentrated in the South Central
Natural gas flows into US LNG facilities bounced back from a six week low of 9.46 Bcf/d observed on April 8
The demand was down due to the Corpus Christi Pipeline performing its annual Emergency Shut Down (ESD) test at its Sinton Compressor Station yesterday. The station is upstream of Cheniere’s Corpus Christi LNG facility and reduced consumption by the terminal
Looking ahead, Cheniere’s Creole Trail Pipeline, which feeds the company’s Sabine Pass facility in Louisiana, has scheduled maintenance at its Gillis compressor station from May 3-7 (Platts)
AEGIS notes that LNG maintenance is typically taken in the spring, resulting in more feedgas demand volatility