Opening Prices - May 13
Posted: Thu May 13, 2021 8:18 am
Opening Prices
> WTI is down $1.32 to $64.76/Bbl, and Brent is down $1.31 to $68.01/Bbl.
> Natural gas is down 2.1c to $2.948/MMBtu.
AEGIS Notes
Crude Oil
WTI is trading $1.32/Bbl lower this morning as inflation concerns cause investors to flee more risky assets
The closely watched Producer Price Index (PPI) came in this morning at 0.6%, in contrasts with its estimate of 0.3%
The dollar strengthened by nearly 50 pips in response to yesterday’s inflation numbers, likely pressuring crude prices further
Colonial pipeline restarts after a cyberattack knocked it offline for five days
U.S. Energy Secretary Jennifer Granholm said Tuesday that it would take days to fully restore supplies after the pipeline’s restart
According to Bloomberg, in parts of the U.S. South, three out of every four gas stations are running dry
Houthi rebels claim responsibility for attack targeting Aramco, Najran airport
Saudi Arabia announced it had intercepted eight Houthi drones and three missiles
The Houthi group launches attacks against the Kingdom regularly, though significant damage is rarely reported
Natural Gas
The Driftwood LNG export project in Louisiana is expected to complete commercial agreements within the next few weeks sufficient to support the first phase, Tellurian Executive Chairman Charif Souki said May 12 (Platts)
In an Interview with Platts, Souki said Tellurian was in advanced talks with four or five LNG buyers for volumes that Tellurian is marketing on its own, not volumes that would be covered by equity partners the company has been soliciting
Tellurian expects to give the notice to proceed to contractor Bechtel in the first quarter of next year, Souki said. Souki also said he doesn’t believe Tellurian has to make a formal declaration to advance the project – when asked about an FID
Natural gas flows between Texas and the Midwest have fallen about 1 Bcf/d year over year so far this summer, according to S&P
The startup of Kinder Morgan’s Permian Highway Pipeline about six months ago helped strengthened Waha gas prices and lowered northbound flows in the face of lower Permian production
Prices spreads indicate that Permian gas wants to flow east toward the Gulf Coast, thereby reducing flows heading north through the Midcon
Gas flows headed north from the Permian on NGPL, El Paso, and Northern Natural Gas toward the Midcon have fallen from 1.1 Bcf/d to 425 MMcf/d this summer versus last summer, according to Platts
> WTI is down $1.32 to $64.76/Bbl, and Brent is down $1.31 to $68.01/Bbl.
> Natural gas is down 2.1c to $2.948/MMBtu.
AEGIS Notes
Crude Oil
WTI is trading $1.32/Bbl lower this morning as inflation concerns cause investors to flee more risky assets
The closely watched Producer Price Index (PPI) came in this morning at 0.6%, in contrasts with its estimate of 0.3%
The dollar strengthened by nearly 50 pips in response to yesterday’s inflation numbers, likely pressuring crude prices further
Colonial pipeline restarts after a cyberattack knocked it offline for five days
U.S. Energy Secretary Jennifer Granholm said Tuesday that it would take days to fully restore supplies after the pipeline’s restart
According to Bloomberg, in parts of the U.S. South, three out of every four gas stations are running dry
Houthi rebels claim responsibility for attack targeting Aramco, Najran airport
Saudi Arabia announced it had intercepted eight Houthi drones and three missiles
The Houthi group launches attacks against the Kingdom regularly, though significant damage is rarely reported
Natural Gas
The Driftwood LNG export project in Louisiana is expected to complete commercial agreements within the next few weeks sufficient to support the first phase, Tellurian Executive Chairman Charif Souki said May 12 (Platts)
In an Interview with Platts, Souki said Tellurian was in advanced talks with four or five LNG buyers for volumes that Tellurian is marketing on its own, not volumes that would be covered by equity partners the company has been soliciting
Tellurian expects to give the notice to proceed to contractor Bechtel in the first quarter of next year, Souki said. Souki also said he doesn’t believe Tellurian has to make a formal declaration to advance the project – when asked about an FID
Natural gas flows between Texas and the Midwest have fallen about 1 Bcf/d year over year so far this summer, according to S&P
The startup of Kinder Morgan’s Permian Highway Pipeline about six months ago helped strengthened Waha gas prices and lowered northbound flows in the face of lower Permian production
Prices spreads indicate that Permian gas wants to flow east toward the Gulf Coast, thereby reducing flows heading north through the Midcon
Gas flows headed north from the Permian on NGPL, El Paso, and Northern Natural Gas toward the Midcon have fallen from 1.1 Bcf/d to 425 MMcf/d this summer versus last summer, according to Platts