Oil & Gas Prices - May 14

[dan_s]

Opening Prices:
> WTI is up 69c to $64.51/Bbl, and Brent is up 80c to $67.85/Bbl.
> Natural gas is up 2.4c to $2.997/MMBtu.

AEGIS notes
Crude Oil

Total plans to raise gasoline production at its 225 MBbl/d Port Arthur, Texas, refinery
The company was forced to reduce production on the refinery’s gasoline-producing FCC unit on Monday due to the Colonial Pipeline outage
Citgo’s Lake Charles, LA refinery also cut gasoline production due to the pipeline outage

The Biden administration eased the century-old “Jones Act” to allow a foreign tanker to transport gasoline and jet fuel to the east coast
The move was to address fuel shortages due to the Colonial Pipeline outage affecting the U.S. East Coast
Colonial Pipeline Co. said that its system is 5.5 days behind its current schedule

India’s top oil refiner is shopping for crude oil after a one-month hiatus
Indian Oil Corp. has not bought oil since Mid-April, yet the company issued three purchase orders for cargoes.
The company is seeking barrels for June and July loading
The company may have delayed purchases to gauge demand for its products as the country deals with its COVID resurgence

Natural Gas

The EIA reported on Thursday a 71 Bcf build in underground gas stocks for the week ended May 7
There was also a 4 Bcf reclassification of South Central working gas to base gas
Storage inventories now stand at 2.029 Tcf < We need 4 TCF in storage by mid-November to safely make it thru a cold winter.
The build measured less than the five-year average of 82 Bcf and the 104 Bcf increase reported in 2020
Thursday’s natural gas price action was steady following the government data release as the 71 Bcf was close to analysts’ expectations

Gas flows into US LNG facilities have been lower recently as maintenance and a lightning strike have reduced consumption
Total US LNG feedgas demand fell to 10 Bcf/d from 11.8 Bcf/d in the past week, as of May 14 (Bloomberg)
Cameron LNG was conducting maintenance on one train at the Louisiana facility, reducing demand
Freeport LNG shut its entire facility on May 12 due to a lightning strike that caused a temporary power surge, according to a filing with the Texas Commission on Environmental Quality (Platts)
Several other LNG facilities looked to have short reductions in gas flows entering their facilities as measured by pipeline nominations

[dan_s]

Closing Prices:
> WTI prompt month (JUN 21) was up $1.55 on the day, to settle at $65.37/Bbl.
> In contrast, NG prompt month (JUN 21) was down $0.012 on the day, to settle at $2.961/MMBtu.

Buy the dips because I think oil and gas prices are going a lot higher this summer.
The CDC's no more mask guidance seems like the first big step toward "Post Pandemic World".

[Fraser921]

NG up a whopping .08 cents moving to 3.25 next?? Heat coming into the outlook.

This is obviously good for the gassy names