Oil & Gas Prices - June 4
Posted: Fri Jun 04, 2021 8:27 am
Opening Prices:
> WTI is up 45c to $69.26/Bbl, and Brent is up 38c to $71.69/Bbl.
> Natural gas is up 3.0c to $3.071/MMBtu.
AEGIS Notes
WTI climbed early Friday morning to above $69.20/Bbl, near its highest level since 2018
The oil markets have found support this week as Iranian nuclear talks look to be taking longer than analysts expected
Also providing support, the EIA reported a significant draw in American crude stockpiles
U.S. government data showed a 5 MMBbl decrease in crude oil stocks for the week ended May 28
The large reported draw was partially offset by sizable product builds in both distillate and gasoline inventories
U.S. refinery utilization increased by 1.7% to now total 88.70% for operable capacity; still about 3% lower than what is typical for the same corresponding week
A slight rise in the U.S. dollar this week may have countered some of the bullish oil-market news
U.S. Federal Reserve announced plans to wind down the corporate bond portfolio it bought during the pandemic (S&P Global)
The Dollar Index Spot Index traded up to $90.5 as of Thursday, a gain of $0.68 from Monday’s settle
Natural Gas
U.S. natural gas inventories rose by 98-Bcf during the week ending May 28; the build was slightly more than the expected 95-Bcf build
Inventories for the U.S. are now at a deficit of 386 Bcf to last year and a deficit of 61 Bcf to the five-year average
The end-of-season index on ICE settled at 3.6 Tcf following the announcement
AEGIS notes that this was the second consecutive storage number that came in above estimates. Our S&D model implies that the stat reflects a loosening S&D balance
The prompt-month Henry Hub contract is up 8.5c this week and is trading near $3.071/MMBtu
The winter 2021-2022 strip has also gained 6.3c this week and is currently printing around $3.23
Weather forecasts have shifted warmer throughout the week, which is likely fueling the rally
In addition, A TETCO outage may also be partly to blame for some of the run-up in price. Reduced southbound flows on Texas Eastern Transmission Co.’s TETCO pipeline has likely tightened up the market in the S.C. region, supporting prices at Henry Hub
> WTI is up 45c to $69.26/Bbl, and Brent is up 38c to $71.69/Bbl.
> Natural gas is up 3.0c to $3.071/MMBtu.
AEGIS Notes
WTI climbed early Friday morning to above $69.20/Bbl, near its highest level since 2018
The oil markets have found support this week as Iranian nuclear talks look to be taking longer than analysts expected
Also providing support, the EIA reported a significant draw in American crude stockpiles
U.S. government data showed a 5 MMBbl decrease in crude oil stocks for the week ended May 28
The large reported draw was partially offset by sizable product builds in both distillate and gasoline inventories
U.S. refinery utilization increased by 1.7% to now total 88.70% for operable capacity; still about 3% lower than what is typical for the same corresponding week
A slight rise in the U.S. dollar this week may have countered some of the bullish oil-market news
U.S. Federal Reserve announced plans to wind down the corporate bond portfolio it bought during the pandemic (S&P Global)
The Dollar Index Spot Index traded up to $90.5 as of Thursday, a gain of $0.68 from Monday’s settle
Natural Gas
U.S. natural gas inventories rose by 98-Bcf during the week ending May 28; the build was slightly more than the expected 95-Bcf build
Inventories for the U.S. are now at a deficit of 386 Bcf to last year and a deficit of 61 Bcf to the five-year average
The end-of-season index on ICE settled at 3.6 Tcf following the announcement
AEGIS notes that this was the second consecutive storage number that came in above estimates. Our S&D model implies that the stat reflects a loosening S&D balance
The prompt-month Henry Hub contract is up 8.5c this week and is trading near $3.071/MMBtu
The winter 2021-2022 strip has also gained 6.3c this week and is currently printing around $3.23
Weather forecasts have shifted warmer throughout the week, which is likely fueling the rally
In addition, A TETCO outage may also be partly to blame for some of the run-up in price. Reduced southbound flows on Texas Eastern Transmission Co.’s TETCO pipeline has likely tightened up the market in the S.C. region, supporting prices at Henry Hub