Oil & Gas Prices - June 16
Posted: Wed Jun 16, 2021 9:22 am
Opening Prices:
> WTI is up 29c to $72.41/Bbl, and Brent is up 42c to $74.41/Bbl.
> Natural gas is down 4.4c to $3.196/MMBtu.
AEGIS Notes;
Crude Oil
West Texas Intermediate traded above $72.25/Bbl on Wednesday morning following positive demand signals from Asia and a bullish inventory report from the API
Industry data showed a substantial decline in U.S. crude stockpiles of 8.54 MMBbl last week (American Petroleum Institute)
That would take levels to the lowest in over a year if confirmed by government data due later today
China’s daily crude oil processing rose to a record last month (Bloomberg)
The country’s refining rate climbed to 14.31 MMBbl/d in May – the highest since August 2021, when Bloomberg first started tracking the data
China’s processing record came amid stronger margins and increased scrutiny on its independent refiners, which all-together account for 1/4 of the nation’s capacity
President Biden’s efforts to halt sales of leases to drill for oil and gas on federal land was stopped on Thursday by a federal judge (Forbes)
The temporary stop to Biden’s executive order came after 14-states sued the administration
Federal judge Terry Doughty suggested the Biden administration doesn’t have the legal authority to issue a blanket pause on all federal oil and gas leases nationwide
In the background: the Interior Department says it’s still working on a report looking into federal energy programs, a spokesman said (Forbes)
Natural Gas
U.S. natural gas production falls to the lowest level since Winter-storm Uri (Platts)
According to data compiled by Platts Analytics, U.S. natural gas production was around 88.7 Bcf/d on June 15
The Permian and Haynesville basins are 700 MMCf/d and 500 MMcf/d below their June high, producing around 12 and 12.4 Bcf/d, respectively
Appalachia production is also down by 700 MMCf/d at 33.3 Bcf/d
Heat wave pressures California, Texas power grids as power demand spikes
Heat watches and warnings stretch nearly 1,050 mi. in the U.S. West, South as record-breaking temperatures hammer cities
The large area of the heat wave has limited California from importing power from neighboring states as they are dealing with their own respective demand spikes
Drought is also affecting parts of the U.S. west, reducing generation capacity at Hydropower facilities, further straining the grid
Texas’s power shortage can primarily be attributed to generation outages. According to ERCOT, 12 GW of generation capacity is offline, with 75% of that coming from thermal generation
> WTI is up 29c to $72.41/Bbl, and Brent is up 42c to $74.41/Bbl.
> Natural gas is down 4.4c to $3.196/MMBtu.
AEGIS Notes;
Crude Oil
West Texas Intermediate traded above $72.25/Bbl on Wednesday morning following positive demand signals from Asia and a bullish inventory report from the API
Industry data showed a substantial decline in U.S. crude stockpiles of 8.54 MMBbl last week (American Petroleum Institute)
That would take levels to the lowest in over a year if confirmed by government data due later today
China’s daily crude oil processing rose to a record last month (Bloomberg)
The country’s refining rate climbed to 14.31 MMBbl/d in May – the highest since August 2021, when Bloomberg first started tracking the data
China’s processing record came amid stronger margins and increased scrutiny on its independent refiners, which all-together account for 1/4 of the nation’s capacity
President Biden’s efforts to halt sales of leases to drill for oil and gas on federal land was stopped on Thursday by a federal judge (Forbes)
The temporary stop to Biden’s executive order came after 14-states sued the administration
Federal judge Terry Doughty suggested the Biden administration doesn’t have the legal authority to issue a blanket pause on all federal oil and gas leases nationwide
In the background: the Interior Department says it’s still working on a report looking into federal energy programs, a spokesman said (Forbes)
Natural Gas
U.S. natural gas production falls to the lowest level since Winter-storm Uri (Platts)
According to data compiled by Platts Analytics, U.S. natural gas production was around 88.7 Bcf/d on June 15
The Permian and Haynesville basins are 700 MMCf/d and 500 MMcf/d below their June high, producing around 12 and 12.4 Bcf/d, respectively
Appalachia production is also down by 700 MMCf/d at 33.3 Bcf/d
Heat wave pressures California, Texas power grids as power demand spikes
Heat watches and warnings stretch nearly 1,050 mi. in the U.S. West, South as record-breaking temperatures hammer cities
The large area of the heat wave has limited California from importing power from neighboring states as they are dealing with their own respective demand spikes
Drought is also affecting parts of the U.S. west, reducing generation capacity at Hydropower facilities, further straining the grid
Texas’s power shortage can primarily be attributed to generation outages. According to ERCOT, 12 GW of generation capacity is offline, with 75% of that coming from thermal generation