Oil & Gas Prices - July 14
Posted: Wed Jul 14, 2021 8:33 am
Opening Prices:
> WTI is down 17c to $75.08/Bbl, and Brent is down 7c to $76.42/Bbl.
> Natural gas is up 4.2c to $3.738/MMBtu.
Have you registered for the AEGIS webinar set for 1:30PM CT today? If not, send an email to Sabrina at energyprospectus@gmail.com asking for the link.
AEGIS Notes
Oil
Saudi Arabia and the UAE reached a compromise that will allow the UAE to increase the amount of oil the OPEC member can produce as part of a wider agreement (WSJ). The deal is part of a wider agreement with Russia-led producers to boost global supplies, according to people familiar with the matter (Bloomberg, WSJ)
> In the compromise reached Wednesday, the UAE will be able to increase its baseline quota to 3.65 MMBbl/d starting in April from the current baseline of 3.2 MMBbl/d
> Oil prices are steady following the news of the OPEC+ agreement
> AEGIS notes that the market was likely pricing in a no-deal or no supply increase for August.
> A deal now may mean OPEC+ could increase supply for August if enough time remains to notify their customers
Government oil inventory data from the EIA is due at 9:30 am CST
The average Bloomberg survey of economists is expecting a 4.3 MMBbl withdrawal
If confirmed, the decrease would be the eighth consecutive weekly draw in crude stocks
The American Petroleum Institute, an industry group, said crude inventories fell by more than 4 MMBbl last week
Natural Gas
Domestic demand shows signs of stalling amid higher prices, and cooler weather forecasts
The August ’21 Henry hub contract has consolidated within the $3.65/$3.75 range since the start of this week's trading session
Natural gas used for power generations is down 6.54 Bcf/d (year-over-year) as the cooler conditions (in some regions) along with the much higher price environment have taken a significant toll on gas usage in that sector, which would imply higher injections in the coming weeks
Mountain Valley Pipeline reveals carbon offset plan meant to account for 90% of operations in the first ten years
The pipeline developer, Equitrans, claimed the project would be one of the first large-scale interstate pipelines to achieve carbon neutrality
The project has been mired in uncertainty as the regulatory process has caused several delays, in addition to COVID.
The project is not expected to come online until Summer ’22
> WTI is down 17c to $75.08/Bbl, and Brent is down 7c to $76.42/Bbl.
> Natural gas is up 4.2c to $3.738/MMBtu.
Have you registered for the AEGIS webinar set for 1:30PM CT today? If not, send an email to Sabrina at energyprospectus@gmail.com asking for the link.
AEGIS Notes
Oil
Saudi Arabia and the UAE reached a compromise that will allow the UAE to increase the amount of oil the OPEC member can produce as part of a wider agreement (WSJ). The deal is part of a wider agreement with Russia-led producers to boost global supplies, according to people familiar with the matter (Bloomberg, WSJ)
> In the compromise reached Wednesday, the UAE will be able to increase its baseline quota to 3.65 MMBbl/d starting in April from the current baseline of 3.2 MMBbl/d
> Oil prices are steady following the news of the OPEC+ agreement
> AEGIS notes that the market was likely pricing in a no-deal or no supply increase for August.
> A deal now may mean OPEC+ could increase supply for August if enough time remains to notify their customers
Government oil inventory data from the EIA is due at 9:30 am CST
The average Bloomberg survey of economists is expecting a 4.3 MMBbl withdrawal
If confirmed, the decrease would be the eighth consecutive weekly draw in crude stocks
The American Petroleum Institute, an industry group, said crude inventories fell by more than 4 MMBbl last week
Natural Gas
Domestic demand shows signs of stalling amid higher prices, and cooler weather forecasts
The August ’21 Henry hub contract has consolidated within the $3.65/$3.75 range since the start of this week's trading session
Natural gas used for power generations is down 6.54 Bcf/d (year-over-year) as the cooler conditions (in some regions) along with the much higher price environment have taken a significant toll on gas usage in that sector, which would imply higher injections in the coming weeks
Mountain Valley Pipeline reveals carbon offset plan meant to account for 90% of operations in the first ten years
The pipeline developer, Equitrans, claimed the project would be one of the first large-scale interstate pipelines to achieve carbon neutrality
The project has been mired in uncertainty as the regulatory process has caused several delays, in addition to COVID.
The project is not expected to come online until Summer ’22