Oil & Gas Prices - August 31
Posted: Tue Aug 31, 2021 8:52 am
Opening Prices:
> WTI is down 82c to $68.39/Bbl, and Brent is down 69c to $72.72/Bbl.
> Natural gas is down 6.0c to $4.245/MMBtu.
AEGIS Notes
Oil
Oil prices trade slightly lower Tuesday morning after settling over $69/Bbl for the first time in over two weeks on Monday
> The Bureau of Safety and Environmental Enforcement (BSEE) estimates that about 94.6% of the current oil production in the Gulf of Mexico remained shut in on August 30 as a result of storm Ida
> Gulf of Mexico production is expected to resume service gradually, but local refineries may be slower to return
> At least 2 MMBbl/d of oil refining capacity was affected by the storm, which cut power across Louisiana
OPEC+ expects global oil markets to tighten this year even as they pump more oil, but then flip into surplus again in 2022 (Bloomberg)
> Their projection of a tighter near-term oil market should allow them to continue with the plan of reletting 400 MBbl/d a month
> The Saudi oil minister emphasized at the cartels previous meeting that OPEC+ is prepared to pause or even reverse its scheduled output increase if necessary OPEC meets 5 p.m. Vienna time on Wednesday
Natural Gas
Natural gas futures have continued to trend lower to start the week
> The prompt-month contract is down 6c after losing 8.3c during yesterday’s trading session
> According to the Bureau of Safety of Environmental Enforcement, 93.57%, around 2 Bcf/d, of dry gas production is offline in the Gulf of Mexico
Almost 1.1 million homes are without power in Louisiana and Mississippi (Bloomberg)
> Power infrastructure in Louisiana took a beating, with winds that reached up to 150 mph.
> There is no timeline for how long the outages are expected to persist
> The hurricane will have no significant disruptions to operations at Cameron LNG, the closes export facility to the storm’s path
> LNG prices are $15.74 for Dutch TTF and $17.70 for $17.70 for the JKM in Asia
> WTI is down 82c to $68.39/Bbl, and Brent is down 69c to $72.72/Bbl.
> Natural gas is down 6.0c to $4.245/MMBtu.
AEGIS Notes
Oil
Oil prices trade slightly lower Tuesday morning after settling over $69/Bbl for the first time in over two weeks on Monday
> The Bureau of Safety and Environmental Enforcement (BSEE) estimates that about 94.6% of the current oil production in the Gulf of Mexico remained shut in on August 30 as a result of storm Ida
> Gulf of Mexico production is expected to resume service gradually, but local refineries may be slower to return
> At least 2 MMBbl/d of oil refining capacity was affected by the storm, which cut power across Louisiana
OPEC+ expects global oil markets to tighten this year even as they pump more oil, but then flip into surplus again in 2022 (Bloomberg)
> Their projection of a tighter near-term oil market should allow them to continue with the plan of reletting 400 MBbl/d a month
> The Saudi oil minister emphasized at the cartels previous meeting that OPEC+ is prepared to pause or even reverse its scheduled output increase if necessary OPEC meets 5 p.m. Vienna time on Wednesday
Natural Gas
Natural gas futures have continued to trend lower to start the week
> The prompt-month contract is down 6c after losing 8.3c during yesterday’s trading session
> According to the Bureau of Safety of Environmental Enforcement, 93.57%, around 2 Bcf/d, of dry gas production is offline in the Gulf of Mexico
Almost 1.1 million homes are without power in Louisiana and Mississippi (Bloomberg)
> Power infrastructure in Louisiana took a beating, with winds that reached up to 150 mph.
> There is no timeline for how long the outages are expected to persist
> The hurricane will have no significant disruptions to operations at Cameron LNG, the closes export facility to the storm’s path
> LNG prices are $15.74 for Dutch TTF and $17.70 for $17.70 for the JKM in Asia