Oil & Gas Prices - Sept 8
Posted: Wed Sep 08, 2021 8:29 am
Opening Prices:
> WTI is up 95c to $69.30/Bbl, and Brent is up 86c to $72.55/Bbl.
> Natural gas is up 6.4c to $4.632/MMBtu.
AEGIS Notes
Oil
Oil futures in the U.S. climbed above $69/Bbl Wednesday morning amid continued production outages in the Gulf of Mexico
About 80% of Gulf oil production remained shut in on Tuesday
Protesters in Libya have taken control of the nation's largest crude terminal
Demonstrators, calling for the dismissal of Mustafa Sanalla, state-run National Oil Corp.’s chief, have prevented an oil tanker from loading (Bloomberg)
The new wave of protests across the country’s ports threaten to destabilize the OPEC members oil exports
Protestors have also taken control of the Es Sider terminal, which processes 300 MBbl/d
Hurricane Ida’s impact continues to cause distortions among various U.S. crude grades
Mars Blend spread +$1 to +$1.25/Bbl – the strongest since mid-January
Southern Green Canyon spread vs. WTI at Cushing soared $3.25 to $2.25/Bbl on Tuesday vs. Friday – strongest since mind-May 2020
WTS Midland spread +25c to +20c/Bbl – strongest since mid-June
AEGIS notes that the changing crude spreads are likely to be short-lived and return to a more normal relationship with WTI once oil production recovers
Natural Gas
Gas is up 6.4c as weather models tilt warmer
The U.S. gas-weighted cooling degree day count increased by five from 179 to 184
73 Bcf/d or 77.89% of Gulf of Mexico output is still offline following Hurricane Ida
So far, Hurricane Ida has removed 20.8 Bcf of supply
Europe is facing an energy price shock as natural gas, power prices surge to record levels
The country’s natural gas inventory levels are at their lowest in over a decade, and injections have been small as the country has had a difficult time securing gas
Russia is limiting flows to European countries, while Asia is snapping up cargoes that may have otherwise gone to Europe < The "Mother of all Bidding Wars" for gas supply has gone global.
Europe has also faced several supply outages, and domestic output is currently in decline
> WTI is up 95c to $69.30/Bbl, and Brent is up 86c to $72.55/Bbl.
> Natural gas is up 6.4c to $4.632/MMBtu.
AEGIS Notes
Oil
Oil futures in the U.S. climbed above $69/Bbl Wednesday morning amid continued production outages in the Gulf of Mexico
About 80% of Gulf oil production remained shut in on Tuesday
Protesters in Libya have taken control of the nation's largest crude terminal
Demonstrators, calling for the dismissal of Mustafa Sanalla, state-run National Oil Corp.’s chief, have prevented an oil tanker from loading (Bloomberg)
The new wave of protests across the country’s ports threaten to destabilize the OPEC members oil exports
Protestors have also taken control of the Es Sider terminal, which processes 300 MBbl/d
Hurricane Ida’s impact continues to cause distortions among various U.S. crude grades
Mars Blend spread +$1 to +$1.25/Bbl – the strongest since mid-January
Southern Green Canyon spread vs. WTI at Cushing soared $3.25 to $2.25/Bbl on Tuesday vs. Friday – strongest since mind-May 2020
WTS Midland spread +25c to +20c/Bbl – strongest since mid-June
AEGIS notes that the changing crude spreads are likely to be short-lived and return to a more normal relationship with WTI once oil production recovers
Natural Gas
Gas is up 6.4c as weather models tilt warmer
The U.S. gas-weighted cooling degree day count increased by five from 179 to 184
73 Bcf/d or 77.89% of Gulf of Mexico output is still offline following Hurricane Ida
So far, Hurricane Ida has removed 20.8 Bcf of supply
Europe is facing an energy price shock as natural gas, power prices surge to record levels
The country’s natural gas inventory levels are at their lowest in over a decade, and injections have been small as the country has had a difficult time securing gas
Russia is limiting flows to European countries, while Asia is snapping up cargoes that may have otherwise gone to Europe < The "Mother of all Bidding Wars" for gas supply has gone global.
Europe has also faced several supply outages, and domestic output is currently in decline