Oil & Gas Prices - Sept 24

[dan_s]

Opening Prices:
> WTI is down 11c to $73.19/Bbl, and Brent is up 0c to $77.25/Bbl.
> Natural gas is up 12.1c to $5.097/MMBtu.

AEGIS Notes
Oil

Oil prices remain at multi-year highs amid a global energy crunch (Bloomberg)
Brent futures traded over $77/Bbl, heading for a third straight weekly increase

KEY STAT: Global onshore oil inventories dropped by almost 21 MMBbl last week, led by China, according to data analytics firm Kayrros, while U.S. stocks are near 2018 lows

High natural gas prices globally are expected to force some consumers to switch to oil, further tightening the market ahead of winter

Gulf of Mexico oil producers have lost 30 MMBbl of supply since Hurricane Ida hit land almost four weeks ago
There are still 31 platforms that remain shut, with a loss of 294 MBbl/d on Thursday (BSEE)
Ida is the most destructive to GOM oil operators in 13 years

Natural Gas

Gas futures posted their first daily gain in the last five sessions yesterday. The prompt-month contract is up by 12.1c this morning, trading near $5.097
541 MMcf/d or around 24% of Gulf of Mexico (GoM) dry gas production is still offline
Over the last three days, the amount of production offline has remained stable
Since Hurricane Ida struck in August, nearly 34.4 Bcf of gas supply has been displaced

Feedgas demand at U.S. LNG facilities are around 10.46 Bcf/d, still down from before Hurricane Nicholas, but most of the storm-related shut-ins have returned. Pipeline nominations show flows to Freeport LNG, and Cameron LNG are up by 0.7 and 0.4 Bcf/d this morning. In contrast, Cove Point flows are near zero due to maintenance.
JKM prices were down 17.5c (0.6%), settling at $26.80/MMBtu, while the TTF prompt-month contract lost 70.6c, settling at $23.965/MMBtu

The EIA reported a 76-Bcf build for the week ending September 17; the build was slightly more than the 75-Bcf build analysts expected
Total stocks now stand at 3.082 Tcf, which is 229, or 7% Bcf below the five-year average, and 589 Bcf or 16% less than last year at this time
The end-of-season storage number on ICE settled at 3.541 Tcf following the latest injection report