Oil & Gas Prices - Dec 13
Posted: Mon Dec 13, 2021 10:08 am
Opening Prices:
> WTI is down 12c to $71.55/Bbl, and Brent is down 17c to $74.99/Bbl.
> Natural gas is up 11.5c to $4.040/MMBtu.
AEGIS Notes
Oil
There have been nearly three weeks since the U.S. government unveiled an internationally coordinated release from the Strategic Petroleum Reserves, but so far, there’s been little follow-through from the other five nations (Bloomberg)
> President Biden announced late last month that the U.S. would release 50 MMBbl from the SPR and that the move would be in parallel with other nations
> The sharp drop in prices at the end of November may have reduced the urgency to act quickly for other participants
Oil futures were down slightly Monday morning as Omicron fears still persist
> U.K. Prime Minister Boris Johnson has said the country faces an emergency from Omicron and declined to rule out further restrictions to contain it (BBG)
> “Risk-reward is not attractive, with the Omicron spread in the initial phase,” said Helge Andre Martinsen, senior oil analyst at DNB Bank ASA in Oslo
Natural Gas
The prompt-month Henry Hub (Jan ’22) contract is up by 11.5c, at $4.04
> The gas-weighted heating degree day total remains nearly unchanged from Friday at 723.4 HDDs, Weather models showed increases of 6 and 3 HDDs on Saturday and Sunday, but today’s runs showed a loss of 9 HDDs
> Lower-48 dry gas production has held steady near 95 Bcf/d
> LNG feedgas demand is back up to 12.46 Bcf/d, as Sabine Pass Train 6 commissioning continues
European gas prices surge as Nors Steam 2 pipeline approval timeline is uncertain, cold weather arrives
> There has been more attention on the pipeline and Russia as tensions with Ukraine continue to escalate
> Northwest Europe is poised to see colder weather, which is problematic as European storage facilities are only 63% full, a level more typical for mid-January
> According to Bloomberg, Nord Stream 2 approvals may take another six to eight months
MY TAKE: If NATO gets in Putin's way, the people in Northern Europe will be burning wood furniture to heat their homes this winter.
> WTI is down 12c to $71.55/Bbl, and Brent is down 17c to $74.99/Bbl.
> Natural gas is up 11.5c to $4.040/MMBtu.
AEGIS Notes
Oil
There have been nearly three weeks since the U.S. government unveiled an internationally coordinated release from the Strategic Petroleum Reserves, but so far, there’s been little follow-through from the other five nations (Bloomberg)
> President Biden announced late last month that the U.S. would release 50 MMBbl from the SPR and that the move would be in parallel with other nations
> The sharp drop in prices at the end of November may have reduced the urgency to act quickly for other participants
Oil futures were down slightly Monday morning as Omicron fears still persist
> U.K. Prime Minister Boris Johnson has said the country faces an emergency from Omicron and declined to rule out further restrictions to contain it (BBG)
> “Risk-reward is not attractive, with the Omicron spread in the initial phase,” said Helge Andre Martinsen, senior oil analyst at DNB Bank ASA in Oslo
Natural Gas
The prompt-month Henry Hub (Jan ’22) contract is up by 11.5c, at $4.04
> The gas-weighted heating degree day total remains nearly unchanged from Friday at 723.4 HDDs, Weather models showed increases of 6 and 3 HDDs on Saturday and Sunday, but today’s runs showed a loss of 9 HDDs
> Lower-48 dry gas production has held steady near 95 Bcf/d
> LNG feedgas demand is back up to 12.46 Bcf/d, as Sabine Pass Train 6 commissioning continues
European gas prices surge as Nors Steam 2 pipeline approval timeline is uncertain, cold weather arrives
> There has been more attention on the pipeline and Russia as tensions with Ukraine continue to escalate
> Northwest Europe is poised to see colder weather, which is problematic as European storage facilities are only 63% full, a level more typical for mid-January
> According to Bloomberg, Nord Stream 2 approvals may take another six to eight months
MY TAKE: If NATO gets in Putin's way, the people in Northern Europe will be burning wood furniture to heat their homes this winter.