Oil & Gas Prices - Dec 22

[dan_s]

Opening Prices:
> WTI is down 15c to $70.97/Bbl, and Brent is down 22c to $73.76/Bbl.
> Natural gas is up 12.9c to $3.998/MMBtu.

AEGIS Notes
Oil

West Texas Intermediate traded just shy of $72/Bbl Wednesday morning following a broad asset class rally the day prior
> The bulls were supported by the energy crunch in Europe and an API report that pointed to another decrease in U.S. stockpiles
> However, pessimism remains as the Omicron variant has continued to be a cloud over the market

Europe’s high energy costs have raised the prospect of greater demand for oil products in power generation (BBG)
Natural gas prices in Europe surged after Russia curbed flows, forcing some European nations to burn oil

The American Petroleum Institute (API) reported U.S. crude stocks declined by 3.67 MMBbl last week
If confirmed by government data later today, it would be a fourth weekly draw

Natural Gas

The prompt-month Henry Hub contract is up by 12.9c this morning, near $3.998
> The gas-weighted heating degree day total increased by 1.4 HDDs to 684
> LNG feedgas demand is at 13 Bcf/d this morning < This is actually above design capacity for all of the US LNG export facilities. Demand for US LNG will stay high all winter.
> Cheniere’s Sabine Pass facility has hovered above 5 Bcf/d for three consecutive days

European gas prices surged to a new record-high as Yamal pipeline flows reverse
> The reversed flows added to bullish factors for the gas market, such as strong gas-fired power gen, with many French nuclear plants closed, and colder weather
> The prompt-month TTF contract settled at $59/MMBtu, its highest mark on record
> Some western politicians and industry experts have accused Russia of withholding gas deliveries to Europe amid political tensions over Ukraine and delays in the certification of Nord Stream 2. The Kremlin said the move was not politically fueled, but “purely a commercial decision” < BS

[dan_s]

Rueters: U.S. natgas futures gain on soaring global gas prices.
U.S. natural gas futures edged up on Tuesday, shrugging off forecasts for milder weather and lower heating demand next week than previously expected, and focusing instead on a sharp rally in European gas futures that could keep U.S. liquefied natural gas exports near record highs.

At the time of this post the JAN22 NYMEX contract for HH gas is up 16 cents to $4.03

Old Man Winter has a New Years' gift for the gassers.