Oil & Gas Prices - June 7
Posted: Tue Jun 07, 2022 9:20 am
Opening Prices:
> WTI is down $0.34 to $118.16/bbl, and Brent is down $0.30 to $119.21/bbl. < At the time of this post, WTI is trading at $119.92/bbl.
> Natural gas is up 13.8c to $9.46/MMBtu. < At the time of this post, HH gas (JUL22) is trading at $9.25/MMbtu.
AEGIS Notes
Oil
The forecast for oil remains bullish on Wall Street
> Goldman Sachs raised its Brent price forecast for 3Q22 to $140/Bbl, and raised its WTI forecast to $137/Bbl for the same period
> Morgan Stanley added that it sees upside to its bull case estimate of $150/Bbl for 3Q22
> “With supply being this tight, prices will likely need to go higher in order to kill demand and balance the market,” said Ole Hansen at Saxo Bank A/S
Beijing has seen no new cases of COVID outside of quarantine in the last four days
> The city reported two new cases, down from six on Sunday and the lowest level since April 22nd
> Beijing began lifting virus restrictions Tuesday, including resuming public transportation in most areas, allowing workers to return to work
> China's easing of travel restrictions is likely to boost oil demand in the coming weeks
MY TAKE: The "Big Paradigm Shift" is now firmly in place. The Wall Street Gang now understands that The Green New Deal is a bold face lie. Demand for oil-based products is not going down during this decade and probably not before 2050. The energy transition is too expensive and 10X more windmills and solar panels won't replace the massive amount of energy we get from oil, gas and coal. The good news for mankind is that Global Warming is also a lie and we will adapt to the tiny changes in the Earth's weather patterns. The Pacific Ocean is cooling and the next La Nina winter will be colder in North America than last winter.
Natural Gas
Bullish weather forecasts help send gas prices to a fresh 13-year high
> The overnight gains were focused in the South Central region during the 6-10 day range and the Midwest region for the 6-15 day range
> According to Criterion Research, the Midwest has gained over 50 gas-weighted cooling degree days over the last two days
> LNG feedgas nominations have been flat over the previous week, however, flows to Calcasieu Pass have hit an all-time high of 1.3 Bcf/d
> Lower-48 dry gas production nominations are down by 1.35 Bcf/d due to declines in the Northeast and South-Central region
Shale gas producer, Chesapeake Energy eyes move into LNG
> According to Reuters, the company is hiring a liquefied natural gas advisor as it seeks to expand into the market
Several companies have made announcements for LNG facilities since the spur of activity caused by Russia’s invasion of Ukraine
> WTI is down $0.34 to $118.16/bbl, and Brent is down $0.30 to $119.21/bbl. < At the time of this post, WTI is trading at $119.92/bbl.
> Natural gas is up 13.8c to $9.46/MMBtu. < At the time of this post, HH gas (JUL22) is trading at $9.25/MMbtu.
AEGIS Notes
Oil
The forecast for oil remains bullish on Wall Street
> Goldman Sachs raised its Brent price forecast for 3Q22 to $140/Bbl, and raised its WTI forecast to $137/Bbl for the same period
> Morgan Stanley added that it sees upside to its bull case estimate of $150/Bbl for 3Q22
> “With supply being this tight, prices will likely need to go higher in order to kill demand and balance the market,” said Ole Hansen at Saxo Bank A/S
Beijing has seen no new cases of COVID outside of quarantine in the last four days
> The city reported two new cases, down from six on Sunday and the lowest level since April 22nd
> Beijing began lifting virus restrictions Tuesday, including resuming public transportation in most areas, allowing workers to return to work
> China's easing of travel restrictions is likely to boost oil demand in the coming weeks
MY TAKE: The "Big Paradigm Shift" is now firmly in place. The Wall Street Gang now understands that The Green New Deal is a bold face lie. Demand for oil-based products is not going down during this decade and probably not before 2050. The energy transition is too expensive and 10X more windmills and solar panels won't replace the massive amount of energy we get from oil, gas and coal. The good news for mankind is that Global Warming is also a lie and we will adapt to the tiny changes in the Earth's weather patterns. The Pacific Ocean is cooling and the next La Nina winter will be colder in North America than last winter.
Natural Gas
Bullish weather forecasts help send gas prices to a fresh 13-year high
> The overnight gains were focused in the South Central region during the 6-10 day range and the Midwest region for the 6-15 day range
> According to Criterion Research, the Midwest has gained over 50 gas-weighted cooling degree days over the last two days
> LNG feedgas nominations have been flat over the previous week, however, flows to Calcasieu Pass have hit an all-time high of 1.3 Bcf/d
> Lower-48 dry gas production nominations are down by 1.35 Bcf/d due to declines in the Northeast and South-Central region
Shale gas producer, Chesapeake Energy eyes move into LNG
> According to Reuters, the company is hiring a liquefied natural gas advisor as it seeks to expand into the market
Several companies have made announcements for LNG facilities since the spur of activity caused by Russia’s invasion of Ukraine