Oil & Gas Prices - Feb 7
Posted: Tue Feb 07, 2023 11:47 am
Opening Prices
> WTI is up $1.37 to $75.48/bbl, and Brent is up $1.24 to $82.23/bbl.
> Natural gas is up 5.7c to $2.514/MMBtu.
AEGIS Notes
Oil
Oil extends gains amid short-term supply outages and expectations of a rebound in Chinese demand
March ’23 WTI gained nearly $1.37 this morning to trade above $75/Bbl
Saudi Arabia unexpectedly raised rates for its primary market Asia indicating its optimism in oil demand
An earthquake in Turkey halted oil flows to the Ceyhan oil terminal, and technical issues in one of Norway's North Sea oil fields also halted production
Additionally, the market awaits comments on monetary policy from Federal Reserve Chair Jerome Powell
Saudi Arabia raised its prices for crude that will be shipped to Asia in March (Bloomberg)
Saudi’s flagship Arab Light grade to Asia for March loadings was increased by $0.20/Bbl to a premium of $2.00/Bbl over the Dubai/Oman average
This is the first price hike in six months and indicates that Saudi Arabia might be optimistic about an oil demand rebound
Iraq hopes to resume flowing oil through Turkey to the Ceyhan terminal as soon as today, according to an official from SOMO, the country's state oil-marketing company (Bloomberg)
The official added that the pipes were checked, and “there was no damage to them or to the storage tanks”
Supplies to Turkey’s Ceyhan export terminal were halted following an earthquake on February 5
In January, the port exported more than 1 MMBbl/d or 1% of global supplies
Norway’s Equinor said it halted output at the largest North Sea oil field due to a technical issue
Output from Phase 1 of the Johan Sverdrup field (500,000 Bbl/d) was halted on Monday after an issue with the cooling system
According to a company spokesman, the problem was being repaired, and the disruption was expected to last at least two days
Natural Gas
Natural gas prices are up 3% to $2.51 in the prompt month today
Weather forecasts cooled in the 11-15 day period, with the Lower 48 forecast losing 5.5 °F, mostly from the Northeast and Midwest regions
LNG developer criticizes FERC over delays (Reuters)
NextDecade said on Monday that delays in reviewing information for its proposed $15.7 billion Rio Grande export facility were inexcusable
The export plant has been stalled due to a ruling by a federal appeals court that argues that the original approval did not consider impacts on the climate
The CEO of NextDecade said, “It is patently clear that an ongoing, 18-month process to address two questions remanded to the Commission is inexcusable,"
The company believes it will move ahead with financial approval for phase one of the project this quarter
Most new electricity generating capacity this year will come from solar (Reuters)
According to the EIA, developers are planning to install 54.5 GW of new generating capacity in 2023, with 29.1 GW being utility-scale solar projects
Texas and California will have the most solar additions this year, with those two states accounting for 41% of additions
If all planned projects are completed on time, 2023 will be a record-setting year for solar installations
Developers also plan to more than double the amount of existing battery capacity this year, from 8.8 GW to 18.2 GW
> WTI is up $1.37 to $75.48/bbl, and Brent is up $1.24 to $82.23/bbl.
> Natural gas is up 5.7c to $2.514/MMBtu.
AEGIS Notes
Oil
Oil extends gains amid short-term supply outages and expectations of a rebound in Chinese demand
March ’23 WTI gained nearly $1.37 this morning to trade above $75/Bbl
Saudi Arabia unexpectedly raised rates for its primary market Asia indicating its optimism in oil demand
An earthquake in Turkey halted oil flows to the Ceyhan oil terminal, and technical issues in one of Norway's North Sea oil fields also halted production
Additionally, the market awaits comments on monetary policy from Federal Reserve Chair Jerome Powell
Saudi Arabia raised its prices for crude that will be shipped to Asia in March (Bloomberg)
Saudi’s flagship Arab Light grade to Asia for March loadings was increased by $0.20/Bbl to a premium of $2.00/Bbl over the Dubai/Oman average
This is the first price hike in six months and indicates that Saudi Arabia might be optimistic about an oil demand rebound
Iraq hopes to resume flowing oil through Turkey to the Ceyhan terminal as soon as today, according to an official from SOMO, the country's state oil-marketing company (Bloomberg)
The official added that the pipes were checked, and “there was no damage to them or to the storage tanks”
Supplies to Turkey’s Ceyhan export terminal were halted following an earthquake on February 5
In January, the port exported more than 1 MMBbl/d or 1% of global supplies
Norway’s Equinor said it halted output at the largest North Sea oil field due to a technical issue
Output from Phase 1 of the Johan Sverdrup field (500,000 Bbl/d) was halted on Monday after an issue with the cooling system
According to a company spokesman, the problem was being repaired, and the disruption was expected to last at least two days
Natural Gas
Natural gas prices are up 3% to $2.51 in the prompt month today
Weather forecasts cooled in the 11-15 day period, with the Lower 48 forecast losing 5.5 °F, mostly from the Northeast and Midwest regions
LNG developer criticizes FERC over delays (Reuters)
NextDecade said on Monday that delays in reviewing information for its proposed $15.7 billion Rio Grande export facility were inexcusable
The export plant has been stalled due to a ruling by a federal appeals court that argues that the original approval did not consider impacts on the climate
The CEO of NextDecade said, “It is patently clear that an ongoing, 18-month process to address two questions remanded to the Commission is inexcusable,"
The company believes it will move ahead with financial approval for phase one of the project this quarter
Most new electricity generating capacity this year will come from solar (Reuters)
According to the EIA, developers are planning to install 54.5 GW of new generating capacity in 2023, with 29.1 GW being utility-scale solar projects
Texas and California will have the most solar additions this year, with those two states accounting for 41% of additions
If all planned projects are completed on time, 2023 will be a record-setting year for solar installations
Developers also plan to more than double the amount of existing battery capacity this year, from 8.8 GW to 18.2 GW