Oil & Gas Prices - Mar 8

[dan_s]

Opening Prices:
> WTI is down $0.75 to $76.83/bbl, and Brent is down $0.57 to $82.72/bbl.
> Natural gas is down -5.3c to $2.634/MMBtu.

AEGIS Notes
Oil

Oil extends losses amid renewed rate-hike concerns
April ’23 WTI lost 75c this morning to trade around $77/Bbl
Yesterday, crude fell by nearly $3 following remarks from Fed Chair Powell indicating that the central bank may hike rates faster than expected
A stronger U.S. Dollar is also weighing on prices. The U.S. dollar, which normally trades inversely with oil, had risen to a three-month high versus a basket of currencies after Powell's remarks

OPEC is concerned about a demand slowdown in US and Europe (Bloomberg)
OPEC Secretary-General Haitham Al-Ghais warned that slowing oil demand in Europe and the US is a concern for the global market even if Asia is undergoing "phenomenal" growth
He added that "we see a divided market — almost like two markets," and it is crucial to ensure both supplies and "security of demand" in regions where inflation is crimping consumption

Global consumption is seen rising by 2.3 MMBbl/d in 1H2023 to an average of 101.87 MMBbl/d in 2023, according to OPEC’s monthly report
However, the market is expected to tighten in 2H2023 as global inventories decline and the OPEC+ cartel, led by Saudi Arabia, plans to maintain production levels for the rest of the year < U.S. refineries will finish maintenance projects in March & April, so demand for crude oil will increase in May.

Natural Gas

Natural gas prices fall 2% after rallying 12c yesterday
Weather forecast changes are mixed today, with the Midwest region’s forecast cooling by 13.3 °F in the 1-15 day period and the Southeast regions forecast warming by 7.3 °F over the same period

EQT CEO says the gas market to balance by the middle half of the year (BBG)
Toby Rice of EQT, the largest US gas producer, said that he sees the natural gas market coming back into balance this year as production adjusts to lower prices
“Weather did not show up this year, and that’s created a surplus, but as a result, we do think activity levels will adjust,” said Rice
The Haynesville region may be the most affected and has already seen the number of active drilling rigs decline

EIA says US power consumption to decline this year (Reuters)
Slower economic growth and milder weather are expected to drive US electricity demand lower in 2023, according to the EIA’s latest Short-Term Energy Outlook < Does this mean that Global Warming ended???
Comparatively, US electricity consumption reached a record high in 2022
The share of electricity generated by natural gas is expected to average 39% in 2022 before falling to 37% in 2024
Renewables share of the power stack is expected to rise from 22% in 2022 to 24% this year

[Fraser921]

>Weather did not show up this year, and that’s created a surplus, but as a result, we do think activity levels will adjust,” said Rice. The Haynesville region may be the most affected and has already seen the number of active drilling rigs decline

Who operates there?, Oh crk!

[dan_s]

Closing Prices:
> Prompt-Month WTI (Apr 23) was down $-0.92 on the day, to settle at $76.66
> Prompt-Month Henry Hub (Apr 23) was down $-0.136 on the day, to settle at $2.551