Oil & Gas Prices - Mar 13
Posted: Mon Mar 13, 2023 8:57 am
Opening Prices: Pre-market opening trades were primarily automated sells triggered by stop-loss orders.
> WTI is down $3.76 to $72.92/bbl, and Brent is down $3.75 to $79.03/bbl. < WTI at $73.20 at time of this post
> Natural gas is down -3.0c to $2.4/MMBtu. < HH APR23 up $0.12 to $2.55 at the time of this post
AEGIS Notes with my comments in blue
Oil
Oil falls to lowest in nearly three months amid concerns over tightening monetary policy and SVB failure
amid concerns over tightening monetary policy and SVB failure
April ’23 WTI lost $3.76 this morning to trade around $73/Bbl
Brent falls below $80/Bbl for the first time since early February
Crude, along with other assets, are under pressure this morning following last week’s collapse of Silicon Valley Bank
Crude remains under pressure following Fed Chair Powell’s remarks last week with expectations for higher-than-expected rate hikes
Saudi Aramco is cautiously optimistic that the oil market will remain tightly balanced in the short to medium term (Reuters)
Aramco projects that consumption will likely reach a record 102 MMBbl/d by the end of 2023 as the market focuses on Chinese demand recovery
Amin Nasser, CEO of Aramco, said spare capacity remained tight at 2 MMBbl/d and that rising demand for jet fuel coincided with China's reopening
Nasser cautioned that he still did not see enough investment going into the sector to meet demand over the long term and that if that trend persisted, supply would not be sufficient in the mid-to-long-term < Demand for oil-based products will exceed supply within a few months.
Natural Gas
Natural gas reverses some of Friday’s losses soon after the markets opened, up 2.5% to $2.55 in the prompt month
The Summer ’23 seasonal strip is up 2c to $2.88, and the Winter ‘23/’24 strip is down 3c to $3.77 < Maybe the strip is telling us that $2.50 HH gas price is not the "Right Price". If you believe natural gas prices will remain under $3.00 you should sell all of your "gassers".
Weather forecasts indicate temperatures will be below normal for the remainder of March, although they are expected to rise to near-normal at the end of the month < Winter Storm Sage blasting New England today.
Production came close to an all-time high this weekend at 101.53 Bcf/d, according to data from PointLogic
FERC Chairman wants faster energy infrastructure project approvals (NGI)
Chairman Philips spoke of the need for additional natural gas pipelines to distribute gas domestically and to LNG facilities on the Gulf Coast
Several US regions, such as New England and California, lack adequate pipeline capacity and are often constrained
The environmental permitting process for the construction of energy infrastructure has delayed several pipelines, such as the 2 Bcf/d Mountain Valley Pipeline in the US Northeast
Chairman Phillips said, “We are looking at each and every project in an accelerated way” < Finally, these nerds are starting to see the potential of natural gas to be the real near-term solution to lowering carbon emissions.
> WTI is down $3.76 to $72.92/bbl, and Brent is down $3.75 to $79.03/bbl. < WTI at $73.20 at time of this post
> Natural gas is down -3.0c to $2.4/MMBtu. < HH APR23 up $0.12 to $2.55 at the time of this post
AEGIS Notes with my comments in blue
Oil
Oil falls to lowest in nearly three months amid concerns over tightening monetary policy and SVB failure
amid concerns over tightening monetary policy and SVB failure
April ’23 WTI lost $3.76 this morning to trade around $73/Bbl
Brent falls below $80/Bbl for the first time since early February
Crude, along with other assets, are under pressure this morning following last week’s collapse of Silicon Valley Bank
Crude remains under pressure following Fed Chair Powell’s remarks last week with expectations for higher-than-expected rate hikes
Saudi Aramco is cautiously optimistic that the oil market will remain tightly balanced in the short to medium term (Reuters)
Aramco projects that consumption will likely reach a record 102 MMBbl/d by the end of 2023 as the market focuses on Chinese demand recovery
Amin Nasser, CEO of Aramco, said spare capacity remained tight at 2 MMBbl/d and that rising demand for jet fuel coincided with China's reopening
Nasser cautioned that he still did not see enough investment going into the sector to meet demand over the long term and that if that trend persisted, supply would not be sufficient in the mid-to-long-term < Demand for oil-based products will exceed supply within a few months.
Natural Gas
Natural gas reverses some of Friday’s losses soon after the markets opened, up 2.5% to $2.55 in the prompt month
The Summer ’23 seasonal strip is up 2c to $2.88, and the Winter ‘23/’24 strip is down 3c to $3.77 < Maybe the strip is telling us that $2.50 HH gas price is not the "Right Price". If you believe natural gas prices will remain under $3.00 you should sell all of your "gassers".
Weather forecasts indicate temperatures will be below normal for the remainder of March, although they are expected to rise to near-normal at the end of the month < Winter Storm Sage blasting New England today.
Production came close to an all-time high this weekend at 101.53 Bcf/d, according to data from PointLogic
FERC Chairman wants faster energy infrastructure project approvals (NGI)
Chairman Philips spoke of the need for additional natural gas pipelines to distribute gas domestically and to LNG facilities on the Gulf Coast
Several US regions, such as New England and California, lack adequate pipeline capacity and are often constrained
The environmental permitting process for the construction of energy infrastructure has delayed several pipelines, such as the 2 Bcf/d Mountain Valley Pipeline in the US Northeast
Chairman Phillips said, “We are looking at each and every project in an accelerated way” < Finally, these nerds are starting to see the potential of natural gas to be the real near-term solution to lowering carbon emissions.