Oil & Gas Prices - May 17

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Oil & Gas Prices - May 17

Post by dan_s »

Opening Prices:
> WTI is up $0.05 to $70.91/bbl, and Brent is up $0.11 to $75.02/bbl.
> Natural gas is up 2.0c to $2.396/MMBtu. (As of 08:00 AM CDT)

AEGIS Notes
Oil

Oil trades slightly higher as demand concerns counter tighter supply outlook
> June ’23 WTI gained nearly 3c this morning to trade around $71/Bbl
> Crude prices slightly fell from Monday's gains following the release of weaker-than-expected Chinese industrial production and retail sales data for April
> Despite concerns about potential demand weakness, China's refineries are operating at near-peak capacity in anticipation of demand recovery
> The market is closely monitoring the potential U.S. debt default and awaits updates on when the U.S. will start refilling the SPR
> Russian fuel-oil exports to China set to hit an all-time high in May (BBG)

Russian fuel-oil exports to China are expected to hit record highs in May (over 0.35 MMBbl), driven by smaller Chinese refineries increasing their use of fuel oil for blending, according to Kpler
> Chinese 'teapot' refineries seek fuel oil alternatives amid reduced crude quotas, driving Russian refiners to increase supply
> Currently, Russia supplies around 35%-40% of all fuel oil imported by China, according to Kpler’s Viktor Katona
> Despite the buying spree, China's fuel oil imports may decelerate as over half of the 2023 quota of 16.2 million tons (around 121 MMBbl) for non-state plants could have been used by April's end, per Energy Aspects

Natural Gas

Natural gas mainly stayed unchanged Wednesday morning as weather models showed only minor changes overnight
> The Summer 2023 strip has rallied over 25c to $2.57/MMBtu since May 4

The Mountain Valley Pipeline (MVP) project made progress yesterday
> The U.S. Forest Service issued a Record of Decision for the long-delayed MVP Project
> The decision allows the project to cross the Jefferson National Forest along a 3.5-mile route at the West Virginia-Virginia border (Criterion)
> Before starting work, MVP must first obtain any outstanding federal and state permits

There are about 92 active fires currently burning In Alberta, impacting about 2.5 Bcf/d (Criterion)
Field receipts on the NGTL system showed a decline to 11.73 Bcf/d as of May 15
This is down from 14 Bcf/d
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - May 17

Post by dan_s »

Closing Prices:
> Prompt-Month WTI (Jun 23) was up $1.97 on the day, to settle at $72.83
> Prompt-Month Henry Hub (Jun 23) was down $-0.011 on the day, to settle at $2.365 < JUL23 closed at $2.516 and starting with NOV23 all of the strip prices for HH gas are now over $3.00.
Dan Steffens
Energy Prospectus Group
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