Oil & Gas Prices - May 30
Posted: Tue May 30, 2023 9:03 am
Opening Prices:
> WTI is down $1.38 to $71.29/bbl, and Brent is down $1.55 to $75.40/bbl.
> Natural gas is down -8.9c to $2.328/MMBtu.
AEGIS Notes
Oil
Oil trades lower after two weeks of gains
July ’23 WTI lost $1.38 this morning to trade around $71.29/Bbl
Concerns that some lawmakers might oppose a deal that would raise the debt ceiling in the U.S. weighed on prices (Reuters)
An agreement agreed upon by Biden and McCarthy needs to overcome a divided U.S. Congress by June 5
Major producers, Saudi Arabia, and Russia, have expressed contrasting views on the outcome of the upcoming OPEC+ meeting scheduled for June 3-4
Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, recently cautioned oil short-sellers to "watch out"
Conversely, Russia has conveyed that OPEC+ probably won't implement any more measures at the upcoming meeting
Additionally, money managers increased their net-long positions in Brent oil by over 30,000 contracts last week, marking the largest uptick in two months, following the Saudi warning (Bloomberg)
Russia’s seaborne diesel exports to surge by a third in June (Bloomberg)
Russia is set to escalate its daily diesel exports by a third in June, targeting an average of 0.53 MMBbl/d < OECD countries will need every drop of diesel that they can get. U.S. distillate inventories are 18% below normal at the high point in demand for diesel.
Russian oil firms have found new markets in the Middle East and Latin America, disrupting traditional global diesel flows following the EU’s ban on Russian oil imports
The diesel export rise is driven by potential domestic fuel subsidy cuts and the completion of refinery maintenance
Natural Gas
Natural gas prices are trading lower, around $2.36, with July now the prompt month contract
Weather forecasts are mostly unchanged from Friday, with slightly below-normal temperatures expected over the next two weeks
Below-normal temperatures should lead to reduced demand for natural gas from the power sector
LNG feedgas demand has recovered to about 13.2-Bcf/d, as Cameron LNG and Corpus Christi LNG have concluded maintenance
Mountain Valley Pipeline included in US debt bill (Reuters)
The text of the proposed budget deal to avert a debt crisis includes language that would streamline the approval process for the pipeline
The project still requires permitting from West Virginia, where it could continue to be held up in court
Equitrans said in early May that the project could be finished by the end of 2023, although there remains significant risk and uncertainty
The Mountain Valley Pipeline would add 2-Bcf/d of takeaway capacity to the Appalachian region
> WTI is down $1.38 to $71.29/bbl, and Brent is down $1.55 to $75.40/bbl.
> Natural gas is down -8.9c to $2.328/MMBtu.
AEGIS Notes
Oil
Oil trades lower after two weeks of gains
July ’23 WTI lost $1.38 this morning to trade around $71.29/Bbl
Concerns that some lawmakers might oppose a deal that would raise the debt ceiling in the U.S. weighed on prices (Reuters)
An agreement agreed upon by Biden and McCarthy needs to overcome a divided U.S. Congress by June 5
Major producers, Saudi Arabia, and Russia, have expressed contrasting views on the outcome of the upcoming OPEC+ meeting scheduled for June 3-4
Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, recently cautioned oil short-sellers to "watch out"
Conversely, Russia has conveyed that OPEC+ probably won't implement any more measures at the upcoming meeting
Additionally, money managers increased their net-long positions in Brent oil by over 30,000 contracts last week, marking the largest uptick in two months, following the Saudi warning (Bloomberg)
Russia’s seaborne diesel exports to surge by a third in June (Bloomberg)
Russia is set to escalate its daily diesel exports by a third in June, targeting an average of 0.53 MMBbl/d < OECD countries will need every drop of diesel that they can get. U.S. distillate inventories are 18% below normal at the high point in demand for diesel.
Russian oil firms have found new markets in the Middle East and Latin America, disrupting traditional global diesel flows following the EU’s ban on Russian oil imports
The diesel export rise is driven by potential domestic fuel subsidy cuts and the completion of refinery maintenance
Natural Gas
Natural gas prices are trading lower, around $2.36, with July now the prompt month contract
Weather forecasts are mostly unchanged from Friday, with slightly below-normal temperatures expected over the next two weeks
Below-normal temperatures should lead to reduced demand for natural gas from the power sector
LNG feedgas demand has recovered to about 13.2-Bcf/d, as Cameron LNG and Corpus Christi LNG have concluded maintenance
Mountain Valley Pipeline included in US debt bill (Reuters)
The text of the proposed budget deal to avert a debt crisis includes language that would streamline the approval process for the pipeline
The project still requires permitting from West Virginia, where it could continue to be held up in court
Equitrans said in early May that the project could be finished by the end of 2023, although there remains significant risk and uncertainty
The Mountain Valley Pipeline would add 2-Bcf/d of takeaway capacity to the Appalachian region