Oil & Gas Prices - June 1
Posted: Thu Jun 01, 2023 9:16 am
Opening Prices:
> WTI is up $0.21 to $68.30/bbl, and Brent is up $0.11 to $72.71/bbl.
> Natural gas is down -5.7c to $2.209/MMBtu.
AEGIS Notes
Oil
Oil trades slightly higher as the market weighs demand uncertainty and recession fears
July ’23 WTI gained 21c this morning to trade around $68.30/Bbl
The House approved a bill to suspend the debt ceiling and limit spending to prevent a potential default. The legislation still requires Senate approval
Uncertainty pervades the market ahead of the OPEC+ meeting on June 3-4 due to differing production policy views between Saudi Arabia and Russia
Resilient Russian exports and Fed's monetary tightening have been two of the biggest contributing factors to prices seeing nearly a 15% decline this year
A private survey by S&P Global indicated an unexpected increase in China's manufacturing activity in May, a finding that contradicted official data (BBG)
The mixed data raises doubts about China's economic recovery, suggesting a need for more evidence to gauge the growth outlook
Equities are trading higher, and the U.S. dollar weakened relative to its recent highs
OPEC+ Restricts Major Media Outlets from Upcoming Meeting (Bloomberg)
OPEC+ bars Bloomberg, Reuters, and WSJ reporters from their June 3-4 meeting
Uncharacteristically, for this meeting, OPEC+'s secretary sent invitations directly to selected journalists, deviating from the usual open-access policy
OPEC+ has not provided any clarification regarding this exclusionary decision
Natural Gas
Natural gas prices are lower, around $2.20, as weather forecasts shift cooler < Why hasn't the media reported the great news that the Polar Ice Cap has actually increased??? A few years ago the Wachos predicted that the ice cap would be gone by now and that the oceans would rise. As long as polar bears keep having baby polar bears, I am not worried about Global Warming, nor should any of you.
The Lower 48 two-week forecast cooled by 11.9 °F, with most of the changes occurring in the Northeast and Midwest region
The Northeast forecast shifted 27.9 °F cooler, and the Midwest forecast cooled by 15.7 °F, both over the two-week period
The EIA will release its weekly natural gas storage report today
The median estimate is for an injection of 107-Bcf, while the Bloomberg survey ranges from a low of 99-Bcf to a high of 110-Bcf
Commonwealth LNG expects its first export permit this summer (Reuters)
A permit to export gas to non-free Trade Agreement countries will be the first step toward the project reaching a final investment decision, which it expects by the end of the year
Commonwealth LNG will be constructed in Louisiana on the Calcasieu Ship Channel and have a capacity of 1.25-Bcf/d
The company did, however, say that regulatory conditions for LNG facilities have tightened, and they do not expect a third wave of LNG projects later this decade
Kinder Morgan to expand Texas gas storage facility (Reuters)
The pipeline operator will be expanding its Markham storage facility in Matagorda County, south of Houston by a total of 6-Bcf, bringing its total capacity to 28-Bcf
The company said the decision was made in part due to winter storm Uri in 2021, and that their storage portfolio is critical in supplying customers and power plants, especially during extreme weather events
It should be noted that the U.S. does need more natural gas in storage since demand for U.S. natural gas grows each year, we depend more and more on ngas for power generation and the world depends more and more each year on LNG exports from the U.S. to Asia and Europe.
> WTI is up $0.21 to $68.30/bbl, and Brent is up $0.11 to $72.71/bbl.
> Natural gas is down -5.7c to $2.209/MMBtu.
AEGIS Notes
Oil
Oil trades slightly higher as the market weighs demand uncertainty and recession fears
July ’23 WTI gained 21c this morning to trade around $68.30/Bbl
The House approved a bill to suspend the debt ceiling and limit spending to prevent a potential default. The legislation still requires Senate approval
Uncertainty pervades the market ahead of the OPEC+ meeting on June 3-4 due to differing production policy views between Saudi Arabia and Russia
Resilient Russian exports and Fed's monetary tightening have been two of the biggest contributing factors to prices seeing nearly a 15% decline this year
A private survey by S&P Global indicated an unexpected increase in China's manufacturing activity in May, a finding that contradicted official data (BBG)
The mixed data raises doubts about China's economic recovery, suggesting a need for more evidence to gauge the growth outlook
Equities are trading higher, and the U.S. dollar weakened relative to its recent highs
OPEC+ Restricts Major Media Outlets from Upcoming Meeting (Bloomberg)
OPEC+ bars Bloomberg, Reuters, and WSJ reporters from their June 3-4 meeting
Uncharacteristically, for this meeting, OPEC+'s secretary sent invitations directly to selected journalists, deviating from the usual open-access policy
OPEC+ has not provided any clarification regarding this exclusionary decision
Natural Gas
Natural gas prices are lower, around $2.20, as weather forecasts shift cooler < Why hasn't the media reported the great news that the Polar Ice Cap has actually increased??? A few years ago the Wachos predicted that the ice cap would be gone by now and that the oceans would rise. As long as polar bears keep having baby polar bears, I am not worried about Global Warming, nor should any of you.
The Lower 48 two-week forecast cooled by 11.9 °F, with most of the changes occurring in the Northeast and Midwest region
The Northeast forecast shifted 27.9 °F cooler, and the Midwest forecast cooled by 15.7 °F, both over the two-week period
The EIA will release its weekly natural gas storage report today
The median estimate is for an injection of 107-Bcf, while the Bloomberg survey ranges from a low of 99-Bcf to a high of 110-Bcf
Commonwealth LNG expects its first export permit this summer (Reuters)
A permit to export gas to non-free Trade Agreement countries will be the first step toward the project reaching a final investment decision, which it expects by the end of the year
Commonwealth LNG will be constructed in Louisiana on the Calcasieu Ship Channel and have a capacity of 1.25-Bcf/d
The company did, however, say that regulatory conditions for LNG facilities have tightened, and they do not expect a third wave of LNG projects later this decade
Kinder Morgan to expand Texas gas storage facility (Reuters)
The pipeline operator will be expanding its Markham storage facility in Matagorda County, south of Houston by a total of 6-Bcf, bringing its total capacity to 28-Bcf
The company said the decision was made in part due to winter storm Uri in 2021, and that their storage portfolio is critical in supplying customers and power plants, especially during extreme weather events
It should be noted that the U.S. does need more natural gas in storage since demand for U.S. natural gas grows each year, we depend more and more on ngas for power generation and the world depends more and more each year on LNG exports from the U.S. to Asia and Europe.