April 17, 2020

April 17, 2020
Share
Print Friendly, PDF & Email
  • WTI is down $2.22 to $17.89/Bbl, and Brent is down $1.57 to $28.03/Bbl
  • Oil continues to be under pressure after multiple gloomy demand forecasts and a weak physical market
    • WTI fell below $18/Bbl on Friday morning as data showed China’s economy suffered a historic slump in 1Q and OPEC expecting demand of its crude to fall to the lowest in three decades
    • Futures have also been under pressure as weak demand has caused concerns that stockpiles, at the storage hub of Cushing, Oklahoma, will fill to capacity
  • Russia and Saudi Arabia hinted at the possibility of further output cuts after the latest OPEC+ deal to reduce supply failed to illicit a positive price response (Bloomberg)
    • OPEC’s own research projected on Thursday that even full implementation of the cuts won’t prevent a surplus 2Q
    • Saudi Arabia’s bin Salman has said that his country is ready to cut oil production further if needed when OPEC+ meets again in June
      • “Flexibility and pragmatism will enable us to continue to do more if we have to,” bin-Salman said on Sunday
  • Natural gas is up 9.6c to $1.746/MMBtu
  • Freeport LNG has completed construction of its third and final train with commercial operations expected to begin in May
    • Cameron LNG also received FERC approval to begin feed gas delivery into its third and final train
    • Annova LNG also received a key air permit, from the Texas Commission on Environmental Quality, for its 0.85 Bcf/d export terminal
  • On Thursday, the EIA announced an injection of 73 Bcf for the week ending April 10
    • This injection is nearly 3 times the five-year average build of 27 Bcf
    • Storage now stands 72%, or 876 Bcf, above last year’s levels of 1.221 Tcf
  • Spot JKM prices have hit a new record low of $2.186/MMBtu as global purchasers defer cargoes amidst a drastic collapse in demand
    • According to Platts the Global LNG market is still expected to grow by 4% in 2020, despite the demand drop

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More