April 8, 2021

April 8, 2021
Share
Print Friendly, PDF & Email
  • India is preparing to purchase Iranian crude in anticipation of easing U.S. sanctions
    • India, the world’s second-largest crude importer, has expressed frustration with the elevated cost of supplies from Saudi Arabia
    • The country is currently dealing with a covid-19 resurgence, recording the highest number of new cases since the pandemic began on Wednesday, April 7, 2021
  • FGE boost its 2021, 2022 global demand outlook amid Asian demand growth
    • FGE estimates global demand will grow 6 MMBbl/d this year, a 75 MBbl/d increase from its last forecast
    • 2022 global oil demand is expected to grow by 4.1 MMBbl/d, a 325 MBbl/d increase from its previous estimate
    • The company noted that a resurgence in COVID-19 cases in Europe and Latin America pose a downside risk to global demand forecasts
  • The market received mixed signals from inventories data reported by the EIA on Wednesday
    • The EIA reported a draw of (-) 3,522 MBbls for the week ending April 2, well above the estimate of a (-) 1,638 MBbls draw
    • Gasoline and distillates inventories increased by (+) 4 MMBbls and (+) 1.5 MMBbls, respectively
  • Natural gas futures for May have continued to trade near $2.52 since mid-March
    • Weather so far this spring has been more moderate on average, resulting in lower than usual demand
    • LNG exports have remained one of the major bright spots lately. US LNG facilities have been consuming nearly 12 Bcf/d over the past 30 days as of April 7
  • Higher year-over-year Henry Hub prices have resulted in lower US gas-fired power burns (Platts)
    • Henry Hub cash prices have traded at an average of $2.65/MMBtu so far this year – after excluding February freeze outliers
    • Compared to 2020, Hub prices are up about 80c this year, or more than 43%, S&P data showed
    • This year’s higher gas prices are leading to about 10% more coal generation than the same period last year in MISO (Midcontinent Independent System Operator). Similar losses, but slightly less, have been observed in other electricity regions

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