- WTI is down 25c to $54.25/Bbl, and Brent is down 38c to $58.15/Bbl
- President Trump said planned talks with China next month could be called off
- Threats to cancel negotiations followed the IMF’s report on Friday that warned of downside risks to the Chinese economy if the US/China trade war escalates (Bloomberg)
- The US oil-directed rig count fell by six to 764, the sixth straight week of declines
- Active rigs are at their lowest since January 2018
- By state, Alaska lost the most, at four, with Louisiana and Oklahoma both lost two each
- Money managers increased their net-long positions on WTI by 5.4% for the week ended Aug. 6
- The timing allowed hedge funds to participate in last weeks late rally of 6.7% on the backs of news that Saudi Arabia was mulling measures to ease the price decline
- Natural gas is up 0.2c to $2.121/MMBtu
- Summit Midstream updated investors on their 1.35 Bcf/d Double E pipeline, which is being developed in tandem with Exxon Mobil
- Summit stated they have secured a substantial majority of commitments and expect a service date of 3Q2021
- The Double E pipeline will deliver gas from the Delaware Basin down to the Waha Hub
- The initial forecasted cool wave that was developing in August is beginning to reverse
- The 6-10- and 11-15-day forecast have warmer weather developing across the majority of the US
- Hotter temperatures will be primarily concentrated on the east coast and in Texas
- However, the price effects of emerging summer heat may be capped as we near the start of the shoulder months
- The 6-10- and 11-15-day forecast have warmer weather developing across the majority of the US
- LNG feed gas is slowly starting to recover after dipping as low as 3.78 Bcf last week
- Current estimates have feed gas at 4.74 Bcf
- This is still well-off last month’s highs of 6.0+ Bcf
