- WTI is down 24c to $54.99/Bbl, and Brent is down 84c to $58.64/Bbl
- Growing fears of a recession resulted in risk-off asset selling and a flight to safety on Wednesday
- Weak economic data, an inversion of a key part of the Treasury yield curve, and an unexpected build crude inventories all contributed to oil’s sell-off
- The Dow Jones Industrial fell 800 points on Wednesday in the worst day on Wall Street this year
- WTI fell over 3% yesterday
- The EIA surprised analyst estimates on Wednesday by reporting a 1.6 MMBbl build
- Most analysts were expecting a draw in crude stocks
- Stocks at Cushing, however, fell by 2.5 MMBbl to 44.8 MMBbl in a sixth straight week of declines
- Cushing’s decline was offset by a large build in PADD 5 on the West Coast and a build on the Gulf Coast in PADD 3
- Enterprise Products Partners said they will build a new Permian to Gulf Coast crude line
- The new line, called the Midland-to-Echo expansion, is expected to be in service in the third quarter of 2020, according to Enterprise
- The company already operates a 620 MBbl/d Midland-to-Echo crude pipeline which went into service in 2Q ‘18
- Natural gas is up 3.1c to $2.174/MMBtu
- Analysts, on average, expect a 54 Bcf build in storage for the week ending August 9
- Expectations range from 47 Bcf to 62 Bcf
- Assuming the injection is within expectations, total storage should increase to roughly 2.75 Tcf
- Summit Midstream’s Double E Pipeline has filed for its certificate of public convenience with FERC
- The 1.4 Bcf/d project is planned to run from southeastern New Mexico into the Waha Hub
- According to Summit’s interim CEO, the pipeline has allegedly secured a majority of the commitments needed to move forward with construction
- XTO has signed on as a shipper and will provide 500 MMcf/d
- The project has an anticipated in-service date of 3Q2021
- A second empty LNG tanker appears to be heading towards Freeport LNG’s export facility, according to S&P Global
- Another empty LNG tanker was reported heading to Freeport, TX earlier this week
- Freeport’s Train 1 was anticipated to commence commercial operations this month
