August 19, 2019

August 19, 2019
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  • WTI is up $1.01 to $55.88/Bbl, and Brent is up 87c to $59.51/Bbl
  • Yemeni separatists attacked a Saudi oil facility on Saturday August 17
    • The attack likely buoyed crude oil this morning despite oil production not being affected, according to Saudi Aramco
    • The drone attack from Yemen’s Houthi group caused a fire at a Saudi gas plant in eastern Saudi Arabia
  • The US oil-directed rig count rose by six to 770 last week, according to Baker Hughes
    • Prior to last week’s increase, oil rigs had also declined for six week to their lowest since January 2018
    • Including gas plays, drilled but uncompleted wells (DUC) fell 100 in July to 8,108, a fifth consecutive month
  • OPEC published its monthly oil market report on Friday reporting that it produced 29.61 MMBbl/d of crude in July, down 8.2% from June
    • Saudi Arabia is producing at the lowest level in five years at 9.7 MMBbl/d
    • OPEC’s report painted a somewhat bearish picture for the rest of the year, given softening economic growth
  • Natural gas is down 4.3c to $2.157/MMBtu
  • Enbridge announced that they are planning to bring two of three pipelines back online by early September
    • The resumption of commercial activity will bring back 800 MMcf/d of capacity on TETCO Line 25 and Line 10
  • PointLogic reports that Kinder Morgan’s Gulf Coast Express (GCX) is starting to receive 400 MMcf/d of flows into its line
    • Flows are most likely associated with line packing and could signal an earlier than anticipated startup date
    • GCX is a 2 Bcf/d pipeline and will run from the Permian to the Agua Dulce Hub in south Texas
  • The back half of August is forecast to cool off much of the Midwest and East Coast
    • The heat wave gripping Texas will also begin to dissipate by the end of the month
    • Hot temperatures should remain present in the western portion of the United States

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