August 21, 2019

August 21, 2019
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  • WTI is up 56c to $56.69/Bbl, and Brent is up 95c to $60.98/Bbl
  • Crude oil is staying strong this morning after the API reported a larger than expected drop in US crude oil inventories yesterday afternoon
    • The API, which releases its inventory report the day before the EIA, reported a drop of 3.5 MMBbl in the week ended August 16
  • As the Permian basin continues to add takeaway capacity to the Gulf Coast, Lotus Midstream said it may reverse its Centurion pipeline that travels from the Permian basin to Cushing, OK
    • Sending oil back south on Centurion would send oil on a circuitous route from Cushing to West Texas and then through new pipelines into the Gulf Coast (Bloomberg)
    • Centurion used to be owned by Oxy until it was sold to Lotus Midstream in August of 2018
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  –    1,329 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:              –       150 MBbls
    • U.S. Distillate Inventories:             –         34 MBbls
    • U.S. Refinery Utilization:               +     0.05% change
  • Natural gas is down 1.1c to $2.207/MMBtu
  • LNG feed gas has recovered back to roughly 6.3 Bcf/d after spending the better part of the month hovering around 4.0 Bcf/d
    • This recovery has largely been driven by Cheniere’s Sabine Pass starting to wrap up routine maintenance that began at the beginning of the month
      • Cameron and Freeport Train 1 is also begun commercial operation this week
  • Commonwealth LNG has filed with FERC for a certificate of public convenience
    • The company expects a decision from FERC by 1Q2021 in order to be commercially operational by 1Q2024
      • A final investment decision will be made in 1Q2021
    • The facility is planned to have the ability to export roughly 1.1 Bcf/d upon completion
    • Commonwealth’s proposed project is one of ten currently pending application to FERC with another five projects in the pre-filing process
      • The capacity of proposed and pending projects equates to almost 23 Bcf/d

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