August 22, 2019

August 22, 2019
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  • WTI is up 64c to $56.32/Bbl, and Brent is up 46c to $60.76/Bbl
  • The crude oil inventory report underwhelmed on Wednesday as the EIA reported a 2.7 MMBbl drop in oil stocks
      • This was slightly smaller than what many analysts were expecting
    • Despite the large draw at Cushing of 2.5 MMBbl, prices continued to fall throughout the day and into the close yesterday
    • PADD 3 on the Gulf Coast, which is the largest government PADD, had a net build of 690 MMBbl despite the increase in refinery rates
  • The Magellan East Houston (MEH) – WTI premium hit $2/Bbl on Wednesday, the smallest spread since late July of last year (Bloomberg)
    • New crude pipelines from the Permian are targeting the Gulf Coast and are sending additional supply into the Corpus Christi and greater Gulf Coast area
  • Equity markets will be focused on Jackson Hole on Friday and this weekend as Federal Reserve Chairman Jerome Powell will be laying out the central bank’s plan
    • Mr. Powell will be building a consensus among other Federal Reserve members for the next move pertaining to interest rates, which could come at the Fed’s Sept. 17-18 meeting (WSJ)
  • Natural gas is down 0.1c to $2.169/MMBtu
  • Analysts predict a 61 Bcf build for the week ended August 16, this would be 10 Bcf above the five-year average
    • Estimates ranged from 54 Bcf to 65 Bcf
    • A build within expectations would bring total storage to approximately 2.8 Tcf
  • Tellurian has an anticipated startup date of 2H2023 for their monster 4.0 Bcf/d liquefaction facility
    • In conjuncture with this facility, Tellurian is attempting to speed up the development of its 2.3 Bcf/d Permian Global Access Pipeline by seeking an earlier review of their project
      • Commercial operation is planned for 2H2023 or 1H2024
    • Should this pipeline reach FID, this would be the fourth 2.0+ Bcf/d pipe stemming from the Permian
  • Cheniere appears to have officially completed maintenance on Trains 3 & 4 as gas flows returned to pre-maintenance levels, according to Platts
    • This news comes as feed gas levels, across the board, have rallied up from roughly 4.0 Bcf/d to 6.0 Bcf/d

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