August 26, 2019

August 26, 2019
Print Friendly, PDF & Email
  • WTI is up 63c to $54.80/Bbl, and Brent is up 49c to $59.83/Bbl
  • Oil edged higher this morning after President Trump said China wanted to restart trade talks
    • This helped calm nerves after China announced late last week a 5% tariff on purchases of American crude oil
    • AEGIS notes Trump’s position on China may be weakening as the on going trade war has caused pain back at home
  • US drillers idled 16 oil-directed rigs last week, according to Baker Hughes
    • The Permian basin led most of the decline, dropping seven to now total 434
    • Percentage wise, the DJ-Niobrara dropped the most at five rigs to settle at 25
  • Nebraska’s high court affirmed a route across the state for the 830 MBbl/d Keystone XL crude pipeline
    • TC Energy, formerly TransCanada, said the Supreme Court’s decision is another important step toward completing the long-delayed $8 billion dollar project
    • The Keystone pipeline is still likely to face opposition, especially from Democratic candidates during this election cycle
  • Natural gas is up 3.1c to $2.183/MMBtu
  • Mexico’s President Obrador is said to have reached a preliminary agreement with four private pipeline companies amidst an ongoing arbitration dispute
    • If approved, the 2.6 Bcf/d Sur de Texas (SDT) pipeline could finally begin commercial operations
      • The SDT would be able to increase Mexico’s gas capacity by 40%
  • TETCO Line 25 has an anticipated startup date of August 26th and can return approximately 800 MMcf/d once running
    • Line 10 has an anticipated startup date for the first week of September
    • Line 15, the original source of the incident, continues to see flows remain at zero
  • Despite total rig count dropping by 19, the most since April, gas production set a new record at 92.2 Bcf/d (PointLogic)
    • Growth is still primarily being driven by the Appalachia and Texas
      • As the Gulf Coast Express continues to take additional flows, there is potential to see further production records going forward – especially if the Appalachia continues pace

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More