Oil & Gas
Crude oil, natural gas, NGLs, LNG and refined products — the markets that move producer revenue.
Retail Diesel Prices Hit the Lowest Since February
Could falling demand and rising inventories be to blame for the sharp decline in diesel prices? December 14, 2022 - U.S. Retail diesel prices have been ...
· Rishi Rajanala2 min read
What is the Fallout of the EU-G7 Price Cap?
Updated December 9, 2022 What happened The G7 nations, along with the European Union, implemented a price cap of $60/Bbl on Russian crude on Monday, Dece...
· Rishi Rajanala3 min read
Houston Ship Channel Basis Has Been Weak; Will It Continue?
Houston Ship Channel (HSC) prompt-month has been under heavy selling pressure since mid-2022. Is the Freeport LNG 2 Bcf/d outage squarely to blame, or are other forces pushing HSC lower? Will HSC will longer-term headwinds as supply growth in Texas continues?
· Jay Stevens2 min read
US On Track To Export More LNG at Domestic Demand Peak
Freeport LNG is on track to resume exports in December, but it could be longer before the facility is consuming at its 2-Bcf/d demonstrated capacity rate. ...
· Nick Hillman3 min read
U.S. Refining Margins Hit an All-Time High
Refinery outages, high fuel demand, and low inventories are setting up a perfect storm for the refined products market ahead of winter.
· Rishi Rajanala3 min read
Natural Gas Supply-Demand Explainer
Gas inventories are a major (on some days, largest) source of supply in the winter. A storage deficit this year raises the risk of extremely high prices th...
· Christian Drolshagen5 min read
Are Weak Diesel Prices Hinting Economic Trouble?
CME New York Harbor diesel futures have plunged, possibly signaling a slowdown in fuel-powered industries, including trucking, farming, and rail Septemb...
· Rishi Rajanala2 min read
More Iran Supply Likely Soon? U.S., Iran negotiating JCPOA
The U.S., Europe, and Iran have been trying to reach a consensus to bring all parties back into accordance with the JCPOA since then U.S.-President Donald ...
· Rishi Rajanala2 min read
Natural Gas Is Losing Demand Fast
Natural gas has quickly lost the demand it gained during hot weather this summer. This new dynamic means the power market is desperate for gas as fuel on b...
· Jay Stevens3 min read
New Inflation Legislation Could Lead to Approval of Mountain Valley Pipeline
Inflation and political bargaining over new legislation may finally be what leads to the completion of the long-awaited Mountain Valley pipeline. &nbs...
· Christian Drolshagen4 min read
Costless Collars and Put-skew In The Oil Market
Option structures are useful tools to deploy in risk management. They provide more latitude for hedging than the more straightforward swap. Hedging with sw...
· Jay Stevens3 min read
Oil-Refining Crunch and There's No Fix in Sight
A potential supply crisis is on the horizon as fewer domestic refineries produce a greater portion of the country's refined products United States' ener...
· Rishi Rajanala3 min read
Federal Gasoline Tax Cuts Could be a Bullish Catalyst for Oil, Fuels Prices
Oil demand could move even higher if the lower retail gasoline prices encourage more transportation fuel demand. We are in the early innings of the...
· Nick Hillman3 min read
Lost LNG Demand Weighs On Houston Ship Channel Basis
The unplanned shutdown of Freeport LNG has put downward pressure on the Houston Ship Channel (HSC) basis. Supply that otherwise would have fed the 2 Bcf/d ...
· Jay Stevens1 min read
Freeport LNG outage update sends gas 16.5% lower
Natural gas prices found a floor, with the prompt now trading $1.10, or 16.5% lower at $7.21 after Freeport LNG provided an update on the expected duration...
· Rishi Rajanala1 min read
Producer Consuming Diesel? Hedge The Crack
Many oil and gas producers consume diesel in their daily operations. As diesel prices have hit new record highs, producers have paid more attention to this...
· Jay Stevens1 min read
Waha Winter Basis Rebounds; Midstreamers Expanding
May 23, 2022 - As shown in the chart below, the Waha basis for Winter ‘23/’24 was near -40c at the beginning of the year, and as of mid...
· Rishi Rajanala2 min read
Haynesville Basis Deteriorates; Production Rising?
Columbia Gulf Mainline, a major basis location in north-central Louisiana, has been moving lower, despite hot weather rolling into the South Central region...
· Matt Marshall3 min read
Gasoline and Diesel Prices Surge to Record-Highs; Is More Pain Ahead for Consumers?
Gasoline and diesel prices have surged to fresh record highs in recent weeks and have hurt companies exposed to floating price risk. Demand for petroleum products has been ticking higher lately, approaching pre-pandemic highs.
· Nick Hillman3 min read
Appalachian Gas to Remain Stymied as MVP Further Delayed
Equitrans Midstream revised the Mountain Valley Pipeline (MVP) project’s in-service to 2H 2023. The delay will effectively limit Appalachian natural ...
· Jay Stevens2 min read
3:2:1 Crack Spread Hits Record-High as U.S. Refining Capacity Shortage Worries Mount
The 3:2:1 crack spread has set several fresh new record-highs over the last several weeks as several parts of the country are facing product shortages that have sent gasoline and diesel prices to record levels.
· Nick Hillman2 min read
Haynesville-Area Basis Slides; Summer More Vulnerable
Prices across the so-called Haynesville play in northwestern Louisiana and northeastern Texas have been rising, but the basis discounts have expanded. ...
· Matt Marshall2 min read
Henry Hub Prices Soar; Gas Market is Under-Supplied, Lacks Inventories
Gas supplies for next winter will be dangerously low if demand does not catch up; it is out of balance with supply. The market is trying to balance price a...
· Nick Hillman5 min read
Headline Oil Prices Fall, But Curve Shifts Higher
Headline Oil Prices Fall, But Curve Shifts Higher Oil producers can now lock in a materially higher price strip than before Russia’s invasion of Ukr...
· Jay Stevens2 min read