Oil is trading higher, around $70.54, after briefly falling below $70
Yesterday, prices traded higher on news of heightening tensions in the Middle East before giving up gains
The US Dollar continues to trade higher, heading for a fourth consecutive daily gain
A stronger US Dollar can have a bearish effect on crude prices
Libyan oil field halted due to protest (BBG)
The largest oil field in Libya has halted production after protesters entered the facility
The field had been producing 270 MBbl/d prior to the shutdown
Libya’s total production in 2023 amounted to 1.2 MMBbl/d, with the country targeting 1.4 MMBbl/d of production by the end of 2024
Chinese commodity demand remains resilient despite manufacturing slump (BBG)
Economic indicators show a weakening in China’s manufacturing sector, with businesses cutting selling prices amid a downturn in orders
Despite this, commodity imports into China have remained strong
A London-based research group said it expects “a modest cyclical revival in China’s growth in the first half of 2024, which should be a factor supporting most commodity prices”
Natural gas prices trade higher ahead of expected late-January freeze
February ’24 Henry Hub gained 3.6c this morning to trade around $2.604/MMBtu
The Winter ‘23/’24 strip is up 3.3c to $2.508, and the Summer ’24 strip is up 2.5c to $2.645
The weather model shifted 7o F warmer for the Northeast, Southeast, and Rockies, with a continued but milder cold outlook for late January
Lower 48 gas production fell by 0.52 Bcf/d today due to a drop in the Northeast, particularly from Equitrans in Pennsylvania, reducing overall production to 102.47 Bcf/d (Criterion)
FERC inspects Golden Pass LNG, maintains 2H2024 timeline for Train 1 (Criterion)
The FERC inspected the Golden Pass LNG Terminal on Dec 19, with the first inspection after Exxon's revised first LNG in-service timeline to 1H2025
Despite Exxon's revised timeline, FERC maintains the original guidance for Train 1 phasing online in 2H2024, followed by Train 2 and 3, and the Pipeline Expansion Project before 2H2024
Recent filings indicate that the actual timing for Train 1 might edge towards 4Q2024 due to the intended commissioning of specific storage systems by Sept 27, 2024
MVP redesigns Southgate natural gas extension following new capacity agreements (NGI)
Mountain Valley Pipeline is modifying the Southgate natural gas extension, shortening its length, decreasing water crossings, and eliminating the need for a new compressor station
The redesigned Southgate project, now a 31-mile extension into Rockingham County, NC, using a 30-inch diameter pipe, replaces the original 75.1-mile plan with 24-inch and 16-inch pipeline
Despite the reduction in size, the redesigned extension's capacity agreements total 550,000 Dth/d, higher than the original 375,000 Dth/d, with a completion deadline extended by FERC to 2026
Russian pipeline gas exports to Europe fall by 56% in 2023 (Reuters)
Gazprom's natural gas supplies to Europe fell by 55.6% to 28.3 bcm in 2023, based on Reuters' calculations using Entsog and Gazprom data
Average daily pipeline exports of Russian gas to Europe fell to 77.6 mcm in 2023, compared to 174.8 mcm in 2022
The decline in Russian gas exports to Europe, previously the main export market, is attributed to political tensions from the Russia-Ukraine conflict
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