Oil is trading lower, around $76, after trading as high as $79.29 yesterday
Yesterday, it was reported that the Biden administration will be reimposing sanctions on Venezuela in April after an opposition candidate was barred from running for election
China rolled out additional measures to soften lending requirements for its struggling real estate sector as the country continues to use stimulus measures to support its economy
Saudi Arabia asks Saudi Aramco to reduce maximum capacity target (Reuters)
The government of Saudi Arabia has requested that the state oil company halt its oil exploration plan and target a maximum production capacity of 12 MMBbl/d, 1 MMBbl/d lower than its target announced in 2020
According to a source with knowledge of the matter, the lower target is not a reflection of a change in view on oil demand or a result of a technical problem but simply a directive from the government
Saudi Arabia currently produces about 9 MMBbl/d
Another potential Trans Mountain Expansion delay (BBG)
Near-term prices of Canadian heavy crude weakened following news that the Trans Mountain expansion may face another delay, just week weeks before the line-fill process is slated to begin
The state-owned company said that a “technical issue” emerged during construction but did not elaborate on the cause or length of the delay
The pipeline will triple the amount of oil that can be shipped from Alberta to Vancouver and has suffered years of delays and cost overruns
Natural gas prices face downward pressure amid production recovery post-freeze-offs, Freeport LNG’s liquefaction train outage, and a mild weather outlook
March ’24 Henry Hub is up 3c this morning to trade around $2.084/MMBtu
The Summer ’24 strip is up 1.3c to $2.429, and the Winter ‘24/’25 strip is down 0.6c to $3.422
Today's Euro Ens shows a material war shift, with the Lower 48 gaining 19o F in the 1-15 day period, especially east of the Rockies, with a slight cool down expected next week
Lower 48 gas production saw a decline of 0.91 Bcf/d, mainly in Appalachia, the Rockies, and South Central, falling from a weekend high of 103.98 Bcf/d to 102.9 Bcf/d (Criterion)
European gas prices trade higher amid escalating geopolitical tensions (NGI)
European gas prices edge up amid Middle East tensions and U.S. LNG export uncertainties, risking supply via the Red Sea
March TTF contract sees marginal gains, with prices gaining 1% on Monday to $9/MMBtu as warm weather, ample storage, and strong renewable output capped European gas gains
Meanwhile, JKM futures fell last week and remained below $10/MMBtu as the Asian market is well-supplied
Beyond the longer-term risk, the Red Sea route, key for nearly 13% of Europe's LNG, sees limited market impact so far with a 2% drop in spot freight rates from Friday to Monday amid low demand and excess supply, according to Spark Commodities
New Fortress Energy cleared to transport LNG on non-Jones Act vessels (OGJ)
U.S. Customs and Border Protection ruled that LNG from the Altamira FLNG facility in Mexico can be transported by non-U.S. qualified vessels without violating the Jones Act
This decision allows LNG produced at Altamira to be sold and delivered to U.S. locations, including Puerto Rico, which is an important downstream market for New Fortress
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