Oil is trading higher today and heading for a weekly gain of more than $2
Lebanon’s Hezbollah says the group will escalate attacks against Israel after recent Israeli strikes on the group (BBG)
Yesterday, the DOE announced the purchase of additional crude for the SPR, buying 2.95 MMBbls and bringing the total purchased amount to more than 23 MMBbls since the repurchase began
Russia close to full compliance with pledged production cut (BBG)
According to Bloomberg’s calculations, Russia is close to reaching its output cut of 500 MBbl/d below February 2023 levels
Russian production is lower by about 490 MBbl/d
On top of the production cuts, Russia will be reducing its crude and product exports as well
The timeline for the cuts has been extended several times; they are currently in place through the end of 2024
Natural gas prices are set to post their third straight weekly loss amid concerns of strong supply and a warmer weather outlook
March ’24 Henry Hub is up 1.6c this morning to trade around $1.597/MMBtu
The Summer ’24 strip is up 0.6c to $2.055, and the Winter ‘24/’25 strip is down 2.5c to $3.167
Today's Euro Ens shows a colder Midwest offset by warmer conditions in other regions, indicating a warm-up from late February to early March
Lower 48 natural gas production rose to 104.65 Bcf/d after a late-cycle gain yesterday and averaged at 104.44 Bcf/d for the week of 2/16, down 0.2 Bcf/d from last week (Criterion)
Tellurian secures three-year extension for Driftwood LNG construction (PGJ)
Tellurian has been granted a three-year extension to complete its Driftwood LNG export plant construction
The company is focused on financing and building a 27.6 MTPA LNG terminal, with efforts to sell its natural gas production operations to fund the project
The permit extension by the FERC allows for construction completion until April 2029, with an existing permit to export gas to non-free trade agreement countries
US House passes bill to reverse Biden's freeze on new LNG export approvals (Bloomberg)
Yesterday, the US House of Representatives voted to pass legislation effectively undoing the Biden administration's freeze on new LNG export approvals
The proposed bill mandates the FERC to approve LNG-export permits, shifting this responsibility from the DOE
However, the legislation is expected to encounter opposition in the Democratic-controlled Senate
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