Oil is trading lower after falling more than $1 yesterday
WTI prompt time spreads posted their largest decline since October, as the front of the curve weakened yesterday
Russian oil processing rises following recovery from drone attack (BBG)
Earlier in the year, at least six refineries in Russia were targeted by Ukrainian drones, reducing Russia’s refining capacity
Almost all facilities hit by Ukrainian drone attacks are back online, but refinery throughput is still down by about 4% compared to December levels
Over the weekend, Russia pledged to cut oil output further, focusing on both oil production and export cuts
UBS says oil demand to peak this decade (BBG)
In a report, UBS said, “We expect global oil demand to peak at 106 MMBbl/d in 2029 and gradually decline over the course of the 2030s”
UBS expects this to be driven by a reduction in transportation fuel demand, with oil demand still relatively supported by petrochemical demand
Natural gas prices trade slightly as mild weather counters lower production
April ’24 Henry Hub is down 1.8c this morning to trade around $1.898/MMBtu
The Summer ’24 strip is down 0.3c to $2.404, and the Winter ‘24/’25 strip is up 0.1c to $3.468
Today's Euro Ens forecast confirmed yesterday's warmer trend, with gains in the Midwest/Northeast and slight increases in the Southeast/South Central, while the next two weeks will bring warmer nights and stable daytime highs
Lower 48 natural gas production rebounded slightly by 0.3 Bcf/d, reaching 100.6 Bcf/d, but fell to 99.74 Bcf/d this morning, the lowest level since August 2023, driven by declines in South Central and Rockies (Criterion)
Two LNG developers secure capacity on NGPL’s Texas-Louisiana expansion (S&P)
Two LNG developers secure capacity on NGPL’s Texas-Louisiana Expansion, subscribing to the remaining 130,000 Dt/d of firm capacity, indicating heightened demand from Gulf Coast LNG terminals
Kinder Morgan’s NGPL finalizes agreements with Golden Pass LNG for 80,000 Dt/d and Delfin Midstream for the remaining 50,000 Dt/d, aiming for a July 2026 in-service date for the project
The expansion project, targeting a July 2026 in-service date, will add 300,000 Dt/d of firm eastbound capacity on NGPL’s Louisiana line, utilizing existing unused capacity on the pipeline to offer a total of 467,000 Dt/d of new firm capacity
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