Oil is trading higher, near $85.70, extending gains from yesterday
WTI prices have risen to the highest level since October, as tight supply and stronger-than-expected demand continue to impact the market
OPEC+ keeps production cuts in place (BBG)
OPEC has decided to leave their policy unchanged at an online meeting of key panel members on Wednesday
The roughly 2 MMBbl/d supply cut will remain in place until at least the end of June, while the alliance may decide to extend the cuts through the end of the year
Despite the cuts tightening the market, Iraq and Kazakhstan have not implemented their agreed-upon output cuts
JPM and Standard Charter believe OPEC may relax its production cuts at the next meeting in June, while other forecasters believe an extension of the cuts to be more likely
US cancels latest SPR refill (BBG)
Due to the recent rise in oil prices, the DOE has canceled its recent bid for 3 MMBbls of oil for delivery to the SPR
The Biden administration has been targeting a price of $79/Bbl or lower to refill the SPR, although they spent an average of $81/Bbl in their latest purchase of 2.8 MMBbls last month
Natural gas prices trade modestly higher, anticipating a brief demand spike from late-season cold
May ’24 Henry Hub is up 1.1c this morning to trade around $1.873/MMBtu
The Summer ’24 strip is up 1.2c to $2.342 and Winter ‘24/’25 strip is down 0.6c to $3.419
Today's Euro Ensemble adjusted its regional forecasts, cooling only the Northeast and Midwest with minimal impact on the Lower 48's pattern, maintaining 10-year average temps starting next week
White House rejects tying Ukraine aid to reversing LNG export pause (Bloomberg)
Biden administration rejects House Speaker Mike Johnson's proposal to tie Ukraine aid to lifting the pause on new LNG export licenses
Johnson, speaking on Fox News Sunday, hinted at introducing a Ukraine aid bill incorporating the lift of the LNG export pause post-House spring recess, aligning with strategic interests against Russian aggression
Despite reports suggesting openness to revising the LNG export pause to facilitate Ukraine aid, the White House claims the reports are inaccurate, stressing the need to pass the Senate-approved bipartisan national security agreement
Summit Midstream initiates open season for Double E natural gas pipeline (PGJ)
Summit Midstream Partners has started a non-binding open season to gauge market interest in the Double E natural gas pipeline, which offers services from the Delaware Basin to the Waha hub
The Double E pipeline spans 135 miles and has the capacity to transport 386 MMcf/d of natural gas
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