Oil is trading higher, around $78.30, heading for a modest weekly loss (As of 7:58 AM)
Yesterday, the EIA reported a 4.2 MMBbl draw from US inventories, putting total stocks about 4% below the five-year average
Prompt ICE Brent has weakened into contango for the first time since January
OPEC+ working on supply policy that may extend into 2025 (BBG)
OPEC is currently in informal talks aimed at finalizing their supply policy this weekend, according to OPEC delegates
The next meeting is slated for this Sunday, with Saudi Arabia and its partners discussing whether to extend the roughly 2 MMBbl/d production cut into the second half of the year
In addition to the official OPEC cuts, eight members have been reducing supply in voluntary production cuts
Discussions about output levels in 2025 are complicated by an external review of OPEC member's production capacity, due at the end of June
Kazakhstan and the UAE may have the ability to produce more next year
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Natural gas prices trade lower amid signs of returning production volumes and looming storage surplus (As of 7:58 AM)
July ’24 Henry Hub is down 3c this morning to trade around $2.542/MMBtu
The Summer ’24 strip is down 1.5c to $2.633 and Winter ‘24/’25 strip is down 0.3c to $3.441
Today’s Euro Ensemble indicates slight cooling in the Northeast, Midwest, and Southeast, with stable overall conditions and an expected mid-week heat peak to boost power demand (Criterion)
LNG peak storage projects gain ground in several states, not just from gas utilities (S&P Global)
Several states are developing LNG peak storage projects, driven by natural and electric utilities to secure gas supplies while facing state and federal regulatory processes
Dominion Energy is developing a facility in Virginia with a 2 Bcf storage capacity, aiming for service in 2027. Meanwhile, Eastern Shore Natural Gas is seeking approval for a 475,000-gallon LNG storage project in Maryland, targeting Q3 2025
The $100 million NEC facility in Charlton, Massachusetts, began service in Q1 2024, reducing reliance on imported LNG with 2 Bcf storage capacity
Additionally, We Energies in Wisconsin filed an application for a new 2 Bcf LNG storage facility in Oak Creek, while New Mexico Gas had its 1 Bcf project rejected by state regulators
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