Oil is trading lower, around $76.50, despite an extension of OPEC+ supply cuts
Speculators' positioning in WTI futures decreased according to data through last Tuesday, falling by 39.2k contracts
The US crude oil rig count fell by one last week to 496 total rigs, now down 59 year-over-year
OPEC extends production cuts and sets a timetable for supply return (BBG)
On Sunday, an agreement was reached between OPEC+ countries on the future of its supply cut program, with 3.66 MMBbl/d of production remaining offline into 2025
However, some voluntary supply cuts will begin to be rolled back in October, earlier than many anticipated
It is expected that by January, about 750 MBbl/d will have been returned to the market from the eight countries participating in voluntary cuts
Saudi Arabia’s Energy Minister said, “We will maintain our precautious and preemptive approach”
JP Morgan said in a note that voluntary cuts should keep the market tight until September and potentially boost prices by as much as $10/Bbl before pressure on prices could build in 2025 as non-OPEC production grows and demand slows
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Natural gas prices surged by nearly 17c on Monday morning amid bullish weather forecast, lower production and signs of a narrowing storage surplus
July ’24 Henry Hub is up 17.2c this morning to trade around $2.759/MMBtu (As of 7:50 AM)
The Summer ’24 strip is up 15.4c to $2.797 and Winter ‘24/’25 strip is down 10.2c to $3.555
Today’s Euro Ensemble indicates generally warmer conditions in the upcoming 11-15 day period, and some of the warmest temperatures are expected in mid to late June (Criterion)
Vistra announces plans for 2,000 MW in added Texas gas generation (Reuters, Criterion)
Vistra Energy plans to develop 2,000 MW of natural gas power in West, Central, and North Texas
Includes 860 MW of advanced simple-cycle peaker plants in West Texas to support growing power needs and the state's oil and gas industry
Coleto Creek Power Plant in Goliad, TX, will be repowered for 600 MW of gas capacity after its coal unit retires in 2027
Existing gas plants will be upgraded to add >500 MW of summer capacity and 100 MW of winter capacity, with over half of this capacity online by Summer 2025
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