Oil is trading slightly higher, at $73.52, reversing some of yesterday's losses (as of 8:24 AM)
The EIA will release its weekly crude inventory report today, with the API forecasting a build of 4.1 MMBbls
Speculators amplify crude selloff (BBG)
Oil traders using trend-following algorithms may have compounded a selloff in oil this week following the OPEC meeting on Sunday
Brent falling below $80/Bbl prompted many technical traders to sell futures, with the managed money group of participants flipping to a net short position in ICE Brent, according to data from Bridgeton Research Group
An energy specialist at TP ICAP Group said, “CTAs are just hammering away the market with massive selling seen yesterday”
OPEC supply move spooks physical traders (BBG)
Physical oil traders have said that OPEC's view that the market will tighten from higher demand has yet to materialize
Diesel refining margins in Asia remain weak, posing a bearish risk for crude prices if refiners cut throughput rates
Several cargoes of North Sea crude are still flowing off the coast of the UK due to lackluster buying in Asia and Europe
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Natural gas futures trade higher after yesterday’s pullback, buoyed by summer heat and strong LNG demand, though the storage surplus continues to weigh on prices
July ’24 Henry Hub is up 3.6c this morning to trade around $2.720/MMBtu (As of 7:46 AM)
The Summer ’24 strip is up 6.2c to $2.731 and Winter ‘24/’25 strip is up 4.3c to $3.500
Today’s Euro Ensemble for the Lower 48 shifted warmer by +7 degrees, with notable gains of +29 and +16 degrees in the Midwest and Northeast, respectively, especially in the 11-15 day period (Criterion)
Delfin LNG permit expiration paused as federal agencies review project (NGI)
DOE temporarily maintains Delfin LNG’s authorization for global natural gas exports, pausing expiration while reviewing extension request
Delfin requested an extension to place the first phase of the project in service by June 1, 2029, citing impacts from the Covid-19 pandemic and global conflicts
The project aims to produce over 13 MMty from four FLNG units, pending final licensing from MARAD
Delfin secured potential agreements to supply 5.6 MMty, contingent on receiving MARAD’s license and further environmental review
ANR ends Eunice southbound force majeure; capacity lifted to 850 MMcf/d (Criterion)
ANR is lifting the capacity restrictions that have impacted Eunice Southbound since June 2, effective immediately
Completion of planned maintenance allows operational capacity to rise to 850 MMcf/d for June 5-6
Previous force majeure restrictions limited capacity to 350 MMcf/d through June 11
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