WTI prices are up more than $5 from this week’s low and more than $3 from last week's close
Citi updated their Brent crude forecast, calling for prices to rise to the low-mid $80s, driven by tight supply-demand balances, geopolitical risk, and speculator positioning
US calls for new ceasefire talks between Israel and Hamas (BBG)
The US, Qatar, and Egypt are calling for additional rounds of ceasefire talks on August 15 as they attempt to deescalate tensions in the Middle East
US officials say a deal is now closer than ever, despite the recent killing of a top Hamas official by Israel
Israel is continuing to prepare for a potential attack by Iran
A ceasefire could have a bearish impact on crude prices, as the risks of a wider war have supported oil over the past few months
Russia exceeds OPEC+ target by 67 MBbl/d in July (Bloomberg)
Russia's crude oil production in July was 67 MBbl/d above its OPEC+ target due to one-off supply scheduling issues, said Russian Energy Ministry in a statement
The country plans to improve compliance in August and September, with compensatory cuts scheduled for October, November, and from March through September 2025
Despite the overproduction, Russia reiterated its commitment to the OPEC+ agreement and called on other member nations to adhere to their compensation plans
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Gas heads for a 20c, or 11% weekly gain driven by lighter-than-average storage build continuing to shrink the supply surplus
Prompt gas was 4.5c higher to $2.172/MMBtu (As of 7:58 AM)
Winter ‘24/’25 strip is up 2.6c to $3.240 and the Summer ’25 strip is up 2.5c to $3.188
Yesterday, the EIA reported a 21 Bcf injection into storage for the week ended Aug 2, bringing total inventories to 3,270 Bcf, which is 248 Bcf above the year-earlier level and 424 Bcf over the five-year average
Today’s European Ensemble shows a significant cooling trend across the Lower 48, particularly in the Northeast and Midwest, with temps expected to remain below normal (Criterion)
Energy Transfer targets 2H 2024 FID on Warrior Pipeline, expands Permian processing (S&P Global)
Energy Transfer is working towards an FID on the 1.5 Bcf/d Warrior Pipeline by 2H 2024, with no impact from the recent FID on Blackcomb Pipeline, said Co-CEO McRea on the 2Q earnings call
Energy Transfer is also upgrading four processing plants in the Permian Basin to add 200 MMcf/d in capacity, with completion expected between 4Q 2024 and 1Q 2025
The company is relocating an idled 200 MMcf/d processing plant to the Delaware Basin, aiming to have the Badger Plant operational by mid-2025
Additionally, Energy Transfer closed on the acquisition of West Texas Gas, adding eight processing plants with 1.3 Bcf/d capacity, and the newly online 200 MMcf/d Red Lake 3 Processing Plant
Cheniere energizes Corpus Christi Stage 3 Train 1, targets first gas in two months (Criterion)
Cheniere's Corpus Christi LNG Stage 3 is 62.4% complete as of June 30, with Train 1 liquefaction and utility substations energized and first gas flows expected in about two months
The seven-train, 10 Mtpa Stage 3 expansion aims for substantial completion between 1H25 and 2H26, with full ramp-up by year-end 2025
Cheniere received a positive Environmental Assessment for CCL Midscale Trains 8-9 in June, with an FID planned for 2025; the Sabine Pass LNG Expansion FID is expected in 2026
The Sabine Pass expansion includes two large-scale LNG trains, a 0.9 Mtpa boil-off gas reliquefication unit, and a 2.7 Bcf/d Sabine Crossing Pipeline to enhance gas flow capacity
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