Oil prices edged higher Tuesday morning by 43c to $58.75/Bbl (7:43 AM) as oil traders continue to digest the fallout from Venezuela
President Trump suggested the US may subsidize efforts by energy companies to help revamp Venezuela’s oil industry (Bloomberg)
In an interview with NBC news, Trump said the effort to have US oil industry companies “up and running” in Venezuela could be less than 18 months
Many energy experts would likely disagree with the short timeline of 18 months
The president also said he expected energy flows from the South American country helping to “reduce oil prices”
Leading up to Maduro’s capture, hedge funds layered on bullish bets (BBG)
Money mangers boosted bullish bets on WTI the most since November last week
“Smart money” were likely positioning ahead of some type of action that looked to be building in Venezuela with the US ratcheting up actions in the country
Net-long positions on WTI by 2,045 lots to 19,711 lots I the week ended Dec. 30 (CFTC)
AEGIS notes that money managers’ net length remains at very low levels. In fact, this category of traders has at times shifted to a net-short position over the past several months, reflecting a persistently bearish oil fundamental backdrop
Natural gas trades lower for another day as demand losses continue
The February contract is down about 13c this morning, after falling 10c yesterday (8:20 AM)
Lower-48 weather forecasts shifted warmer again, with temperatures expected to be mostly above the ten-year average for the next two weeks, and this week being particularly warm
Dry gas production remains down from recent highs, with output at 108.5 Bcf/d this morning, compared to highs of about 109.5 Bcf/d, according to data from S&P
Clearer timeline for US LNG projects in 2026 (NGI)
Several new projects should start up in 2026, with all of the Corpus Christi Stage Three trains and the first trains at Golden Pass entering service
Cheniere Energy recently said the three remaining trains at Corpus Christi Stage three should be online this spring, summer, and fall
By the end of 2026, Lower-48 LNG feedgas demand should rise to more than 22 Bcf/d, compared to current levels of about 19-20 Bcf/d
Get market insights delivered to your Inbox every day!
