- WTI is up $1.18 to $51.12/Bbl, and Brent is up $1.52 to $55.53/Bbl
- Oil and equity prices are higher this morning as China reported its lowest daily number of new Covid-19 cases since late January
- Experts are still cautious about forecasting when the outbreak might reach a peak (Reuters)
- The U.S. Energy Information Administration (EIA) on Tuesday cut its global oil demand growth forecast for 2020 by 310 MBbl/d as the viral outbreak dampens oil consumption in China
- OPEC cut its forecast for global oil demand as Covid-19 hits fuel demand in China (Bloomberg)
- The group reduced projections for demand growth 1Q by 440 MBbl/d, or about a third, in its monthly report
- OPEC leaders have suggested that OPEC+ further reduce supply by 600 MBbl/d, but still await Russia’s response
- EIA weekly data is due at 9:30 AM CST
- U.S. Crude Inventories: + 3,245 MBbls (Bloomberg surveys)
- U.S. Gasoline Inventories: + 635 MBbls
- U.S. Distillate Inventories: – 675 MBbls
- U.S. Refinery Utilization: – 0.28% change
- Natural gas is up 3.7c to $1.825/MMBtu
- Gas demand from China is expected to grow by roughly 4% to 6%, in 2020, as industrial and commercial sectors continue to bear the brunt of the coronavirus’ impact (Reuters)
- Chinese gas demand growth, for 2019, is estimated to come in closer to 10%
- Industrial activity in mainland China could be depressed for the next several months following the outbreak
- Cameron confirmed that the reduction in LNG feed gas flows were related to commissioning activity on their second train
- Maintenance on the Creole Trail gathering system/Gillis Compressor Station, which serves the Sabine Pass, could also be contributing to cash prices remaining flat at NGPL TxOK
- LNG feed gas demand remains reduced at 8.3 Bcf and should see continued reduction for the next week or so
