February 14, 2020

February 14, 2020
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  • WTI is up 53c to $51.95/Bbl, and Brent is up 77c to $57.11/Bbl
  • Crude oil is on track for the first weekly gain in over a month as investors bet the economic impact of the coronavirus will be short-lived (Reuters)
    • The market is also hoping for more Chinese central bank stimulus to tackle any slowdown
    • The WHO also calmed investors by saying the big jump in China’s reported cases were because of a backlog reclassification of suspected cases, not an indication of a wider epidemic (Reuters)
  • Saudi Arabia and Kuwait will resume oil production from their shared fields this month, more than half a decade after a dispute halted supply (Bloomberg)
    • The Khafji field will start output by the end of February, while another field within the neutral zone resume shortly, according to Hashem Hashem, CEO of KPC
    • AEGIS notes that the neutral zone can produce 500 MBbl/d and will add to OPEC’s spare capacity capabilities
    • Saudi Arabia has said that they will work to reduce production elsewhere to offset new production from the neutral zone
  • Natural gas is down 0.6c to $1.820/MMBtu
  • The EIA reported a withdrawal of -115 Bcf, this was stronger than the -108 Bcf analysts were expecting
    • Despite the stronger-than-expected withdrawal, prices fell following the storage report
    • Total storage is now at 2.49 Tcf, a 215 Bcf surplus to the five-year average
    • End-of-season storage expectations remained at just under 1.9 Tcf
  • LNG feed gas demand fell 1.3 Bcf to total 6.9 Bcf, the lowest level since December 28
    • The majority of the reduction in flows stems from Cove Point, which does not appear to have any volumes to liquify
    • The drop in Cove Point flows is likely the reason why imports from Canada, in the Northeast, jumped another 1 Bcf to total 6.9 Bcf
    • This is the single largest amount of imports this winter
  • Cameron LNG placed their second 0.7 Bcf/d train into service
    • Cameron still expects to place its third train in 3Q2020

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