February 8, 2021

February 8, 2021
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  • Crude oil in floating storage fell by 22% last week, according to Bloomberg
    • Crude in floating storage fell from 113.3 MMBbls to 88.7 MMBbls during the week ending February 5
    • Inventories saw the largest decrease in the Asia Pacific, with inventories falling by 21 % week-over-week to 67.5 MMBbls
  • Iran President Khamenei says U.S. must make the first move on Iran Nuclear Deal ~ JCPOA (Bloomberg)
    • In an interview on “Fareed Zakaria GPS”, Iranian Foreign Minister Javad Zarif said his country expects the U.S. to return to full compliance to the deal, and to “break with failed policies of President Trump”
    • President Biden has said that he would not lift sanctions until Iran stops enriching Uranium, or to reduce enrichment activity to within the accord limits
  • Polar vortex causes a price surge across the U.S.
    • Prices spiked as a major cold weather formation is expected to increase heating demand significantly, along with accompanying production freeze offs.
    • Algonquin city-gates jumped $4.05 to settle to $11.47/MMBtu, while Iroquois Zone 2 rose $2.93 to settle to $9.91/MMBtu for Feb. 6-8 flows (Platts)
    • Despite the price increases, production in Appalachia is down roughly 2%, owing largely to freeze-offs, as temperatures have been below freezing in the area and are likely to remain there (Platts)
  • Weather runs remained consistent over the weekend with February 2021 projected to be the eighth coldest February of all time, according to the Commodity Weather Group
    • The prompt-month natural gas contract is up ~$0.34/MMBtu since last Sunday with a last print of 2.91/MMBtu
    • The Summer ‘21 and Winter ’21/’22 strips have also seen some improvement printing $2.95/MMBtu and $3.10/MMBtu, respectively

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