January 27, 2020

January 27, 2020
Print Friendly, PDF & Email
  • WTI is down $1.66 to $52.53/Bbl, and Brent is down $1.82 to $58.87/Bbl
  • Oil prices are down by about 3% in early Monday trading as the spread of the coronavirus in China raises concerns about the global economy
    • Officials in China announced nearly 3,000 confirmed cases of pneumonia caused by the virus (S&P)
    • There are almost 6,000 confirmed cases with 80 dead, according to China’s state-run Xinhua News Agency
    • The spread of the virus causes limited travel and businesses to shut down, increasing expectations of slowing oil demand
  • Saudi Arabia said it is “closely monitoring” the impact of China’s viral outbreak in the oil market, but believes the crisis will have a “very limited impact” on global demand (Bloomberg)
    • The Saudi Energy Minister Prince Abdulaziz bin Salman Al-Saud said markets are being “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite very limited impact on global oil markets”
    • The Prince also said that OPEC+ “has the capability and flexibility needed to respond to any developments…”
  • Drilling rigs targeting oil in the U.S. rose by three to 676 last week, the highest in a month, according to Baker Hughes
    • The Permian added the most of the shale plays at two to now total 405
  • Natural gas is up 6.3c to $1.956/MMBtu
  • The CFTC reported that managed money short positions advanced by 41,089 contracts to total 467,299, a fresh record-high of shorts
    • Managed money long positions also increased by 14,674 contracts to total 169,755 contracts
  • The Magnolia LNG project received its final environmental impact statement to increase its planned capacity from 1 Bcf/d to 1.2 Bcf/d
    • FERC plans to issue a certificate decision for the facility by April 23, 2020
    • The company continues to market the project as it wants to sign up 100% of capacity under long-term contracts before it commits to a Final Investment Decision
  • Cameron LNG has applied for a six-year in-service extension for its planned two-train expansion project
    • A Final Investment Decision on the expansion project is currently planned for mid-2021
    • The project will increase Cameron LNG’s export capacity to approximately 3.25 Bcf/d

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More