July 1, 2019

July 1, 2019
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  • WTI is up $1.50 to $59.97/Bbl, and Brent is up $1.57 to $66.31/Bbl
  • Oil is higher this morning as OPEC meets in Vienna today to discuss its current oil cut policy
    • Over the weekend Russian President Vladimir Putin said that they had agreed with Saudi Arabia to extend cuts by at least six months
    • The Saudi Energy Minister said the deal would most likely be extended by nine months
      • The Energy Minister also said no deeper supply reductions were needed
  • Hedge funds cut their combined bullish bets on WTI prices to the lost in six years for the week ended June 25
    • It’s possible funds downsized their positions before this weekend as Trump was meeting with Xi Jinping and OPEC meets on Monday
  • Plains All American’s Cactus 2 crude pipeline will be ready to move crude in August, according to a FERC filing
    • The 670 MBbl/d pipeline will transport crude oil from the Permian basin to Corpus Christi, Texas
  • Natural gas is down 4.9c to $2.259/MMBtu
  • Higher temperatures are continuing to be forecast for both the east and west coast for the month of July
    • The shift into more typical summer weather is set to deliver near record power burn levels for the year
    • The fundamentals should hopefully provide the necessary support to begin rallying prompt month gas prices out of their current bearish position
  • US LNG feedgas has set another record high at 6.3 Bcf/d of demand
    • This trend is continuing as LNG has been the saving grace for natural gas prices as the first wave of LNG projects all become operational
  • Pieridae energy, the project sponsor for the Goldboro LNG project, has made the necessary infrastructure acquisitions to support the proposed project
    • The acquisition bodes well for a positive FID statement which is expected to be determined in 2H2019 or 1H2020
    • Each train would have 800 MMcf/d of capacity

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