July 10, 2020

July 10, 2020
Share
Print Friendly, PDF & Email
  • WTI is down 53c to $39.09/Bbl, and Brent is down 44c to $41.91/Bbl
  • Oil futures are down as the International Energy Agency (IEA) said the spike in Covid-19 cases could derail the market recovery
    • California and Texas have recorded a recorded a record surge in virus cases recently
    • The potential restart on crude exports in Libya is also weighing on price
  • The IEA boosted its outlook for global oil demand in its latest monthly report, but warned that the recovery could be derailed by the resurgence of the coronavirus (Bloomberg)
    • The agency estimated fuel consumption during the second quarter was slightly less severe than previously estimated, and demand should rebound sharply over the next three months, according to the report
    • However, the flare-up of the virus is “casting a shadow over the outlook”, the IEA cautioned
  • Libya’s National Oil Corp. (NOC) lifted force majeure that will allow crude exports from all of the country’s ports (Bloomberg)
    • The NOC says technical issues will keep output at low levels
    • The Kriti Bastion tanker has started loading 730 MBbl of crude at Es Sider, according to port operator Waha Oil Co.
    • Es Sider was one of the terminals shut down since January due to military strife’s. The conflict has slashed production to just 90 MBbl/d from 1.2 MMBbl/d before the blockade in January
  • Natural gas is down 0.2c to $1.777/MMBtu
  • Gas-fired power generation is expected to reach record-highs by mid-July (Platts)
    • Historically low gas prices, coupled with blistering heat forecast for July have helped buoy gas demand for power generation
    • Data from Platts shows demand from US generators topping its previous record high at 45.4 Bcf/d, and potentially rising to over 47 Bcf/d over the next two weeks
    • AEGIS notes this increase demand in gas for power-generation comes at an opportune time, helping to offset some gas demand losses from LNG and the industrial sector
  • On Thursday, the EIA announced an injection of 56-Bcf for the week ending July 3, 2020
    • This injection was below both the 65-Bcf build reported a week earlier and the 83-Bcf build during the corresponding week in 2019
    • Storage now stands 28%, or 685-Bcf above last year’s level of 2.448 Tcf

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