July 11, 2019

July 11, 2019
Share
Print Friendly, PDF & Email
  • WTI is up 16c to $60.59/Bbl, and Brent is up 4c to $67.05/Bbl
  • Iranian vessels were blocked from approaching a BP Plc oil tanker by the British Navy on Wednesday (Bloomberg)
    • The British Heritage, operated by BP, which can carry as much as 1 MMBbl, was attempting to pass through the Strait of Hormuz
    • “Three Iranian vessels attempted to impede it,” according to a UK government statement
    • The Royal Navy frigate HMS Montrose trained its guns on the Iranian ships trying to divert the tanker
    • AEGIS notes Iran had previously vowed to retaliate after British Royal Marines arrested the super tanker Grace 1 last week carrying Iranian oil headed for Syria
  • US oil producers cut about one-third of Gulf of Mexico crude output as one of the first major storms of the Atlantic hurricane season approaches
    • The drop of about 600 Bbl/d helped push WTI over 4% higher yesterday
  • US crude stocks fell by a whopping 9.5 MMBbl last week versus estimates of just under a 2 MMBbl draw
    • The drop in crude stocks marked a fourth straight week of withdrawals
  • Natural gas is up 2.7c to $2.471/MMBtu
  • Analyst estimates expect storage levels to build by 77 Bcf, which would be the lowest build in three months
    • Estimates range from 67 to 88 Bcf
    • An injection around analyst expectations would bring total storage to around 2.47 Tcf
  • As of June 10, 15 platforms and 4 rigs have been evacuated in the Gulf due to hurricane pressures
    • The result is 0.5 Bcf/d of gas and 603,000 b/d of oil being shut in
      • This accounts for 18% of gas and 32% of oil production in the Gulf of Mexico respectively
    • Cyclone disruption in the Gulf would be more of a demand shock than a supply shock for gas
  • Qatar Petroleum and Chevron Philips Chemical ink a deal to build the world’s largest ethylene cracker, 2 million mt/year
    • Startup of the facility is expected in 2024 with construction to begin in 2021
    • Chevron will own the majority stake at 51%

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