July 14, 2020

July 14, 2020
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  • WTI is down 59c to $39.51/Bbl, and Brent is down 50c to $42.22/Bbl
  • Oil futures in the U.S. dipped in early morning trading as the easing of virus induced lockdowns slows
    • California,  one of the largest gasoline consuming states in America, announced on Monday that it would pull back on reopening efforts (Bloomberg)
    • Hong Kong imposed its strictest social distancing measures so far and Japan said if injections rise it would declare a new state of emergency
    • Resuming lockdowns and tighter social distancing policies would slow the recovery of demand
  • OPEC expects demand for its crude oil to rebound sharply next year
    • The cartel forecasts the need for its crude will increase 25% in 2021 to average 29.8 MMBbl/d, higher than the level in 2019, according to a monthly report (OPEC)
    • OPEC, plus its allies, are expected to announced on Wednesday that it will phase out some of its oil cuts from next month
  • Natural gas is down 1.1c to $1.728/MMBtu
  • Columbia gas lifts force Majeure on Mountaineer Xpress Pipeline (Reuters)
    • Pipeline data showed U.S. production rose to 88.2 Bcf/d on Sunday, up from a low of 87 Bcf/d last week due mostly to the Mountaineer shutdown
    • Columbia Gas Transmission, which operates Mountaineer Xpress, says it returned the 2.6 Bcf/d pipeline to service over the weekend
  • Despite the loss of 10 Cooling Degree Days (CDDs) from weather models yesterday, the second half of July is still forecasted to come in as the hottest on record
    • The Balance of Summer strip lost approximately $0.08/MMBtu and is currently trending lower in the front
    • Additionally, the Oct20-Jan21 spread has widened back out to nearly 0.99/MMBtu representing a change of nearly 0.20/MMBtu over the last week

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