- WTI is down 72c to $58.37/Bbl, and Brent is down 64c to $64.42/Bbl
- OPEC+ agreed to a maintain production quotas for another nine months
- The expectation was for a six month extension
- OPEC+ is now considering a new measure for stockpiles using the 2010-2014 average, which would put the oil inventory surplus at 240 MMBbl, according to Saudi Energy Minister Al-Falih (Bloomberg)
- OPEC+ meeting to decide voluntary contributions once a year
- Oil prices were volatile yesterday awaiting the official OPEC press conference
- Prices were up about 3% in early trading, but then took a nose dive up until the close at 1:30 PM CT. A last minute rally help settle oil near flat on the day
- WTI’s discount to Brent for the September contract settled at -$5.92/Bbl on Monday; the narrowest settle for generic spread since August (Bloomberg)
- WTI also tightened up to Dubai, with WTI’s discount now at -$3.69/Bbl. This is the tightest settlement since July last year
- International crudes have lost some of their premium to WTI as stocks in the US show declines
- Natural gas is up 0.6c to $2.273/MMBtu
- Every US storage region is reportedly continuing to inject at an above pace
- This comes after natural gas barely snapped a seven-week streak of triple digit builds for storage
- Regions that had significantly low levels of storage prior to the summer, have all but surpassed last year or five-year averages partially due to weaker weather and strong production
- Kinder Morgan is proposing a compressor expansion project to feed almost 1 Bcf/d to Cheniere’s Train 6 at the Sabine Pass in Louisiana
- If approved, the project would have an anticipated start date of 1H2022
- A positive FID on this project would go a long way in helping to relieve current pipeline constraints in the Haynesville
- Five pipeline projects, totaling 8.6 Bcf/d, have been proposed in 2019 to service the Haynesville area with start dates ranging from 2020 to 2023
- US LNG Feedgas has reached another new high of 6.4 Bcf/d
