July 30, 2019

July 30, 2019
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  • WTI is up 43c to $57.30/Bbl, and Brent is up 58c to $64.29/Bbl
  • The US Federal Reserve starts their two-day meeting later on Tuesday and is expected to cut rates for the first time in more than 10 years
    • The general consensus among analysts calls for a 25 bps rate cut, with a few expecting 50 bps (Bloomberg)
    • A 25 bps cut is likely already priced into the market
  • US secretary of state Mike Pompeo said the US is committed to keeping the strait of Hormuz open
    • The comments come after Trump last week complained about the US protecting the important oil corridor without reimbursement from other countries
    • The Trump administration’s effort to apply maximum pressure on Tehran has lead to Iran lashing out by disrupting normal vessel activity in the strait
  • Natural gas is up 0.5c to $2.121/MMBtu
  • Sempra’s IEnova and TC Energy are still struggling with backlash from both Mexico’s CFE and locals on their Mexico based projects
    • Two weeks after mechanical completion of the Sur de Texas pipeline, the joint owned pipeline was hit with an arbitration case and entered force majeure
      • Discussions are still ongoing, but are hoped to be resolved soon
    • The Sonora pipeline, which connects to the Arizona portion of the El Paso pipeline, is facing local backlash for the second segment of the line
      • The backlash being faced is similar to the two additional legs of the Sur de Texas line, the Tuxpan-Tula and Tula-Villa de Reyes, which were slated to come online back in mid-2017
  • Phillips 66’s earnings call gave some color on their petchem projects
    • Sweeney Hub: Fracs two and three are on track to be completed by 4Q2020
      • A fourth frac has been sanctioned as well, which would bring capacity to 550 MBbl/d
    • Clemens Cavern: Clemens Cavern, which is located right outside the Freeport area, is almost doubling storage to 15 MBbl/d
    • C2G Pipeline: P66 will construct the 240 MBbl/d ethane pipeline to serve Corpus Christi

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