July 31, 2019

July 31, 2019
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  • WTI is up 50c to $58.55/Bbl, and Brent is up 48c to $65.20/Bbl
  • WTI continues to climb toward $60/Bbl as investors expect the Federal Reserve to lower borrowing cost and the API reported a solid crude inventory withdrawal
    • The API reported a 6 MMBbl withdrawal Tuesday afternoon, for the week ended July 26
    • A Fed rate cuts helps crude oil in two ways as it should encourage US oil demand and have downward pressure on the dollar (Reuters)
  • Libya’s largest oil field started shutting down on Tuesday after a valve on the pipeline was shut (Reuters)
    • The Sharara field produces 290 MBbl/d, and the outage sends Libya’s oil production to a five-month low of about 950 MBbl/d
  • Enterprise Products Partners signed on Chevron as a customer of its planned Texas offshore oil port (Argus)
    • Enterprise’s planned terminal, known as the Sea Port Oil Terminal (SPOT), will be off the coast of Freeport and be capable of loading 85 MBbl/d
    • Chevron president George Wall said the terminal will allow Chevron to significantly expand export capacity and access multiple market centers as it increases Permian crude production
  • Natural gas is up 5.1c to $2.188/MMBtu
  • Equitrans Midstream said the Mountain Valley Pipeline still has a startup date of mid-2020 and is “more than 85% complete”
    • MVP Southgate, a 300 MMcf/d pipe with 900 MMcf/d of expansion capabilities, is slated to start up in 4Q2020
    • The Hammerhead pipeline is expected to be placed into service at the end of the year and provide 1.6 Bcf/d of capacity
  • NGPL is issuing a force majeure that will last until August 5th and effectively cut off 600 MMcf/d of northbound Midcontinent capacity
    • Columbia Gas Transmission is also undergoing maintenance to its Sherwood Compressor Station, in the northern portion of West Virginia, with flows allegedly resuming in the next couple of days
  • Venture Global’s Calcasieu Pass continues to receive regular FERC approvals to its Cameron Parish, LA facility
    • The facility should be able to generate around 1.3 Bcf/d of outbound capacity
    • Venture Global will develop the export facility in tandem with its 2 Bcf/d TransCameron pipeline

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