July 9, 2019

July 9, 2019
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  • WTI is up 30c to $57.96/Bbl, and Brent is up 36c to $64.47/Bbl
  • Iran has vowed to retaliate against the seizure of an oil tanker loaded with its crude by British Royal Marines last week (Bloomberg)
    • Mohammad Bageri, the chief of staff for Iran’s armed forces said “It will be reciprocated, at a suitable time and in a suitable place”
    • British Royal Marines boarded the ship, Grace 1, off the coast of Gibraltar and seized it for trying to take oil to Syria (Reuters)
    • AEGIS notes Iran has been trying to sell its crude oil in any way possible in the face of US sanctions and have employed multiple methods to avoid detection
  • Enterprise Products Partners will expand its crude, LPG and polymer grade propylene (PGP) export capacity at its Houston, Texas, terminal in the next year, according to Argus
    • The dock expansion will be able to accommodate a Suezmax vessel, the largest ship class that can traverse the channel
    • By the end of 2020 Enterprise’s Hydrocarbon Terminal will have a capacity to load another 840 MBbl/d of crude
    • AEGIS notes that crude oil export capacity will be important to the Gulf Coast supply/demand balance as much more crude oil will be heading to Corpus Christi and Houston from the Permian
  • Natural gas is down 1.2c to $2.391/MMBtu
  • There is a 40-60% chance of a cyclone formation in the northeastern portion of the Gulf of Mexico
    • Should a cyclone emerge, it is planned to travel westward along the northern rim of the Gulf
      • Storm has potential to bring heavy rainfall regardless of evolving into a cyclone or not
  • LNG feedgas sets a fresh record of 6.32 Bcf/d primarily on the back of Sempra’s Cameron Train 1 and Cheniere’s Corpus Christi Train 2
    • Despite records, there is still room for improvement as the heavily delayed Freeport LNG project is expected to be commercially operational by next month
    • The last of the first wave facilities, Kinder Morgan’s Elba Island, has gone radio silent as to when they expect to complete their project

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