June 14, 2019

June 14, 2019
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Crude Oil:

  • WTI is down 3c to $52.25/Bbl, and Brent is up 16c to $61.47/Bbl
  • The Paris-based International Energy Agency revised down its 2019 demand growth estimate by 100 MBbl/d to 1.2 MMBbl/d
    • The IEA said demand growth would climb in 2020 to 1.4 MMBbl/d
    • “The main focus is on oil demand as economic sentiment weakens… The consequences for oil demand are becoming apparent,” the IEA said (Reuters)
    • The agency blames the worsening prospects on the trade war
  • The US released a video claiming to show Iran removing an unexploded mine from Gulf tanker (CNN)
    • Geopolitical tensions between Iran and US/Saudi Arabia have already been high
    • A senior diplomat friendly to the US told CNN “It is a virtual certainty Iran was behind the latest attack, The video now nails it.”
    • If we remember, Tehran in April vowed to disrupt the flow of oil through the strait of Hormuz

Natural Gas:

  • Natural gas is up 1.3c to $2.338/MMBtu
  • Cheniere’s Corpus Christi Train 2 is now operational and producing LNG
    • Each train has a capacity of 600 MMcf/d
  • US natural gas in storage rose by 102 Bcf last week to now total 2.088 Tcf (EIA)
    • The injection was less than an S&P Global Platts’ survey of analysts calling for a 108 Bcf injection
    • As a result, stocks were 189 Bcf, or 10.0%, more than the year-ago level of 1.899 Tcf and 230 Bcf, or 10.0%, less than the five-year average of 2.318 Tcf
  • Mexican exports set an all-time weekly average record of 5.1 Bcf/d according to PointLogic
    • Exports to Mexico are also on pace to record their highest all-time monthly average
    • The recent completion of the 2.6 Bcf/d Sur de Texas-Tuxpan pipeline should help aid the continued growth of exports south if demand persists

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