June 17, 2020

June 17, 2020
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  • WTI is down 30c to $38.08/Bbl, and Brent is down 21c to $40.75/Bbl
  • Concerns about a second wave of coronavirus are somewhat tempered as equity futures signal a positive open on Wednesday
    • Oil prices, however, were choppy this morning and were 0.7% lower, after falling as much as 3.1% in New York
    • The American Petroleum Institute’s Tuesday oil inventory report also weighed on crude oil prices. The API reported a 3.86 MMBbl build for the week ending June 12
  • OPEC+ nations have implemented 87% of their pledged 9.7 MMBbl/d cutbacks in May, the first month of the new supply agreement, according to a delegate (Bloomberg)
    • Quota “cheaters” have started to toe the line with June export cuts
    • Iraq, Nigeria, and Angola all cut shipments in first half of June
  • EIA weekly data is due at 9:30 AM CST
    • U.S. Crude Inventories:                  +       1,604 MBbls (Avg. Bloomberg surveys)
    • U.S. Gasoline Inventories:             –          971 MBbls
    • U.S. Distillate Inventories:             +      2,047 MBbls
    • U.S. Refinery Utilization:               +       0.52% change
  • Natural gas is up 0.1c to $1.615/MMBtu
  • The last two days have lost a noticeable amount of population-weighted Cooling Degree Days (CDDs), placing the Commodity Weather Group’s June forecast at 273 CDDs
    • Monday’s forecast was at 287 CDDs, good enough to be the hottest June on record, while Wednesday’s forecast of 273 CDDs is good enough to be the sixth hottest June recorded
    • The 10-year normal is 264 CDDs and the 30-year normal is 230 CDDs
  • Tellurian’s 3.61 Bcf/d LNG export facility will not begin construction until 2021 according to their CEO
    • Tellurian is also holding off on constructing the 2.0 Bcf/d Permian Global Access Pipeline, which was set to run from West Texas to Louisiana
    • TTF gas prices, the European gas benchmark, settled at $1.703/MMBtu and JKM prices, the Asian LNG benchmark, settled at $2.206/MMBtu
  • Texas may tighten rules on natural gas flaring this fall (Reuters)
    • Texas regulators aim to improve the data available on flaring, tracking for the first time how the gas is disposed
    • During a meeting on Tuesday, June 17, 2020, an industry panel recommended reducing the number of days producers can routinely burn unwanted gas from 180 days to 90 days

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