- 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
