June 19, 2019

June 19, 2019
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  • WTI is up 6c to $53.96/Bbl, and Brent is down 30c to $61.84/Bbl
  • OPEC and its allies have finally nailed down the next official meeting in Vienna
    • After a back and forth of prospective dates, OPEC has agreed to meet on July 1, followed by a meeting with non-OPEC members on July 2 (OPEC)
    • The group was originally planning to meet next week
    • Expectations are that OPEC+ will continue forward with its cut policy through the end of the year
  • Phillip’s 66 CEO Greg Garland said the 900 MBbl/d Gray Oak pipeline was on track for in-service by the end of the year (Argus)
    • The company holds a stake in one of the connected export terminals, called South Texas Gateway. The terminal was still expected to start up in mid-2020 with up to 800 MBbl/d of capacity across two docks
    • Gray Oak will transport crude oil from the Permian to the Gulf Coast
  • President Trump said on Tuesday that the US and China will resume negotiations on a possible deal to address the trade war
    • Trump said he and President Xi Jinping will be having an extended meeting next week at the G20
    • Equity markets spiked higher yesterday morning after Trump tweeted the news
    • AEGIS notes that markets, including oil, are very sensitive to anything positive or negative regarding the current trade war
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  –   1,533 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –       477 MBbls
    • U.S. Distillate Inventories:             –       377 MBbls
    • U.S. Refinery Utilization:               +   0.34% change
  • Natural gas is up 1.4c to $2.342/MMBtu
  • The Gulf South pipeline, located in the Haynesville, is scheduled for maintenance today
    • This will serve to displace 0.5 Bcf/d of capacity
  • Anadarko announced a positive FID on the largest LNG project in Africa to date
    • The facility will have 12.88 mtpa of capacity and will join the likes of Exxon’s Golden Pass and Shell’s Canadian facility as recently approved, behemoth sized, LNG projects
    • This project will be sold to Total following Occidental’s merger with Anadarko
  • Mexico’s Yucatan Peninsula, based in the southern tip of Mexico, is currently experiencing grid issues and rolling blackouts due to a lack of access to natural gas
    • This potentially places a larger dependence on U.S. pipelines leading into Mexico in order to relieve supply constraints
    • Most notably could be the recently completed Sur de Texas-Tuxpan pipeline, which runs from south Texas to south central Mexico, as a potential source of relief

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