June 24, 2020

June 24, 2020
Share
Print Friendly, PDF & Email
  • WTI is down 31c to $39.52/Bbl, and Brent is down 35c to $41.84/Bbl
  • Oil prices in New York slipped below $40/Bbl after the API signaled another increase in U.S. stockpiles
    • The American Petroleum Institute (API) reported on Tuesday afternoon that crude inventories rose by 1.75 MMBbl last week
    • That would be the third weekly gain if confirmed by government data later this morning
  • U.S. gasoline demand has rebounded to nearly 80% of where it was at the same time last year, according to IHS Markit
    • A survey of retail gasoline sales showed that demand at the end of June’s second week was 22% below year-ago levels, compared with a 49% decline in mid-April (Bloomberg)
    • AEGIS notes that further recover may be gradual as more coronavirus cases appear and habits have been altered
  • EIA weekly data is due at 9:30 AM CST
    • U.S. Crude Inventories:                  +       1,140 MBbls (Avg. Bloomberg surveys)
    • U.S. Gasoline Inventories:             –       1,759 MBbls
    • U.S. Distillate Inventories:             –           210 MBbls
    • U.S. Refinery Utilization:               +       0.65% change
  • Natural gas is up 1.0c to $1.647/MMBtu
  • Freeport LNG delays FID for fourth LNG liquefaction train
    • The decision has been delayed until at least next year, as market-condition continue to pose a challenge amid the coronavirus pandemic
    • The market for long-term offtake contracts has dried up, prompting several US LNG developers to delay investment decisions
    • Approximately 130 cargoes scheduled for delivery between April and August have been cancelled thus far (Platts)
  • Global gas production expected to decline by 2.6% in 2020 (Rystad)
    • Global associated gas production is expected to average 50 Bcf/d in 2020, down from an estimate of 52.9 Bcf/d, remaining below 2019 levels through 2023

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More