June 24, 2020

June 24, 2020
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  • 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

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