- WTI is down $2.71 to $37.12/Bbl, and Brent is down $2.57 to $39.62/Bbl
- Oil slips again as growing coronavirus cases are casting doubt on demand
- The Texas governor warned of “massive outbreak” in the state. Florida and California also reached new daily records of infections
- Gasoline futures fell the most in two months on Wednesday as markets plunged. Prices dropped 8% after hotspot states announced record viral case increases
- U.S. crude inventories rose last week by 1.4 MMBbl to a new record high of 540.7 MMBbl, according to the Energy Information Administration (EIA)
- The rise in inventories was inline with the average analyst estimate
- Crude stocks in the U.S. Strategic Petroleum Reserve (SPR) increased to 653.7 MMBbl in the week ended June 19, up by 2 MMBbl compared to the previous week
- Stocks at Cushing, Oklahoma, eased by 990 MBbl to 45.8 MMBbl in a seventh week of withdrawals
- Natural gas is down 4.2c to $1.555/MMBtu
- Analysts expect a 107-Bcf injection for the week ending June 19 (Platts)
- This would be above both the 103-Bcf injection reported in the corresponding week last year, and the five-year average of 73-Bcf
- Injection estimates ranged from a low of 88-Bcf to a high of 120-Bcf
- A withdrawal within expectations would increase the surplus to the five-year average to 453 Bcf with total stocks at 2.999 Tcf
- Novatek’s CFO claims more than 45 U.S. LNG cargoes were cancelled in the month of June, that equates to approximately 4 Bcf/d in demand (Reuters)
- Analysts expect a similar amount of cargoes to be cancelled for the month of July and August
- AEGIS recommends topping off any remaining Bal ’20 volumes with swaps given an increasingly uncertain market outlook for natural gas
