June 26, 2019

June 26, 2019July 1st, 2019
Share
Print Friendly, PDF & Email
  • WTI is up $1.12 to $58.95/Bbl, and Brent is up 81c to $65.86/Bbl
  • Oil surged higher after hours on Tuesday following the API reporting a large crude inventory withdrawal
    • WTI jumped about $1/Bbl just after 3:30 PM CT on the data release
    • The more closely followed EIA data will be released this morning at 9:30 AM CT.
    • US based oil prices are highly sensitive right now to changes in crude inventories
      • Crude stocks have swelled over the past few months on higher production and lower y-o-y refinery runs
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  –    2,837 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –       330 MBbls
    • U.S. Distillate Inventories:            +      170 MBbls
    • U.S. Refinery Utilization:               +   0.34% change
  • Energy Transfer is mulling a further expansion of the Dakota Access pipeline (DAPL) that currently moves up to 570 MBbl/d
    • The plan does not include any new pipe or mainline construction, but would include added horsepower and “a few modifications and upgrades”
    • The expansion should be completed by late 2020 and company comments did not include the amount of capacity increase
  • Natural gas is down 1.0c to $2.298/MMBtu
  • Weather is forecasted to be seasonally above-average, on the east coast, heading into the beginning of July
    • Western markets could see a spike in warmer temperatures during the back half of June
  • Kinder Morgan can now begin construction of the Permian Highway Pipeline after being dismissed from landowner disputes by a Texas court
    • This is a victory for Kinder’s project, but it could face other challenges in the future as the pipeline route runs through the Texas hill country where it still faces opposition
    • The Permian Highway is a 2.1 Bcf/d project that runs from the Waha Hub into eastern Texas markets
    • The project has an anticipated start date in 2H2020
  • US LNG feedgas is setting new record highs, almost 6.2 Bcf/d as of yesterday, as we near completion of the “first wave” of LNG projects

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