June 28, 2019

June 28, 2019July 1st, 2019
Share
Print Friendly, PDF & Email
  • WTI is up 18c to $59.61/Bbl, and Brent is up 20c to $66.75/Bbl
  • Crucial meetings will take place over the next week that will impact oil
    • Trump is meeting with China’s President XI on the sidelines of the G-20 in Japan to discuss the trade war
    • OPEC and its allies will gather in Vienna on Monday and Tuesday to discuss and possibly decide on the group’s production cut policy
    • So far this month WTI has gained over 11%, mostly due to rising geopolitical events between the US and Iran
  • Sentinel Midstream has submitted an application to regulators to build and operate an offshore crude export terminal near Freeport, Texas
    • Texas GulfLink will include the loading of various grades of oil at rates up to 85 MBbl/hour
    • The terminal will be able to load 15 VLCCs or equivalent volumes per month for the deepwater port for a total of 1 MMBbl/d (Argus)
    • The project also includes building a 42-inch pipeline from Brazoria County, Texas, to the deepwater port
  • OPEC+ cut extensions is apparently “in the bag”, according to Saudi Arabia’s Energy Minister Khalid Al-Falih (Bloomberg)
    • The group’s three largest members – Saudi Arabia, Iraq, and UAE – are all willing to continue the current policy
  • Natural gas is down 1.5c to $2.309/MMBtu
  • The recently completed 2.6 Bcf/d Sur de Texas pipeline has declared a force majeure indefinitely after Mexico’s state power utility, CFE, moved an arbitration case against it
    • This case comes as the line was starting to flow close to 0.5 Bcf/d for testing
    • The re-delay of the pipeline will cut off a large source of demand for NGPL STX and Houston Ship channel basis
    • Mexico is currently suffering from a large gas supply deficit with several areas facing the threat of blackouts
  • Summit Midstream Partners has announced a positive FID on its Double E Pipeline Project that serves the Permian
    • The pipeline has an initial capacity of 1.35 Bcf/d, but can be expanded to 1.85 Bcf/d should demand persist
    • The project will run from the southeastern tip of New Mexico into the western portion of Texas
    • There is an anticipated start date for 3Q2021
  • Storage increased by 98 Bcf which was lower than the average 100 Bcf analysts were expecting
    • Total storage is now at 2.3 Tcf
    • The 98 Bcf injection snapped what was a seven week run of triple digit builds

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