March 10, 2020

March 10, 2020
Share
Print Friendly, PDF & Email
  • WTI is up 266c to $33.79/Bbl, and Brent is up 310c to $37.46/Bbl
  • Saudi Aramco’s CEO has stated that the company plans to produce 12.3 MMBbls/d come April
    • This would be 300 MBbls/d over the company’s maximum sustained capacity and well over their current production of 9.7 MMBbls/d
    • Russia’s Oil Minister also stated that Russia could raise their output by 500 MBbls/d in the near future
    • Russia produced approximately 11.3 MMBbls/d of oil and condensate, in February, according to preliminary data from the Energy Ministry
  • President Trump announced he will be taking “major” steps to strengthen the economy against the spread of Covid-19 following yesterday’s steep market declines (Reuters)
    • One of these measures may include tax cuts if it can receive Congressional approval
    • Markets also appear to have already priced in an additional interest rate cut from the FED
  • The EIA is delaying their Short-Term Energy Outlook until Wednesday morning in order to incorporate recent market movements
  • Natural gas is up 6.6c to $1.844/MMBtu
  • Natural Gas prices, specifically Waha basis, saw noticeable gains yesterday amidst a steep oil market selloff
    • The rally may be based on the belief that oil prices in the $30/Bbl range will curb oil production, namely in the Permian, and lead to less associated gas growth
    • Permian producers Diamondback and Parlsey both announced yesterday that they will drop rigs given the current price environment
  • Global LNG Prices are nearing all-time lows in the spot market for the month of February, particularly for large importers like China and Japan
    • Cheap LNG prices may have minimal impact on China’s LNG demand, for now, as the country continues to deal with the coronavirus, travel restrictions, and high gas inventories
    • There are signs of returning domestic gas demand from the industrial sector, however
    • While China appears to have made some headway on handling the coronavirus, countries like Italy recently extended a statewide travel ban through the end of the month

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