March 18, 2021

March 18, 2021
Print Friendly, PDF & Email
  • WTI is down 78c to $63.82/Bbl, and Brent is down 81c to $67.19/Bbl
  • Iran’s rising exports are destabilizing oil markets – Vitol
    • “If those barrels continue to trade through murkier channels, it is very destabilizing for the market because nobody really understands what’s coming,”, according to Vitol
    • AEGIS notes rising Iran production could pressure oil prices and potentially complicate OPEC’s plans to prop up oil prices
  • IEA dismisses oil supercycle, citing plentiful supplies (Bloomberg)
    • The agency said, “there is more than enough oil in tanks and under the ground to keep global oil markets adequately supplied.”
    • Additionally, OPEC is holding 7 MMBbl/d of spare capacity on standby. If prices heat up, the group could return production before other producers are able to capitalize on the higher prices
  • The market received discouraging data reported by the EIA on Wednesday
    • The EIA reported a build of (+) 2,396 MBbls for the week ending March 12, well above the estimate of a (+) 2,076 MBbls draw
    • Inventories for the U.S. are now at a surplus of 49.016 MMBbls to last year and a surplus of 30.38 MMBbls to the five-year average
  • Natural gas is down 2.6c to $2.502/MMBtu
  • Analysts are calling for a paltry 17 Bcf withdrawal from gas storage for the week ended March 12 (Bloomberg survey)
    • Responses from the survey ranged from -10 on the high-end to -29 on the low-end
    • Natural gas prices have continued to slide following the deep freeze in mid-February for the South. Natural gas withdrawals have underwhelmed over the past few weeks
    • A rare injection is expected in the next two weeks as weather has been mild across the lower 48, according to Platts
  • Williams’ Transcontinental Gas Pipeline objected to Mountain Valley pipe extension easement request in March 12 filing (S&P)
    • The planned Mountain Valley Pipeline Southgate expansion project is seeking to acquire Transco’s easement rights in North Carolina
    • Mountain Valley’s FERC filing shows that almost 50% of its proposed pipeline will be co-located within existing utility corridors and rights-of-way, according to the FERC filing
    • Transco’s objection follows a ruling earlier this month from the 4th Circuit that said North Carolina regulators would have to reconsider their denial of water permits for the Southgate project

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