- WTI is up 93c to $48.11/Bbl, and Brent is up 95c to $52.81/Bbl
- Saudi Arabia is urging OPEC+ to cut more than 1 MMBbls/d to help offset the demand loss from the coronavirus outbreak (Bloomberg)
- A cut of 1.2 MMBbls/d has been proposed, however Russia appears unwilling to comply with a cut of that size
- OPEC’s technical committee was originally only planning on a 600 to 1,000 MBbls/d cut, for the second quarter, as of yesterday
- The threat of Libya bringing back 1 MMBbls/d could nullify these proposed cuts despite the fact that OPEC is already withholding 2.5 MMBbls/d from global oil markets
- The API reported a build of 1,690 MBbls/d for the week ending February 28
- Analyst estimates call for a somewhat larger build, from the EIA, of 2,854 MBbls/d for the same time period
- Natural gas is up 0.5c to $1.805/MMBtu
- EQT released 2020 production guidance of 1,450 – 1,500 Bcfe, this would equate to relatively flat year-over-year production growth (Bloomberg)
- The producer is also anticipating 2020 CAPEX to be in the range of $1.15 – $1.25 Billion, an approximate 25% reduction from last year’s CAPEX of $1.6 Billion
- Many Appalachia producers have indicated that they will be ramping down production growth to “maintenance levels” as current forward strips remain at or near uneconomic levels
- The Fed cut interest rates on Tuesday by 50 basis points in an attempt to quell fears surrounding the coronavirus’ economic impact
- The U.S. interest rate now stands at just below 1.25 percent, down from the previous 1.75 percent
- Equity markets sold off following the FED announcement as an interest rate cut of this size suggests the coronavirus may be having a more severe economic impact than previously believed
