- WTI is up $1.03 to $28.59/Bbl, and Brent is up 88c to $32.01/Bbl
- Oil prices are headed for a third week of gains on signs the market is slowly rebalancing (Bloomberg)
- China’s industrial output increased in April for the first time since the outbreak
- At the same time, Saudi Arabia has cut supply to its customers in the U.S., Europe and Asia as it reduces production
- A flotilla of full oil tankers from Saudi Arabia headed to American shores is raising storage concerns just as U.S. storage is seeing relief from massive builds (Bloomberg)
- Over 30 tankers are set to arrive in the U.S. Gulf Coast and West Coast during May and June, according to Bloomberg
- The tankers total over 50 MMBbl of Saudi crude
- “The expected Saudi deliveries could push U.S. inventories back to builds depending on their timing,” said Sandy Fielden of Morningstar
- Natural gas is up 3.4c to $1.715/MMBtu
- On Thursday, the EIA announced an injection of 103 Bcf for the week ending May 8, 2020
- This injection was smaller than the 109-Bcf build reported a week earlier
- Storage now stands 49%, or 799 Bcf, above last year’s levels of 1.623 Tcf
- Gas flows have not been observed flowing to Elba LNG since Wednesday, May 13
- Three units were affected by a compressor fire, forcing Kinder Morgan to bring them offline for repairs
- Elba LNG is the smallest of the six major US LNG export terminal, with a planned capacity of 2.5 mt (.3275 Bcf/d) once all 10 trains are brought online
- TETCO M-2 and dominion South cash prices hit year-to-date lows during yesterday’s trading session
- The drop in prices can be attributed to warm temperature forecast in the northeast over the next few days coupled with high production levels (32.8 Bcf/d) not seen since Late 2019
- The Texas Eastern outage near the Owingsville compressor station also gives producers less optionality on where to send their gas adding more downside pressure to cash prices
