- WTI is up 57c to $32.39/Bbl, and Brent is up 9c to $34.90/Bbl
- Oil prices were steady Tuesday morning at a two-month high of $35/Bbl and $32/Bbl for Brent and WTI respectively
- The prospect of a possible vaccine from American biotech company Moderna Inc. buoyed multiple asset classes on Monday. An earlier than expected vaccine could mean a rebound of consumption
- The June WTI futures contract expires today
- Oil from major U.S. shale regions is set to fall to levels not seen since 2018 as producers scale back activity in response to low oil prices
- Overall production is forecast to fall by 197 MBbl/d next month to 7.822 MMBbl/d, according to the Energy Information Administration’s (EIA) latest Drilling Productivity Report
- The Permian Basin will lead in the amount of supply losses, where output is seen falling by 87 MBbl/d in June to 4.29 MMBbl/d, according to the EIA
- In its monthly drilling report, the agency reported the number of drilled but uncompleted (DUC) wells in the Permian rose by 28 to 3,464 in April
- That is the highest since September and a lot of wells that can be tapped once a recovery takes hold
- Natural gas is up 4.2c to $1.825/MMBtu
- Cameron LNG Train 3 produces first LNG
- The company said Train 3 is on track to begin commercial operations under tolling agreements in the third quarter of 2020
- Phase 1 of the Cameron LNG export project includes three liquefaction trains that will export 12 Mtpa of LNG or approximately 1.5Bcf/d
- NextDecade postpones FID for Rio Grande LNG until 2021
- FID depends on if NextDecade can secure 9 Mtpa (1.179 Bcf/d) of secure long-term offtake contracts
- The project located near the Port of Brownsville, Texas will produce 27 Mtpa upon completion (3.5 Bcf/d)
- EQT announced it will be temporarily curtailing production, starting May 16, until a more favorable gas environment emerges, according to a spokeswoman for the company
- This timeline corresponds with Equitrans’ announcement that its largest customer would be temporarily curtailing production by ~1.4 Bcf/d, although the customer was not named (Bloomberg)
- PointLogic estimates dry gas production has fallen nearly 5.0 Bcf/d over the last month, from 93.6 Bcf/d to 88.5 Bcf/d
