May 20, 2020

May 20, 2020
Print Friendly, PDF & Email
  • WTI is up 82c to $32.78/Bbl, and Brent is up 94c to $35.59/Bbl
  • Oil futures stay steady after a four-day gain
    • The WTI prompt contract versus the next contract month moved back into contango on Wednesday as the June contract expired on Tuesday
    • There was no repeat of last month’s negative pricing after the June contract finished higher than July, thanks to massive U.S. and global production cuts
  • Crude oil held at sea on tankers has dipped to 170 MMBbl as of May 15, the second decline in three weeks (Vortexa)
    • Global floating storage had previously been stationary for at least seven days prior to the recent decline
    • AEGIS notes that signs of a decline in floating storage could indicate a return of demand and or tighter spreads between individual futures contracts. The severity of contango in the curve has moderated, making most new storage trades at sea uneconomic
  • EIA weekly data is due at 9:30 AM CST
    • U.S. Crude Inventories:                  +       1,808 MBbls (Avg. Bloomberg surveys)
    • U.S. Gasoline Inventories:             –       2,736 MBbls
    • U.S. Distillate Inventories:             +      1,711 MBbls
    • U.S. Refinery Utilization:               +       1.04% change
  • Natural gas is up 4.7c to $1.877/MMBtu
  • Kinder Morgan to return Elba LNG Units 1 and 3 to service this week
    • A compressor fire located near Unit 2 at the facility last week caused the company to shutdown units 1-3
    • Unit 2 will remain off-line for repairs
  • Flows coming out of the Appalachia are down by 1.4 Bcf/d since May 15 (PointLogic)
    • This comes following EQM’s announcement on May 18, that their largest producing customer will be curtailing production by up to 1.4 Bcf/d for 45 days
    • The cut in production has the potential to provide support to Appalachian prices until the production is brought back online

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