November 6, 2019

November 6, 2019
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  • WTI is down 32c to $56.91/Bbl, and Brent is down 51c to $62.45/Bbl
  • Oil prices have fallen from a six-week high with futures down about 30c in early market trading for WTI
    • The American Petroleum Institute (API) reported a 4.26 MMBbl build Tuesday afternoon for the previous week, ahead of government data due out today
    • The build from the API was larger than expected
  • Shale producers, under pressure by investors, will shut down rigs and stop burning through cash, Pioneer’s CEO Scott Sheffield said on Tuesday
    • Sheffield and Centennial Resource Development’s CEO Mark Papa warned the days of relentless output growth from US shale fields are ending, potentially aiding OPEC’s multi-year effort to reduce a worldwide glut in supply
  • EIA weekly data is due at 9:30 AM CST
    • U.S. Crude Inventories:                  +        817 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –      1,897 MBbls
    • U.S. Distillate Inventories:             –      1,052 MBbls
    • U.S. Refinery Utilization:               +       0.77% change
  • Natural gas is down 1.7c to $2.845/MMBtu
  • Total November gas-weighted heating degree day (HDD) forecasts are now at 655 (Commodity Weather Group)
    • This is projected to be the second coldest November since the turn of the century and the eighth coldest November of all-time
    • The risk of transitioning into a warmer December is still outside the 11-to-15 day forecast window
  • The Nexus Gas Transmission and Columbia Gas Transmission lines are currently undergoing maintenance, reducing flows west
    • West bound flows from Nexus are at zero, down from 1.2 Bcf/d, and will likely remain that way through November 12 (Platts)

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