November 8, 2019

November 8, 2019
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  • WTI is down 84c to $56.31/Bbl, and Brent is down $1.03 to $61.26/Bbl
  • Oil prices are lower this morning following uncertainty around when the US and China will agree to the first stage of a trade deal
    • Both countries have agreed to roll back tariffs on each other’s goods in phases while working toward a deal
    • Earlier this week most asset classes reacted positively as it looked like real progress was being made on the first steps of a trade war resolution
  • The Keystone oil pipeline can be partially restarted anytime from Sunday to Tuesday, pending regulator approval, according to TC Energy Corp
    • This comes after more than a 9,000-barrel leak in North Dakota (Reuters)
    • The Keystone system is an important conduit for heavy Canadian crude and is heavily utilized by refineries in the US Midwest
  • Western Canadian Select’s (WCS) discount to WTI at Cushing widened $1.25 to -$22.85/Bbl on Thursday
    • WCS is now at the lowest settlement point since early December 2018
  • Natural gas is up 2.9c to $2.801/MMBtu
  • FERC has approved Freeport’s second Train for commissioning
    • Full commercial activities are expected to begin on January 2020
    • Each of these trains represents a little over 0.7 Bcf/d in capacity
  • Energy Transfer provided updates on several of their projects during their third quarter earnings call
    • The Mariner East 2x NGL pipeline is expected to be delayed until June 2020 due to local opposition
    • The Lonestar Express expansion will add 400 MBbls/d of additional NGL capacity from the Permian by 4Q2020
    • The 2 MMBbls/d LPG export expansion project in Nederland, TX is expected to be ready by 4Q2020
  • The EIA reported a build of 34 Bcf for the week ending November 1
    • Total storage now stands at 3.73 Tcf
    • The next two weeks of storage estimates are projected to be a build around 1 Bcf and then a withdraw around 87 Bcf, respectively

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