October 1, 2019

October 1, 2019
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  • WTI is up 43c to $54.50/Bbl, and Brent is down $1.05 to $59.73/Bbl
  • Saudi Arabia has fully restored crude supply following drone and cruise missile attacks that knocked 5.7 MMBbl/d of production offline two weeks ago, according to the country’s finance ministry
    • Light crude processing capabilities are still not running at full rates at the Abqaiq crude processing plant (Argus)
    • Saudi Aramco has asked some of its term customers contracted to receive light crude to temporarily accept heavier grades
  • The third quarter marked the weakest quarter since late last year as an ongoing trade war and fears of a global economic slowdown overshadowed geopolitical risk
    • Brent was down about 9% for 3Q2019
    • The Saudi oil outages are seen as more short-term where as demand concerns can cause a longer-term issue for the crude oil supply and demand balance
  • Natural gas is down 1.5c to $2.315/MMBtu
  • FERC has approved Venture Global’s 2.6 Bcf/d Plaquemines LNG facility
    • The facility will be built in two phases, each with a capacity of roughly 1.3 Bcf/d
    • Phase 1 has a planned commercial operation date in 2H2022, and Phase 2 has a planned commercial operation date in 2H2023
    • Venture Global has already reached FID on their first facility, Calcasieu Pass
  • Kinder Morgan has received approval to place its first train into commercial operation at its Elba LNG facility
    • Commissioning activities for trains 2 and 3 are currently in the process of introducing hazardous fluids
    • The company indicated that it plans to have all 10 trains in service by 1H2020

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