- WTI is down 31c to $53.05/Bbl, and Brent is down 29c to $59.13/Bbl
- Kinder Morgan has completed a pipeline connection in South Texas that connects its 300 MBbl/d crude pipeline (KMCC) to the new Gray Oak pipeline
- The new link will allow shippers to move up to 100 MBbl/d of crude from the Permian basin to KMCC delivery points along the Houston Ship Channel, according to Kinder Morgan
- Phillips 66 is building the 900 MBbl/d Gray Oak in a joint venture with Marathon, Enbridge and Diamondback Energy
- Gray Oak will move crude from the Permian and the Eagle Ford to Corpus Christi and to the Sweeny area south of Houston
- EIA weekly data is due at 11am ET (a day later than usual due to the US holiday)
- U.S. Crude Inventories: + 2,494 MBbls (Bloomberg surveys)
- U.S. Gasoline Inventories: – 1,369 MBbls
- U.S. Distillate Inventories: – 2,528 MBbls
- U.S. Refinery Utilization: + 0.17% change
- The American Petroleum Institute (API) has estimated a massive crude oil build of 10.45 MMBbl for the week ending October 10
- The industry group releases its estimate for crude oil inventories a day prior to government data
- Natural gas is up 2.8c to $2.331/MMBtu
- Kinder Morgan reported that its 2.0 Bcf/d Permian Highway Pipeline is being pushed back to early 2021 on account of local opposition to the proposed route
- The pipeline originally had an anticipated in-service date in November 2020
- Kinder Morgan also stated that Elba LNG’s second and third trains are in the startup phase and that units four through six are undergoing commissioning activities
- Analysts estimate that natural gas storage will build by 108 Bcf for the week ending October 11, the corresponding build last year was 82 Bcf
- Estimates ranged from 95 Bcf to 112 Bcf and would put total storage around 3.5 Tcf
- Should the injection fall within estimates, it would be the largest October build since 2011
- The Department of Energy approved Venture Global’s proposed Plaquemines LNG facility to export LNG
- The 3.4 Bcf/d facility is expected to be built in two phases, with the first being completed in 4Q2022 and the second in 4Q2023
- The company estimates that they should reach a Final Investment Decision by the end of 2019
