October 2, 2020

October 2, 2020
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  • WTI is down $1.74 to $36.98/Bbl, and Brent is down $1.82 to $39.11/Bbl
  • Oil prices got caught up in a broad downward move in financial markets after President Donald Trump tested positive for Covid-19 virus
    • Crude was already slightly lower before the midnight Covid-19 announcement from the president as the chance of any more U.S. fiscal stimulus before the election appeared to be fading (Bloomberg)
    • WTI futures fell toward $37/Bbl on Friday morning, over a four-percent move
    • S&P equity futures were down over 1.3%
  • Russia, who is part of the OPEC+ alliance, raised its crude and condensate production last month
    • The OPEC+ member pumped 9.9 MMBbl/d in September, a 0.6% increase when compared with August
    • Increases from Russia and Libya have added more crude supply to the global glut of crude
    • Russia’s production increase was part of OPEC+’s calculated tapering of cuts, but Libya’s was unplanned and a thorn in OPEC+’s plan to continue adding more supply to the market as demand returns
  • Natural gas is down 13.7c to $2.390/MMBtu
  • The EIA reported a 76-Bcf build for the week ending September 25. The build was slightly less than the 78-Bcf build analysts expected
    • Total stocks now stand at 3.756 Tcf, which is 405 Bcf above the five-year average
    • The end-of-season storage number settle on ICE was at 3.989 Tcf following the latest injection report
  • LNG feedgas flows are up nearly 150 MMcf/d this morning, bringing the total to an estimated 7.15 Bcf/d on October 2, 2020
    • Prices at Henry Hub were down unchanged yesterday, settling at $2.527/MMBtu. JKM prices were down 1.5c (0.3%), settling at $5.035/MMBtu, while the TTF prompt-month contract was down 7.2c (1.6%), settling at $4.452/MMBtu
    • Flows to both Cove Point LNG and Cameron LNG remain down

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