October 21, 2019

October 21, 2019
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  • WTI is down 61c to $53.17/Bbl, and Brent is down $1.01 to $58.41/Bbl
  • Private equity group Carlyle said it would no longer proceed as an investor in Lone Star Ports LLC, which proposed a crude oil export terminal near Corpus Christi (tankterminals.com)
    • The project was one of many crude oil export terminals proposed for the US Gulf Coast
    • The chief executive of the Port of Corpus Christi, Sean Strawbridge, said “Interest in Harbor Island remains at an all-time high,” and the port will continue dredging to make it more attractive to export crude
  • Speculator net total positions are at the lowest level since January (CFTC)
    • Money managers have sharply reduced long positions in WTI crude oil since early October
    • Outright bets on falling crude (shorts) oil have tripled since late September
  • Mexico’ state-run company Pemex is changing how it will calculate its formula to hedge against sales of Maya crude (Reuters)
    • The finance ministry worked together with Pemex to to simplify the crude sales formulas and reduce a number of different components it has used in the past
    • Going forward, the formula’s biggest component for pricing sales of Maya exported to the US Gulf Coast will be WTI delivered to East Houston (MEH), rather than a number of other grades, according to Reuters
  • Natural gas is down 8.2c to $2.238/MMBtu
  • Open long positions in natural gas contracts fell by 488 contracts to 105,241, a new one year low according to the CFTC
    • Shorts positions increased 26,385 contracts to 301,579
    • Short positions are up 424% since this time last year
  • Natural gas directed rig count fell by 6, week-over-week, to 137, according to Baker Hughes
    • Eagle Ford fell by two rigs, Marcellus fell by three, other basins fell by two, but the Barnett increased by one rig
    • The natural gas rig count is at its lowest level since 2016
  • North Dakota gas production averaged 3.0 Bcf/d in August, a new record according to data released from the North Dakota Industrial Commission last week (PointLogic)
    • Flaring fell 16% to 577 MMcf/d from 671 MMcf/d
    • Natural gas flaring has been a rampant issue in the Bakken as a lack of natural gas takeaway capacity has been hampering oil production growth

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