October 9, 2019

October 9, 2019
Print Friendly, PDF & Email
  • WTI is up 49c to $53.12/Bbl, and Brent is up 56c to $58.80/Bbl
  • The Energy Information Administration (EIA) lowered its 2020 US crude production estimate by 0.5% to 13.17 MMBbl/d
    • In its monthly Short-Term Energy Outlook (STEO), the agency slightly increased its crude output forecast for 2019 by 0.2% to 12.26 MMBbl/d
    • US production growth should level off in 2020 because of lower crude prices in the first half of the year and continuing declines in well-level productivity, the agency said
  • The world economy this year will grow at its slowest pace since financial crisis of 2008-09, and the trade wars will remain a drag on growth next year, according to the IMF’s new executive director Kristalina Georgieva
    • Georgieva said her agency will revise downward its global growth projects for 2019-20 when it updates its World Economic Outlook on October 15
    • The IMF’s outlook is widely used in the modeling of key oil demand projections, including those of the International Energy Agency (IEA)
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  +      1,716 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –          334 MBbls
    • U.S. Distillate Inventories:             –      2,074 MBbls
    • U.S. Refinery Utilization:               +       0.16% change
  • Natural gas is down 1.4c to $2.274/MMBtu
  • FERC has given its approval to begin construction on the 0.6 Bcf/d Cheyenne Connector Project
    • The Cheyenne Connector will originate in the DJ Basin, specifically the Wattenberg Field, and run north to the REX Cheyenne Hub
    • The pipeline is expected to be completed in 1H2020
  • U.S. LNG companies exported 158 Bcf in September, a new record (Platts)
    • Growth in exports was bolstered by Freeport LNG, which appears to have overcome any mechanical issues and is now in the process of loading its third cargo
    • Feed gas demand came in just under 6.0 Bcf/d
  • Pacific Gas & Electric is shutting off power to 29 counties in the Bay Area and Northern California due to threats of wildfires
    • The preventative blackouts could impact approximately 800,000 customers
    • Should the outages go into effect, California and surrounding area spot prices may be negatively impacted in the near term

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More