September 14, 2020

September 14, 2020
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  • WTI is down 38c to $36.95/Bbl, and Brent is down 32c to $39.51/Bbl
  • Oil prices in New York were trading near $37/Bbl with OPEC’s monitoring committee scheduled for Thursday
    • OPEC+ is facing a recovery stall as fuel demand falters and the pandemic continues to surge
    • In its monthly report, the cartel cut its demand forecast for the second straight month
    • On Thursday, Saudi Arabia and Russia will chair a monitoring meeting to assess whether the large production cuts, which they started easing in August, are still staving off an oil glut (Bloomberg)
  • Adding to the downward price pressure this morning is news that Libyan oil production could soon return to the market
    • In the North African nation, commander Khalifa Haftar committed to ending a blockade of oil facilities, although it is unknown if both oil fields and ports would restart (Reuters)
    • The possible returning Libyan oil production will make OPEC+’s oil policy agreement a more difficult one
    • Libya has been producing under 100 MBbl/d since January when the nation was supplying just over 1 MMBbl/d
  • Natural gas is up 9.2c to $2.361/MMBtu
  • Tropical Storm Sally is expected to make landfall Monday night
    • The National Hurricane Center is warning of life-threatening storms surges and hurricane-force winds, with a strong possibility of levee overflows at the base of the Mississippi river
    • Sally is expected to strengthen and become a hurricane when it makes landfall on Monday night
    • Offshore producers Chevron and Murphy Oil have begun evacuating non-essential personnel
  • Feedgas flows to LNG facilities are now at a post-pandemic high (Bloomberg)
    • Flows remained above 7 Bcf/d throughout the weekend, reaching a high of 7.62 Bcf/d on Saturday, September 12
    • Sempra Energy’s Cameron LNG facility remains offline as Entergy continues to work to restore energy in Southwestern Louisiana
  • The CFTC reported that managed money net positioning has moved to a three-year high
    • Long positions decreased by 15,400 contracts to total 259,188
    • Short positions also decreased by 2,298 contracts to total 140,830

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