September 16, 2020

September 16, 2020
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  • WTI is up 87c to $39.15/Bbl, and Brent is up 87c to $41.40/Bbl
  • Oil prices rose for a second day to just under $40/Bbl, buoyed by an industry report of a surprise drop in U.S. crude stockpiles
    • The American Petroleum Institute (API) reported crude inventories fell by 9.52 MMBbl last week
    • The API data contrasts with the build that a Bloomberg-compiled survey for government data due Wednesday morning
  • OPEC+’s preliminary August cuts compliance is said to be at 101%, according to a delegate (Bloomberg)
    • OPEC’s Joint Technical Committee will meet on Thursday to discuss OPECs progress
  • The world’s largest independent oil trader says global stockpiles of the commodity will keep shrinking, offering a much more bullish view of the crude market than its rivals and global energy agencies (Bloomberg)
    • Global crude inventory growth peaked at about 1.2 billion in early summer and stocks have since drawn by about 300 MMBbl, Vitol CEO Russel Hardy said
    • The should drop by a further 250 to 300 MMBbl in the last four months of the year, he said
    • AEGIS notes that Vitol’s outlook is much more bullish than many other analysts who see demand much more subdued
  • Natural gas is down 2.0c to $2.342/MMBtu
  • Hurricane Sally made landfall in Alabama as a category two hurricane this morning
    • The BSEE reported that 28.03% of gas production (759.72 MMcf/d) is shut-in, up from 25.28 % reported a day earlier (532.55 MMcf/d)
    • 2 additional platforms were evacuated, bringing the total to 149 or 23.17%
  • Shipping data shows that a Russian pipelaying ship is en route to a Nord Stream II supply base in Germany
    • Despite opposition from many European countries and the United States, Russia is continuing to construct the 5.3 Bcf/d pipeline
    • Germany offered to build two additional LNG terminals along the North Sea coast to avert U.S. sanctions on the pipeline
    • Opposition to the project has mounted recently following the news of an alleged poisoning of Kremlin critic Alexei Navalny by high ranking Russian officials
  • Cameron LNG restart could restart this month; further delays remain a possibility
    • Poten & Partners’ Jason Feer said, “We have heard that Cameron is telling lifters they probably won’t be back up until the end of this month,”
    • The LNG facility receives power from Entergy, rather than producing its electricity like other domestic terminals. Entergy has said that it expects power to be restored in Southwestern Louisiana by Sept. 23

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