September 17, 2020

September 17, 2020
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  • WTI is down 12c to $40.04/Bbl, and Brent is down 9c to $42.13/Bbl
  • Oil traded near $40/Bbl Thursday morning after surging nearly 5% on Wednesday, the biggest gain since June
    • The OPEC+ Joint Ministerial Monitoring Committee convenes at 2 p.m. Vienna time to assess their current production cut policy
    • Saudi Oil Minister:
      • Says ‘Tactics’ to overproduce always fail
      • Transparency pays off; the market can’t be out-smarted
      • Full OPEC+ compliance remains core to a joint effort
    • Russian Energy Minister:
      • OPEC+ should continue to strive for high compliance
      • OPEC+ compliance remains high at stage 2 of deal
      • Oil market recovery to pre-COVID levels is not smooth
    • U.S. crude inventories fell by 4.4 MMbbl to 496 MMBbl last week as refinery runs increased and imports dropped (EIA)
      • The decline in crude stocks kept oil prices buoyed on Wednesday, following the data release
      • The market was expecting a sizable withdrawal after the API reported an almost 10 MMBbl draw estimate on Tuesday afternoon
      • Stocks at Cushing, Oklahoma, fell by 74 Mbbl to 54.3 MMBbl
      • S. refinery runs last week increased by about 700 MBbl/d to 13.5 MMBbl/d compared with the previous week
  • Natural gas is down 8.9c to $2.178/MMBtu
  • EQT Reportedly Bidding for Chevron’s Appalachia Assets (Reuters)
    • The assets produced 262 MMcf/d of natural gas last year and would bring EQT’s total daily volumes to around 4.362 Bcf/d
    • The asset consists of about 800,000 acres in the Marcellus/Utica basins and a 31% non-operating interest in Laurel Mountain Midstream, which has intrastate and gathering pipelines in the area
  • GoM producers have begun to assess the damage from Hurricane Sally and restart operations
    • Crews have returned to at least 30 platforms, with only 119 still evacuated, according to the BSEE
    • The BSEE reported that 29.70% of gas production (805 MMcf/d) is shut-in, up from 28.03% reported a day earlier (759.72 MMcf/d)
  • The EIA is expected to report a 77-Bcf injection for the week ending September 11, which would be less than the 82-Bcf build in the corresponding week of last year
    • Analysts estimates ranged from a build of 68 Bcf to 80 Bcf
    • A build within this range would bring total stocks near 3.602 Tcf and the surplus to the five-year average near 409 Bcf
    • The current end-of-season storage number being offered on ICE is at 4,050 Bcf, an increase from 4,006 Bcf last week

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