September 19, 2019

September 19, 2019
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  • WTI is up 79c to $58.90/Bbl, and Brent is up $1.31 to $64.91/Bbl
  • Oil prices are higher this morning as traders doubt the speed at which Saudi Arabia can recover from the weekend’s attacks on its oil facilities that reduced production (Bloomberg)
    • There were reports from Dow Jones that the Saudis asked Iraq’s national oil company for as much as 20 MMBbls of crude to supply its domestic refiners
      • The request for oil from Iraq could mean the Saudis recovery could take longer than what was announced in their presser on Wednesday
  • President Trump announced new sanctions on Iran Wednesday as the US administration blames Iran for the attacks on Saudi oil installations (The Hill)
    • Senator Lindsay Graham has been advocating for the US to strike Iranian oil infrastructure in response to the Saudi attacks
    • The Senator said on Wednesday that imposing new sanctions would not be a sufficient response
    • AEGIS notes adding new sanctions has been the default action for penalizing Tehran
  • A Crude oil inventory build disappointed bulls on Wednesday, but price action was rather muted following the government data release
    • US crude stocks rose by 1.1 MMBbl to 417 MMBbl last week amid a steep drop in refinery runs, according to the EIA
  • Natural gas is down 3.1c to $2.606/MMBtu
  • Analysts estimate a 76-Bcf build in storage for the week ending September 13
    • The corresponding build last year was 84 Bcf
    • Estimates ranged from 71 Bcf to 85 Bcf
  • Blackstone’s CEO suggests that the “second wave” of LNG facilities will be tougher to bring online, in terms of FID, over the next couple of years
    • Long-term off-take contracts can no longer guarantee a competitive advantage, especially for independent LNG companies, according to Tellurian’s chairman
    • Despite the pessimism, three independent LNG companies have said they plan to make a Final Investment on their facilities by the end of the year

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