September 20, 2019

September 20, 2019
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  • WTI is up 87c to $59.00/Bbl, and Brent is up 73c to $65.13/Bbl
  • The US will rely on diplomacy and pursue a “peaceful resolution” following an attack on Saudi oil facilities, US secretary of state Mike Pompeo said on Thursday
    • Pompeo told reporters in Abu Dhabi that “We are here to build out a coalition aimed at achieving peace and a peaceful resolution to this”
    • The secretary also met with the Saudi crown prince Mohammad bin Salman on Wednesday and the UAE’s crown prince yesterday to come up with a joint response to the attacks on Saudi Arabia (Argus)
  • At the same time Pompeo was in the Middle East meeting with allies, Iran’s foreign minister, Jarad Zarif, warned that an US or Saudi strike on is country would lead to “all-out war”
    • In an interview with CNN, Zarif reiterated that Iran wasn’t involved in the weekend attacks
    • US and Saudi officials have said that the UAV drones and missiles used in the attacks were made in Iran, came from a northerly direction, ruling out Yemen as a launch site
  • AEGIS will be publishing it’s Market Summary Friday afternoon that will discuss possible lingering effects of the attacks on Saudi oil infrastructure
    • Clients are able to access each Market Summary publication through this link on our website
  • Natural gas is up 3.3c to $2.571/MMBtu
  • Storage increased by 84 Bcf for the week ending September 13
    • Total storage now stands at 3.1 Tcf
    • Inventories are now at a surplus of 393 Bcf compared to last year, but at 75-Bcf deficit compared to the 5-year average
  • LNG feed gas fell by 0.5 Bcf/d compared to yesterday
    • The significant drop occurred at the Cove Point liquefaction facility
    • The Pleasant Valley Station, which interconnects with the Transco pipeline, is predicted to undergo maintenance for the next three weeks
  • Enterprise Product Partners is planning to extend its Acadia Gas system by 400 MMcf/d
    • The planned extension is due, in part from, demand growth from LNG within the Gulf region
    • Haynesville gas production is forecasted to grow from 11 Bcf/d to 14 Bcf/d through 2025, according to Enterprise’s CEO

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