- WTI is down 94c to $56.35/Bbl, and Brent is down 105c to $62.05/Bbl
- Oil prices are down this morning as Saudi Arabia has restored its oil production capacity to 11.3 MMBbl/d, a faster recovery than expected (Reuters)
- Sources told Reuters that output from the Khurais field is now at 1.3 MMBbl/d and the Abqaiq plant is currently at about 4.9 MMBbl/d
- Saudi Arabia’s oil infrastructure was attacked on September 14 that knocked out almost half of its oil production
- President Trump addressed the UN on Tuesday, criticizing China’s trade practices and tampered down expectations of a near-term US/China trade deal
- Trump said “Hopefully we can reach an agreement that is beneficial for both countries, but I will not accept a bad deal that is not beneficial for the American people”
- AEGIS notes that the ongoing US/China trade war has continued to weigh on global GDP growth and oil demand growth
- The combination of forecasted growing global oil supplies and lackluster growth in demand has helped kept WTI crude oil from breaking out above $60/Bbl for some time now
- EIA petroleum data is due out this morning at 9:30 am CT
- U.S. Crude Inventories: – 276 MBbls (Bloomberg surveys)
- U.S. Gasoline Inventories: – 493 MBbls
- U.S. Distillate Inventories: – 602 MBbls
- U.S. Refinery Utilization: – 0.60% change
- Natural gas is down 1.8c to $2.485/MMBtu
- Kinder Morgan’s (KMI) 2 Bcf/d Gulf Coast Express will be placed into full commercial service today
- Next in line will be KMI’s 2 Bcf/d Permian Highway Pipeline, which is targeted to begin service in 3Q2020
- The company is also hinting at a third and fourth Permian takeaway project, however those appear to be a little more uncertain
- Summer weather is forecasted to start fading away in both the 6-to-10 day and 11-to-15-day weather model outlooks
- However, warmer temperatures should remain in the Southeastern portions of the United States
- This is a bullish sign for natural gas, as lingering heat into the end of October and beginning of November would begin to cut into winter heating demand
