September 3, 2019

September 3, 2019
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  • WTI is down $1.30 to $53.80/Bbl, and Brent is down 88c to $57.78/Bbl
  • The US-China trade war marches on this week as the US imposed 15% tariffs on a variety of Chinese goods and China began to implement new tariffs on a $75 billion list of goods
    • This round of tariffs from the Chinese include a 5% import tax on US crude oil
    • Despite the escalation in tariffs, President Trump said both sides would continue talks later this month
  • Saudi Arabia has removed Energy Minister Khalid Al-Falih from his position as Chairman of Saudi Aramco (Bloomberg)
    • The head of the Saudi sovereign wealth fund replaces Al-Falih
    • The move comes as Saudi Arabia gears up for an upcoming IPO for Saudi Aramco and the separation of the Minister of Energy and Aramco avoids potential conflicts
  • Russian oil production reached 11.294 MMBbl/d in July, reaching the highest level since end of Q1 ’19 and higher than its OPEC+ agreed cut quota (Reuters)
    • The worlds second largest oil producer said that it plans to “fully comply” with the output limits underlined in the OPEC+ deal, according to Bloomberg
  • Natural gas is up 1.0c to $2.295/MMBtu
  • Cheniere’s Corpus Christi Train 2 is now substantially complete according to the company
    • Feed gas flows dropped to 6.1 Bcf/d this morning after 6.7 Bcf/d over the weekend, according to S&P Platts data
    • Train 2’s substantial completion could help bring these demand numbers above 7.0 Bcf/d in the near term
  • Hurricane Dorian will miss the Gulf and head up the East Coast
    • The storm was downgraded from a Category 5 to a Category 3
    • While the brunt of the storm will largely be concentrated off-land, major Atlantic coastal towns could still lose power for an extended amount of time and have some impact on gas demand in the Southeast
  • Lake Charles LNG, a joint venture between Energy Transfer and Shell, applied to FERC to delay its in service date to 2025
    • The roughly 2.0 Bcf/d export project originally had an anticipated start date of 2020
    • A final investment decision could be reached as early as late 4Q2020

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