September 4, 2019

September 4, 2019
Share
Print Friendly, PDF & Email
  • WTI is up $1.52c to $55.46/Bbl, and Brent is up $1.42 to $59.68/Bbl
  • Oil prices are higher this morning, offsetting yesterday’s drop
    • Economic worries loom, but positive news from the Chinese service sector has helped buoy crude today
  • Enbridge will soon start flows on the Canadian side of its 760 MBbl/d Line 3 crude oil pipeline replacement project
    • The new 665-mile line will connect to the existing Line 3 at the Canada-US border
    • The existing 760 Mbbl/d line has been running at about half capacity because of integrity concerns
      • The entire Line 3 system moves Canadian crude oil from Edmonton, Alberta, to Superior, Wisconsin
  • Concho Resources will sell some a portion of its Permian basin assets in New Mexico to Spur Energy Partners for $925 million
    • The sale includes about 100k gross acres with about 25 MBoe/d of production
    • Concho will use the sale proceeds to pay down debt and initiate a $1.5 billion share repurchase program
    • AEGIS notes that many companies are facing mounting debt amid a soft price environment – leading many to mull divestitures as a means of paying down debt
  • Natural gas is up 3.0c to $2.388/MMBtu
  • Freeport LNG shipped its first commissioning cargo from its Train 1 facility
    • Commercial operations will begin later in the month
    • Train 2 has a targeted in-service date of January 2020; Train 3 is expected to come online in May of 2020
  • The Dominion South Oct ’19 contract has taken a nosedive, falling around $0.20 since mid-August
    • While the Jan ’20 tenor is near its strongest levels in the last five years
    • There are several reasons that could be attributing to the weakness such as strong Appalachian production and or weaker seasonal demand
      • More commentary to come on Appalachia prices when AEGIS releases its Infrastructure Report on Friday

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More