September 4, 2020

September 4, 2020
Share
Print Friendly, PDF & Email
  • WTI is down 3c to $41.34/Bbl, and Brent is down 12c to $43.95/Bbl.
    • WTI is set to see its first weekly decline in four weeks, as a strengthening dollar and demand concerns pressure prices
    • According to Bloomberg, WTI put volumes are at their highest levels since mid-June
  • Gulf Coast refineries expected to bring shut-units online through next week (Reuters)
    • The Valero (250 MBbl/d), Total (185 MBbl/d) refineries in Port Arthur are expected to resume limited operations on Monday
    • Exxon Mobil has also said that they are currently in the process of restarting units at their 369 MBbl/d refinery in Beaumont, Tx and expect the refinery to be restarted later today
  • Mexico announces intent to trim 2021 Pemex production goal (Bloomberg)
    • Mexico is likely to cut its crude production goal for 2021 after missing this year’s target, said a senior lawmaker from the ruling party
    • The government’s preliminary 2.027 MMBbl/d output goal for next year is stretched, up from the 1.83 MMBbl/d expected by the Finance Ministry this year
    • In July, the company’s output hit its lowest levels since October of 1979, as the coronavirus dampened demand
  • Natural gas is up 3.2c to $2.519/MMBtu.
    • Waha and Midcontinent-area basis remain at historically strong levels for both Cal ’21 and Cal ‘22
    • Cal ’21 and Cal ’22 Waha settled at -0.330 and -0.314, respectively
    • Cal ’21 and Cal ’22 Panhandle settled at -0.346 and -0.373 for the same tenors, while NGPL Midcon settled a few cents better at -0.313 and -0.330
    • The Chicago forward curve has remained relatively unchanged over the last six months or so; unless these forward prices improve, additional upside for Waha and Midcontinent basis pricing will be limited
  • The EIA reported a 35-Bcf build for the week ending August 28, this was slightly larger than the 34-Bcf build analysts expected
    • Total stocks now stand at 3.455 Tcf which is 407 Bcf above the five-year average
    • ICE has the end-of-season storage number at 4.000 Tcf following the latest injection report

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