September 5, 2019

September 5, 2019
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  • WTI is up 13c to $56.39/Bbl, and Brent is up 26c to $60.96/Bbl
  • Oil futures are steady this morning after yesterday’s 4.3% rally, the biggest jump since July 10
    • Prices gained on Wednesday as China said it will resume talks with the US and try and resolve their differences
    • Representatives from China will head to Washington in early October for talks, according to China’s commerce ministry
  • The US placed new sanctions on Iran, and signaled more measures are on the way (Bloomberg)
    • Questions around the French effort meant to help Tehran restart oil sales were deflected by the US
    • The US special envoy for Iran said that the US will “continue to drive up costs” for Tehran
    • AEGIS notes the US is signaling maximum pressure on Iran by adding new sanctions. Trump’s erratic policy behavior has some worried as to whether a deal could be made with Iran
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  –    2,567 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:              –   1,508  MBbls
    • U.S. Distillate Inventories:             +            5  MBbls
    • U.S. Refinery Utilization:               –     0.29% change
  • Natural gas is down 1.3c to $2.432/MMBtu
  • The Permian Pass, Kinder Morgan’s third planned 2.0 Bcf/d Permian pipeline, is “going to be built even if producers are temporarily retrenching,” according to the company’s CEO
    • Kinder Morgan also hinted at a potential fourth Permian pipeline
      • No details were revealed besides debating whether the project would be needed in 2022 or 2023
  • Kinder Morgan’s Elba liquefaction facility will be shut down in the near term on account of Hurricane Dorian
    • Kinder Morgan’s CEO notes that this could impact the timing schedule of commissioning activities for its first train
    • Train 1 was expected to be in-service during 3Q2019
  • Analysts estimate a 75 Bcf build in gas storage compared to the 64 Bcf build last year
    • Estimates range from 69 Bcf to 83 Bcf
    • Should estimates fall within expectations, storage would rise to 2.93 Tcf and be at a surplus of 374 Bcf compared to last year

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