September 6, 2019

September 6, 2019
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  • WTI is down $1.04 to $55.26/Bbl, and Brent is down $1.08 to $59.87/Bbl
  • US crude inventories surprised analysts by drawing by a sizable 4.8 MMBbl
    • WTI edged higher on the day following the government’s data release Thursday morning
    • EIA data was released on Thursday instead of the normal Wednesday release due to the labor day holiday
  • ExxonMobil is eyeing oil and gas deals as its CEO said significant new investments, including acquisitions will be needed due to growing demand
    • CEO Darren Woods says Exxon is keeping a “watchful eye” for deals in the Permian and expects consolidation to happen over some period of time
    • AEGIS notes that oil majors have invested heavily into onshore shale assets like the Permian basin in the past few years
      • Oil majors are less sensitive to price movements due to supply chain integration which can lead to aggressive drilling even in a low price environment
  • Natural gas is down 1.4c to $2.421/MMBtu
  • The EIA reported an 84-Bcf build in storage for the week ending August 30, 2019
    • Total storage now sits at 2.94 Tcf and is at a surplus of 383 Bcf compared to last year
    • Next week’s storage build is estimated to build by about 80 Bcf
  • Cheniere’s Sabine Pass Train 5 is undergoing planned maintenance according to the company
    • The shutdown should be shorter than the typical three to four weeks it takes to complete scheduled maintenance according to a spokesman for Cheniere
    • Feed gas has fallen to 5.3 Bcf/d
  • Flows on the 2.6 Bcf/d Sur de Texas have finally started after a drawn-out arbitration dispute
    • The startup of the line could help support South Texas basis

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