OIL PRICE: ABOVE $55 YET
OGJ, BLOOMBERG - The light, sweet crude oil prices for both May and June fell on the New York market Apr. 12 but held above $53/bbl. Prices fell after the US Energy Information Administration reported US oil production increased 36,000 b/d for the week ended Apr. 7.
US production has increased every week for 2 months. If US production continues to rise at the current pace, it could "at least offset" cutbacks by the Organization of Petroleum Exporting Countries, Tariq Zahir, managing member of Tyche Capital Advisors, told the Wall Street Journal.
"All the rigs that have come online are starting to actually produce oil," Zahir said.
The Petroleum Status Report showed US oil production of 9.235 million b/d as of Apr. 7. The Lower 48 accounted for 35,000 b/d of the weekly gain. Total Lower 48 production was estimated at 8.7 million b/d as of Apr. 7, EIA said.
Alaska production rose 1,000 b/d for the week ended Apr. 7 to a total of 534,000 b/d.
EIA said US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, declined 2.2 million bbl to 533.4 million bbl total for the week ended Apr. 7 compared with Mar. 31.
Separately, the American Petroleum Institute estimated crude inventories lost 1.3 million bbl for the week ended Apr. 7.
The crude oil contract for May delivery on the New York Mercantile Exchange dropped 29¢ on Apr. 12 to close at $53.11/bbl. The June contract fell 27¢ to $53.52/bbl.
The natural gas price for May rose nearly 4¢ to a rounded $3.19/MMbtu. The Henry Hub cash gas price closed Apr. 12 at $2.99/MMbtu, down 9¢.
Heating oil for May was up less than 1¢ to remain at a rounded $1.65/gal. Reformulated gasoline stock for oxygenate blending for May fell 1.6¢ to a rounded $1.74/gal.
The Brent crude contract for June on London's ICE declined 37¢ to $55.86/bbl. The July contract was down 30¢ to $56.30/bbl. The gas oil contract for May settled at $498.50/tonne, up $4.
The average price for OPEC's basket of benchmark crudes on Apr. 12 was $53.67/bbl, up 31¢.
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.