MODEST OIL GAS PRICES
OGJ, BLOOMBERG, OILPRICE - US and Brent crude oil benchmarks both gained moderately on June 26 but analysts say crude oil remains in a bear market territory given ample world oil supplies and increasing production from US, Libya, and Nigeria.
Light, sweet crude oil settled at nearly $43.40/bbl on the New York market June 26, up about 40¢. Brent settled on the London market above $45.80/bbl, up nearly 30¢.
The American Petroleum Institute was scheduled to release its weekly US oil supply estimate on June 27. The US Energy Information Administration was scheduled to release its weekly oil and product inventory on June 28.
Some analysts expect both US oil inventory and production will decline following last week's Tropical System Cindy, which forced about 17% of oil production in the Gulf of Mexico and less than 1% of natural gas production to be shut in temporarily.
On world oil markets, the Organization of Petroleum Exporting Countries along with some non-OPEC producers in May extended production-cut targets of 1.8 million barrels p/d through Mar. 31, 2018.
Market observers note the production-cut targets have yet to reduce global oil oversupply levels. Libya and Nigeria were exempted from OPEC's production-cut targets.
"It's a bit of fatigue," for oil prices, said Miswin Mahesh, Energy Aspects oil market analyst. "But for sentiment to reverse, there needs to be more constructive fundamental data."
The Wall Street Journal reported light, sweet crude prices dropped more than 20% by June 21 compared with Feb. 23, marking the first bear market since August 2016. Economists generally define a bear market as a decline of 20% or more from a recent peak.
The August light, sweet crude contract on NYMEX gained 37¢ on June 26 to settle at $43.38/bbl. The September contract was up 34¢ to close at $43.61/bbl.
The NYMEX natural gas price for July gained nearly 10¢ to a rounded $3.03/MMbtu. The Henry Hub cash gas price was $2.98/MMbtu, up 12¢.
Heating oil futures for July also edged up less than 1¢ to a rounded $1.38/gal. Reformulated gasoline stock for oxygenate blending for July dropped a fraction of a penny to remain at $1.43/gal.
The Brent crude contract for August on London's ICE increased 29¢ to $45.83/bbl while the September contract was up 29¢ to $46.04/bbl. The July gas oil contract dropped $1.75 to $409.50/tonne.
OPEC's basket of crudes on June 26 was $43.14/bbl, down 12¢.
|September, 21, 11:00:00|
|September, 21, 10:55:00|
|September, 21, 10:45:00|
|September, 21, 10:40:00|
|September, 21, 10:35:00|
|September, 21, 10:30:00|
U.S. EIA - Energy companies’ free cash flow—the difference between cash from operations and capital expenditure—was $119 billion for the four quarters ending June 30, 2018, the largest four-quarter sum during 2013–18 Companies reduced debt for seven consecutive quarters, contributing to the lowest long-term debt-to-equity ratio since third-quarter 2014
OPEC - Total oil demand for 2018 is now estimated at 98.82 mb/d. In 2019, world oil demand growth is forecast to rise by 1.41 mb/d. Total world oil demand in 2019 is now projected to surpass 100 mb/d for the first time and reach 100.23 mb/d.
ARAB NEWS - Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
PLATTS - The International Energy Agency expects the US to account for 75% of the global growth in natural gas exports over the next five years, a bullish outlook for LNG developers facing challenges at home getting projects off the ground and abroad with tariffs affecting trade flows.