Into The Vortex – EIA Reports Natural Gas Storage Grew 44 Bcf Heading into Key Hurricane Season

The EIA reported a higher-than-expected build of 44 Bcf of working gas in storage. Salt Dome Cavern stocks -2 Bcf from unchanged last week. August brings hurricane season to our attention as we monitor risk. The third month of the hurricane season began on Aug. 1, with the Atlantic basin without any tropical activity at all since just prior to the Fourth of July holiday. However, we now near the heart of hurricane season. For natural gas the big what … Continue reading “Into The Vortex – EIA Reports Natural Gas Storage Grew 44 Bcf Heading into Key Hurricane Season”

Around The Barrel – Crude Oil Builds 5.457M as Production 12.2M Bpd, Highest Since March 2020

The EIA reported US gasoline exports at 1.126mbpd last week (up 286kbpd w/w) to the highest level since December 2018. Crude oil stocks rose+5.457Mbbls factoring in a SPR crude draw of -5.3 mil bbls. Cushing stocks rose +723Kbbl. Gasoline stocks drew -4.978Mbbl. Production rose to 12.2 mil b/d the highest since March 2020. Hot geopolitical tensions with China and Russia’s Putin rattling their sabers about continues to fester. Meanwhile in the US SPR sales continues. US crude stocks In SPR … Continue reading “Around The Barrel – Crude Oil Builds 5.457M as Production 12.2M Bpd, Highest Since March 2020”

EIA Forecasts Record Yearly U.S. Crude Oil Production of 12.7 million b/d in 2023

In the August STEO, EIA estimate for U.S. crude oil production will average 11.9 million barrels per day (b/d) in 2022 and 12.7 million b/d in 2023, which would set a record for most U.S. crude oil production in a year. The current record is 12.3 million b/d, set in 2019. STEO Highlights Estimate EIA STEO Current Yr Crude Forecast (Bpd) Aug: 11.86M (prev 11.91M) Forward Yr Crude Forecast (Bpd): 12.70M (prev 12.77M) Current Yr Dry NatGas Forecast (Bcf/d): 96.59 … Continue reading “EIA Forecasts Record Yearly U.S. Crude Oil Production of 12.7 million b/d in 2023”

Sea Freight Rates Continue to Slide, BDI at Six Month Low as China Woes Mount

The Baltic Exchange’s dry bulk sea freight index booked its worst week in over two months, taking it to a six-month low on Friday. Rates across component vessel segments were down hard. China’s woes deepen with the Chinese ailing property sector, COVID-19 curbs, steel production cuts and tensions over Taiwan, which were heighten by US speaker’s visit there and China sending missiles into Japanese waters. The BDI index saw a weekly loss of nearly 18%. The BDI factors in rates … Continue reading “Sea Freight Rates Continue to Slide, BDI at Six Month Low as China Woes Mount”

Into The Vortex – EIA Reports Natural Gas Storage Rose Larger Than Expected 41 Bcf

The EIA reported a higher-than-expected build of 41 Bcf of working gas in storage. Natural gas prices sold off after being sharply higher ahead of the latest EIA storage report after the prospect of an October return to full service for the 2.0 Bcf/d Freeport LNG terminal was announced the day before.  Salt Dome Cavern stocks unchanged from -11 Bcf last week. Natural gas prices have been held hostage to the restricted flow of Nord Stream from Russia and the … Continue reading “Into The Vortex – EIA Reports Natural Gas Storage Rose Larger Than Expected 41 Bcf”

Petrobras Finalized Sale Producing Peroá and Cangoá Fields and BM-ES-21 Concession

Petrobras finalized the sale of all its stakes in the producing fields of Peroá and Cangoá, and in the BM-ES-21 concession. What is known as the Peroá Cluster is located in the Espírito Santo Basin was completed with 3R Petroleum Offshore, previously called OP Energia. This transaction continues Petrobras concentrating its resources on assets in deep and ultradeep waters, where it has a competitive edge. Transaction Details US$5 million paid to Petrobras when purchase and sale contract was signed. US$8.07 … Continue reading “Petrobras Finalized Sale Producing Peroá and Cangoá Fields and BM-ES-21 Concession”

Around The Barrel – Crude Oil Builds as Gasoline Demand Hits 3 Month Low with Rising Inflation Bites

Oil prices have trended trend down and continued lower after OPEC+ and demand destruction concerns. EIA data shows refinery activity fell o 3-month low and gasoline demand slid to 8.5M bpd. Positions now leads into US jobs data, and even hotter geopolitical tensions with China and Russia’s Putin rattling their sabers about. Big oil has been busy reporting Q2 numbers with $XOM, $CVX, $PSX, $SHEL, $BP and Permian supremo $FANG all posting record or thereabouts profits. Central banks are aggressively … Continue reading “Around The Barrel – Crude Oil Builds as Gasoline Demand Hits 3 Month Low with Rising Inflation Bites”

Baltic Sea Freight Index Falls to Five Month Low Down 15.4% for July.

The Baltic Exchange’s dry bulk sea freight index booked its worst month since January on Friday with rates across component vessel segments down double digits for the month. The BDI factors in rates for capesize, panamax and supramax shipping vessels, fell 50 points Friday, or 2.6%, to 1,895 points, its lowest in over five months. The capesize index, which had been the relative bright spot by outweighing falls in other vessel segments, lost 109 points, or nearly 5%, to a … Continue reading “Baltic Sea Freight Index Falls to Five Month Low Down 15.4% for July.”

Into The Vortex – EIA Reported US Natural Gas Storage Grew 15 Bcf as Cooling Demand Rises

The EIA reported a lower-than-expected build of 15 Bcf of working gas in storage. Salt Dome Cavern stocks drew -11 Bcf from -15 last week. Natural gas prices have been held hostage to the restricted flow of Nord Stream from Russia and the hot weather sweeping the USA. The report saw natural gas futures consolidate around 8.50 after trading over 9.50 this week. Domestically scorching summer US temperatures overcame assumptions on Freeport LNG. Prices are also reacting to tightening European … Continue reading “Into The Vortex – EIA Reported US Natural Gas Storage Grew 15 Bcf as Cooling Demand Rises”

Around The Barrel – US Crude Exports Record High 4548kbpd as Crude Stocks Draw -4523kbbls

Oil continues to bustle on geopolitics, the latest the Russian oil cap proposal. Meanwhile in the US SPR sales continues. US crude stocks In SPR fell to lowest since July 1985. Is the Biden administration plan to have the Fed raising rates facilitate demand destruction? What happens if supply doesn’t overwhelm demand? Meanwhile this week the EIA reported US crude exports hit a new record high of 4.548mbpd last week as oil stocks fell -4523kbbls factoring in a SPR crude … Continue reading “Around The Barrel – US Crude Exports Record High 4548kbpd as Crude Stocks Draw -4523kbbls”