Oil & Energy

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Natural gas futures continued sideways after EIA reported a natural gas storage build of +51 Bcf this week. Excitment comes from pipeline repairs and heat and storms, but only in the vernacular it seems.

EIA Inventory report showed a huge draw in crude, after whispers of a another huge draw in crude priced in. With trade wars stepping up, Syncrude shortfall covered, Iran importers with a reprieve and massive longs oil prices were heavy going in.

The outage at the Syncrude Oil Sands facility and its restoration has been one of intense speculation. Suncor announced they intend to bring the initial coker into service in the second half of July 2018 and outlined a schedule for the rest. 

U.S. oil rigs in service were higher this week by 5 with oil production at record highs this week as oil constinues over $73 with Iranian tensions and the Synocrude outage. Bottlenecks remain in the Midland Texas area.

Natural gas futures had another listless week after EIA reported a natural gas storage build of +78 Bcf this week. Excitment comes from pipeline repairs and heat and storms, but only in the vernacular it seems.

EIA Inventory report showed a surprise build in crude after whispers of a another huge draw in crude oil this week. We saw oil prices jump on OPEC, Syncrude, Midland and Iran importers told to stop by the U.S. Saudi Arabia says to produce at record highs. Volatility 101.

The Saudi Arabian economy recovered in the first quarter of 2018 of shrinking in 2017. With oil production set to raise 20% with King Salman bin Abdulaziz Al Saud intention to boost oil production by up to 2 million bpd. There are hopes this will boost the stagnant non-oil segments.

Iran is in a tight spot. The U.S. pulled out of the Iran nuclear deal, its currency has fallen about 50% since and locals are protesting as they lose purchasing power. Now throw in Trump's call to send oil exports to zero and have Saudi Arabia fill the gap. What to do, go private? 

King Salman bin Abdulaziz Al Saud on Saturday received a call from U.S. President Donald Trump and agreed on producing countries to compensate for any potential shortage of supplies. Trump tweeted that Saudi Arabia will add up to 2 million bpd.

U.S. oil rigs in service were lower this week by 4 with oil production hit record highs this week we are seeing the bottlenecks that have hit the Midland price differential see rigs being rotated elswhere in North America with 10 more oil rigs overall.

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