Oil & Energy

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With the agressive trade tactics of the U.S. it is no surprise that China is ignoring the US demand that it stops importing oil. China is Iran's biggest impoter and it has developed a friendly relationship with Iran it says. 

Natural gas futures had another listless week after EIA reported a natural gas storage build of +91 Bcf last 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 oil with gasoline and distillates builds this week. We saw oil prices jump on OPEC, Syncrude, Midland and then Tuesday Iran importers told to stop by the U.S. Saudi Arabia says to produce at record highs. Volatility 101.

Canadian U.S. oil rigs put into service soared this week by just one oil rig was added in the U.S. as oil production stalled at record highs this week.  Bottlenecks that have hit the Midland price differential appeared to have an affect with another 2 oil rigs coming off in the Permian basin.

Natural gas futures  spat over $3.00 last week on pipeline fractures but quickly fell back.EIA reported a natural gas storage build of +91 Bcf this week.  Pipeline explosions join heat and storms are in the vernacular now.

EIA Inventory report showed a large draw in crude oil but big gasoline and distillates builds this week. Production rose again as oil rigs continue to rise. A critical OPEC meeting follows.

The Port of Corpus Christi in Teaxs on the Gulf of Mexico is already the U.S.'s top oil export port. It sits between the Permian Basin and Eagle Ford which together produce about 4.7 million bpd, nearly half of the total U.S. production. However it needs to expand to take full advantage.

New U.S. oil rigs put into service were higher this week by 1 new rig as U.S. oil production hit record highs this week.  Bottlenecks that have hit the Midland price differential appeared to have an affect with 4 rigs coming off in the Permian basin.

Natural gas futures  $3.00 stop run failed again last week. EIA reported a natural gas storage build of +96 Bcf last week.  Pipeline explosions join heat and storms are in the vernacular now.

Russia's oil minister Novak comments that a gradual easing of oil production cuts is possible from July 1. He will discuss with Saudi's Falih the gradual exit from the global oil production cut deal. Russian oil companies have been out and loud about their ability to raise production quickly.

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