Oil is trading higher, around $74.40, heading for a weekly gain
Following yesterday’s crude inventory report from the EIA, US inventories are about 3% below the five-year average
About 15% or 1.5 MMBbl/d of Gulf Coast refining capacity was shut in, due to the freezing weather, which could lead to a heavier spring maintenance season
Chevron’s Kazakhstan expansion could be delayed to 2025 (BBG)
A project to expand production at a Chevron-owned oil field in Kazakhstan may be delayed to Q2 2025 due to slower-than-expected implementation of the final stages of the project
The project, which has gone significantly over budget, is expected to increase production by 260 MBbl/d, bringing total production from the field to 880 MBbl/d
Another ship attacked in the Red Sea (BBG)
Militants fired two anti-ship missiles at an American-owned and Greek-operated chemical tanker in the Red Sea
The US military has continued to strike targets inside Yemen in an attempt to degrade the military capabilities of the Houthis
Nearly 9 MMBbls of crude shipments from Saudi Arabia and Iraq have been delayed by more than two weeks as the tankers are forced to take longer routes
Natural gas prices head for a nearly 70c weekly loss, responding to forecasts of warmer weather beyond this week's cold snap
February ’24 Henry Hub is down 9.4c this morning to trade around $2.603/MMBtu
The Winter ‘23/’24 strip is down 9.1c to $2.467, and the Summer ’24 strip is down 6.2c to $2.608
The weather model indicates colder weather in most regions, except for warmer temperatures in the Northeast and West, with Lower-48 temps trending towards 10-year normal in the 11-15 day period
Next week's temperatures are expected to be warmer by +7o F, with a further +4o F increase the week after
Lower 48 gas production is rebounding, rising by 1.67 Bcf/d today, mainly in the South Central (Criterion)
This week's average production is 94.81 Bcf/d, down 7.18 Bcf/d from last week, but expected to increase early next week
Haynesville shale drives up Kinder Morgan's 4Q volumes with pipeline projects underway (S&P)
Kinder Morgan’s 4Q 2023 gathering volumes jumped 27% from 4Q 2022, driven by a 59% rise in Haynesville Shale and increases in Eagle Ford and Bakken Shale
CFO David Michels noted that their largest customer is preparing for an imminent surge in LNG demand. Despite some smaller producers scaling back, there's an overall anticipation for increased demand in the market, added Michels
Ongoing projects include the South Texas to Houston expansion (350 MMcf/d, completion in Q3 2024) and the Kinder Morgan Texas Pipeline expansion (500 MMcf/d to Gulf Coast, operational by Nov 2024)
Additionally, the Markham Storage expansion is nearing completion, increasing gas capacity by 6 Bcf and withdrawal by 650 MMcf/d. Partial service began Nov 2023, with full service expected by June 2024
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