Oil is trading higher as risks in the Middle East remain elevated
It has been reported that BP’s 435MBbl/d Whiting refinery in Indiana remains offline following a power outage last week
Another cargo ship was attacked in the Red Sea last night, sustaining minor damage
Venezuela fears oil industry could lose ground if sanctions return (BBG)
Operators in Venezuela are concerned that their recent deals with US banks and equipment providers could be at risk due to a resumption of sanctions
The US eased sanctions on the country in exchange for promises of free elections, but sanctions may resume in April following the banning of several opposition members from running for election
Imports of Venezuelan crude into the US have risen, but the country lacks a lot of necessary infrastructure, impeding production growth
Indian imports of Russian Sokol oil resume (BBG)
A tanker transporting Russian Sokol crude unloaded in India, the first cargo to be imported in more than two months, as millions of barrels remain stranded across the region
Since late 2023, India has had issues receiving cargoes of Russian oil, with 16 cargoes meant for the country idling near Singapore
Some Sokol cargoes have instead been shipped to China, which historically has imported heavier Russian grades such as Urals and ESPO
Natural gas prices trade modestly lower as the market monitors near-term mild forecasts ahead of an expected mid-February cold spell
March ’24 Henry Hub is down 3.2c this morning to trade around $2.05/MMBtu
The Summer ’24 strip is down 2.5c to $2.344, and the Winter ‘24/’25 strip is down 1.9c to $3.385
Today's Euro Ens shows the Lower 48 growing colder by -6o F in the 1-15 day period, affecting all regions, with warmer average temps persisting until the week ending 2/23
Production in the Lower 48 fell from 104.56 Bcf/d to 103.3 Bcf/d, with a notable 0.89 Bcf/d drop concentrated in Appalachia and minor declines in the South and Rockies (Criterion)
Marathon gears up for expansive growth in key shale regions (NGI)
Marathon allocates $950 million of its 2024 capital budget of $1.1 billion towards growth projects, focusing on gas processing plants and pipeline expansions to meet rising demand
The Whistler Pipeline extension project, connecting Agua Dulce to Corpus Christi LNG, is on track for completion in Q3
In the Delaware Basin, the Preakness II gas processing plant is expected to start in early Q2, with the Secretariat plant boosting total capacity to about 1.4 Bcf/d by 2H 2025
Construction of the Harmon Creek II gas processing plant in the Marcellus to begin operations by the end of Q1, enhancing processing capabilities
US reassures allies on LNG import security amid export approval pause (Bloomberg)
Bloomberg reported concerns among US allies over LNG import security, with the Biden administration clarifying its freeze on new export approvals as a temporary "pause"
"This policy will have no impact on currently permitted LNG exports,” said US Assistant Secretary of State for Energy Resources Geoffrey Pyatt during an online media brief
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