Oil is trading lower, around $76.30, following last week's decline of nearly $2.50
According to data from Baker Hughes, six crude oil rigs were added last week, the most since November 2023
Red Sea disruption leads to tanker shortage (BBG)
Attacks on merchant vessels have forced many ships to avoid the Red Sea and take longer routes
The CEO of Euronav said, “The impact of the diversions can be seen every day in shipping in general, and I would say crude oil and product tanker shipping”
This comes after the oil tanker industry has warned that not enough tankers are being built, with only two new supertankers entering service in 2024, 90% less than the yearly average of the past 20 years
US physical oil prices climb on refinery demand (BBG)
Refineries benefitting from strong margins and foreign buyers looking to avoid the Red Sea have been increasing purchases of US crude
The WTI Houston differential rose to the highest level of the year, at a premium of $2 to NYMEX WTI
According to people with knowledge of the matter, profit margins for refineries in the US and Europe surged, prompting them to postpone maintenance and buy oil in the spot market
Natural gas prices start the week higher following testing new three-and-a-half-year lows last week
March ’24 Henry Hub is up 9.9c this morning to trade around $1.702/MMBtu
The Summer ’24 strip is up 9.2c to $2.265, and the Winter ‘24/’25 strip is up 5.9c to $3.352
Today's Euro Ens indicates significant warming east of the Rockies, with temps increasing by +20o F in the 6-10 day period, leading to highs near 65o F and milder lows in the mid-40s into mid-March
Lower-48 natural gas production was pushing near its seasonal lows, with weekend production falling by 1.5 Bcf/d, largely driven by declines in the Northeast with a possible recovery through late cycle noms (Criterion)
Qatar doubles down on global gas bet (PGJ, Reuters)
Qatar Energy announces a production increase of 16 MTPA, targeting a total LNG capacity of 142 MTPA by 2030, despite recent price weakness, in a long-term bet on the growing LNG demand
CEO Saad al-Kaabi said, “We see that Europe is going to need gas for a very, very long time. But the growth in Asia is definitely going to be bigger than the growth in Europe, basically driven by population growth”
Analysts expect Qatar's LNG expansion to extend the market's bearish cycle with new global capacity by the decade's end, equaling half of 2023's global LNG supply
The expansion requires constructing two new LNG trains to six already underway, with Qatar Energy starting the engineering phase independently before deciding on partnerships
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