Oil prices are up more than $1.50 after Saudi Arabia raises official selling price
Prices have continued to trade in a range between $76 and $80 this week, as the market shows some signs of tightness based on strengthening prompt time spreads
Saudi Arabia raises selling price to Asia (BBG)
Saudi Arabia has raised its official selling price to Asia in an unexpected move that was higher than many analysts anticipated
Saudi Arabia’s Arab Light crude will now sell for $1.70/Bbl higher than the regional benchmark
This comes after OPEC extended their production cuts earlier in the week
Valero’s Corpus Christi refinery disrupted (BBG)
Valero’s Corpus Christi West Plant, which processes sweet and sour crude, suffered a power outage on Tuesday morning, disrupting operations at the facility
Details of how much capacity is affected were not given, but the refinery has a total capacity of 268 MBbl/d
Natural gas prices remain steady this morning amid lower production and hints of cooler late March forecast
April ’24 Henry Hub is down 0.1c this morning to trade around $1.956/MMBtu
The Summer ’24 strip is up 0.4c to $2.420, and the Winter ‘24/’25 strip is up 0.3c to $3.481
Today's Euro Ens indicates a continued warm trend across the Midwest, Southeast, and Southcentral, with slight cooling in other regions, showing a fluctuating warm/cool pattern expected into late March
Lower 48 natural gas production rose by 0.55 Bcf/d overnight but faced a net decrease, with significant drops in the South Central and Northeast regions pushing volumes below 100 Bcf/d (Criterion)
Deferring Lower 48 natural gas activity possible, but not now, Gulfport CEO says (NGI)
Gulfport Energy, primarily focused on natural gas, plans to remain flexible in 2024, with the potential to defer or accelerate activity based on price fluctuations
The 2024 strategy includes developing liquids-rich targets in the Utica Shale and the South Central Oklahoma Oil Province
Despite a 10% reduction in capital investments to $380-420 million, Gulfport forecasts a stable production average of 1.05-1.08 Bcfe/d, nearly unchanged from the 2023 average
CFO Michael Hodges noted Gulfport's effective hedging strategy, which led to Q4 realized prices surpassing market rates and a $50 million hedging gain, enhancing cash flows
For 2024, over 60% of production is hedged at an average price of $3.69, with hedging activities for 2025 already underway
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