Oil is trading lower at $81 after posting a gain of more than $1.50 yesterday
The US Department of Energy is seeking to purchase another 3 MMBbls of crude for the SPR for delivery in August and September
Prices found support yesterday following IEA shifting its forecast to a deficit (-322 MBbl/d) in 2024 in addition to ongoing Ukrainian drone attacks on Russian oil infrastructure
EU warns against the growing threat of Somali piracy (BBG)
Amid continued attacks in the Red Sea against merchant vessels by Houthi militants, the EU has warned that piracy off the coast of Somalia has also been increasing
Piracy attacks have been rising since last year, when a vessel was hijacked for the first time since 2017
Further avoidance of the Red Sea by merchant vessels and tankers could lead to higher freight and tanker rates, which have already surged this year
Russian refinery attacks could threaten product flows (BBG)
According to RBC, Ukraine’s recent attacks on Russian refineries could impact the global flow of crude products
Ukraine has attacked eight refineries, which account for 27% of Russia’s capacity
Ukraine also has the ability to target export terminals, which could threaten about 60% of Russia’s crude exports
Natural gas prices head for a weekly loss amid mild weather outlook
April ’24 Henry Hub is down 2c this morning to trade around $1.721/MMBtu
The Summer ’24 strip is down 2c to $2.265, and the Winter ‘24/’25 strip is down 1c to $3.430
Today's Euro Ens forecasts mixed weather, with colder conditions in the Northeast/Southeast and warmth in the Midwest/South Central, leading to an overall cooler Lower 48 into late March despite a post-cold rise in nighttime temps
Following late-cycle nominations, Lower 48 natural gas production rose, ending the week at 99.62 Bcf/d, slightly below last week's 100.0 Bcf/d average due to regional variances (Criterion)
Freeport LNG is close to restarting Train 3 (NGI)
Freeport LNG's Train 3 is expected to restart soon, with electrical issues resolved following a shutdown in January due to extreme cold
Freeport had said the third train could be back online this week, and the plant's power usage increase indicates preparations for the restart
Inspections have also taken Train 2 offline, with Train 1's inspection scheduled post Train 2's restart. Feed gas deliveries to the 2 Bcf/d plant have been below 1 Bcf/d since March 9, with a significant day-to-day decline to 727 MMcf as of Thursday
Despite increased power usage at Freeport LNG, lower feed gas volumes suggest liquefaction has not yet resumed
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