AEGIS Hedging : March 22, 2024

Oil is trading higher and heading for a second consecutive weekly gain
- Prices traded higher earlier in the week but gave up much of the gains over the past two days
Russian refining throughput falls to ten-month low (BBG)
- Russian refineries processed 5.03 MMBbl/d from March 14 to 20, down more than 400 MBbl/d from the average of the first two weeks of the month
- Recent attacks on Russian refineries by Ukrainian drones have reduced the country’s refining capacity by about 11%
- The reduced refining capacity should lead to higher crude exports from Russia, which could be a bearish factor for global crude prices

Natural gas prices are lower by 2c, heading for a modest weekly loss
- Lower 48 temperature forecasts cooled today, with temperatures expected to be slightly below normal throughout the two-week forecast period
Environmental groups look to reverse FERC orders on Driftwood LNG and Saguaro Pipeline (S&P)
- The Sierra Club has launched a round of legal challenges against FERC authorizations for several natural gas infrastructure projects
- Driftwood LNG is a planned export facility on the Gulf Coast, and the Saguaro Connector is a planned pipeline to send gas from Texas to Mexico
- Oneok said they have pushed back the FID for the Saguaro connector as they await downstream projects in Mexico
- Driftwood LNG is being developed by Tellurian, who has been looking at selling the project based on their difficult financial situation

March 22, 2024