Oil is trading lower ahead of the EIA inventory report, around $81.15
The API forecasts a storage build of 9.3 MMBbls, with a 2.2 MMBbl build in Cushing inventories
WTI second-month volatility has fallen to the lowest level since late 2019
Jet fuel futures in Asia are now trading in contango, which could signal near-term demand weakness in Asia
Indian buyers of Venezuelan crude halt purchases amid sanctions (BBG)
With the US sanctions waiver expiring next month, Indian buyers have stopped purchasing oil from Venezuela to avoid any complications
Indian refiners, along with US refiners, ramped up imports of Venezuelan oil last fall due to a six-month waiving of sanctions by the US
This could add to supply pressures for India, which has also had issues with Russian crude supply
Natural gas prices trade lower amid large storage surplus and forecasts of milder weather
May ’24 Henry Hub is up 2.9c this morning to trade around $1.759/MMBtu
The Winter ‘24/’25 strip is down 1.6c to $3.316 and the Summer ’24 strip is down 3.9c to $2.253
Today's Euro Ensemble forecasts a warming trend in the Lower 48, with average temperatures nearing 60o in the 11-15 day period and the largest weekly gain of +4o F next week
Negative West Texas gas spot prices persist amid stout supply, soft demand (NGI)
Waha cash prices stayed negative at -69.5 c/MMBtu on Monday, driven by low LNG demand and excess supply largely from the Permian Basin's associated gas production
Pipeline maintenance and upgrades have curtailed gas takeaway capacity in the region, exacerbating the supply glut
Mild winter weather and diminished demand from LNG facilities, along with high storage levels, are adding bearish pressure to the natural gas market
East Tennessee, Transco natural gas pipes approved by FERC (NGI)
