Oil is trading higher, around $83, breaking a series of losses
Yesterday crude prices sold off more than $2.50/Bbl, following a larger than anticipated storage build
The EIA reported a 2.7 MMBbl crude storage build, leaving US inventories 1% below the five-year average
US to reinstate Venezuela sanctions (BBG)
The Biden administration will be reimposing sanctions on Venezuela’s energy sector, saying that President Maduro failed to honor an agreement to allow for fair elections
The Treasury Department license that allowed oil and gas exploration and activity will expire, giving affected companies until May 31 to wind down activities
Imports of Venezuelan crude into the US have increased since last fall, but due to a lack of investment in the country, volumes have remained small
A suspension of Venezuelan imports could benefit other grades of heavy crude such as Canada’s WCS
Natural gas prices trade higher ahead of the storage report
May ’24 Henry Hub is up 4.6c this morning to trade around $1.758/MMBtu
The Summer ’24 strip is up 2.5c to $2.243 and Winter ‘24/’25 strip is up 1.5c to $3.399
Today's Euro Ensemble indicates a colder shift for both the 1-5 and 6-10 day periods across nearly all regions, peaking Sunday/Monday, which will temporarily boost heating demand before temperatures steadies to near-normal levels
Kinder Morgan updates on North American natural gas developments in 1Q24 earnings (Criterion
Kinder Morgan is nearing completion of the Markham Gas Storage Facility expansion in Texas, increasing capacity by over 6 Bcf and adding 650 Mmcf/d of withdrawal capacity, with full operations expected by June 2024
Progress continues on the South Texas to Houston Market Expansion Project, with a capacity of 0.35 Bcf/d, scheduled for completion in 1Q25, and enhancements to the Texas Pipeline system to increase Eagle Ford gas delivery by 500 Mmcf/d by November 2024
Construction has also started on the Evangeline Pass Project phases in Mississippi and Louisiana, enhancing TGP and Sonat systems to deliver 2 Bcf/d to the Plaquemines LNG Facility, with completion dates set for July 2024 and July 2025
Additionally, the TGP Muskrat Project will add 225 Mmcf/d delivery capacity to Southeastern markets by August 1, 2025
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