June ’24 WTI lost 38c this morning to trade around $82.98/Bbl
Equities rallied yesterday after the S&P Global PMI report indicated that U.S. business activity grew at its slowest pace this year
This report was seen as bullish for markets, as market participants interpret the weakening economic data as a potential precursor to lower interest rates by the Fed
Meanwhile, WTI's second-month options skew returned to its usual put skew as traders potentially discount the risk of further escalations in the Middle East, opting to protect against price drops
Senate sends aid package with Iran oil sanctions to Biden (Bloomberg)
The Senate approved a foreign aid package, including sanctions on Iran's oil sector, set to be signed into law by President Joe Biden. The legislation targets foreign ports, vessels, and refineries that process or ship Iranian crude
The bill broadens secondary sanctions to cover transactions between Chinese financial institutions and sanctioned Iranian banks involved in purchasing petroleum and oil-derived products
Around 80% of Iran’s 1.5 MMBbl/d oil exports are handled by small, independent Chinese refineries known as "teapots"
Despite the expanded sanctions, many analysts expect a muted impact on Iran's oil exports, as President Biden may use waivers to limit the potential rise in oil prices
Natural gas prices trade lower despite maintenance in Appalachia and Permian weighing on production, alongside increases in LNG feedgas demand
May ’24 Henry Hub is down 3.0c this morning to trade around $1.782/MMBtu
The Summer ’24 strip is down 6.1c to $2.310 and Winter ‘24/’25 strip is up 2.2c to $3.480
Today's Euro Ensemble indicates a net +10o F increase in temperatures across most regions, steadying by next week with no extreme events expected through early May
EQT maintains 1 Bcf/d curtailments through May 2024, updates annual guidance (Criterion)
EQT’s updated 2024 production guidance includes maintaining 1 Bcf/d in production curtailments through May 2024, alongside expected non-operated production curtailments and TIL deferrals
The company's new annual natural gas production guidance for 2024 is set at 5.5 Bcf/d, adjusted downward from 4Q23 levels of 5.8 Bcf/d
EQT issued a 2Q24 gas production guidance of 4.93 Bcf/d, with an implied expectation for 2H24 gas volumes to be approximately 5.89 Bcf/d
Texas LNG Brownsville expands LNG offtake capacity with EQT by +1.5 Mtpa (P&GJ)
Texas LNG Brownsville, a subsidiary of Glenfarne Energy Transition, has signed a second Heads of Agreement (HOA) with EQT, expanding the agreement by 1.5 Mtpa for a 20-year term for liquefaction services at their South Texas project
This new agreement raises the total contracted LNG offtake between Texas LNG and EQT to 2 Mtpa. The firm also holds a separate 0.5 Mtpa HOA with Gunvor, bringing the total to 2.5 Mtpa
Glenfarne plans to reach financial close and begin construction in 4Q 2024, targeting the start of commercial operations by 2028, with only 1.5 Mtpa in additional offtake needed to reach the full 4 Mtpa permitted capacity
Get market insights delivered to your Inbox every day!
