Oil falls to a near three-month low, with demand concerns in focus
July ’24 WTI lost 30c this morning to trade around $76.57/Bbl, with prompt-month WTI nearing a 4.5% weekly loss of $3.50
Yesterday, the dollar index and the 10-year treasury yield hit their highest levels in over a week, while today, the USD trades lower, and equities are higher ahead of the Memorial Day weekend
This came as minutes from the Fed’s latest meeting indicate policymakers are uncertain if current interest rates are sufficient to control persistent inflation
Furthermore, OPEC+ delayed its output policy meeting to June 2 and announced it will be held online instead of in Vienna as initially planned
US Gasoline Demand Lags Despite Positive Signs as Summer Driving Season Approaches (Argus)
US gasoline demand is averaging 8.6 MMBbl/d, below pre-Covid norms and the 9 MMBbl/d average from January to late May in the past 10 years
Refiners and vehicle data present a more optimistic outlook, suggesting that actual gasoline demand may be understated. Major refiners like Marathon Petroleum and Valero have reported steady or slightly increasing gasoline sales compared to last year
US vehicle miles traveled (VMT) data shows a slight increase over last year, and AAA forecasts a 4% annual increase in travelers driving more than 50 miles for Memorial Day weekend
Natural gas prices head for a modest weekly loss
June ’24 Henry Hub is down 6.6c this morning to trade around $2.591/MMBtu
The Summer ’24 strip is down 7.8c to $2.807 and Winter ‘24/’25 strip is down 8.3c to $3.520
Today’s Euro Ensemble forecasts continued below-normal temperatures through early June, with a colder trend confirmed by today's 00z run and expected midweek temperature drops next week (Criterion)
EQT Boosts Production Rates on Equitrans Pipeline (Criterion)
EQT's meter stations along the Equitrans Pipeline show increased gas flow, with current readings at 1.2-1.3 Bcf/d compared to the 0.9-1.1 Bcf/d seen during the recent production curtailments.
The Flower and Bowlby measurement stations, exclusively managed by EQT for firm transport, have resumed operations, now achieving near-normal rates of 60-70 MMcf/d after being completely shut down
Overall, Equitrans is now handling production receipts above 3 Bcf/d, with the latest figures reaching 3.15 Bcf/d, signaling a strong recovery towards the pre-curtailment peak of over 3.4 Bcf/d as summer approaches
Get market insights delivered to your Inbox every day!
