First Look - OPEC+ ministers reject bearish reaction to OPEC meeting

• • Oil is higher this morning, around $74.25, extending yesterday's gains (As of 8:25 AM)
    • WTI futures traded higher by more than 80c yesterday but remain down on the week by about $2.50/Bbl
    • Saudi Aramco lowered its official selling price for Arab Light crude by 50c to a $2.40/Bbl premium to the regional benchmark
  • OPEC+ ministers reject bearish reaction to OPEC meeting (BBG)
    • OPEC+ ministers are predicting that the market will eventually see that the outlook of the group is correct and that the bearish reaction of the oil market is wrong
    • The Saudi Energy Minister said that, like other OPEC+ deals, they retain the option to pause or reverse production changes if needed
    • OPEC’s Secretary-General said that oil demand remains resilient, with global consumption rising by 2.3 MMBbl/d in the first quarter, as OPEC continues to forecast strong demand
  • Kurdistan and Iraqi governments to discuss exports (BBG)
    • A group of officials from Kurdistan’s regional government and oil producers will meet with the Iraqi government to “discuss finding a mechanism to overcome all obstacles hindering oil export resumption.”
    • Exports have been impacted for over a year due to a disagreement over payments 

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Interest Rate Charts and Tables

• Natural gas futures rally, buoyed by June heat ahead of storage data
  • July ’24 Henry Hub is up 7.8c this morning to trade around $2.835/MMBtu (As of 8:15 AM)
  • The Summer ’24 strip is up 9.0c to $2.893 and Winter ‘24/’25 strip is up 6.3c to $3.607
  • Today’s Euro Ensemble indicates a continued warming trend in the Lower 48, with temperatures driven higher by heat in the Midwest, South Central, and Southeast, and predicts the peak temperatures will occur in the 11-15 day period (Criterion)
• Williams says court rules in its favor in pipeline dispute with Energy Transfer (PG&J)
  • Louisiana court ruled in favor of Williams in a dispute with Energy Transfer over the Louisiana Energy Gateway (LEG) Project
  • The ruling from the 36th Judicial District Court of Beauregard Parish covers all seven crossings and prohibits Energy Transfer from interfering with the pipeline's construction, operation, and maintenance
  • The 1.8 Bcf/d pipeline, delayed to the second half of 2025, will transport gas from the Haynesville shale field to the U.S. Gulf Coast