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First Look - Mountain Valley Pipeline Seeks Operation Approval This Week

Oil is trading slightly lower, around $77.55, after rallying over $2 yesterday (as of 7:57 AM)
- Tomorrow, the May CPI report will be released, and the Federal Reserve will meet to discuss interest rate policy
OPEC maintains 2024 demand forecast but lowers Q1 2025 outlook (Reuters)
- In OPEC’s latest market report, they stuck to their demand forecast for 2024, calling for robust demand growth of 2.25 MMBbl/d, citing higher demand for transportation fuels
- OPEC lowered its Q1 2025 forecast by 50 MBbl/d but increased its Q2 2025 forecast, resulting in the group’s 2025 demand forecast remaining the same
- These forecasts continue to counter the IEA demand growth forecasts, which call for significantly weaker demand growth compared to OPEC’s view
Hedge funds sell record amounts of oil futures (Reuters)
- According to CFTC and ICE data through last Tuesday, speculators or managed money participants sold a record amount of oil futures across Brent and WTI
- Traders sold 102 MMBbls of Brent and 53 MMBbls of WTI following the market's bearish reaction to the latest OPEC meeting
- Contracts of diesel, gasoline, and European gasoil were also sold by speculators

Record warmth continues to drive natural gas futures rally
- July ’24 Henry Hub is up 12.4c this morning to trade around $3.03 /MMBtu (As of 7:56 AM)
- The Summer ’24 strip is up 4.4c to $3.057 and Winter ‘24/’25 strip is up 3.9c to $3.748
- Today’s Euro Ensemble indicates mixed temperatures with cooler coasts, warmer central regions, a significant +14°F rise in the Midwest, and above-normal temps with notably warmer nights averaging over 70°F expected next week (Criterion)
Mountain Valley Pipeline asks FERC for prompt in-service approval (Criterion)
- MVP has asked FERC for approval to begin commercial operations on June 11, 2024, with the project mechanically complete and final segments being purged and packed with gas
- MVP is 303 miles long with a design capacity of 2 Bcf/d, designed to transport gas from Appalachian shale to downstream locations, primarily Transco Station 165
- Other interconnects include Columbia Gas (TCO), Hope Gas Craigsville, and two points tied to Roanoke Gas
Cash prices at Waha in West Texas rise above $1/MMBtu (S&P Global)
- Cash prices at Waha were assessed at $1.08/ MMBtu for June 11, the first time above $1/MMBtu in nearly four months
- Ongoing heatwave in the region is increasing demand in western markets, supporting cash prices at Waha, El Paso, San Juan, and SoCal Gas city-gate
- Total gas consumption in the West was 8.4 Bcf/d from June 4-10, compared with 7.6 Bcf/d the previous week