First Look - Prolonged LNG outages avoided following Hurricane Beryl

Note to clients: AEGIS traders and hedge execution are available to transact with your counterparties. Hedge book valuations and reporting, as always, are cloud-based and are operating normally. The research team is working to restore publications that were delayed due to power outages. 

• Oil futures traded lower Tuesday morning to just under $82/Bbl following Hurricane Beryl’s landfall
  • About 85% of Houston has lost power (Bloomberg)
  • The Port of Houston and the Explorer Pipeline were offline
  • Federal Reserve Chair Powell will communicate the central bank’s semi-annual report on US monetary policy later today
  • “Both crude and liquids balances are expected to remain tight in the second half of 2024, leading to significant stock draws, “ said Claudio Galimberti at Rystad

• Natural gas is trading higher, extending gains from yesterday
  • The August Henry Hub contract has traded higher over the past two days by about 4c as demand impacts from Hurricane Beryl remain limited
  • More than 2 million customers remain without power in Southeast Texas
• Prolonged LNG outages avoided after Hurricane Beryl (NGI)
  • Following the landfall of Hurricane Beryl along the Texas coast, LNG exports appear mostly unaffected, although Freeport remains down after it was taken offline in advance of the storm
  • Cheniere’s Corpus Christi export facility has not been impacted and continues to liquefy and export gas
  • Total LNG export volumes are currently around 11 Bcf/d as of this morning’s nominations