AEGIS Hedging : September 3, 2021

Investors are wagering the oil market can absorb additional supply from OPEC+
Nearly 94% of Gulf of Mexico crude production remains shut days after Ida left the region
About 1.3 MMBbl/d of U.S. refining capacity remains offline, down from 2.5 MMBbl/d earlier in the week

The Department of Energy has authorized Exxon Mobil Corp. to receive crude from the Strategic Petroleum Reserve (SPR) to help with the production of fuels (Bloomberg)

Exxon will be getting 1.5 MMBbl from the SPR for its Baton Rouge refinery
The company will have to restock the same amount of oil plus premium barrels within a few months, according to the statement

More Gulf of Mexico (GoM) production was brought offline yesterday (Platts)
- According to the Bureau of Safety and Environmental Enforcement, 91.29% of GoM production is shut in, an increase from 83.21% on Wednesday
- Offshore GoM production is at 167 MMcf/d, down from the 2.5 Bcf/d averaged in the 30 days leading up to Hurricane Ida
- Gas demand in Louisiana has averaged 1.04 Bcf/d over the last two days, down about 200 MMcf/d from pre-storm levels
The EIA reported a second consecutive injection below analysts estimates
- The agency reported a 20-Bcf injection for the week ending August 27, in contrast with the average estimate of 25 Bcf (Bloomberg)
- Inventories for the US are now at a deficit of 579 Bcf to last year and a deficit of 222 Bcf to the five-year average, and working gas inventories increased to 2.871 Tcf

September 3, 2021