April 12, 2019

By April 13, 2019First Look

April 12

Crude Oil:

  • WTI is up 93c to $64.51/Bbl, and Brent is up 85c to $71.68/Bbl
  • Chevron Corp has agreed to buy Anadarko Petroleum in a cash-and-stock deal for $33 billion
    • Chevron will buy Anadarko’s shares for $65 apiece, representing a 39% premium
    • 200 million shares of stock issued and roughly $8 billion in cash is what Chevron will use to for the acquisition
  • Oil is buoyed this morning as geopolitical risk remains high
    • Libyan warlord Khalifa Haftar has moved his forces just outside Tripoli (Bloomberg)
    • AEGIS notes the chance that Libya’s production could be effected amid OPEC cuts raises the upward risk to price

Natural Gas:

  • Natural gas is up 1.0c to $2.674/MMBtu
  • Weather models show a warmer Midwest to West in the short-term
    • Overnight demand fell 5.3 HDDs (CWG)
  • US natural gas in storage rose by 25 Bcf last week to now total 1.155 Tcf (EIA)
    • The 25 Bcf injection was significantly smaller than the anticipated injection of 33 Bcf
    • Stocks are 183 Bcf below last year’s total storage of 1.338 Tcf
    • AEGIS notes that the implied flow was 29 Bcf due to a reclassification
  • LNG feedgas looks to be recovering over the last two day after Sabine Pass turned to maintenance late last month
    • Prior to Cheniere’s Train 1 & 2 at Sabine Pass entering maintenance, US LNG feedgas stood around 5.4 Bcf/d, but sank to a low of 3 Bcf/d earlier this month amid maintenance