April 16, 2019

By April 17, 2019First Look

April 16

Crude Oil:

  • WTI is up 26c to $63.66/Bbl, and Brent is up 10c to $71.28/Bbl
  • Drilled but uncompleted wells (DUC) in major US shale basins fell in March, down for the first time in a year (EIA)
    • DUCs were down by four from February to total 8,500
    • Permian basin DUCs continued to rise in March and offset drops in the Anadarko, Appalachia, Bakken and Eagle Ford regions
  • Some of the largest buyers of Iranian oil are playing wait and see with waivers from the White House (Bloomberg)
    • Waivers from US sanctions to purchase Iranian crude oil expire the first week of May
    • Eight countries were allowed to keep buying Iranian crude last fall when the US handed out waivers
      • Three of those countries have already reduced purchases to zero

Natural Gas:

  • Natural gas is up 0.1c to $2.591/MMBtu
  • Total degree days stayed mostly unchanged as weather models continued with a slightly warmer west and upper northeast
  • NGPL Midcon reaches all-time low of $0.655 (Platts)
    • Cash price for NGPL Midcontinent Pool decreased $1.41/MMBtu day on day
    • Bearish demand with warmer temperatures in the region along with pipeline constraints are behind the low cash price
    • Lower Permian gas prices are also pushing the Midcon and Rockies prices down as the two regions try and compete for demand
  • Maintenance on the NET Mexico Pipeline will cut US natural gas exports points south of the border starting Tuesday (Platts)
    • Maintenance at the Agua Dulce Compressor Station in South Texas will begin on April 16 with a capacity cut to 1.61 Bcf/d, down from its designed capacity of 2.1 Bcf/d
    • Capacity will be reduced by up to 1.3 Bcf/d at its peak