April 17, 2019

By April 18, 2019First Look

April 17

Crude Oil:

  • WTI is up 32c to $64.37/Bbl, and Brent is up 31c to $72.03/Bbl
  • China’s economy grew by 6.4% percent in Q1, beating economists’ forecasts of 6.3%, according to Chinese government figures showed Wednesday
    • There has been concerns that China’s economy would continue to decline. China’s current economic growth is still its slowest in decades
    • Better than expected growth reported this month is supportive for both equity and commodity outlooks
  • WTI rose overnight after the API reported a drop in US crude inventories
    • If the drop in stocks is confirmed by the EIA data this morning, it would be the first decline in four weeks
  • EIA petroleum data is due out this morning at 9:30 am CT
    • U.S. Crude Inventories:                  +  1,564 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             –   1,720 MBbls
    • U.S. Distillate Inventories:             –   1,176 MBbls
    • U.S. Refinery Utilization:               +   0.89% change

Natural Gas:

  • Natural gas is down 0.8c to $2.564/MMBtu
  • There was little change in weather outlooks for the next two weeks
    • Demand fell 5.7 TDD overnight with a mild outlook across the country
  • Kinder Morgan expect Elba Island LNG export project to begin production in the next few weeks (Platts)
    • Elba Island, near Savannah, Georgia, would be capable of producing about 2.5 million metric tons per year of LNG once all 10 of its modular trains are online
    • Royal Dutch Shell has a 20-year contract to off-take 100% of volumes at Elba Island, the trains are expected to come online one at a time with all trains online by early 2020
  • Rockies Express pipeline maintenance cut West-to-East capacity
    • Scheduled maintenance on REX near the Cheyenne Hub at the Colorado-Wyoming state line caused eastbound capacity on the pipeline to be reduced to zero through Segment 200, according to PointLogic
    • Cash prices for CIG have suffered over the past few days due to the restriction of flow