December 5, 2018

By December 6, 2018First Look

December 5

Crude Oil:

  • WTI is up 0.3c to $53.28/Bbl, and Brent is down 27c to $61.81/Bbl
  • Crude oil edged down yesterday led by a broader move lower across the equity markets
    • The Dow Jones fell $799.36 or 3.10% yesterday as investors worry about the global growth outlook
  • Enbridge shut portions of its crude oil mainline in Canada after a power outage in Saskatchewan (Argus)
    • Cold weather caused “a major outage” to utility SaskPower’s system
    • Spot markets for Bakken crude and Canadian heavy are weaker as other North American crude grades are slightly higher
    • Bakken Clearbrook was down $2.20 and Implied Bitumen was down $1.66 in the spot market for yesterday’s close
  • Marathon Petroleum has begun talks with ExxonMobil and Plains about combining competing pipeline projects moving Permian crude to the Texas Coast, according to the company
    • Marathon would be combining their project with the 1 MMBbl/d joint venture between Plains All American, ExxonMobil, and Lotus Midstream

Natural Gas:

  • Natural gas is up 9.5c to $4.552/MMBtu
    • Weather models show a slower start to the warm period
      • Incoming warm pattern also weaker at times
      • The forecast gained 6.0 HDDs over night
    • The next four weeks of storage withdraws are forecasted to be about the same as last year and slightly more bearish versus the five-year average
      • About 355 Bcf is expected to be withdrawn from storage over the next four weeks as warmer forecast temper demand
    • The Williams Companies have announced plans to expand the capacity of its Transco pipeline to deliver larger amounts of Marcellus Shale natural gas across Pennsylvania (Pennsylvania Real-Time News)
      • The expansion project is expected to cost around $500 million and will increase its daily capacity by about 582 MMcf
      • Williams is expected to submit an application to FERC to begin construction in early 2021