First Look

June 24, 2019

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  • WTI is up 39c to $57.82/Bbl, and Brent is up 4c to $65.24/Bbl
  • Russian comments from its energy minister signal likely cooperation with OPEC
    • Minister Alexander Novak said on Monday that International cooperation on crude production has helped stabilize the oil markets and is more important now than ever (Reuters)
    • Russia has always been reluctant to jump head first into oil cuts like Saudi Arabia has in previous cooperation
  • The US oil-directed rigs rose by one to 789, off the lowest level since February 2018
    • By state, Texas lost the most, at four, while Pennsylvania lost two
      • State totals include gas and oil directed rigs
  • President Trump plans to impose more sanctions on Iran as soon as Monday in retaliation to a downed US drone near Iran
    • The US has already targeted Iran heavily with sanctions, leaving only smaller targets
  • Natural gas is up 5.8c to $2.244/MMBtu
  • There is currently a 40% to 60% chance of a tropical cyclone formation coming up through southern Mexico
    • The storm is forecasted to travel west to northwestward away from the coast
  • Record June gas demand, 65.5 Bcf/d, is also leading to multi-year highs for storage levels
    • Storage levels are negatively impacting west coast gas markets the hardest
    • Southern California city-gate cash prices currently sit at $1.14/MMbtu
    • Other west coast basis’ are reaching lows not seen since 2008
  • Baker Hughes gas rig count lost four rigs, to bring the total gas rig count to 177
    • The major gas basins, Haynesville and Marcellus remained unchanged, while the Utica basin lost one rig