Marcellus production went from 12.1-Bcf/d last Thursday and settled at 12.9-Bcf/d, more than expected, potentially suggesting a faster timeline in filling the new pipes: in weeks instead of months seen historically. Continue reading Commodities Update
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Commodities Update: Plenty of Supply
Brent down 3.2% MTD at c$107/bbl. WTI at $94/bbl (-4%). Differential has settled around $13/bbl.
US production at a 25-year high.
Global oil supply at 92.23m b/d, up 1.16m b/d or 1.3% y/y. Within this OPEC supplies increased 310k b/d m/m to 29.82m b/d on higher output from Saudi Arabia & the UAE. Iraq was the only member to post a monthly decline in December. Continue reading Commodities Update: Plenty of Supply
Commodities Update
US gas ends the year as the king of commodities, up 19% YTD at $4.31/mmbtu as the injection trend reversed to a bullish storage withdrawal in the past two months. Looking to 2014, exports + coal plant retirements adding 3bcf/d of demand keep me confident of improving US gas prices. Total working storage is now at 2,974 Bcf, 562 Bcf below last year’s 3,536 Bcf and 289 Bcf below the 5-year average of 3,263 Bcf. Continue reading Commodities Update
Commodities Update: More Supply… Don’t Bet On Price Inflation
Brent – WTI differential shrunk recently from $20 to $11.5/bbl.WTI rallied due to the Keystone line fill. Before the pipeline goes into service it needs to be filled up with oil (600kbpd) so there is a continuous flow once it starts up. The pipeline is 485 miles long and goes from Cushing, OK to Nederland, TX. Careful, this is a technical and temporary effect. Continue reading Commodities Update: More Supply… Don’t Bet On Price Inflation