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The Week Ahead For Crude Oil, Gas and NGLs Markets – July 22, 2019

CRUDE OIL US crude oil inventories posted a decrease of 3.1 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories increased 3.6 MMBbl and 5.7 MMBbl, respectively. With the build in gasoline and distillate inventories, total petroleum inventories posted a substantial increase of 11.7 MMBbl. US crude oil production decreased 400 MBbl/d last week, per EIA, with the Gulf of Mexico hurricane-related shut-ins. Crude oil imports

IMO 2020 hit to Canadian crude softened by changing market: Fuel for Thought

A surging differential for Western Canada’s benchmark heavy crude has traders and analysts wondering if predictions that tighter sulfur requirements for marine fuel next year will devalue the country’s oil assets are overblown. “Nobody is talking about IMO 2020 anymore,” one trading director at an investment bank in Calgary said. Market participants say a lot has changed since early forecasts suggested the International Maritime Organization’s rule limiting fuels to 0.5%

New UK energy policy can give Boris Johnson the quick win he needs

Energy policy will probably be the last thing on Boris Johnson’s mind if he becomes the next UK prime minister. Navigating a successful Brexit will be his top priority and this means devising an economic plan for future generations. A new energy policy should be at the heart of his vision for Britain outside Europe, but it is going to be expensive. One of his first decisions after July 23

Commodity tracker: 5 charts to watch this week

S&P Global Platts editors’ pick of unfolding commodities trends. This week, tight US gasoline supply incentivizes imports, high-tech industries drive tin demand and Iranian oil exports hit new low. Plus impacts of Europe’s heatwave and China key economic data on energy and commodities. 1. US gasoline output curbs driving NYMEX RBOB backwardation   What’s happening? RBOB gasoline structure has firmed in recent weeks amid refinery issues on the US Atlantic

Energy and commodities highlights: Hormuz tensions, trading houses vs NOCs, recycled plastics

After a calmer start to the week in geopolitics, US-Iran tensions erupted again on July 18 when President Donald Trump said the US Navy had shot down an Iranian drone in the Strait of Hormuz. Brent crude prices responded with a near 2% increase by in Singapore morning trading hours. However, the impact of US sanctions on Iran and hostilities in the Persian Gulf on oil prices has been blunted

Prices Fall on Weather Forecast Changes, Despite Production Declines

Natural gas storage inventories increased 62 Bcf for the week ending July 12, according to the EIA’s weekly report. This is in line with the expected injection, which was 61 Bcf. Working gas storage inventories now sit at 2.533 Tcf, which is 291 Bcf above inventories at the same time last year and 143 Bcf below the five-year average. At the time of writing, the August 2019 contract was trading

Prices Pressured Further with Inventory Build, Despite of Crude Draw

US crude oil stocks posted a decrease of 3.1 MMBbl from last week. Gasoline and distillate inventories increased 3.6 MMBbl and 5.7 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 1.4 MMBbl alongside a gasoline draw of 0.48 MMBbl and a distillate build of 6.2 MMBbl. Analysts were expecting a larger crude draw of 2.7 MMBbl. The most important number to keep an eye on, total petroleum

Iron ore’s latest rally comes despite improved supply picture

Iron ore, the “red dirt” that is the key ingredient for the manufacture of steel, is attracting significant interest again, both internationally and within China. Its price has just seen one of its sharpest ever rallies, almost doubling in value over seven months to hit $126.35/mt on July 3, responding to a confluence of supply and demand-side factors. While the price seems to have subsided in recent days, the intensity

Callon Buys Carrizo Oil & Gas in an All-stock Deal Valued at $3.2 Billion

Callon Petroleum has agreed to acquire Carrizo Oil & Gas for $3.2 billion, with shareholders of Carrizo set to receive 2.05 shares of Callon for each share they hold. That represents $13.12 per Carrizo share based on Callon’s closing common stock price on July 12 and a 25 percent premium to Carrizo’s prior day closing price. Pro-forma, Callon shareholders will own 54 percent of the combined company and 46 percent

Oil pipelines not Royal Navy warships will solve Hormuz Iran threat

Deploying more of the Royal Navy to protect oil tankers from Iranian attack as they sail through the Strait of Hormuz is a short-term fix to a historic problem of providing energy security in the Persian Gulf. Instead of Britain adding to the crowded fleet of warships converging on the region, new export routes such as pipelines and canals should be opened up to provide long-term peaceful alternatives that would