Oil is lower by more than $1, to $73.60, reversing some gains from yesterday
The US and UK militaries have continued to strike targets in Yemen in response to attacks on shipping in the region, with a significant amount of vessels now avoiding the Red Sea
Crude production in Libya has returned to 1.2 MMBbl/d after the resumption of operations at the Sharara oil field
Russia becomes China’s top oil supplier (BBG)
For the first time since 2018, Russia has surpassed Saudi Arabia as the leading supplier of oil to China
China bought a record 2.15 MMBbl/d from Russia in 2023, according to customs data
Refiners in China have been buying up cheaper Russian crude despite it being sold at levels above the G7 price cap, at an average of $77/Bbl
Iraq and Malaysia were the third and fourth largest suppliers of oil to China, with crude and fuel from Iran often classified as coming from Southeast Asia
Russian crude shipments impacted by storms and Baltic drone strike (BBG)
Shipments of Russian oil fell to the lowest in nearly two months due to adverse weather and a Ukrainian drone strike at a key Baltic export terminal
About 3.36 MMBbl/d were shipped from Russian ports in the four-week period leading up to January 21, down by 50 MBbl/d from the prior period
US Gulf Coast refineries slow to recover from last week’s freeze (Bloomberg)
Winter Storm Gerri impacted 15% of the US Gulf Coast's crude-processing capacity, with 1.4 MMBbl/d offline in PADD3 and 1.7 MMBbl/d across the US, down from 1.5 and 1.9 MMBbl/d respectively last week, according to Woodmac data
TotalEnergies' Port Arthur refinery in Texas, with a capacity of 0.24 MMBbl/d, regained power on Jan 18 but remains idle after losing power on Jan 16
The freeze's impact is compounded by routine winter-spring maintenance, with Motiva Enterprises' largest crude unit at their 0.63 MMBbl/d Port Arthur refinery, the 0.35 MMBbl/d CDU, shut since Jan 8
Natural gas prices extend losses as mild weather is forecast into early February
February ’24 Henry Hub is down 7.3c this morning to trade around $2.346/MMBtu
The Winter ‘23/’24 strip is down 3.6c to $2.235, and the Summer ’24 strip is down 1.6c to $2.556
The weather model indicates a continued warming trend across various regions, with the most significant increases in the Rockies, Midwest, and South Central, leading to above-normal temperatures
Lower 48 natural gas production remains unchanged at 99.9 Bcf/d, with a slight decrease in the Northeast and minor increases in the Rockies and South (Criterion)
LNG transits via the Suez Canal fall to zero amid escalating Red Sea tensions (Bloomberg)
No LNG cargos passed through the Suez Canal in the week of Jan 15-21, contrasting with 20 LNG voyages via the Cape of Good Hope
Global LNG imports fell 8% in the same period to 8.6 million metric tons, partly due to U.S. facilities canceling exports to prioritize domestic supply amid colder weather
Venture Global plans to increase capacity on its Delta LNG project (NGI)
Venture Global LNG is adjusting its Delta LNG export terminal in Louisiana, potentially increasing capacity and enhancing its pipeline to compete for feed gas supply, according to federal filings
The company plans to use 584 acres from the Plaquemines Port Harbor and Terminal District for a CCS project and is considering raising the production capacity of Delta's liquefaction facilities
Originally, Delta was designed in two phases with a total capacity of 20 mmty and could become Venture Global’s fourth export terminal in Louisiana
Alongside Delta, Venture Global awaits final DOE and FERC approvals for its nearly 24 mmty CP2 LNG project and is reevaluating its Delta Express pipeline route due to increased Gulf Coast competition for feed gas post-2025
Get market insights delivered to your Inbox every day!
