Oil is up more than $1 to $76.35, trading at the highest level since November
Yesterday the EIA reported a larger-than-expected draw in oil inventories of 9.2 MMBbls, the largest weekly decline since August
Canada’s long-delayed Transmountain pipeline expansion is expected to begin the line-fill process in February and begin loading vessels in March or April
Line-fill will require about 4.5 MMBbls of crude
Weak Chinese demand may curb stockpile refill (BBG)
After drawing on inventories in 2023, China will need to refill its inventories, but weak demand may lead to a slower refill process
Inventories in China fell to an eight-month low at the start of the year, according to data from Vortexa
Chinese inventories may rise by more than 60 MMBbls this year, according to Energy Aspects
Emma Li of Vortexa said, “The nation could be looking to restock some inventories this year, but mostly for refinery use, with active buying for April to May arrival, as refiners prepare to boost runs post seasonal maintenance”
Indian oil demand is seen growing at the slowest rate in four years (BBG)
Refined product demand in India is expected to grow at the slowest pace in four years as the country's economy may slow down
Data from India’s Oil Ministry shows an expectation of a 3% growth rate, representing a moderate slowdown in product demand
Despite this, India is still expected to be the second-largest contributor to oil demand growth this year, with China being the largest
Natural gas prices extend gains amidst colder weather forecasts
February ’24 Henry Hub is up 13.1c this morning to trade around $2.772/MMBtu
The Winter ‘23/’24 strip is up 4.6c to $2.522, and the Summer ’24 strip is down 0.7c to $2.595
Today's Euro Ens indicates cooling east of the Rockies, with notable temperature drops in the Northeast and Midwest for the next two weeks, leading to generally colder but near average temps
Lower 48 dry gas production rose from 90.3 Bcf/d to nearly 103 Bcf/d, recovering swiftly from last week's freeze, with a slight decline today due to minor drops in the Northeast and Gulf (Criterion)
CP2 LNG project approval faces delay as US DOE extends review, possibly until after November elections (NYT)
The New York Times reported that the White House directed the DOE to conduct a comprehensive review of the CP2 LNG Project, focusing on climate, economic, and national security impacts
The Biden administration's delay in approving the CP2 LNG Project, one of 17 proposed LNG export terminals, could extend past the November 2024 elections, affecting this and other planned terminals
FERC granted the nearly 20 mmty CP2 terminal a final environmental approval in July; however, the project requires additional approval from the DOE to export LNG to non-free trade agreement countries
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