Oil is trading lower this morning but heading for a second consecutive weekly gain
March WTI prices are up $3.50/Bbl this week and $4.28/Bbl over the past two weeks
OPEC not planning any output change next week (BBG)
According to delegates from OPEC, the organization is not planning any changes to their stated policy at next week’s monitoring meeting
Saudi Arabia and its allies have just started new production cuts this month, so more time will be required to see the impact of these
The meeting on Thursday will revolve around reviewing OPEC production levels at the end of 2023
China asks Iran to rein in Houthi attacks in the Red Sea (Reuters)
Chinese diplomats have requested that Iran help rein in attacks on shipping vessels in the Red Sea or risk damaging business relations with China
According to an Iranian official, "Basically, China says: 'If our interests are harmed in any way, it will impact our business with Tehran. So tell the Houthis to show restraint,"
China is the largest trading partner of Iran, having bought 90% of Iran’s crude exports in 2023
A spokesperson for the Houthi militants said about the Chinese request, "They will not inform us of such a request, especially since Iran's stated position is to support Yemen. It condemned the American-British strikes on Yemen and considered Yemen's position honorable and responsible,"
Russian oil piling up in the Baltic Sea (BBG)
Four Russian tankers carrying about 3 MMBbls of Urals crude have been waiting for at least a week in the Baltic Sea, according to Bloomberg ship tracking data
There is no direct evidence that sanctions are responsible for slowing the trade of Russian oil, but the US and UK have recently stepped up enforcement of sanctions
Meanwhile, tankers carrying about 12 MMBbls of Russian Sokol crude that were previously planned to be shipped to India have been idling in the Pacific Ocean, with another 3 MMBbls on shuttle tankers waiting to be offloaded
Natural gas prices head for a weekly gain amidst mildly colder forecasts
February ’24 Henry Hub is down 3c this morning to trade around $2.541/MMBtu
The Winter ‘23/’24 strip is down 2.8c to $2.340, and the Summer ’24 strip is down 2.3c to $2.491
Today's Euro Ens indicates a continued cooling trend, with a notable 6o F drop, especially in the 6-10 day period, but average Lower 48 temperatures still hover around the 10-year normal
Lower 48 dry gas production rose to 102.81 Bcf/d, driven by increases in the South and Northeast, recovering from last week's freeze-offs with a weekly average of 101.15 Bcf/d (Criterion)
Biden administration stalls approvals for new LNG exports (Bloomberg, CNBC)
The Biden administration pauses new U.S. LNG export licenses to evaluate their climate, economic, and national security impacts on a case-by-case basis, affecting more than a dozen projects
“We will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment,” said President Joe Biden in a statement
Senior officials said the DOE’s review of LNG projects, not affecting existing authorizations, will take several months before releasing a report for public comment, with no definitive timeline
The DOE's pause could impact four projects awaiting export approval, an administration official indicated, possibly affecting ones by Sempra Infrastructure, Commonwealth LNG, and Energy Transfer
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