Oil is trading lower after falling more than $6 last week
Speculators in WTI futures have increased their net long position by 69.7k contracts through last Tuesday, according to data from the CFTC
We would expect a reversal of this in the next data release following last week's sell-off
Houthis vow additional attacks following US strikes (BBG)
The US and its allies attacked 13 locations in Yemen as part of an effort to stop attacks on commercial shipping vessels
The Iranian-backed Houthis have said that the airstrikes will not deter them, and they will continue to attack vessels in the Red Sea
Flows of oil through the Red Sea have fallen sharply, with vessels continuing to reroute around Africa
Greek shipowners leave Russian oil trade (BBG)
The number of Greek-owned ships transporting Russian oil has fallen to just eight vessels in January, compared to 34 one year ago
The drop comes after the US Treasury Department tightened the enforcement of sanctions, spooking western tanker owners
The loss of Greek shippers will put more pressure on Russia’s shadow fleet of tankers, many of which recently started sailing under the Gabon flag in an attempt to avoid detection
Natural gas prices trade modestly lower despite colder forecasts
March ’24 Henry Hub is down 3.4c this morning to trade around $2.045/MMBtu
The Summer ’24 strip is down 4.2c to $2.376, and the Winter ‘24/’25 strip is down 3c to $3.416
Today's Euro Ens shows colder temperatures across all regions, with significant drops in the Rockies/South Central/Southeast, and a potential late February cold spell is expected
Gas production in the Lower 48 increased, peaking at 104.52 Bcf/d over the weekend, but slightly decreased to 104 Bcf/d, marking a 0.68 Bcf/d gain from last week (Criterion)
US LNG exporter Venture Global signs deal for UK imports through 2045 (Bloomberg)
Venture Global LNG has secured the rights to deliver 3 MTPA of LNG to the UK's Grain LNG import facility starting from 2029 for a duration of 16 years
The agreement enables LNG delivery from Venture Global’s terminals in Louisiana, including CP2 LNG, contingent on receiving necessary federal permits
This deal happened despite a pause in new US LNG project license approvals by the Biden administration, with Congressional review impending
However, the contract aligns with Europe's increasing reliance on US LNG to substitute Russian gas amid efforts to decarbonize yet highlighting LNG's significant role in the future global energy mix
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