Oil is trading higher, around $76.75, and heading for a weekly gain of nearly $4
OPEC+ output fell by 340 MBbl/d in January, according to data from Platts
The US DOE is looking to purchase 3 MMBbls of crude for the SPR for June and July delivery
US looks to curb Iranian oil output (BBG)
The Biden administration is looking to reduce Iran's oil sales to impact its support of militias in the Middle East but risks increasing global oil prices
A bipartisan group has urged the administration to tighten the enforcement of sanctions on ships, ports, and refineries that handle Iranian oil
Sources with knowledge of the matter said that the White House is considering actions to punish countries that purchase or facilitate the transactions of Iranian crude
Sanctions have already forced almost all of Iran’s production to the black market, but their output has risen as the US has focused more on enforcing sanctions on Russia’s energy sector
The US estimates that Iran’s output would be 2.5 MMBbl/d higher without the current sanctions
India unbothered by OPEC+ production cuts (BBG)
India’s Oil Minister said the country is not concerned by the OPEC+ production cuts, saying, “There is enough oil in the world, and new suppliers are coming in”
Currently, the world's third-largest oil consumer, India is set to become the largest source of demand growth through 2030
This marks a shift from past sentiments, such as in 2021, when India urged OPEC to increase production
Natural gas prices fall further amid weakening weather outlook
March ’24 Henry Hub is down 3.9c this morning to trade around $1.878 /MMBtu
The Summer ’24 strip is down 1.8c to $2.250, and the Winter ‘24/’25 strip is down 1.3c to $3.348
Today's Euro Ens shows warmer weather with significant increases east of the Rockies, with a cold dip in the West; next week's forecast hints at a cooler, but less intense forecast, keeping temperatures below normal into late February
Lower 48 gas production edged closer to 2023 highs with a slight increase of +0.13 Bcf/d, reaching 104.73 Bcf/d, driven by South Central and full recovery in key shale areas
Sierra Club and partners seek pause on Rio Grande LNG project (S&P)
Environmental groups, led by the Sierra Club, appeal to halt the Rio Grande LNG project and the associated Rio Bravo natural gas pipeline in Texas, challenging FERC's approval over environmental and climate concerns
The project secured FERC authorization in Nov 2019, but the DC Circuit in 2021 found faults in FERC's climate and environmental evaluations
FERC defended its environmental and climate assessments in a Feb. 5 court brief, opposing a stay motion alongside Rio Bravo, with no statements from Rio Grande
NextDecade commenced the three-train first phase construction of its Rio Grande LNG project and expects an FID on an additional train by late 2024. The 27 MTPA project is expected to come online in 2Q 2027
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