The API estimates that US crude inventories increased by 8.52 MMBbls last week, ahead of the official EIA data release today
Iranian exports to China fall to 11-month low (BBG)
According to data from Kpler, China received 986 MBbl/d from Iran in January, the lowest volume since February 2023
China’s independent refiners are the primary purchasers of Iranian oil, but higher prices have forced them to turn towards Russian ESPO crude
Iranian oil in floating storage off the coast of Singapore and Malaysia rose to 15 MMBbls as of Tuesday
Refill of oil inventories could boost demand (Reuters)
A move to replenish depleted oil inventories in China, Europe, and the US could boost demand for oil in the next few months
According to a European refiner, "Chinese buying is high as it restocks in the first half," and "U.S. and European buying is also stronger this month as the situation for barrels from East of Suez could get much worse at any time."
There has been a large counter-seasonal decline in global crude and fuel stocks of nearly 29 MMBbls compared to a typical build of 20 MMBbls
Natural gas prices continue to search for a bottom amid strong supply and warmer-than-normal weather
March ’24 Henry Hub is down 2.4c this morning to trade around $1.665/MMBtu
The Summer ’24 strip is down 3.2c to $2.092, and the Winter ‘24/’25 strip is down 5.3c to $3.274
Today's Euro Ens shows a net warming of +6.7o F and forecasts above-normal temperatures for the 11-15 day period, with late February and early March expected to be the warmest since early February
Lower 48 natural gas production remains high, increasing by +0.4 Bcf/d last night to 103.97 Bcf/d, with regional changes offsetting each other (Criterion)
Appeals court questions FERC on environmental analysis for Commonwealth LNG in Louisiana, approved in 2022
The litigation could add to challenges for Commonwealth LNG. The company has faced delays in the processing of its license to export to non-free trade agreement countries by the DOE
The project targets FID in 1H 2024, aiming for LNG production to start in 2027, with a capacity of 9.5 million mt/year
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