Oil is higher this morning, extending gains from yesterday and trading back above $82
Yesterday, prices rallied by more than $1.30/Bbl following news that Russia has ordered a reduction in oil output to meet OPEC quotas
Hedge funds increase oil exposure (Reuters)
Speculators have purchased oil futures at the fastest rate in more than four years, according to data from the CFTC
Over the seven days ending March 19, speculators purchased the equivalent of 140 MMBbls, across WTI and Brent futures and options
Managed money is generally always net-long oil futures; however, the length of their position changes as they become more or less optimistic on the market
Many speculators are trend followers, but others may have taken a more bullish fundamental view on the crude market
Issues persist with Iraq-Turkey pipeline (Reuters)
The pipeline, which once transported about 0.5% of global crude supply, has been halted since March 2023 over a payment dispute between Iraq and Turkey
Iraq’s Oil Ministry said recently that foreign companies, along with the Iraqi Kurdish authorities, have still not submitted contracts to the Iraqi government, which are needed for a restart of the pipeline
The US State Department said the US government "encourages all parties to reach an agreement to resume the flow of oil through the Iraq-Turkey pipeline as soon as possible."
Natural gas prices trade lower amid high inventories and warmer weather outlook
April ’24 Henry Hub is up 1.3c this morning to trade around $1.628/MMBtu
The Summer ’24 strip is down 0.3c to $2.169, and the Winter ‘24/’25 strip is up 1.5c to $3.358
Colder temperatures prevailed across most regions, with a slight delay in the forecasted gradual warming into early April, leading to a colder current week and a significantly warmer next week
Lower 48 gas production remains around 100 Bcf/d, partly due to companies like EQT and Chesapeake Energy reducing drilling activities
Enbridge to form natural gas supply venture connecting Permian and Gulf Coast (PG&J)
Enbridge announces a venture with I Squared Capital, WhiteWater, and MPLX to link Permian gas supplies to the U.S. Gulf Coast, eyeing the booming LNG export market
The venture's ownership is divided among Enbridge at 19%, WhiteWater and I Squared at 50.6%, and MPLX at 30.4%, with the deal set to finalize in the second quarter
The joint venture includes full interests in the Rio Bravo and Whistler pipelines for transport to LNG projects and a 70% stake in the proposed ADCC pipeline, plus a 50% interest in Waha Gas storage
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