Oil is trading higher, near $86, after inflation report beats estimates
US CPI came in higher than forecast for the third consecutive month, which could lead the Federal Reserve to delay interest rate cuts
Interest rates being higher for longer should support the US Dollar, which can have a bearish impact on crude prices
Enterprise has received regulatory approval to build a deepwater export terminal off the coast of Texas, which will be able to load VLCCs directly
Enverus raises 2030 oil demand forecast (BBG)
Enverus said they do not expect oil demand to peak before the end of the decade due to underwhelming fuel economy standards and a slowing adoption of electric vehicles
This is in contrast to the view of the IEA, which believes oil demand will peak this decade
Enverus noted that the bearish outlook by the IEA and the bullish outlook from OPEC both require significant changes to consumption over a short period, which historically does not usually happen
EIA sees small supply deficit in 2024 (BBG)
The US Energy Information Agency is continuing to anticipate a slightly undersupplied market in 2024
The EIA increased their global demand forecast by 480 MBbl/d to 102.91 MMBbl/d, bringing it mostly in line with the IEA forecast of 103.2 MMBbl/d
The agency expects global supply to reach 102.65 MMBbl/d, leading to a small deficit of 260 MBbl/d this year
Natural gas prices trade higher amid lower production, partly due to ongoing maintenance
May ’24 Henry Hub is up 6.1c this morning to trade around $1.933/MMBtu
The Summer ’24 strip is up 0.7c to $2.333 and Winter ‘24/’25 strip is up 2c to $3.427
Today's Euro Ensemble indicates a warmer weather pattern, especially in the Northeast, Rockies, and West, continuing into late April
Lower 48 dry gas production levels hovered around 97.8 Bcf/d, with spring maintenance kicking off this week, further curbing the flow of supplies across multiple regions (Criterion)
DeLa Express seeks FERC approval for a 2 Bcf/d gas pipeline from Texas to Louisiana, targeting a 2028 launch (P&GJ)
DeLa Express has formally requested FERC approval for a 690-mile pipeline project designed to transport 2 Bcf/d of natural gas from the Delaware Basin in Texas to Lake Charles, Louisiana
The project aims to provide new transportation capacity for liquids-rich natural gas, enhancing market access around Lake Charles
Key project milestones include hosting public open houses in 2024, submitting a Section 7 application in 2025, obtaining a FERC certificate by April 2026, and starting construction in 2Q 2026
Increased capacity will be beneficial for Permian producers facing negative Waha prices; cash prices at Waha are expected to stay low until the Matterhorn Express pipeline begins service in 3Q and relieves takeaway capacity constraints
Get market insights delivered to your Inbox every day!
