Oil is trading lower, around $85, extending losses from yesterday
Last night, Israel announced there will be a response to the recent Iranian attack, which may support the geopolitical risk premium in crude prices
Congress votes to sanction Chinese purchases of Iranian crude (BBG)
The House of Representatives passed legislation on Monday to counter Chinese purchases of crude from Iran in response to Iran’s attack on Israel
The bill expands sanctions against Iran to cover all transactions between sanctioned Iranian banks and Chinese financial institutions
About 80% of Iranian crude exports are shipped to independent refineries in China or about 1.5 MMBbl/d
Chinese refinery demand at five-month high on demand rebound (BBG)
China’s refinery throughput has climbed to the highest level in five months as refiners rebuild fuel stockpiles following the Lunar New Year holiday
Chinese refining throughput typically eases between April and June as refiners conduct seasonal maintenance, but weaker diesel margins may lead to a more pronounced slowdown
While China is the world's largest consumer of crude, demand growth from the country is expected to slow down this year compared to last year
Natural gas prices trade modestly higher amid lower production
May ’24 Henry Hub is up 1.5c this morning to trade around $1.706/MMBtu
The Summer ’24 strip is up 0.6c to $2.195 and Winter ‘24/’25 strip is up 0.5c to $3.368
Today's Euro Ensemble indicates colder temperatures east of the Rockies, particularly in the Northeast and Midwest, with warmer conditions in the West/Rockies, averaging around the 10-year normal after next week
Golden Pass Pipeline cleared to start partial service (NGI)
Federal regulators authorized partial service for a roughly half-mile section of the pipeline to feed the Golden Pass LNG
FERC approved Golden Pass Pipeline’s request to operate the MP 69 Compressor Station Free Flow Line, capable of moving up to 600,000 Dth/d to the Golden Triangle Storage facility in Beaumont, TX
The isolated free flow line section is part of the broader GPPL facilities expected to be completed this year, aiming to transport 2.6 Bcf/d to the export plant, with first exports expected in 2025
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