Saturday, August 15, 2020 /08:00
AM / by Tom Kool of Oilprice.com / Header Image Credit: Oilprice
have been trading in a relatively tight range for the last few weeks, and
despite the recent bullish momentum WTI hasn’t been able to break out.
Friday, August 14th, 2020
Another week and another snoozer for oil prices. WTI
and Brent remain in a narrow range, although their foothold in the $40s feels
more solid than it has in the past. EIA data this week showed another decent
stock decline, along with an uptick in gasoline demand.
The International Energy Agency crude
oil demand this year to be 8.1 million bpd lower than it was in 2019, a
downward demand forecast revision of 140,000 bpd, the authority said in its
latest Oil Market Report. The agency cited the very weak aviation industry as a
main reason why demand could remain depressed.
In the fourth quarter, oil
inventories could draw down at “record speed,” according to SEB. “[T]he IEA
yesterday (13 August) projected a call-on-OPEC in Q4 2020 of 29.5m bl/day. If
this turns out to be correct and OPEC and OPEC+ both stick to their agreed
caps, then global inventories will decline by between 4m bl/day and 5.2m bl/day
in Q4 2020 – an inventory draw of between 370m bl and 480m barrels in a single
quarter, which cannot be far from a historical record,” SEB’s Bjarne Schieldrop
said in a statement.
The U.S. filed a lawsuit in July against four ships carrying gasoline
from Iran to Venezuela. U.S. officials the four
ships are en route to Houston, and the seizures should deter shipowners from
taking business in violation of U.S. sanctions.
The EPA announced a roll
back of methane regulations on oil and gas operations. Smaller drillers favored
the removal of regulation, but the oil majors opposed the move. The majors have
bet big on natural gas as a source of growth in a low-carbon world, and fear
the reputational stain on gas from increased methane emissions.
forces to the Eastern Mediterranean to provide military assistance to Greece
and to deter Turkey from oil and gas exploration in contested areas around
Cyprus. “The situation in the Eastern Mediterranean is alarming. Turkey’s
unilateral decisions in matters of oil exploration provoke tensions,” French
President Emmanuel Macron tweeted.
North Carolina regulators denied
a key water permit for the Mountain Valley Pipeline, one of the few
remaining high-profile long-distance natural gas pipelines under construction.
The pipeline would carry Marcellus shale gas to the southeast. MVP is a joint
venture between developer EQM Midstream and the subsidiaries of several
utilities including NextEra Energy (NYSE: NEE) and Consolidated
Edison (NYSE: ED).
In 2019, global gas flaring hit its highest level in a decade, with much
of the increase coming from U.S. shale. However, in the past 12 months, gas
flaring in the U.S. has declined by 70 percent, according to the Earth
Observation Group at the Payne Institute for Public Policy. The decline was
largely driven by a slowdown in drilling. Capital discipline presents a hopeful
scenario in which a consolidated industry can get a handle on the flaring
crisis, the FT .
Brookfield Asset Management Inc.’s (NYSE: BAM) infrastructure
arm is in talks to acquire Blackstone Group Inc.’s (NYSE: BX)minority
stake in liquefied natural gas terminal operator Cheniere
Energy Partners LP (NYSEAMERICAN: CQP), according to .
Venezuela’s oil exports are suffering
another blow these days: the quality of the crude loaded on tankers is so
poor that loadings are being delayed. IHS Markit said that Venezuela could soon
be producing “close to zero barrels of oil.” Currently, production has fallen
to about 100,000 to 200,000 bpd, down from 650,000 bpd a year ago.
Related News – Previous
Oilprice Intelligence Report
- Oil Prices
Rally On New COVID Optimism – OIR 110820
- COVID Fears Cause Oil To Fall Back After A Brief Rally – OIR 070820
- Oil Prices Climb Despite Growing Demand Fears – OIR 040820
Turmoil Leaves Oil Trapped At $43 – OIR 310720
- OPEC Prepares For Long-Term Demand Risks – OIR 280720
- Oil Prices
Stuck At $42 – OIR 240720
- Oil Jumps
on the Prospect of Two Trillion-Dollar Stimulus Packages – OIR 210720
- OPEC-Plus News Is Holding Oil
Prices Back – OIR 140720
- Oil Returns to $42 After COVID Correction – OIR 100720
- Oil Prices Range Bound As Pipelines Come Under Pressure – OIR 070720
- The Oil Rally Has Stalled Once Again – OIR 030720
- Oil Markets On
Edge As Second Wave Hits – OIR 300620
- Oil Prices Fall
Below $41 as a “Second Wave” of COVID Hits – OIR 260620
Related News – Oil and Gas
- August 2020
Oil Market Update: Unprecedented Supply Cuts, Some Countries Still
Faltered – NOVA
- Labeling of
Agbami as Crude or Condensate Divides Oil Market
Nigerian Oil and Gas Industry Update: Urgent Need for Reforms
- Big Oil Has
Been Bruised By The Pandemic, But It Is Not In Retreat
- United Bank for Africa Provides $200 Million for Nigeria’s Petroleum
- NBCC Forum:
Experts Call For Increased Investments In Oil and Gas Mid-Stream
- Mining: Resuscitation of Ajaokuta Steel Company – An End in Sight?
- Large And
Unexpected Crude Build Halts Oil Rally
Cuts Tapering Reflects Recovering Oil Demand
Prices of PMS, AGO, HHK and Cooking Gas – June 2020
- Oil and Gas Update: Downstream Oil and Gas at a Crossroads
- Movement in
Oil Prices and What It Means for Nigeria
Nigeria from Perennial Oil Price Volatility
Arabia Eyes Total Dominance In Oil And Gas
- PPPRA Releases Advised Price for
PMS for the Month of July 2020; Raises Pump Price to N140