Natural gas futures advanced for a second straight day on Wednesday as production dipped and all indications pointed to continued strong demand for U.S. liquefied natural gas (LNG). The June Nymex contract settled at $2.969/MMBtu, up 1.4 cents day/day. July rose 1.9 cents to $3.018. NGI’s Spot Gas National Avg., however, declined 2.0 cents to…
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U.S. Crude Inventories Decline Again; IEA Says 2021 Global Oil Demand to Outpace Production
Domestic oil inventories declined for a second consecutive week, falling by 400,000 bbl during the period ended May 7 and keeping stocks below the five-year average, the U.S. Energy Information Administration (EIA) said Wednesday. Stocks plunged by 8.0 million bbl — excluding those in the Strategic Petroleum Reserve – a week earlier as year/year demand…
Enbridge Sees ‘Renewed Interest’ in U.S. Gulf Crude, LNG Exports as Pandemic Fears Fade
Canadian pipeline giant Enbridge Inc. said Friday it was seeing an uptick in interest for crude and liquefied natural gas (LNG) exports from the U.S. Gulf Coast amid an anticipated global economic recovery from the Covid-19 pandemic. “Our solid regional footprint and premier North American integrated pipeline networks are ideally positioned to capitalize on these…
Mexico Natural Gas Market Spotlight: West Coast Supporting Demand, Prices
Strong demand on Mexico’s Pacific Coast helped prop up Waha’s May bidweek price, which jumped 31.0 cents month/month to average $2.685. Spurred by new infrastructure and demand on the West Coast, Mexico imports via pipeline from the United States have been unseasonably strong, spiking to a record 7.1 Bcf/d in mid-April. Analysts at Energy Aspects…
Devon CEO Urges Lower 48 E&Ps to Focus on Generating Cash, Limiting Oil, Gas Production
Devon Energy Corp. CEO Rick Muncrief said it’s time for his peers to get their act together and stop expanding oil and gas production until demand outpaces supply. Speaking with investors during a first quarter conference call on Wednesday, Muncrief took the pulpit to preach to fellow exploration and production (E&P) companies. Mirroring comments by…
Export Demand Driving Summer Optimism, but Storage Concerns Starting to Simmer
Riding the momentum from rallying futures prices as the natural gas market begins to look optimistically toward summer, forwards firmed by the double digits throughout much of the Lower 48 during the April 22-28 trading week, NGI Forward Look data show. With continued strength in export volumes — via liquefied natural gas (LNG) and pipeline…
Modest Recovery for Natural Gas Forwards Foreshadows Increasingly Tight Balances This Summer
Lingering cold weather and strong export demand fueled a modest rebound for natural gas forward prices across North America during the trading period from April 15-21, according to NGI’s Forward Look. Falling prices on the U.S. East Coast, however, brought the overall average down at the front of the curve, while more notable gains were…
Domestic Crude Inventories Climb, Ending Streak of Declines, EIA Says
As demand eased, stockpiles of U.S. oil increased last week and ended a previous three-week run of inventory decreases, federal data show. In its Weekly Petroleum Status Report (WPSR), the U.S. Energy Information Administration (EIA) said domestic crude inventories for the week ended April 16 rose by 600,000 bbl from the previous week. The total,…
Baker Hughes Raises Global LNG Demand Forecast to 2030
Baker Hughes Co. is projecting global demand growth for oil and natural gas into the second half of the year, aligned with rising demand for carbon-neutral products. “As we look ahead to the rest of 2021, we remain cautiously optimistic that the global economy and oil demand will recover from the impact of the global…
Asian Industrials Seen Driving 3.2% Rise in Global Natural Gas Demand This Year
Consumption in the industrial sector is expected to drive a 3.2% year/year (y/y) increase in global natural gas demand during 2021, according to a second quarter Gas Market Report published by the International Energy Agency (IEA). This compares with a 2.8% increase forecast in the 1Q2021 report, IEA’s inaugural offering in the series. The projected…