Tag Archives: Politics

Commodities Update: Plenty of Supply

Brent down 3.2% MTD at c$107/bbl. WTI at $94/bbl (-4%). Differential has settled around $13/bbl. 
US production at a 25-year high.
Global oil supply at 92.23m b/d, up 1.16m b/d or 1.3% y/y. Within this OPEC supplies increased 310k b/d m/m to 29.82m b/d on higher output from Saudi Arabia & the UAE. Iraq was the only member to post a monthly decline in December.  Continue reading Commodities Update: Plenty of Supply

Commodities Update

US gas ends the year as the king of commodities, up 19% YTD at $4.31/mmbtu as the injection trend reversed to a bullish storage withdrawal in the past two months. Looking to 2014, exports + coal plant retirements adding 3bcf/d of demand keep me confident of improving US gas prices. Total working storage is now at 2,974 Bcf, 562 Bcf below last year’s 3,536 Bcf and 289 Bcf below the 5-year average of 3,263 Bcf. Continue reading Commodities Update

Commodities Update: More Supply… Don’t Bet On Price Inflation

Brent – WTI differential shrunk recently from $20 to $11.5/bbl.WTI rallied due to the Keystone line fill. Before the pipeline goes into service it needs to be filled up with oil (600kbpd) so there is a continuous flow once it starts up. The pipeline is 485 miles long and goes from Cushing, OK to Nederland, TX. Careful, this is a technical and temporary effect. Continue reading Commodities Update: More Supply… Don’t Bet On Price Inflation