US crude at 24 month low, gasoline at 22 month low, total supplies at 42 month low
Focus on Fracking: US crude supplies at a 24 month low, gasoline supplies at a 22 month low, total supplies at a 42 month low; August global oil shortage was 2.77 million barrels per day
Natural gas prices at 7 1/2 year high near a 12 year high before falling back; US crude supplies at a 24 month low, gasoline supplies at a 22 month low, total supplies of crude plus all products at a 42 month low; US exports of distillates at a 6 month low; global oil shortage at 2.77 million barrels per day in August as OPEC output falls short of quota by 684,000 barrels per day; vertical rig count at an 18 month high . . .
Oil prices rose for a 4th consecutive week on ongoing hurricane impacts and tightening supplies of crude and fuel . . . after edging up 0.6% to $69.72 a barrel last week on falling US supplies of crude, gasoline, and distillates, the contract price for US light sweet crude for October delivery advanced in early trading Monday as traders monitored an intensifying storm in the Gulf that was projected to make landfall that night near the refining and oil export hub of Corpus Christi, and settled 73 cents higher at a six week high of $70.45 a barrel, with U.S. supply concerns in the wake of Hurricane Ida still dominating trading…oil prices opened higher Tuesday, after tropical storm Nicholas made landfall south of Houston as a category one hurricane, but pulled back to settle just a penny higher at $70.46 a barrel as the storm spared critical energy infrastructure . . . oil prices advanced in early trading Wednesday, after preliminary data from the American Petroleum Institute showed domestic petroleum stocks posted a larger-than-expected draw for the second consecutive week, and then jumped over $2 after the EIA reported an even larger than expected drawdown of US crude inventories, and settled $2.15 higher at $72.61 a barrel after the International Energy Agency’s warned that oil supply lost from storms in the U.S. Gulf had offset what OPEC and other producers had added . . . oil prices edged lower early Thursday on profit taking after Wednesday’s price surge, as the threat to Gulf crude production from Hurricane Nicholas receded, but recovered to finish the session unchanged as traders focused on adjusting their positions in U.S. crude options ahead of contract expirations . . . oil prices turned lower on Friday, as the storm-hit crude supply began to trickle back into the market, and settled down 64 cents at $71.97 a barrel on a stronger US dollar amid Russia’s plans to boost upcoming overseas oil sales, but still finished the week more than 3.2% higher, boosted by tightening supplies of crude and fuel…
Supply lost from storms in the U.S. Gulf had offset what OPEC and other producers had added.
Natural gas prices also finished higher, but well off the week’s highs, as a larger than expected inventory build and cooler forecasts heading into the weekend ameliorated fears of shortages this coming winter . . . after rising 4.8% to $4.938 per mmBTU last week as three-fourths of Gulf production still remained shut in, the contract price of natural gas for October delivery jumped almost 6% to a seven-year high of $5.231 per mmBTU on Monday on forecasts for higher demand than was previously expected, as air conditioning use remained strong in most parts of the country while heating demand started to pick up in other areas, while more than half of the natural gas produced in the Gulf before Ida remained offline as Nicholas approached . . . natural gas prices rose 2.9 cents to a fresh seven-year high of $5.260 per mmBTU on Tuesday on worries that Nicholas would delay the already slow return of production in the Gulf, and as record global gas prices kept demand for U.S. exports high. and then jumped another 20.0 cents on a short squeeze on Wednesday to settle at $5.460 per mmBTU, just a half cent short of a 12 year closing high, as traders fixated on sparse supplies of gas in the US and in Europe ahead of winter…but October natural gas fell back 12.5 cents, or 2.3%, to settle at $5.335 per mmBTU on Thursday, pressured by a larger-than-expected storage build and forecasts for slightly cooler temperatures through next week . . . natural gas prices then gave up more than half the week’s gains on Friday, falling 23.0 cents to $5.105 per mmBTU, as weather forecasts for the remainder of September shifted bearish again – after shedding several cooling degree days on Thursday – signaling the potential for solid increases to gas inventories in the coming weeks . . . even so, natural gas prices still rose 3.4% on the week, pulled higher by prices near $19 in Asia and $23 in Europe….
The EIA’s natural gas storage report for the week ending September 10th indicated that the amount of working natural gas held in underground storage in the US rose by 83 billion cubic feet to 3,006 billion cubic feet by the end of the week, which left our gas supplies 595 billion cubic feet, or 16.5% below the 3,601 billion cubic feet that were in storage on September 10th of last year, and 231 billion cubic feet, or 7.1% below the five-year average of 3,237 billion cubic feet of natural gas that have been in storage as of the 10th of September in recent years…the 83 billion cubic foot increase in US natural gas in working storage this week was well above the median forecast for a 70 billion cubic foot addition forecast by a S&P Global Platts’ survey of analysts, and a bit more than the average addition of 79 billion cubic feet of natural gas that have typically been injected into natural gas storage during the same week over the past 5 years, but a bit less than the 86 billion cubic feet that were added to natural gas storage during the corresponding week of 2020…
other than the oil & gas price coverage included above, coverage of the other stories noted in my headline above can be found at my Focus on Fracking blog post, also linked above…my coverage of OPEC’s September Oil Market Report runs 17 paragraphs and includes 3 tables and a graph…
from today’s report on the slow return of Gulf production after Ida:
today’s data shows US crude oil supplies now at a 35 month low, while the total of all U.S. Stocks of Crude Oil and Petroleum Products, including those in the SPR is at a 6 1/2 year low
NB: it looks like you won’t see that ‘six and a half year low’ story anywhere else because no one is counting the ongoing depletion of the SPR.