As we wrote in our July 2020 newsletter, crude and products demand faces a hard ceiling, a softer floor, and a narrowing range. Demand likely won’t exceed pre-COVID levels until the virus is defeated; new outbreaks could curtail demand (albeit not to April or May levels); and better understanding of

It’s natural gas producers’ turn in the barrel. Natural gas prices are falling to historic lows amid higher-than-expected storage builds, but downside risks are severe and perhaps underappreciated. Domestic demand for natural gas has been crushed by COVID, and LNG exports are out of the money until September – and

LNG is almost out of the summer from hell, but Fall and Winter exports still face uncertainty. Downside risks include European gas storage levels well above 5-year storage levels and the ever-present risks of COVID resurgences throughout key export markets in Europe and Northeast Asia. On the other hand, some

Continuing with our NGL Benchmarking series, this month let us take a deep dive into another key basin – the Bakken. A drop in crude prices due to the COVID19 and OPEC price war has hit Bakken shale basin hard, with ~0.7 Bcf/d and ~0.4 Million Bpd drops in gas

Don’t look now, but there could be danger ahead for U.S. crude. As we’ve said since the beginning of this crisis, demand is driving market outcomes, and COVID-19 is driving demand. As of this writing, COVID-19 infections are surging across the country (and globally), as new 7-day averages of U.S.

These are tough times for U.S. LNG exporters and Global LNG markets in general. Natural gas inflows to U.S. export terminals serve as a proxy for exports, but stand at only 3.9 Bcf/d, down from 9 Bcf/d in late March. Obviously, LNG exports are buffeted by the COVID-19 demand shock