Today’s energy market action:
- Higher stockpiles and higher output push oil prices lower.
- Brent falls 1%, while WTI and Cdn light oils slide 1.5%.
- WCS tumbles over 2%, as differential widens slightly.
- Henry Hub unchanged, while AECO dips 0.3%.
- US bond yields and USD move sharply higher.
- SPX energy sector nudge up 0.2% …
… while TSX energy sector nudge down 0.4%.
Today’s supply/demand update:
- EIA predicts 50% increase in world energy usage by 2050 …
… with renewables projected to surpass natural gas in 2030. - Lower refinery runs pushes US crude stockpiles higher.
- Total US output returns to record 12.5 Mbbl/day.
- Saudi output now restored to 11.3 Mbbl/day …
… well above OPEC’s production quota.
Today’s other notable energy news:
- Crude oil extraction activity expands almost 8% in Q2/2019.
- Baytex Energy reshuffles management team …
… and leaves 2019 guidance unchanged. - Kinder Morgan begins service on GCX gas pipeline in Texas.
- Elliott Management pushes MPC to split into three companies.
- Platts reports sale of first IMO compliant low-sulphur marine fuel oil.
