Energy Communications


Energy update for the week of September 7, 2021:

  • OPEC + met last Wednesday and decided to leave the original plans in place which is a 400,000 bpd increase until December.
  • Energy markets are down to start the week based on overnight news of Saudi Arabia reducing the price of crude by about $1 per barrel to the Asia markets. This could perhaps signal a slower return for that market than earlier predicted.
  • Hurricane Ida is still impacting Gulf production and refineries as 80% of production is still shut-in, with no real estimate of when production will resume. On the demand side, five refineries in Louisiana remain shut down, although most refineries are beginning to restart.
  • The weekly EIA propane reports continue to disappoint traders. Propane inventories built just 500,000 bls last week, which is below expectations and the norm for this time of year. Last year we saw a build of 4.4M bls, which was stronger than normal. U.S. inventories sit at 69M bls last week while one year ago the inventory position was 95.2M bls; a decrease of nearly 26M bls. The good news is that the Midwest built 1.1M bls last week and now stands at 22.7M bls and slightly ahead of 2013-14 levels.

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