Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
In the week since our last edition of What’s Affecting Oil Prices, Brent prices rose $2.44/bbl to average $77.19/bbl. WTI prices rose $5.54/bbl to average $71.79/bbl.
Brent and WTI prices will continue to diverge in the week ahead as Brent’s rise is slowed by hopes of higher supply while WTI is supported by an outage at Suncor’s Syncrude facility.
A shutdown at the Suncor Syncrude plant appears to be playing a large part in driving the narrower Brent-WTI differential with WTI supported after light syncrude flows were reduced. The plant is expected to be offline through the end of July, forcing Midcontinent refiners to source volumes from Cushing.
When it comes to trader sentiment, one of the largest crude oil and refined product market-makers recently liquidated its trading book and closed, reportedly due to new capital requirements from European regulators. Geneva Energy Markets is one of the first large trading houses to be impacted by the Basel III requirements but more firms could be impacted, potentially removing liquidity from paper markets. Additionally margins continue to weaken, especially in Asia as more refineries exit maintenance and add to regional product supply.
Overall, markets are facing conflicting pressures in the week ahead, which, coupled with the July 4 holiday in the U.S., is likely to drive prices sideways. We expect Brent to average $78/bbl and WTI to average $73/bbl in the week ahead.
Recommended Reading
Marketed: Paloma Natural Gas Eagle Ford Shale Opportunity in Frio County, Texas
2024-02-16 - Paloma Natural Gas has retained EnergyNet for the sale of a Eagle Ford/ Buda opportunity in Frio County, Texas.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Evolution Petroleum Acquires SCOOP/STACK Interests
2024-01-09 - Evolution Petroleum entered agreements with three companies to purchase non-op interests in Oklahoma’s SCOOP and STACK plays for $43.5 million, equaling its largest transaction so far.
Elk Range Royalties Makes Entry in Appalachia with Three-state Deal
2024-03-28 - NGP-backed Elk Range Royalties signed its first deal for mineral and royalty interests in Appalachia, including locations in Pennsylvania, Ohio and West Virginia.
EQT Ups Stake in Appalachia Gas Gathering Assets for $205MM
2024-02-14 - EQT Corp. inked upstream and midstream M&A in the fourth quarter—and the Appalachia gas giant is looking to ink more deals this year.