A Look At: Natural Gas

Weekly Natural Gas Report
Region17-Mar-1710-Mar-17Net Change (Bcf)Implied Flow (Bcf)Stocks (Bcf)% ChangeStocks (Bcf)% Change
South Central932977-45-451,058-11.972528.6
Weekly Oil Report
STUB_13/17/173/10/17DifferencePercent Change3/18/16DifferencePercent Change
Crude Oil1,226.491,222.174.3280.41,196.6329.8622.5
Commercial (Excluding SPR)533.11528.1564.9540.9501.51731.5936.3
Strategic Petroleum Reserve (SPR)693.383694.009-0.626-0.1695.114-1.731-0.2
Total Motor Gasoline243.468246.279-2.811-1.1245.074-1.606-0.7
Blending Components218.877221.594-2.717-1.2218.0640.8130.4
Fuel Ethanol22.59522.766-0.171-0.822.5190.0760.3
Kerosene-Type Jet Fuel41.82942.059-0.23-0.543.926-2.097-4.8
Distillate Fuel Oil155.393157.303-1.91-1.2162.26-6.867-4.2
15 ppm sulfur and Under136.567138.52-1.953-1.4140.155-3.588-2.6
> 15 ppm to 500 ppm sulfur7.1447.192-0.048-0.77.327-0.183-2.5
> 500 ppm sulfur11.68211.5920.090.814.777-3.095-20.9
Residual Fuel Oil39.57339.1440.4291.145.977-6.404-13.9
Other Oils260.026258.8181.2080.5239.81820.2088.4
Unfinished Oils87.93888.09-0.152-0.289.679-1.741-1.9
Total Stocks (Including SPR)2,033.712,033.000.70802,018.4315.2790.8
Total Stocks (Excluding SPR)1,340.331,338.991.3340.11,323.3217.011.3
Data: US DOE | Source: Zermatt Economics

The world's biggest liquefied natural gas (LNG) buyers - all in Asia - are clubbing together to secure more flexible supply contracts in a move which shifts power to importers from producers as oversupply grows. Korea Gas Corp (KOGAS) said it had signed a memorandum of understanding in mid-March with Japan's JERA and China National Offshore Oil Corp (CNOOC) to exchange information and "cooperate in the joint procurement of LNG" - Sydney Morning Herald


Natural gas prices continued to rise Friday with traders betting that low production and rising demand for exports mean supplies are tightening despite waning cold weather. Natural gas for April delivery rose 2.5 cents, or 0.82%, to settle at $3.0760 a million British thermal units on the New York Mercantile Exchange. Prices have increased nearly 20% since this year’s low point on Feb. 21. Colder weather helped drive heating demand in recent weeks at a time when many expected the end of winter would cause demand for the heating fuel to wane. The U.S. Energy Information Administration’s weekly update on storage levels showed a fall of 150 billion cubic feet in the week ended March 17--about seven times the average withdrawal for this time of year. Full Article @ WSJ
Oil & Gas Analyst

Brexit: Article 50 to be activated (The Lisbon Treaty)

UK Prime Minister Theresa May will notify European Council President Donald Tusk on March 29 that she wishes to activate Article 50 and begin the process of negotiating the UK's withdrawal from the EU

The Lisbon Treaty was signed by the heads of state and government of the 27 EU Member States on 13 December 2007. It is intended to reform the functioning of the European Union following the two waves of enlargement which have taken place since 2004 and which have increased the number of EU Member States from 15 to 27.

Article 50 - The Lisbon Treaty

1. Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements.

2. A Member State which decides to withdraw shall notify the European Council of its intention. In the light of the guidelines provided by the European Council, the Union shall negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union. That agreement shall be negotiated in accordance with Article 218(3) of the Treaty on the Functioning of the European Union. It shall be concluded on behalf of the Union by the Council, acting by a qualified majority, after obtaining the consent of the European Parliament.

3. The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification referred to in paragraph 2, unless the European Council, in agreement with the Member State concerned, unanimously decides to extend this period.

4. For the purposes of paragraphs 2 and 3, the member of the European Council or of the Council representing the withdrawing Member State shall not participate in the discussions of the European Council or Council or in decisions concerning it.

A qualified majority shall be defined in accordance with Article 238(3)(b) of the Treaty on the Functioning of the European Union.

5. If a State which has withdrawn from the Union asks to rejoin, its request shall be subject to the procedure referred to in Article 49.