blog

opec meeting expectations

goal: avoiding a taper tantrum

Hondo Lane | July 13, 2020

(Petrolytics) - Before we get to the assorted articles for the morning, a few highlights:

  • US crude inventories: 539.2 mmbo (+5.7 from June 26)
  • US crude imports: 7.4 mmbopd (+1.4 from June 26)
  • US refinery input: 14.3 mmbopd @ 77.5% operable capacity (+315 kbopd from June 26)
  • US rig count: 258 (-5 from July 3)
  • Canada rig count: 26 (+8 from July 3)
  • Int'l rig count: 781 (-24 from July 3)
  • IEA oil demand forecast: 92.1 mmbopd (+400 kbopd from June forecast)
  • WTI: opened lower at $40.35/bbl (-$0.20)
  • Nat gas: opened flat at $1.79 (-$0.02)
  • OPEC+ expected to ease an add'l 2 mmbopd of cuts (taper from 9.6 to 7.7 mmbopd)

All eyes on the OPEC+ meeting on July 14-15. Consensus is an easing of production cuts.

A few articles to get your day started:

  1. US consumed and produced a record volume of natural gas in 2019
  2. OPEC meeting expectations - hoping to avoid a taper tantrum
  3. World drinking less coffee - definitely not the case here

Tough times for frac sand suppliers. Hi-Crush filed for Ch11 recently. This follows a number of similar bankruptcies last month. All the while, US Energy Secretary Dan Brouillette's reassures the oil and gas industry of a "very, very strong" comeback.

The industry has definitely seen better days, however, we're cautiously optimistic.

Stay safe.