CNBC's Brian Sullivan speaks with Clay Siegel, Genscape managing director, about the production deal reached by OPEC members.
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In another maritime accident tank barge Piz Ela was refloated with the help of a sister vessel near Duisburg on the Rhine on 21 June. Self-propelled tank barge Piz Albris was deployed from Antwerp on 19 June and was used to lighter a cargo of caustic soda from Piz Ela to help it refloat. This was successfully achieved with assistance from tugboat Inge II, according to Vesseltracker.
The price of oil — and the price of moving it — also come into play. Mike Walls, a crude oil analyst with Genscape, said it's a lot more expensive to ship oil on trains. "If you're moving it from Hardesty, Alberta, to the Chicago refining complex, on rail you're looking at somewhere around $10, on pipe you're looking at $5 to $6 per barrel," he said.
On the production front, Genscape Inc. said it expects slight rebounds in production for the balance of this current week as a handful of Northeast and Rockies maintenance events wind down. On the demand side, it expects a moderate retreat in consumption due to most Midwest and Eastern demand market temperatures easing from early week highs.
WTI briefly turned positive after energy information provider Genscape said crude inventories at the key Cushing, Oklahoma hub were expected to have dropped by 2.3 million barrels in the week since Tuesday, traders said, alleviating some concerns that surging U.S. production would outstrip demand.
For Wednesday’s gas day, “nominated deliveries to Sabine have dropped to 2.34 Bcf/d, about 0.51 Bcf/d below weekend levels,” Genscape said. Weekend volumes were up at 2.88 Bcf/d, a recovery of about 0.7 Bcf/d from the prior 30 days when volumes were suppressed due to the weekslong shutdown of Train 3 Genscape cameras were able to detect the restart of Train 3 well ahead of nominations data as well.
Algonquin Gas Transmission on Tuesday released a notice delaying its Southeast compressor station maintenance to Thursday (June 21) from Wednesday (June 19). The event could cut up to 300 MMcf/d of mainline flows, and the convergence of the event, cooling demand and an operational flow order currently in effect would have increased New England price volatility, Genscape Inc said. “Less heat actualizing and the delay of the event caused AGT basis to drop 9 cents” in Monday’s trading, “but it still remained above June’s average price,” Genscape natural gas analyst Josh Garcia said.
Genscape Inc. analysts Vanessa Witte and Colette Breshears said in a note to clients on Monday the firm conducted a flyover of the incident site last Friday. Photos show scorched earth and construction crews working in an area of dense forest where the explosion occurred. Photos showed crews have unearthed “several weld sections.”
Spot power skyrocketed to $576.57 a megawatt-hour between 4 p.m. and 5 p.m. local time. That was the highest average for the period since August 2016, according to Genscape Inc. data compiled by Bloomberg. “Expensive generation had to be dispatched in the areas south of that line,” said Michael DuBois, a power market analyst at Genscape.
Total pipeline, rail and local refining capacity from the Permian Basin oilfield in March was 3.175 million barrels per day (bpd), according to energy intelligence service Genscape, just shy of the oilfield’s roughly 3.3 million bpd output in June.