Patriot Energy Resources Group - Market Outlook for May 16, 2024
by Dave Haskett, Kitty Louie and Dwayne Big Old Man
Another draw down for US crude inventories didn't help pricing for Weds but this morning WTI is back in rally mode trying to close in on the US$80/b benchmark. WTI picked up US$0.61/b to settle at US$78.63/b last night and is hovering close to US$80/b. The S&P closed over 5300 for the first time and that is huge news. Americans will be on the road this long weekend as Memorial Day is a big travel day. Refinery maintenance season is ramping down for summer driving season as well. Refinery inputs were 16.3 MMb/d vs 15.9 MM/b last week.
NYMEX nat gas picked up $0.07/Mmbtu to settle at $2.416/Mmbtu. The Freeport LNG facility is finally back to full operations and has ships lined up for export loads. Sabine Pass has moved up its export capacity as well at 13.2 Bcf/d from 12.4 Bcf/d. Analysts are suggesting that demand must remain strong and combined with economic shut-ins balanced against maintenance to keep production levels in check.
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