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MORNING ENERGY NEWS  |  06/23/2020
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You are never gonna keep me down.


World Oil (6/21/20) reports: " Oil turned around last week’s setback, extending a slow but relentless rise since falling into negative territory in April. U.S. benchmark crude futures rose 2.3% Friday to close at the highest level since March 6. The 9.6% increase for the week marks the seventh gain in the last eight weeks. Oil traders Vitol Group and Trafigura Group and exporter Saudi Aramco all talked up the strength of the demand recovery in recent days, and prices for some of the world’s major oil products have begun to roar higher. OPEC+ gave reassurance on output cuts on Thursday. 'You had three key ingredients making the market climb this week,”'said Thomas Finlon of Houston-based GF International. A drop in U.S. refined product inventories, OPEC compliance and falling crude inventories at Cushing, Oklahoma, all contributed to the price strength, he said. Inventories in Cushing, the delivery point for West Texas Intermediate futures, have contracted every week since early May."

"The radical millenarian ideas that flourished in the Middle Ages or unstable European societies in the early twentieth century can now be found at the heart of the Democratic party."

 

– David Adler, Quillette

Greens push for a police state to force the purchase of red China solar panels.


E&E News (6/23/20) reports: "Energy efficiency advocates and environmentalists are urging city and state officials to adopt 'new and more aggressive approaches' to decarbonize buildings in hopes of creating a national wave of mandates that have proved controversial in some parts of the country. The measures, outlined in a report yesterday and in a separate campaign announced this morning, differ but target the same goal of cutting energy use at residential and commercial buildings, which contribute 31% of U.S. greenhouse gas emissions. In the report, the American Council for an Energy-Efficient Economy (ACEEE) warns that the pace of building retrofits across the country is too slow and calls for municipal and state officials to institute mandatory performance standards for efficiency. Separately, Environment America, an environmental group with 29 local chapters, said it was launching a campaign in 10 states to require new homes to include rooftop solar panels. 'As far as we know, ours is the first nationally coordinated campaign for solar home requirements in the country," said Bronte Payne, Environment America's director for the campaign."

A change-up in the works?


S&P Global (6/23/20) reports: "The LNG market has clung tenaciously to traditional contracting structures, but so many of the justifications – the rationale for oil indexation, limited LNG supply, and lack of spot gas trade or benchmark – no longer pass the sniff test in 2020 and beyond. The LNG market needs different options. Sellers still need some long-term commitments to provide financial security to shareholders, and buyers still need some security of supply to assuage regulatory concerns regarding economic vulnerability. That said, the tropes that define each of these concepts for buyers and sellers desperately need to evolve, and now is the perfect time to move on. Shifting the focus from 'how much' and 'how long' to 'when' and 'what period of the year' provides a better solution to what currently ails the market for LNG contracts. Taking the LNG contract to the next level involves better defining when – more specifically what time of the year – having an LNG contract is an absolute necessity, and when it is more of an option."

Which infrastructure week is this? 


Bloomberg (6/23/20) reports: "House Democrats unveiled details of their $1.5 trillion infrastructure plan yesterday that would pay for water projects, fight contamination from 'forever chemicals,' and move toward a national network of electric vehicle charging stations. The 2,309-page package combines a $500 billion surface transportation bill that the House Transportation and Infrastructure Committee approved June 18 with a grab bag of other clean energy, infrastructure, and education funding proposals already unveiled by Democrats in recent months. The bill faces scant chance of passing the GOP-controlled Senate, but its proposals provide an illustration for what Democrats hope to achieve if they control the White House and Senate as well as the House next year. The Moving Forward Act (H.R. 2) would provide $70 billion in electricity grid improvements and billions of dollars in annual water spending, including $25 billion to improve drinking water infrastructure and address per- and polyfluoroalkyl (PFAS) substances. It also provides grants for schools and child care facilities to voluntarily test for lead contamination and to replace school drinking water fountains." 

Energy Markets

 
WTI Crude Oil: ↑ $41.18
Natural Gas: ↓ $1.65
Gasoline: ↑ $2.14
Diesel: ↑ $2.43
Heating Oil: ↑ $122.95
Brent Crude Oil: ↑ $43.52
US Rig Count: ↓ 295

 
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