09
Jun

Wrap Week Ended 06/08/07

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wrap-060807.jpgGonu - Much Ado About Nothing For Oil. For Global Natural Gas It Will Have A Slight Impact.

  • Strait of Hormuz - shipping and port sources told EIA on June 7 that operations continued without disruption.
  • Oman's oil terminal, Mina Al Fahal, resumed partial operations June 8 after a 3 day shutdown. The port loads 650,000 bopd.
  • Oman's Sur LNG terminal, which has the capability of liquifying 10 mm tons per year, or 1.3 Bcfgpd or 2.4% of estimated global liquefaction capacity, was badly damaged and no time frame has been set for reopening. Omani LNG has not come to the US since 2005 in favor of other destinations and they are a relatively small player so the loss of the facility should not have much, if any, impact on U.S. gas prices.

U.S. Natural gas rig count drops 19 but remains close to 21 year peak.
CFTC Indicates Net Short Position Remains Near Record Levels. I still believe that the large underlying short position is supportive of gas prices as we move into the hurricane season. The forecast bit of moderate weather next week helped soften prices after Thursday's triple digit storage injection induced rout but I expect this weakness to be short-lived and an opportunity for some the shorts to escape with their heads on their shoulders.

cftc-060507.jpg

Have a good weekend.

2 Responses to “Wrap Week Ended 06/08/07”

  1. 1
    zman Says:

    Karm – APA – very smart team. Best bet as an oily play among the large cap independents in my opinion. I also like that new one, Continental Resources, (CLR) as a good longer term oil patch play. They should get some nice buy recs from their bankers mid June.

  2. 2
    zman’s Energy Brain ~ oil, gas, stocks, etc… » Blog Archive » Monday Briefing Says:

    […] Wrap Week Ended 06/08/07 […]

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