Wrap – Week Ended 09/01/23


The ZLT was up 7.2% on the week last week, comparing favorably to the energy benchmarks noted in the top segment of the Wrap table below (up 1.8 to 5.6% on the week). We currently hold

27 names in the ZLT and several E&P holdings punched 52 week and/or cycle highs and our Oil Service names pressed higher again. 

Free Stuff Last Week:

  • None but look for something in the coming week as we relay post quarter discussions we had with one of our owned names. 

Holdings Watch:

A few brief comments on The Wrap table below:


  1. WTI rallied 7% to $85.55 prompted with the 2024 strips advancing over 4% to $79.89 as well, in line with our 2024 Base Case. The advance came in part with comments from Russia's Novak promising further action in the coming week on production restraint from OPEC+. 
  2. The basic 3-2-1 crack retreated to $30 as products didn't keep pace with the oil rally.  Normally $30 would be a nice level but it's on the lower end of the recent range at a time when US throughput is starting to ebb seasonally. 
  3. The Big 3 moved to another new cycle low.  More lows soon. 

Natural Gas

  1. The storage injection was bigger than consensus and in line with our read on the week after coming in well below our number in the preceding report. 
  2. Next week we expect a modestly bigger build.
  3. Our EOS jogged lower from recent 3.9 to current near 3.8 Tcf level to take into account some warmer than expected weather in September.
  4. The latest Gas Macro update was included in the Friday post. 

Questions and comments under The Wrap will be addressed in the Tuesday post. 

Questions about the site can be directed to zman@zmansenergybrain.com. Requests for a Labor Day test drive of the site can be sent there as well.

Have a good long weekend, Z.  



One Response to “Wrap – Week Ended 09/01/23”

  1. 1
    zman Says:

    Early Read on Natural Gas Storage

    Z4 +35 Bcf

    Street +41 Bcf
    Last Report: +32 Bcf (we were +30 Bcf)
    Year Ago: 55 Bcf
    5 Yr Avg: +60 Bcf

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