22
Sep
Wrap – Week Ended 09/20/24
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The ZLT was up 6.5% on the week last week, rallying with a bounce in oil which was overly shorted. Oil service in particular lifted (sentiment has become overly bearish) and we added a new name to the portfolio with PUMP. Please see Monday's post here for color.
Holdings Watch:
- We added PUMP to the portfolio last week.
- The blotter is updated.
Crude oil ended the week up 4.8% on the November contract at $71.00 last week.
- Last week the EIA weekly was bullish side of neutral.
- To see last week's Oil Inventory slide show see the link at left or click here.
- U.S. Big 3 inventories (oil, gasoline, distillates) remain low.
- Fears persist over just how much slowing is going on in China.
- US frac spreads bounced for a 2nd week but remain near 2024's lows.
- Please see The Week That Was for more details.
Natural gas rose 5.4% to close last week at $2.43 with weakening daily production figures and strong LNG exports along with late September heat driving prices. The 2025 strip is at $3.27 now vs our $3.25 Base Case price deck.
- To see last week's Natural Gas Storage slide show see the link at left or click here.
- Last week's build was slightly bigger than expected,
- Look for a similar to slightly bigger build this week.
- Please see The Week That Was for more details.
- Production Watch: Production on Friday was 100.5 Bcfgpd according to BNEF.
- LNG Watch: LNG exports were 12.3 Bcfgpd on Friday according to BNEF.
Questions and comments under The Wrap will be addressed in the Monday post.
Questions about the site may be directed to zmanalpha@gmail.com
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