Gas higher, API's mixed

July 7, 2020

Warmer weather is helping gas, which has now put together 3 consecutive up days. While LNG is down to 3 bcf/d in exports (over 6 bcf/d below peak output earlier this year), arb values have strengthened to Europe for later this year, signaling an expected return of increased shipments in September+. A weekly close over $1.78/MMBtu will change the Trend to UP (last $1.88/MMBtu).  


The APIs were mixed and mildly supportive (slight price uptick in late trade) via good draws in products:


Cushing +2.2MM

Gasoline -1.8MM

Distillate -0.8MM


EIA Expectations:

CL -3.7MM

RB -1.2MM

Dist -0.5MM

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