WTI is looking pretty good at the moment, thanks to the US seeing record production and having some seriously robust domestic oil inventories. But despite all that, the market is still being influenced by the SPR releases and just how tight things are right now. In gas, US fundamentals are still pretty soft in the short term. We just got a report from the EIA that showed a nearly 79 billion-cubic-foot storage build for the week ending April 24, which lifted the total to 2,142 billion cubic feet well above the five year average.
And all that’s doing is making it clear that we’re just swimming in supply at the moment, with high production, nice spring weather and basically no heating demand making things pretty well stocked for injection season.
Longer term though, the demand for LNG feedgas and trends in power sector usage – with all the data centers that are springing up – do offer a bit of reassurance, but things are patchy in Europe with their storage being replenished in fits and starts.
