US NATGAS: Waha Falls Back to Negative
May-23 11:33
The Waha natgas price was down 71 cents/MMBtu yesterday to minus 22 cents/MMBtu amid continues constraints on takeaway capacity from Permian.
- Production from the Permian Basin was 20.6bcf/d, up around up around 1.7%, or 350 mmcf/d, on the day. This compares to a 30-day average of 20.37 bcf/d.
- Regional demand within Permian was seen at around 848 mmcf/d, down 92 mmcf/d, while export flows from Permian were 17.53 bcf/d, up 40 mmcf/d.
- Permian export pipeline utilisation was up to 72.14% May 22, compared to 71.64% the previous day. Permian Highway was at 61%, Matterhorn at 63%, and Whistler at 103%.
- NGPL export capacity to Mid-Continent was at 104% capacity, stable on the day.
- EPNG shows maintenance up to 6.131 bcf/d yesterday, compared to 3.494 bcf/d May 21. It is seen rising further to 6.221 bcf/d today.
- The Permian Highway Pipeline will see total mainline capacity reduced from 2,660,000 MMBtu to 2,150,000 MMBtu from May 13-26 to perform a turbine exchange.
- US Gulf end user demand was 16.2bcf/d, up by around 0.78bcf/d on the day. Demand is 1.19bcf/d above the 30-day average.
- Exports to Mexico from the US Gulf were weaker today at 7.42bcf/d. This compares to 7.44 bcf/d the previous day and the 30-day average of 6.77 bcf/d.
- Prices, demand, and supply data from Bloomberg.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BOE: Pill asked whether QT is state contingent
Apr-23 11:32
- Pill talks through the history of QT with active sales originally being delayed in 2022. He says: "It does illustrate, first, that, yes, you are right to point out there could be state dependent, state contingent effects. I think we've seen those, but we've built into our framework the possibility for dealing with that. Because I think monetary policy, by nature, is a bit more of a medium term oriented looking through the sort of ups and downs of markets at high frequency. And I think our system has taken that into account. And just to give an example, this isn't what I would overweight, but you'll be very aware of this is it was only a few weeks ago that actually the Bank of England decided to switch from selling longer term bonds to selling shorter term bonds at a time when markets were a little bit febrile, given recent events. Now, I wouldn't say that was a big monetary policy choice that was quite a tactical approach to dealing with these types of dislocations, and I think that maybe at the margin helped to calm markets, although, of course, there are bigger forces at work now. The global storm you see is perhaps driving those dislocations in markets more than our own actions. So I think it does illustrate that we are alive to the potential and able to deal with it."
- Pill says he's not going to formally comment on Bank Rate as the forecast round is under way.
US: Bessent IIF Appearance Could Carry Weight
Apr-23 11:30
- We note the focus on Fedspeak today (although, as we wrote earlier, the ‘opening remarks’-heavy nature of today’s speaking schedule could limit content and all speakers have spoken recently), but Treasury Secretary Bessent's appearance at the IIF today could also carry weight.
- He's set to be delivering keynote remarks and will "share his thoughts on the state of the global financial system". He will then hold a sit-down conversation with the IIF president. His remarks begin at 1000ET/1500BST and can be livestreamed here: https://vimeo.com/event/5054312/12805a306f
- His appearance follow closed-door remarks at an investor conference yesterday, where he supposedly said he sees de-escalation with China, with the current trade situation "unsustainable".
- The softer tone on China (backed up later by Trump) followed a meeting in the Oval Office between POTUS and the CEOs of Walmart, Target and Home Depot, who warned the President "that his tariff and trade policy could disrupt supply chains, raise prices and empty shelves", according to Axios.
EUROZONE ISSUANCE: 7-year BTP Italia to be launched end of May
Apr-23 11:19
- The MEF has announced that it will launch its first BTP Italia since March 2023 with an offering for retail investors between 27-29 May and for institutional investors on 30 May. As usual, the BTP Italia is linked to Italian inflation (rather than Eurozone inflation).
- The guaranteed minimum annual (real) coupon rates will be announced on Monday 26 May (likely ISINs announced then too). There will be the usual 1% bonus to retail investors who hold the issue from launch until maturity.
- The maturity date will be 4 June 2032.
- The last BTP Italia launched in March 2023 had a 5-year maturity and saw E8.563bln sold to retail investors and E1.353bln sold to institutional investors.
