Argentina set to reverse gas pipeline (Reuters)
G7 plans tighter sanctions on Russia (Reuters)
EU LNG import capacity surges (Bloomberg)
U.S./Iran tanker seizures (Bloomberg)
Nuclear decommissioning (Bloomberg)
Sour crude market tightens (Reuters)
EUROPE’s middle distillate inventories rose +2 million barrels in April and are up +28 million barrels from their cyclical low in June 2022. Stocks are still -35 million barrels (-8% or -1.15 standard deviations) below the prior ten-year seasonal average but the deficit has narrowed from -63 million barrels (-13% or -2.05 standard deviations) in June 2022:
U.S. OIL AND GAS drilling activity is slowing sharply in response to the fall in prices since the middle of 2022. The total number of active rigs fell by -17 over the seven days ending on May 12 with a particularly large decline in rigs targeting primarily gas-rich formations (-16). The decline in gas rigs was the largest for more than seven years since February 2016. Exploration and production firms are scaling back in response to prices that have fallen close to their lowest levels in real terms for three decades. Lower drilling conserves cash as well as signalling to investors and futures traders the sector’s determination to act quickly to avert prolonged over-production:
JKempEnergy.com 