Natural Gas News – January 30, 2019
Natural Gas News – January 30, 2019
Ukrainian Natural Gas Exported to Europe for First Time in Fifteen Years
Kyiv Post reported: Ukraine has restarted exports of its own natural gas to Europe after fifteen years, exporting a relatively small amount to Slovakia, seemingly to demonstrate to the Ukrainian gas sector how easily it can be done. Early on Jan. 30, privately-owned TAS Energia Krainy said it had become the first Ukrainian energy company in fifteen years to complete a transfer of Ukrainian natural gas to Europe or the European Union. The company exported just 5,000 cubic meters, basically the minimum viable amount for a transfer, through the Budince entry-exit natural gas transmission point with Slovakia. The gas was then purchased on European energy markets by the UK-registered company Metalex Limited. For more on this story visit kyivpost.com or click https://bit.ly/2GatZSD
Why Oil Rigs Might Concern Natural Gas Bulls
Market Realist reported: The natural gas rig count was at 197 last week, which was one less than the previous week. In the previous week, the rig count was at the highest level since September 2015. The natural gas rig count has fallen ~87.7% from its record level of 1,606 in 2008. Between January 2008 and October 2018, US natural gas’s marketed production rose ~64.5% despite the falling natural gas rig count. As a result of the increased supply, natural gas active futures have fallen 62.4% since January 2008. Rising US oil production is the key factor behind the increase in natural gas supplies. Since natural gas is often a by-product of US shale oil production, it’s important to monitor the oil rig count to understand natural gas supplies. Between January 4, 2008, and January 25, 2018, the oil rig count more than doubled. Based on the relationship between oil prices and the oil rig count, the oil rig count is expected to keep rising until at least March. A higher oil rig count could boost crude oil and natural gas supplies and pressure natural gas prices. Last week, the oil rig count rose by ten to 862—a concern for natural gas prices. For more on this story visit marketrealist.com or click https://bit.ly/2BbjHyp
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