Crude Oil, Natural Gas Prices Part Ways. What Does This Mean?
DailyFX: While crude oil prices continue to rise, US natural gas producers have seen prices plunge to lows they’ve not seen since early 2016. In markets overwhelmingly driven by large, global themes be they US-China trade, Brexit or Middle Eastern geopolitics, it’s always tempting to see big picture stories in large, global terms. If one energy market looks is priced optimistically for growth while another tanks, surely one of them has to be wrong, right? Well, sometimes. But in this case it might be rash to draw any such conclusion and wiser to let the story remind us that market specific stories can still outweigh even the risk-impulse which has so often driven all markets since the financial crisis. Crude oil prices are underpinned fundamentally by the prospect that supply will remain tight, thanks to output reductions from the Organization
of Petroleum Exporting Countries (OPEC), Russia et al. It will do so at a time when demand for energy could rise as recovering major economies benefit from low interest rates and, possibly, more fiscal stimulus. For more on this story visit dailyfx.com or click https://bit.ly/2TPPwXA
Enterprise Products Brings Mentone Natural Gas Unit Online
Nasdaq reports: Enterprise Products Partners L.P. EPD recently announced the coming online of the Mentone cryogenic natural gas processing plant in the Permian Basin. The facility is located in the Loving County of Texas that marks the seventh natural gas processing unit of the partnership in the Delaware Basin, a part of
the famous Permian. The plant — supported by a long-term acreage dedication agreement — has a natural gas processing capacity of 300 million cubic feet per day (Cf/d) and natural gas liquids (NGL) extraction capability of more than 40,000 barrels per day (BPD). Since the start of the unit, Enterprise Products has a total
natural gas processing capacity and NGL extraction capability of more than 1.6 billion Bcf/d and 250,000 BPD, respectively, in the Permian basin. Natural gas comes as a by-product in the prolific Permian Basin. Discouragingly, the surge of the commodity has led to significant flaring problem. Markedly, natural gas and NGL production is expected to surge more than 60% in the coming five years. For more on this story visit nasdaq.com or click https://bit.ly/30Huax4