MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for November 21st

Updated at 5:00 PM ET 

HEADLINES:

— EIA to Publish Natural Gas Storage Data on Nov. 26

— Baker Hughes: North America Rig Count Up 12 on Week

— PNW Sub-Octane Premium Basis Spikes by Over 20cts

— EIA: Associated Gas up 6% in 2024, Led by Permian Output

— University of Michigan: Nov. Consumer Sentiment Dips 2.6%

NEWS:

EIA to Publish Natural Gas Storage Data on Nov. 26

The U.S. Energy Information Administration’s weekly report on natural gas inventories will be published on November 27 at 12:00 p.m ET, ahead of the Thanksgiving holiday, the agency said on Friday (11/21).

The Weekly Natural Gas Storage Report is released on Thursdays.

Meanwhile, the agency’s Weekly Petroleum Status Report will see no change to its publishing schedule, set for Wednesday, November 26, at 10:30 a.m. ET.

Baker Hughes: North America Rig Count Up 12 on Week

North American drilling activity rose significantly this week, with a net gain of 12 rigs across the U.S. and Canada to 749, according to Baker Hughes data released Friday (11/21).

Total rigs operating in the United States rose by five to 554, while staying 29 below the same week last year.

In the U.S., oil-directed rigs rose by two to 419. Gas rigs also advanced by two to 127 week-over-week. Miscellaneous rigs climbed by one to eight.

On the North American front, land-based drilling was up by six to 533. Offshore activity was unchanged at 19 while inland waters saw a drop of one rig to two. The Gulf of Mexico rig count saw no change at 12.

Canada’s total rig count rose by seven to 195, with oil-directed rigs up four at 128. Gas rigs climbed by three to 64. Total rigs for Canada were six below last year’s level.

PNW Sub-Octane Premium Basis Spikes by Over 20cts

Pacific Northwest sub-octane premium basis hiked by 25cts on Friday (11/21), driven by firm buying interest .

Bids for PNW sub-octane were reported between plus 38cts and plus 40cts, with no offers to counter, moving the basis to a 40.5cts premium over the December NYMEX RBOB futures contract.  However, confirmation of trades at those levels were not confirmed at the time of publication.

The shutdown of the Olympic Pipeline, operated by BP, continues to put upward pressure on PNW spot prices amid declining inventories. Olympic Pipeline shutdown after BP Pipelines North America halted portions of the system on November 11 when a sheen was discovered near a right of way east of Everett, Washington.

The pipeline carries more than 90% of refined products to be delivered to the Portland area.

EIA: Associated Gas up 6% in 2024, Led by Permian Output

Associated natural gas, a by-product of oil drilling that produces liquids such as ethane, butane and propane, saw a 6% increase in volume last year from surging crude production in five key U.S. shale basins, the Energy Information Administration said Friday (11/21).

Associated gas production from the Permian, Bakken, Eagle Ford, Anadarko and Niobrara basins averaged 18.2 Bcfd last year, up 1 Bcfd from 2023, the EIA said, citing data from Enverus DrillingInfo. This product, also known as wet gas, accounted for 37% of total gas produced by the five basins over the past two years.

Of the five, the Permian, stretching from West Texas to southeastern New Mexico, contributed to most of last year’s growth, followed by the North Dakota-based Bakken and the south-to-central Texas spanning Eagle Ford.

Supported by an average WTI crude price of $77 bbl, oil-directed drilling in the Permian averaged 6.3 million bpd last year, growing 377,000 bpd from the year prior to account for almost all of U.S. oil production growth in 2024.

As a result, output of Permian associated gas grew 8% last year to 12.5 Bcfd, making up 47% of its total gas production.

The Bakken, which saw 67% of its total gas volume coming from associated gas in 2024,

produced 2.3 Bcfd last year while Eagle Ford produced 1.8 Bcfd.

Last year’s growth in associated gas also led to record output in ethane – a crucial feedstock for the plastics, fibers and petrochemical industries. the EIA stated.

University of Michigan: Nov. Consumer Sentiment Dips 2.6%

U.S. consumer sentiment remains near three-year lows, with Americans finding only brief relief after the end of a record-long federal government shutdown, the University of Michigan’s consumer survey published Friday (11/21) said.

The University of Michigan Index of Consumer Sentiment’s latest reading of 51 for November marks a 2.6% decrease from October’s level of 53.6.  In line with market expectations. Two weeks ago, the reading was at 50.3, its lowest since July 2022.

“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading,” University of Michigan’s consumer survey director Joanne Hsu said, referring to the 43-day shutdown that ended on November 12. “However, consumers remain frustrated about the persistence of high prices and weakening incomes.”

The latest consumer survey showed personal finances and buying conditions for durables plunging more than 10% each since October, while “expectations for the future improved modestly”.

As the initial positive impact from the government reopening faded, the sentiment among consumers with the largest stock market holdings declined two points, coinciding with a drop in U.S. equity values, the survey stated.

While year-ahead inflation expectations fell for a straight month, to 4.5% in November from October’s 4.6%, short-term inflation expectations remained elevated, at above January’s 3.3%.

“Despite improvements in the future trajectory of inflation, consumers continue to report that their personal finances now are weighed down by the present state of high prices,” the survey,” Hsu said.