US Weekly Energy Report - 15 June 2017

Market Commentary

The U.S. Federal Energy Regulatory Commission (FERC) announced on Friday an order authorized Sabel Trail Transmission to place into service about 482 miles of mainline between an interconnect in Tallapoosa County, Alabama and the southern interconnect in Osceola County, Florida. The pipeline is designed to flow an additional 1 Bcf per day of natural gas to Southeast markets, notably fuelling additional power generation in Florida.

The Energy Information Administration (EIA) reported on Wednesday an increase of 2.096 million barrels to U.S. gasoline stocks for the week ending June 9, reflecting low demand for a second consecutive week. Over that two-week period, implied gasoline demand averaged 9.293 million barrels per day, compared with 9.763 million barrels per day during the preceding two weeks and 9.665 million barrels per day over the same period last year.

The U.S. Department of the Interior’s Bureau of Land Management (BLM) announced this week that compliance with a rule limiting methane emissions from oil and gas wells on federal lands will be postponed until legal challenges are resolved. The methane rule was finalized in November, but has been met with opposition from several states and industry groups.

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