US Weekly Energy Report - 21 September 2017

Market Commentary

The monitoring committee for a coalition between the Organization of Petroleum Exporting Countries (OPEC) and select non-OPEC nations will meet on Friday in Vienna, with a possible extension to oil production cuts likely to be discussed. After initially committing in November to reduce output by a combined 1.8 million barrels per day during the first six months of 2017, the group agreed in May to extend those cuts through March of next year. The committee is expected to consider further extensions at this week’s meeting, as well as measures to monitor member exports for compliance.

The U.S. Energy Information Administration (EIA) reported on Thursday that natural gas storage inventories increased by 97 Bcf for the week ending September 15. After a period of lacklustre injections for most of the summer, storage inventories have added 188 Bcf over the last two weeks, with Hurricane Harvey and Irma acting as demand destructions for gas-fired electricity generation needs. At 3,408 Bcf, total storage inventories are currently 67 Bcf ahead of the benchmark five-year average and 136 Bcf behind year-ago levels.

The U.S. Federal Energy Regulatory Commission (FERC) renewed its monthly meetings on Wednesday, convening a quorum for the first time since then-Chair Norman Bay resigned in January. Neil Chatterjee and Robert Powelson were confirmed as new members of the Commission in August, and now join Commissioner Cheryl LaFleur in wading through a backlog of draft orders awaiting FERC ruling.

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