U.S. refiners have been running at above-average levels for this time of year to boost inventory levels, though they pulled back on activity last week.
The asset sale on Oct. 10 included Martin Midstream’s Stockton Sulfur Terminal in California, which Gulf Terminals LLC agreed to acquire for approximately $5.25 million.
First offered in September, the sale was part of President Joe Biden’s previously announced plan to sell 180 million barrels of oil from the reserve to fight high petroleum prices after Russia's invasion of Ukraine.
Speaking at Hart Energy’s America’s Natural Gas Conference, East Daley analyst Zach Van Everen predicts gas markets will be oversupplied in the short term but believes exports will eventually drive production for decades.
President Joe Biden’s plan announced in March of the largest release of oil from SPR in history had aimed to sell 180 million barrels by the end of October. So far, only 155 million barrels have been sold.
The Biden administration is weighing the need for further SPR releases after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters last week.
Natural gas pipeline and storage assets serve Dallas-Fort Worth region.
Low inventories and high demand for U.S. LNG from Europe could force gas prices into the double digits for an extended period, analyst says.
German regulator Klaus Mueller shared that the country is now better prepared for any power outages due to its efforts to store more natural gas.
The crude oil inventory decline would have been larger if not for another big release of barrels from U.S. Strategic Petroleum Reserve (SPR).