Jobs Report For May Due Out Today; WTI Jumps 2% Overnight -- June 5, 2020

Jobs report for May: it will be so bad, I may not even bother reporting it. Later: link here.

Fuzzy math: they must be reading the blog. First story over at Rigzone today -- "traders ask why US inventory math does not add  up." A regular reader of the blog noted that some time ago, has been writing about on a regular basis -- now Bloomberg brings up the issue. Previously posted. Will post the blog links later.

Chatter: Saudi Arabia and Russi seem more than ready to extend production cuts; Iraq said to be lagging. No links: story everywhere and words don't mean a lot coming out of the Mideast. All I can say is that Saudi Arabia cannot afford another OPEC+ surge in production.

Iraq bankrupt, link here.

 
OPEC basket: drops back a bit -- $34.84. Link here.

WTI: jumps over 2% overnight.

Urals sour: seems to have finally found its ceiling, at least for now, at around $39.

Disclaimer: this is not an investment site.  Do not make any investment, financial, career, travel, job, or relationship decisions based on what you read here or think you may have read here.

Futures: it was reported by someone else -- since the rioting began, the Dow has been up over 1,000 points. Must have been another good night of rioting: Dow futures up over 300 points.

No more guidance: Barry Diller on Expedia Group and IAC. Said back in April, "the U.S. government needed to bail out every company hit hard by the coronavirus pandemic and 'we’ll worry about paying the bills later.'”  I had forgotten all about Expedia, et al. Ouch. Is TicketMaster even around any more? See this link. If I read that correctly, brokers will have to refund ticket sales to buyers if professional games are held but with no fans allowed to attend.

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Back to the Bakken

Active rigs:

$38..23	6/5/2020	06/05/2019	06/05/2018	06/05/2017	06/05/2016
Active Rigs	12	64	61	50	25

Two wells coming off the confidential list today -- Friday, June 5, 2020: 21 for the month; 166 for the quarter, 393 for the year:

• 36455, drl/drl, BR, Glacierfill 1B, Clear Creek, no production data,
• 36360, drl/drl, Slawson, Gunslinger Federal 10-12-1TFH, Sand Creek, no production data,

RBN Energy: will crude shippers soon need to commit to Enbridge's Mainline system?

Up in Canada, there is finally a regulatory timeline for reviewing Enbridge’s long-standing proposal to revamp how it allocates space — and charges for service — on the company’s 2.9-MMb/d Mainline. But the plan to convert the largest crude oil pipeline system out of Western Canada from one whose space is 100% uncommitted and allocated every month to one with 90% of its capacity locked in via long-term contracts remains controversial, especially among producers.

Plus, the world has changed in the past few months.

Oil sands and other production in Alberta and its provincial neighbors is off sharply in response to pandemic-related demand destruction and low oil prices, and the always-full Mainline has been running at well under 90% of its capacity lately. Further, the Trans Mountain Expansion and Keystone XL projects — competitors to the Mainline in a way — have progressed this year, making shippers wonder whether to lock in capacity on the Mainline if TMX and KXL’s completion may be imminent. Today, we begin a short series on the prospective shift to a contract-carriage approach on the primary conduit for heavy and light crudes from Western Canada to U.S. crude hubs and refineries.