RE:RE:RE:Oil Market is Much Tighter than it AppearsThe negotiated debt sealing deal, which was approved by the Senate Thursday night, included the approval of the Mountain Valley Pipeline. Almost 95% complete, the project has been stalled by endless court challenges and delays. It is expected to be in service later this year and will carry 2 bcf/d. That will benefit Appalachian producers (EQT, SWN, RRC), all up in yesterday's trading. AR is liquids-rich and oil was also up.
Rigs drilling for oil are down 15, down about 50 year-to-date. At least we should expect no growth in associated gas. Hopefully, after a flat week, they will resume cutting rigs drilling for gas. You can't expect positive reports every week. Ultimately, a few heat waves in the south, and no wind in Texas, and nat gas prices will start recovering. A few strong rallies and nervous short covering are guaranteed.