In this week's Market Movers Americas, presented by Santiago Canel:
• Keystone pipeline outage could be bullish for Latin American crudes
• Traders look for signs of 2023 oil capex, output changes
• Marcellus Shale gas pipeline, Spire STL on the docket at FERC
• Texas power markets await infrastructure fixes post-2021 winter storm
This week, the shutdown of Keystone Pipeline, which delivers crude to Midwest and USGC US Gulf Coast refiners, will continue boosting US Gulf Coast heavy crude prices as traders look to replace Canadian barrels. A leak in the pipeline was detected Wednesday near the Kansas-Nebraska border, and an extended outage of the pipeline would likely boost demand for Latin American crude grades.
Upstream, markets will be watching for information on 2023 capital budgets and oil production targets. Oil majors Chevron and ExxonMobil have already announced their capex increases and indicated an uptick in Permian Basin oil production for 2023.
Transcontinental Gas Pipeline's Regional Energy Access Expansion is slated for a vote on Thursday by the Federal Energy Regulatory Commission. The project would move gas from the Marcellus Shale in northern Pennsylvania to markets in the Northeast. FERC is also scheduled to decide on the continued operation of the Spire STL project.
Also on Thursday, ERCOT market participants may gain clarity from the Public Utility Council of Texas on the direction of long-term fixes proposed after the a deadly mid-February 2021 winter storm that cut power to about 4 million customers. The Texas PUC will likely discuss state legislators' concerns about establishing a Performance Credit Mechanism to incentivize electric power generation investment.
I'm Santiago Canel. Thanks for kicking off your Monday with S&P Global Commodity Insights.