That Was the Week That Was...in O&G: a 30 second update (w/e Jan 6, 2023)

WTI down 8% WOW

• Crude and gas plummeted in the new year given reconsideration of near-term worries regarding cold weather and supply shortages
• Prices had risen last year due to worries of Europe freezing due to the loss of Russian fuel, and OPEC+ production cuts - such fears have proven overblown, driving prices down
• European gas storage is well above seasonal norms, Aramco this week cut prices for oil shipped to Asia, and OPEC members' output unexpectedly rose last month

HH down 16% WOW

• Henry’s 16% drop is the biggest slide on record to start a year
• Downward pressure on prices has been relentless - despite brutally cold weather seen in late December - current weather outlook projects a mild winter heating season

Baker Hughes US rig count (ex-GOM) down 7 WOW

• 772 vs 779: Haynesville and Marcellus down 3 and 1, respectively