THURSDAY EDITION

April 9th, 2020

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Oil Market Update...
Clive Maund  Mar 14  

Oil Market Update...
Clive Maund  Dec 12  

Oil Market Update - consequences of Saudi attacks...
Clive Maund  Sep 18  

Oil Market Update
Clive Maund  Jul 30  

Evaluating US Nuclear Competitiveness and its Future as a Carbon–Free Clean Energy Source
Keith W. Rabin  Jul 25  

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NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,

Energy Fuels Inc.

"Energy Fuels Inc. is the only conventional uranium producer in the U.S. and the second-largest producer overall. It has the potential become #1, given the projects and mines it has on standby or that are close to being in development. At full ramp-up we expect the company to be able to produce 5–7 Mlb/year, in a country currently producing 4–5 Mlb/year. The U.S. consumes 55 Mlb/year, but only about 10% is supplied domestically. U.S. utilities seeking security of supply will greatly prefer U.S. producers over those from Kazakhstan, Russia or Africa. This company is well positioned to benefit from higher uranium prices. We have a Buy rating with a target price of $11.85/share." (12/22/15) - The Energy Report Interview with Rob Chang

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,


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  Robert J. Moriarty

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The Energy Report

Phil Flynn
http://www.pricegroup.com/
pflynn@pricegroup.com




The Energy Report April 9th, 2020

The Art Of The Deal

Petroleum future prices surge even though U.S. commercial petroleum stocks increased by a record-breaking 32.98 million barrels last week, the largest weekly increase ever. The market looked beyond that massive increase in supply in part because there are signs that OPEC plus Russia will enact the biggest oil production cut ever.

Maybe it is just a crash in oil prices that brought price waring factions like Saudi Arabia and Russia back to the table. Yet, more than likely, it was intense pressure by the Trump administration and Republican lawmakers. Not only did President Trump threaten to sanction Russian and Saudi oil, he also dropped hits that they could increase pressure in other ways. U.S. House Republicans wrote a letter to Saudi Crown Prince Salman saying that, "Failure to reverse oil crisis means they will encourage any reciprocal responses by the U.S. government.

Worries that Russia may not agree to cut oil production if the U.S. did not participate, seem to be unfounded. Or maybe Russia changed its mind. Kuwait's oil minister is suggesting that the cut could be as much as 15 million barrels a day, no doubt led by Saudi Arabia. The geopolitical pressure on Russia and Saudi Arabia is becoming too much to bear. Reports say that Russia is ready to cut production by 2 million barrels a day. This comes the day after the Algerian oil minister suggested that OPEC was already on track to cut output by 10 million barrels of oil a day. The Russia Energy Minister says Russia is on board with production cuts.

Yet will it be enough? I say it will be. If you look at yesterday's Energy Information Administration (EIA) reports, you might wonder how. The EIA reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 15.2 million barrels from the previous week. At 484.4 million barrels, U.S. crude oil inventories are about 2% above the five year average for this time of year. Total motor gasoline inventories increased by 10.5 million barrels last week and are about 10% above the five year average for this time of year. Finished gasoline and blending components inventories both increased last week. Distillate fuel inventories increased by 476 thousand barrels last week and are 12% below the five year average for this time of year.

U.S. oil demand crashed, and gasoline demand fell the most since 1969. Demand-based on total products supplied over the last four-week period averaged 18.3 million barrels a day, down by 10.7% from the same period the previous year. Over the past four weeks, motor gasoline product supplied averaged 7.6 million barrels a day, down by 19.2% from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels a day over the past four weeks, down by 7.9% from the same period the previous year. Jet fuel product provided was down 22.0% compared with the same four-week period last year.

Yet talk of the cut and talk that some economies are going to start emerging from lockdown is giving trade hope.

Natural gas has been on a tear. Dan Molinski at the Wall Street Journal reports that, "U.S. government natural gas data due Thursday are expected to show inventories rose last week by a larger amount than normal as warm weather at the start of the spring season quickly reduced gas-fired heating demand.

The U.S. Energy Information Administration is expected to report gas-storage levels rose by 21 billion cubic feet during the week ended April 3, according to the average forecast of 12 analysts, brokers and traders surveyed by The Wall Street Journal. The EIA is scheduled to release its natural-gas storage data for the week at 10:30 a.m. EDT Thursday. Estimates range from increases of 9 bcf to 33 bcf. The average forecast compares with a 25-bcf increase in storage in the same week last year and a five-year average rise of 6 bcf for that week. A 21-bcf increase last week would mean gas stocks totaled 2.007 trillion cubic feet, 75% above last year's total at this time and 18% above the five-year average for this time of year.

Cold weather in February allowed for significant declines in inventories as homes and businesses cranked up their heaters. But a warm and early start to spring, combined with factory shutdowns due to coronavirus, is pushing inventories higher again.

Stay tuned to the Fox Business Network because they are invested in you.

There is a substantial risk of loss in trading futures and options.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Phil is one of the world's leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil's market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.

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Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Contact Phil at 1-888-264-5665 or pflynn@pricegroup.com.



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April 9th, 2020

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