Coquest Daily Energy Report
Crude Oil Futures for December 2021 settled down $0.14 @ $83.91/bbl trading in a $1.49 range including the overnight-RBOB settled up 4.08/cpg and Heating Oil settled up 0.51/cpg. According to sources, Kuwait and Iraq support sticking to plans to raise oil output by 400,000 barrels per day at an OPEC+ meeting this coming Thursday. Kuwait’s oil minister Mohammad Abdulatif al-Fares said on Monday that the OPEC member supports the plan to raise output, which would ensure adequate crude supply to balance the global market. Iraq’s state oil marketing company, SOMO, said on Saturday that the OPEC member sees raising output as already planned was sufficient to meet demand and stabilize the market. The Joint Technical Committee, which met last Thursday, now expects oil demand to grow by 5.7 mil/bpd in 2021, 120,000 /bpd below OPEC’s forecast. The JTC left its demand forecast for next year steady at 4.2 mil/bpd, one of the sources said.
Natural Gas Futures for December 2021 settled up $0.356 @ $5.542/mmbtu trading in a .359 cent range including the overnight session. According to Energy Information Administration data, estimates are that U.S. natural gas inventories ended September 2021 at about 3.3 trillion cubic feet, -5.0% less than the five-year average for this time of year. Injections into storage this summer have been below the previous five-year average, largely as a result of electricity consumption in June due to hot weather and increased exports, even as domestic natural gas production has remained flat. The EIA currently forecasts that inventories will end the 2021 injection season at almost 3.6 tcf, which would also be -5.0% less than the previous five-year average. Expectations are that natural gas inventories are to decrease by -2.1 tcf this winter, ending March at less than 1.5 tcf, which would be -12.0% less than the 2017–21 average for that time of year.
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