Daily Energy Report
Crude Oil Futures for January 2020 settled up $0.22 @ $59.24/bbl trading in a $1.00 range including the overnight-RBOB settled down 0.23/cpg and Heating Oil settled up 2.13/cpg. Russian President Putin and his Belarusian counterpart Alexander Lukashenko held talks on Saturday regarding the integration road map in the southern Russian city of Sochi. Russian Economy Minister Maxim Oreshkin said on Saturday after talks between the two countries, Russia and Belarus have come closer to resolving their differences on oil and gas supplies. A lack of detail on what such a pact might include has fueled fears that Moscow aims to gain new influence in Belarus as part of a plan to absorb it. Lukashenko, who did not address the press after the talks, last month threatened not to sign an integration deal with Russia if it failed to resolve “oil and gas issues”.
Natural Gas Futures for January 2020 settled up $0.032 @ $2.264/mmbtu trading in a .073 cent range including the overnight session. As of Dec 6th, Asian spot prices for liquefied natural gas had dropped for a second consecutive week as a recent oversupply has flooded the market, overshadowing demand already subdued by a winter that has been significantly milder than average. According to local market participants, it’s still looking bearish for January, there are some pockets of demand but way too much supply. The lower spot prices appeared to fuel some interest from China, Japan and India. China’s Guangzhou Gas and Japan’s Tohoku Electric Power each sought a cargo for delivery in late January. Pakistan LNG is also seeking a cargo for delivery in mid-February in a tender that closes on Dec. 17.Back