Daily Energy Report

Crude Oil Futures for January 2020 settled up $0.42 @ $59.18/bbl trading in a $1.04 range including the overnight-RBOB settled up 0.22/cpg and Heating Oil settled up 2.20/cpg. Global crude oil prices continue to maintain near their most recent highs as the Organization of the Petroleum Exporting Countries on Wednesday said it now expects a small deficit in the oil market within the next year, even before the latest pact with other producers to curb supply takes effect. The revised forecast marks a further change from previous estimates of a glut in 2020. Still, domestic inventories are on the rise, EIA data showed crude stockpiles last week rose unexpectedly, gaining more than +800,000 barrels, compared with an industry poll that forecast a -2.8 million barrel decline. According to market analysts, the overall report was very bearish as demand fell off and total stockpiles climbed to the highest level in seven months.

Natural Gas Futures for January 2020 settled up $0.085 @ $2.328/mmbtu trading in a .104 cent range including the overnight session. Oil and gas producers could wipe billions of dollars off the value of domestic natural gas assets in the coming months after Chevron Corp became the fourth oil major to reduce its estimates for sector values. Industry consultants and analysts said that Chevron’s announcement on Tuesday-that it expects to write down the value of its assets by $10 billion to $11 billion this quarter-was a sign of more write-downs in the near-term, highlighting current exposure for Exxon Mobil. BP Plc, Repsol SA and Equinor ASA have written off more than $11 billion in total from the value of North American shale assets just this year.

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