Daily Energy Report
Crude Oil Futures for December 2020 settled up $1.07 @ $41.36/bbl trading in a $1.97 range including the overnight.
RBOB settled up 3.34/cpg and Heating Oil settled up 3.58/cpg. Saudi Energy Minister Abdul Aziz bin Salman told reporters yesterday, that the OPEC alliance could change the terms of its oil production deal if the members of the pact agree to do it. “We did tweak and I believe with consultation with our friends, some of them are present here and some of them are not, but I know how heartily they are committed to the principle of tweaking,” bin Salman said at the ADIPEC conference. “I would go and argue it could be a tweak even beyond what the so-called analysts are talking about,” he added. The remarks were in time with the market, pushing oil prices decisively higher during the day Monday.
Natural Gas Futures for December 2020 settled up $0.090 @ $2.949/mmbtu trading in a .157 cent range including the overnight session.
Leading market advisors indicate that the net present value of Iran’s South Pars natural gas field has ballooned from an estimated US $116 billion at this point last year to upwards of US $135 billion. The key reason is: that progress across all areas of the development, including the controversial Phase 11 has picked up pace on the back of an increase in the involvement of various Chinese companies who operate under U.S. sanctions radar through individual contact-only projects, not as official field developers. Given this, it is now expected by Iran’s Petroleum Ministry that the entire South Pars project will be producing at or near fully Phase 1 capacity well in advance of the March 2022 official completion date.Back