Daily Energy Report
Crude Oil Futures for December 2020 settled up $0.09 @ $41.43/bbl, trading in a $1.12 range including the overnight. RBOB settled up 0.64/cpg and Heating Oil settled up 1.02/cpg.
OPEC, along with their working alliances technical meeting finished on Monday with significant support for a three-month extension of the current level of oil production cuts. OPEC sources hinted last week that many members were in support of extending the production cuts that were supposed to end in January. Other members were in favor of even more drastic measures, which included cutting deeper come 2021. While the agreement of the group to keep production as-is seems to have the support of most members, challenges remain. Some members, including Iraq, have signaled that they may not be onboard with an agreement unless it garners unanimous support from all. The meeting continues today.
Natural Gas Futures for December 2020 settled down $0.005 @ $2.692/mmbtu, trading in a .083 cent range including the overnight session.
In the Energy Information Administration’s November Short Term Energy Outlook, for October, the Henry Hub natural gas spot price averaged $2.390/mmbtu, up from an average of $1.920/mmbtu in September. Higher natural gas spot prices reflected stronger demand for liquefied natural gas exports as LNG terminals increased liquefaction following multiple hurricane related disruptions during August and September. The EIA currently expects Henry Hub spot prices to rise to a monthly average of $3.420/mmbtu in January 2021 because of rising domestic demand for natural gas for space heating, rising U.S. LNG exports, and reduced production.Back