Daily Energy Report

Crude Oil Futures for December 2020 settled down $0.08 @ $41.74/bbl, trading in a $1.90 range including the overnight. RBOB settled down 0.04/cpg and Heating Oil settled up 0.67/cpg.

West Texas Intermediate prices for the December 2020 contract are up in excess of +28.1% or +$9.42/bbl since the first of the month, underpinned initially by the risk-on aftermath of Joe Biden’s U.S. presidential election victory and then even more emphatically by vaccine optimism since the Pfizer/BioNtech announcement on November 9. The hope is that better than initially expected vaccine efficacy/faster than initially expected vaccine development and distribution will translate into a swifter recovery for the global economy and in turn, fuel demand for calendar 2021.

Natural Gas Futures for December 2020 settled down $0.120 @ $2.592/mmbtu, trading in a .219 cent range including the overnight session.

Sempra Energy said on Tuesday its ECA Liquefaction subsidiary will build the Costa Azul liquefied natural gas export plant in Mexico, the only LNG export project in the world to get a final investment decision in 2020. On Friday, Mexico President Andres Manuel Lopez Obrador said the government would give the project an export permit as long as the company helped to offset an oversupply of gas in the area. ECA Liquefaction will build the plant at the existing Costa Azul LNG import plant at an estimated capital cost of around $2 billion. It is expected to produce its first LNG cargos in late 2024. Thursday morning’s weekly EIA storage data showed a build of +31 bcf for the week.

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