Daily Energy Report
Crude Oil Futures for January 2021 settled up $1.85 @ $44.91/bbl, trading in a $2.38 range including the overnight. RBOB settled up 5.42/cpg and Heating Oil settled up 4.90/cpg.
OPEC officials will meet this week to work out details ahead of the formal meeting on November 30 and December 1 that could determine the fate of OPEC’s oil producers for 2021. Wednesday and Thursday will see OPEC’s economic commission board gather and Friday will bring together non-OPEC technical experts. As it stands right now, the current level of production cuts are set to ease as of January 1, but most industry analysts and advisors agree that oil demand, which has failed to fully recover from its pandemic levels, does not support OPEC easing its production-cut mandates in January. “The OPEC+ ministers will probably agree to extend current production for the first quarter of 2021,” one OPEC delegate told reporters.
Natural Gas Futures for December 2020 settled up $0.064 @ $2.775/mmbtu, trading in a .087 cent range including the overnight session.
Preliminary expectations for this Wednesday’s (to accommodate for Holiday) weekly Energy Information Administration Natural Gas storage report calls for a decrease of between -25 and -32 bcf for the week ended November 20. That compares with an injection of +31 bcf in the preceding week, a draw of -28 bcf a year earlier, and a five-year average pull of -25.2 bcf. Updated weather forecasts show continuing cooler than normal temperatures for the Texas region and east along the Gulf Coast towards Florida, while the west and upper tier of states look to experience somewhat above average temperatures over the next six- to 10-day time frame.