Daily Energy Report

Crude Oil Futures for January 2021 settled down $0.79 @ $44.55/bbl, trading in a $2.38 range including the overnight. RBOB settled down 2.12/cpg and Heating Oil settled down 2.41/cpg. OPEC meetings ended on Monday without an agreement among its members regarding production cuts going into next year. Instead, the meeting ended with, Russia, Saudi Arabia, and the UAE all holding different opinions as to how to handle things moving forward. The meeting with OPEC+ was set to resume tomorrow but a late announcement came in the afternoon, saying that the meetings had been rescheduled to December 3, as more talks are needed. Saudi Arabia, as the predominant swing producer in the group, is said to favor an extension of the current level of production cuts, according to an anonymous source who spoke to TASS. Russia is said to favor a gradual increase in production starting in January.

Natural Gas Futures for January 2021 settled down $0.002 @ $2.880/mmbtu, trading in a .139 cent range, including the overnight session.

Germany’s gas demand, which is currently just above 90 billion cubic meters per year, is set to increase to more than 110 bcm by 2034. However, as future supplies from Norway and the Netherlands dwindle, new imports must be sourced. A market leading comparative analysis shows that importing more Russian gas via the Nord Stream 2 project is currently the most reliable and cheapest option versus U.S. liquefied natural gas cargos and other intra-Europe pipe routes. Germany currently has plans to build three regasification terminals with a total capacity of 19.4 million tonnes or 26.4 bcm. Of the three projects, the Wilhelmshave FSRU plant is the one that has gathered the most interest and could be online by 2023.