Daily Energy Report

Crude Oil Futures for January 2021 settled up $0.36 @ $45.64/bbl, trading in a $1.18 range, including the overnight. RBOB settled up 2.18/cpg and Heating Oil settled up 2.71/cpg. OPEC and its partners are widely expected to extend current oil production cuts of 7.7 million barrels per day to at least March 2021; however, talks were suspended on Tuesday after it became apparent that the group has been unable to reach a compromise. Oil ministers from the 23-member group will reconvene for a virtual meeting on Thursday at 1 p.m. GMT try to find common ground. Market advisors note that some non-OPEC allies, such as Russian and Kazakhstan, have been calling for a gradual increase to production curbs, where the UAE has seemingly been pushing for a strategy designed to improve compliance from overproducing countries.

Natural Gas Futures for January 2021 settled down $0.273 @ $2.507/mmbtu, trading in a .284 cent range including the overnight session.

Operations have started on the middle portion of the China-Russia East natural gas pipeline, allowing natural gas from the Power of Siberia system in Russia to be transported to the Beijing-Tianjin-Hebei region in northern China. The purpose of the 1,110 km pipeline is to help improve air quality in the region, where about a quarter of China’s steelmaking capacity is located, China Oil & Gas Piping Network Corp. said in a statement today, adding that the pipeline will also promote economic development alongside the rust-belt areas. Thursday morning’s weekly Energy Information Administration’s natural gas storage report showed a decrease of -1 bcf for the week.

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