Daily Energy Report

Crude Oil Futures for November settled down $0.19 @ $52.45/bbl trading in a $1.92 range including the overnight-RBOB settled up 1.04/cpg and Heating Oil settled up 0.30/cpg. According to industry sources, Saudi Arabia is expected to increase its prices for all crude grades it sells to Asia in November after the attack on its oil facilities led to a spike in Middle East benchmarks last month. The official selling price for flagship Arab Light crude in November is expected to rise by at least $0.50/bbl from the previous month-to the highest since July. The strike against key Saudi oil processing facilities caused the kingdom’s output of Arab Light and Arab Extra Light to fall by half or 5.7mil/bpd. The disruption forced Saudi Aramco to draw down inventories, switch grades, delay loadings and cut domestic refinery throughput to meet supply commitments to customers.

Natural Gas Futures for November settled up $0.082 @ $2.329/mmbtu trading in a .142 cent range including the overnight session. Russian Energy Minister Alexander Novak accused the U.S. of weaponizing liquefied natural gas in an attempt to derail Moscow’s economic ties to Western Europe. Speaking at an energy conference in the Russian capital on Wednesday, Novak said that when it comes to exporting LNG to Europe, Washington did not appear to be prepared to allow for the development of market competition. He also criticized the U.S. for considering sanctions against companies and individuals involved in building the Nord Stream 2 gas pipeline project linking Russia to Germany via the Baltic Sea. Thursday mornings weekly EIA storage report showed an increase of +112 bcf for the week.