Futures Daily Report

Crude Oil Futures for November settled down $0.45 @ $53.62/bbl trading in a $1.79 range including the overnight-RBOB settled up 0.72/cpg and Heating Oil settled up 0.13/cpg. According to a market survey, overall output from the OPEC fell to the lowest in eight years in September to 28.9 mil/bpd, down 750K/bpd from August’s revised figure and the lowest monthly total since 2011. Output of the world’s two largest producers, the United States and Russia, also fell in July and again in September respectively. Russia’s output declined to 11.24 mil/bpd in Sept., down from 11.29 mil/bpd in the previous month. While domestic output fell 276K/bpd in July to 11.81 mil/bpd as Gulf of Mexico production declined, according to an Energy Information Administration monthly report released on Monday.

Natural Gas Futures for November settled down $0.047 @ $2.283/mmbtu trading in a .066 cent range including the overnight session. NextEra Energy Partners LP has agreed to buy Meade Pipeline Co., the owner of a pipeline that provides gas from Pennsylvania in a deal valued at approximately $1.37 billion, according to a statement Monday. While NextEra Energy Partners already owns pipelines in Texas, it’s viewed by many investors as a wind and solar company, owning 5 gigawatts of renewables as of mid-June. The move to buy a pipeline comes as utilities and cities across the U.S. are pushing to drastically cut back on burning fossil fuel. NextEra Energy Partners expects the deal to yield a double-digit return. Plus, the pipeline will help balance any “potential resource volatility” in the company’s existing portfolio.

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