Daily Energy Report

Crude Oil Futures for December 2019 settled down $0.858 @ $54.18/bbl trading in a $1.88 range including the overnight-RBOB settled down 0.02/cpg and Heating Oil settled down 1.78/cpg. Brazils President Jair Bolsonaro on Wednesday said he wants his country to join OPEC, a move that would add the most significant new producer to the cartel in years. Speaking through a translator, “I personally would very much like Brazil to become a member of OPEC,” Bolsonaro said at an investment conference in Riyadh. The comments come ahead of a massive auction of oil rights in Brazil, which is boosting output rapidly. The Brazilian president said he would have to consult his economic and energy ministers to ensure they could follow through if a decision was made. However, OPEC membership would likely require Brazil to limit oil production, potentially throwing future expansion plans into doubt.

Natural Gas Futures for November settled up $0.058 @ $2.633/mmbtu trading in a .132 cent range including the overnight session. Two new trains came online in the first half of 2019, Cameron LNG Train 1 in Louisiana and Corpus Christi LNG Train 2 in Texas. Cameron LNG was the fourth U.S. LNG export facility placed into service since February 2016. Cameron LNG, which will have a capacity of 1.7 bcf/d when its three liquefaction units are complete shipped its first cargo in May of this year and then another in June before ramping up operations in July and August. Corpus Christi LNG Train 2, with a capacity of 0.6 Bcf/d, shipped its first cargo in July and reached substantial completion in September. Thursday mornings weekly EIA storage report showed a build of +89 bcf for the week.