Daily Energy Report

Crude Oil Futures for December 2019 settled down $1.84 @ $55.21/bbl trading in a $2.06 range including the overnight-RBOB settled down 1.73/cpg and Heating Oil settled down 4.73/cpg. Saudi Aramco has sidelined plans to formally market shares of its state-owned oil company outside the Kingdom and its Gulf neighbors-just the latest sign of the IPO’s contracted ambitions. The Kingdom was determined to list the company at a valuation acceptable to Crown Prince Mohammed bin Salman, who pressed for a $2tn valuation. However, Saudi authorities have scaled back their expectations in an effort to attract investors at home and abroad. On Sunday, the company revealed a price range for the shares that would value the company at between $1.6tn and $1.7tn. Gathering orders for the shares is set to continue through December 4th, with the stock due to price on December 5th.

Natural Gas Futures for December 2019 settled down $0.056 @ $2.510/mmbtu trading in a .059 cent range including the overnight session. According to the Energy Information Administration’s Short Term Energy Outlook, domestic natural gas storage injections outpaced the previous five-year (2014–18) average during the current 2019 injection season as a result of climbing natural gas production. At the beginning of April 2019, when the injection season began, total working inventories were -28.0% lower than the five-year average for the same period. By October 31st, domestic total working gas inventories reached 3,762 billion cubic feet, which was +1.0% higher than the five-year average and +16.0% higher than just a year ago.