Daily Energy Report

Crude Oil Futures for December 2020 settled up $0.26 @ $56.23/bbl trading in a $1.10 range including the overnight-RBOB settled up 1.13/cpg and Heating Oil settled up 2.20/cpg. After surging more than +2.6% or $1.49/bbl in the previous session on the back of a surprise draw for domestic crude stocks, NYMEX traded WTI futures dipped in early Thursday trade on lingering concerns about a weak demand outlook and over supply. Data from the Energy Information Administration showed, U.S. crude inventories fell -1.7 mil/bbl. in the week ended Oct. 18, compared with analysts’ expectations for a +2.2 mil/bbl. build. The EIA said the drawdown in weekly stocks came as refineries hiked crude runs and oil imports fell.

Natural Gas Futures for November settled up $0.034 @ $2.316/mmbtu trading in a .073 cent range including the overnight session. Earlier this month, Russia’s Gazprom said that the Power of Siberia pipeline to China is being filled up with gas as scheduled, with operations planned to begin sometime in December. While the initial volumes of Russian gas shipments to China will be on the low side and unlikely to have a major impact on this coming winter’s LNG market in China, at full capacity in 2023, the pipeline from Russia is set to provide as much as 9.5% of China’s expected gas requirements, possibly denting LNG import growth. Thursday morning’s weekly EIA natural gas storage data showed a build of +87 bcf for the week.

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