Opening prices
WTI is up $1.24 to $56.41/Bbl, and Brent is up $1.11 to $61.56/Bbl.
Natural gas is up 6.4c to $2.345/MMBtu.
Knee jerk reaction on Friday to the situation in Hong Kong is just reversing. OPEC+ meeting in Vienna this week is more important. I expect production quotas to be extended.
Closing prices:
WTI prompt month (JAN 20) was up $0.79 on the day, to settle at $55.96/Bbl.
NG prompt month (JAN 20) was up $0.048 on the day, to settle at $2.329/MMBtu.
Later this week, all eyes will be on the OPEC+ meeting in Vienna and their production quota agreement on Friday.
Oil & Gas prices - Dec 2
Oil & Gas prices - Dec 2
Last edited by dan_s on Mon Dec 02, 2019 4:28 pm, edited 1 time in total.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas prices - Dec 2
Global Oil Market news from last week
On November 25 Reuters reported Mexican national oil company Pemex produced nearly 3% less crude in October compared with the previous month, as the heavily indebted firm struggles to reverse a prolonged production slump. Output averaged 1.66 million b/d last month, or about 50,000 b/d less than in September. Compared the same month last year, Pemex's October oil output was down 5.5%.
On November 26 Reuters reported Canada's longest railroad strike in a decade ended on Tuesday as Canadian National Railway Co (CNR.TO-NC) reached a tentative agreement with workers, but shippers warned it could take weeks before service bounces back to normal.
On November 27 Reuters reported air strikes halted production at Libya's 70,000 b/d El Feel oilfield on Wednesday, the National Oil Corporation said, as eastern-based forces retaliated after a rival group took control of the field. The fighting reignites a conflict for control of large oilfields in southwestern Libya between competing military alliances that are also battling on the outskirts of the capital, Tripoli.
On November 27 Reuters reported Russia is likely to call on fellow oil producers to change the way Moscow's output is measured when most of the world's biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say. Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers. In the past this has caused no problems for Moscow, but with Russia launching new gas fields in the Arctic and East Siberia and opening a new gas pipeline to China, its gas condensate production is rising. That means it is not complying with its quota under the pact reached by OPEC and non-OPEC producers, something it is keen to avoid, according to Russian and OPEC sources. "Russia will definitely escalate the condensate issue at the December meeting as its production will be growing," one of the sources familiar with the Russian position said.
On November 29 Reuters reported OPEC oil output has fallen in November as Angolan production has slipped due to maintenance and Saudi Arabia has kept a lid on supply to support the market before the initial public offering of state-owned Saudi Aramco, a Reuters survey found. On average, the 14-member Organization of the Petroleum Exporting Countries has pumped 29.57 million b/d this month, according to the survey. That is down 110,000 bpd from October's revised figure.
The survey suggests Saudi Arabia, after resuming normal supply after attacks on facilities in September, is still pumping far less than an OPEC-led supply deal allows. OPEC meets to review the pact on Dec. 5, the same day Aramco is due to announce the final offer price.
Uncertainty remains as Iraq parliament accepts PM's resignation
Read more: https://www.bbc.com/news/world-middle-east-50619997
On November 25 Reuters reported Mexican national oil company Pemex produced nearly 3% less crude in October compared with the previous month, as the heavily indebted firm struggles to reverse a prolonged production slump. Output averaged 1.66 million b/d last month, or about 50,000 b/d less than in September. Compared the same month last year, Pemex's October oil output was down 5.5%.
On November 26 Reuters reported Canada's longest railroad strike in a decade ended on Tuesday as Canadian National Railway Co (CNR.TO-NC) reached a tentative agreement with workers, but shippers warned it could take weeks before service bounces back to normal.
On November 27 Reuters reported air strikes halted production at Libya's 70,000 b/d El Feel oilfield on Wednesday, the National Oil Corporation said, as eastern-based forces retaliated after a rival group took control of the field. The fighting reignites a conflict for control of large oilfields in southwestern Libya between competing military alliances that are also battling on the outskirts of the capital, Tripoli.
On November 27 Reuters reported Russia is likely to call on fellow oil producers to change the way Moscow's output is measured when most of the world's biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say. Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers. In the past this has caused no problems for Moscow, but with Russia launching new gas fields in the Arctic and East Siberia and opening a new gas pipeline to China, its gas condensate production is rising. That means it is not complying with its quota under the pact reached by OPEC and non-OPEC producers, something it is keen to avoid, according to Russian and OPEC sources. "Russia will definitely escalate the condensate issue at the December meeting as its production will be growing," one of the sources familiar with the Russian position said.
On November 29 Reuters reported OPEC oil output has fallen in November as Angolan production has slipped due to maintenance and Saudi Arabia has kept a lid on supply to support the market before the initial public offering of state-owned Saudi Aramco, a Reuters survey found. On average, the 14-member Organization of the Petroleum Exporting Countries has pumped 29.57 million b/d this month, according to the survey. That is down 110,000 bpd from October's revised figure.
The survey suggests Saudi Arabia, after resuming normal supply after attacks on facilities in September, is still pumping far less than an OPEC-led supply deal allows. OPEC meets to review the pact on Dec. 5, the same day Aramco is due to announce the final offer price.
Uncertainty remains as Iraq parliament accepts PM's resignation
Read more: https://www.bbc.com/news/world-middle-east-50619997
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group