Oil & Gas Prices - Nov 12

[dan_s]

Trading Economics

"WTI crude futures edged lower to below $81 per barrel on Friday and are on track to book a third weekly drop, amid an inflation-driven dollar rally and as investors are gearing up for further US response in curbing high oil prices, including a release of more emergency oil reserves. Weaker oil demand forecast for this year from the OPEC and the resurgence in Covid-19 cases in some countries also weighed. OPEC said in its monthly report that it expects oil demand to average 99.49 million barrels per day in the fourth quarter of 2021, compared with about 99.82 million bpd from last month’s forecast, as higher energy prices could hurt demand. The same report also cited higher energy costs as a factor in the slowdown of the global recovery and lower demand from China and India, with spillover effects through wider sectors of the economy as shown in latest inflation figures."

"US natural gas prices traded around $5 per million British thermal units, around levels not seen since the third week of September and more than 23% below a 12-year high of $6.5 hit on October 6th as stockpiles rose to near-normal levels ahead of the winter heating season amid mild weather. The EIA said that stockpiles in the Lower 48 states sit just 3.2% below what is normal for this time of year after weekly figures showed domestic stockpiles increased by 7 billion cubic feet last week. Still, gas prices in the US remain supported by robust demand for US exports as global prices remain elevated."