Oil & Gas Prices - Dec 3

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dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Oil & Gas Prices - Dec 3

Post by dan_s »

Opening Prices
WTI is up $2.07 to $68.57/Bbl, and Brent is up $2.19 to $71.87/Bbl.
Natural gas is up 13.9c to $4.195/MMBtu.

Oil prices rallied following OPEC+’s decision to stick with the 400 MBbl/d increase in supply for January
Why the rally? OPEC and its allies left the door open this time around to reverse its decision to boost output at any moment
The decision to leave an out essentially put a floor under prices by giving itself the option to change the plan on a dime (Bloomberg)

Iranian negotiations with world powers to mend the 2015 nuclear deal is “slow” but “good,” according to Iran’s Foreign Minister Hossein Amirabdollahian
Iran is participating in talks “in good faith” and seeks full removal of U.S. sanctions, Amirabdollahian says
U.S. Secretary of State Antony Blinken told reporters that “we will not accept the status quo of Iran building its program on the one hand and dragging its feet on the other. That’s not going to last.” (BBG)
An unsanctioned Iran can increase oil production by about 1.0-1.8 MMBbl/d

Ngas

The prompt-month (Jan 22) natural gas contract is up by 13.9c this morning, near $4.195
The contract has lost $1.40 this week, or 25% so far. This morning, prices are recovering some of those losses, but according to Bloomberg, gas prices are on pace for the worst week since 2014

Overnight weather models showed some improvement, with the December gas-weighted heating degree day total picking up 12.6 HDDs to 770.3. This contrasts with the December 2020 total of 798, which was exceptionally warm
LNG feedgas demand is up by 1.14 Bcf/d this morning, back above 12.05 Bcf/d, as Freeport LNG and Sabine Pass LNG posted gains of 0.63 Bcf/d and 0.57 Bcf/d

U.S. lower-48 dry gas production is down by 438 MMcf/d week-over-week, at 95.184 Bcf/d

The EIA reported a 59-Bcf withdrawal, which was in line with market expectations
The draw was twice the size of the five-year average pull of 31 Bcf and was much larger than the 4 Bcf withdrawal during the corresponding week
Working gas inventories fell to 3.564 Tcf. US inventories now stand 375 Bcf, or 9.5%, less than the year-ago level of 3.939 Tcf and 86 Bcf, or 2.4%, less than the five-year average of 3.650 Tcf
Dan Steffens
Energy Prospectus Group
mikelp
Posts: 200
Joined: Thu Jun 12, 2014 10:15 am

Re: Oil & Gas Prices - Dec 3

Post by mikelp »

U.S. Secretary of State Antony Blinken told reporters that “we will not accept the status quo of Iran building its program on the one hand and dragging its feet on the other. That’s not going to last.”

Comment: Winken Blinken says "we will not accept...bla bla bla "
Blinken & Biden really have no clue how silly & weak they appear. The ayatollahs must be having a good laugh in Tehran. Iran has been playing the Biden team for chumps just as they did with the Obama team... Iran building it's nuke program, while stalling & buying time with these 'negotiations'.
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Oil & Gas Prices - Dec 3

Post by dan_s »

Sure seems obvious to me that Iran is working toward weapons grade uranium. I can't believe Israel will allow it, so the question is what will the US do if Israel attacks Iran?

This is why draining the SPR oil reserve is really stupid.
Dan Steffens
Energy Prospectus Group
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