Opening Prices:
WTI is up 23c to $57.00/Bbl, and Brent is up 11c to $62.39/Bbl.
Natural gas is up 1.5c to $2.662/MMBtu.
This afternoon Baker Hughes reported that the North American active drilling rig declined by 17; 11 in the U.S. and 6 in Canada.
United States
Rigs drilling for oil dropped 10 to 674. < At this level there is no way U.S. oil production can remain flat in 2020.
Rigs drilling of gas dropped 1 to 129.
Canada
Rigs drilling for oil dropped 9 to 88
Rigs drilling for gas increased 3 to 46.
Oil Price - Nov 15
Oil Price - Nov 15
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Nov 15
Closing Prices:
WTI spiked up on U.S. / China Trade Agreement Optimism $1.05 to close at $57.82
Natural gas close up $0.03 to close at $2.677
From Aegis Energy
Crude Oil
Crude Oil Price Action
Oil continued its upward trend this week, trading just a few bucks shy of the $60/Bbl long-standing resistance level. Providing support are the US and China inching closer to a “Phase One” trade deal.
Storage and Production
A large build in crude stocks surprised analysts who were expecting a smaller build, sending prices lower on Thursday.
EIA, IEA, and OPEC Oil Market Outlooks
The EIA, IEA, and OPEC all released their oil market outlooks this week. All three groups gave ambitious short-term production growth estimates. AEGIS believes that U.S. production growth is overestimated in these forecasts. < MY TAKE continues to be that EIA must have an agenda to keep fuel prices low for as long as the they can because they seem to be totally ignoring the steady decline in the active rig count. In their weekly "ESTIMATES" EIA said that U.S. crude oil production increased from 12.6 to 12.8 million barrels per day. Rapidly falling rig counts in U.S. and Canada sure to match up with what EIA is reporting.
Natural Gas
Natural Gas Price Action
Despite an Arctic cold front boosting spot prices this week, a lack of forecasted cold weather in the 15-day forecast sent prompt-month gas prices sliding lower from last week’s high of $2.90/MMbtu.
Storage and Production
The end-of-season storage number officially came in at 3.732 Tcf, just 2 Bcf above the five-year average. Next week the withdrawal season is predicted to begin. < This is a week earlier than the usual first draw from storage.
Potential for Price Spikes in the Western US This Winter Have Lessened
The capacity to send gas from Canada to the US, to fulfill demand in the PacNW, has increased a year following a pipeline explosion that restricted imports.
WTI spiked up on U.S. / China Trade Agreement Optimism $1.05 to close at $57.82
Natural gas close up $0.03 to close at $2.677
From Aegis Energy
Crude Oil
Crude Oil Price Action
Oil continued its upward trend this week, trading just a few bucks shy of the $60/Bbl long-standing resistance level. Providing support are the US and China inching closer to a “Phase One” trade deal.
Storage and Production
A large build in crude stocks surprised analysts who were expecting a smaller build, sending prices lower on Thursday.
EIA, IEA, and OPEC Oil Market Outlooks
The EIA, IEA, and OPEC all released their oil market outlooks this week. All three groups gave ambitious short-term production growth estimates. AEGIS believes that U.S. production growth is overestimated in these forecasts. < MY TAKE continues to be that EIA must have an agenda to keep fuel prices low for as long as the they can because they seem to be totally ignoring the steady decline in the active rig count. In their weekly "ESTIMATES" EIA said that U.S. crude oil production increased from 12.6 to 12.8 million barrels per day. Rapidly falling rig counts in U.S. and Canada sure to match up with what EIA is reporting.
Natural Gas
Natural Gas Price Action
Despite an Arctic cold front boosting spot prices this week, a lack of forecasted cold weather in the 15-day forecast sent prompt-month gas prices sliding lower from last week’s high of $2.90/MMbtu.
Storage and Production
The end-of-season storage number officially came in at 3.732 Tcf, just 2 Bcf above the five-year average. Next week the withdrawal season is predicted to begin. < This is a week earlier than the usual first draw from storage.
Potential for Price Spikes in the Western US This Winter Have Lessened
The capacity to send gas from Canada to the US, to fulfill demand in the PacNW, has increased a year following a pipeline explosion that restricted imports.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group