Opening Prices:
> WTI is up 47c to $41.90/Bbl, and Brent is up 64c to $44.39/Bbl. < $41.50 is a strong resistance level for WTI. It will take several closes above $41.50 to take it out.
> Natural gas is up 4.3c to $2.735/MMBtu.
The major stock indices are having a strong November, boosted by positive news from two U.S. drugmakers--Pfizer updated the efficacy of its candidate to 95% Wednesday--about the effectiveness of their potential Covid-19 vaccines.
This has come against a background of an increasing number of Covid-19 infections across the U.S., now averaging over 150,000 new cases a day. This has resulted in a number of major cities, including Chicago, Philadelphia and New York, announcing new restrictions to try and stem the spread.
Federal Reserve Chair Jerome Powell Tuesday applauded the recent news over potential vaccines, but said the U.S. economy still has a “long way to go”, while calling for additional fiscal stimulus to support the economic recovery.
House Speaker Nancy Pelosi called Tuesday for fresh negotiations with Republicans on a fiscal-stimulus package, with the House returning to session next week, but with the political climate still highly partisan it’s doubtful common ground can be reached.
Oil & Gas Prices - Nov 18
Oil & Gas Prices - Nov 18
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Nov 18
Aegis Energy:
China had its first implied decline in oil inventories since October 2017 (Bloomberg)
Implied inventory changes are calculated by subtracting refinery runs from the combined total of imports and domestic production
AEGIS notes China has remained a bright spot for demand, helping to offset losses in Europe and the U.S.
Saudi Energy Minister says the jury is still out on extending OPEC+ output cuts
The Saudi Energy minister reiterated that OPEC+ has the ability to bring stability to the markets and will continue to seek it
Libyan production was acknowledged during the call, with the minister saying that the country’s output will be revisited once it reaches 1.2 MMBbl/d. The country is currently producing 1.145 MMBbl/d, giving it around 55 MBbl/d of additional output before OPEC+ may request some cooperation from the country
China had its first implied decline in oil inventories since October 2017 (Bloomberg)
Implied inventory changes are calculated by subtracting refinery runs from the combined total of imports and domestic production
AEGIS notes China has remained a bright spot for demand, helping to offset losses in Europe and the U.S.
Saudi Energy Minister says the jury is still out on extending OPEC+ output cuts
The Saudi Energy minister reiterated that OPEC+ has the ability to bring stability to the markets and will continue to seek it
Libyan production was acknowledged during the call, with the minister saying that the country’s output will be revisited once it reaches 1.2 MMBbl/d. The country is currently producing 1.145 MMBbl/d, giving it around 55 MBbl/d of additional output before OPEC+ may request some cooperation from the country
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group