Opening Prices:
> WTI is down 38c to $45.33/Bbl, and Brent is up 27c to $48.07/Bbl.
> Natural gas is down 6.3c to $2.898/MMBtu.
Expect very light trading today.
Bloomberg: OPEC+ Calls Last-Minute Talks to Prepare for Oil-Cuts Decision
Saudi Arabia and Russia summoned OPEC+ ministers who oversee their oil production cuts for last-minute talks on Saturday, as the cartel prepares for a decision on whether to delay January’s output increase.
A clear majority of OPEC+ watchers expect the group to maintain their supply curbs at current levels for a few months longer due to lingering uncertainty about the strength of demand. However, the decision is by no means certain amid public complaints from Iraq and Nigeria, and private discord with the United Arab Emirates.
The two leading members of Organization of Petroleum Exporting Countries and its allies, Russia’s Deputy Prime Minister Alexander Novak and Saudi Energy Minister Abdulaziz bin Salman, requested an informal video conference with their counterparts from the Joint Ministerial Monitoring Committee, which includes Algeria, Kazakhstan, Iraq, Nigeria and the UAE, according to a letter seen by Bloomberg.
The unscheduled gathering comes just two days before a full OPEC ministerial meeting on Nov. 30, which will be followed by OPEC+ talks on Dec. 1. The JMMC met online as recently as Nov. 17, but that ended without any kind of recommendation about delaying the January supply increase.
On Thursday, Algerian Energy Minister Abdelmadjid Attar -- who this year holds OPEC’s rotating presidency -- told Bloomberg News that the group must remain cautious because the recent surge in oil to $45 a barrel in New York this week could prove fragile.
A separate meeting of a committee of OPEC technical experts considered data that pointed to the risk of a new oil surplus early next year if the cartel and its allies decide to go ahead with the production increase. The 23-nation OPEC+ coalition is scheduled to ease its 7.7 million barrels a day of production cuts by 1.9 million barrels a day from Jan. 1
Oil & Gas Prices - Nov 27
Oil & Gas Prices - Nov 27
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Nov 27
Aegis Energy:
The December gas contract expired at $2.896/MMBtu on November 25
The January contract is currently trading around 5c lower after trading near $2.95/MMBtu earlier this morning, closing the gap between the two contracts
The natural gas prompt-month contract has risen 23c so far this week
Norway gas exports may take a hit as strike escalation expected (Bloomberg)
The planned escalation could cause the Nyhamna gas processing plant and two large gas fields to shut down
Norway’s exports to Europe could be cut by over 25%, creating a void that could be filled by Global LNG, namely the U.S.
The EIA reported a draw of 18-Bcf for the week ending November 20, 2020
Analysts estimated ranged from a low of (+ Build) 4 Bcf to a high of (- Draw) 39 Bcf
This draw was above the 31-Bcf build reported a week earlier but below the 47-Bcf draw during the corresponding week in 2019
Storage now stands 322-Bcf above last year’s level of 3.618 Tcf
The December gas contract expired at $2.896/MMBtu on November 25
The January contract is currently trading around 5c lower after trading near $2.95/MMBtu earlier this morning, closing the gap between the two contracts
The natural gas prompt-month contract has risen 23c so far this week
Norway gas exports may take a hit as strike escalation expected (Bloomberg)
The planned escalation could cause the Nyhamna gas processing plant and two large gas fields to shut down
Norway’s exports to Europe could be cut by over 25%, creating a void that could be filled by Global LNG, namely the U.S.
The EIA reported a draw of 18-Bcf for the week ending November 20, 2020
Analysts estimated ranged from a low of (+ Build) 4 Bcf to a high of (- Draw) 39 Bcf
This draw was above the 31-Bcf build reported a week earlier but below the 47-Bcf draw during the corresponding week in 2019
Storage now stands 322-Bcf above last year’s level of 3.618 Tcf
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil & Gas Prices - Nov 27
Closing Prices:
> WTI prompt month (JAN 21) was down $0.18 on the day, to settle at $45.53/Bbl. < Each close over $45 makes it a strong support level. If OPEC+ extends their quotas another three months and the vaccines work, we should see WTI move over $50 in Q1.
> NG prompt month (JAN 21) was down $0.118 on the day, to settle at $2.843/MMBtu. < One cold week will push it over $3.00.
> WTI prompt month (JAN 21) was down $0.18 on the day, to settle at $45.53/Bbl. < Each close over $45 makes it a strong support level. If OPEC+ extends their quotas another three months and the vaccines work, we should see WTI move over $50 in Q1.
> NG prompt month (JAN 21) was down $0.118 on the day, to settle at $2.843/MMBtu. < One cold week will push it over $3.00.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group