Oil & Gas Prices - Dec 1

[dan_s]

Opening Prices:
> WTI is down 12c to $45.22/Bbl, and Brent is down 6c to $47.82/Bbl.
> Natural gas is up 1.7c to $2.899/MMBtu.

Closing Prices:
> WTI prompt month (JAN 21) was down $0.79 on the day, to settle at $44.55/Bbl. < All because of fear that OPEC+ won't extend their production cuts.
> NG prompt month (JAN 21) was down $0.002 on the day, to settle at $2.880/MMBtu.

Aegis Energy morning notes:
WTI is down 12c to $45.22/Bbl, and Brent is down 6c to $47.82/Bbl

OPEC+ meeting is rescheduled for Thursday, December 3
Tensions flared between the cartel’s de-facto leader, Saudi Arabia, and the UAE, according to Bloomberg. The deal was widely expected to be a routine agreement
The cartel was expected to delay its 1.9 MMBbl/d January output hike by three to six months during the meeting
AEGIS notes oil price action was relatively muted yesterday, signaling that the market remains confident a deal will be made

New Norway labor-strike threatens oil and gas production (Argus)
Output has not closed yet, but it could within the next few days, according to Aker BP ASA spokesman Ole Johan Faret
The country has seen several strikes over the last few months, with one causing 330 MBboe/d of output to be brought offline in early October

Nearly 20 supertankers have been booked to deliver U.S. crude to Asia
Assuming all booked vessels arrive in Asia, that would be around 26.7 MMBbl, according to Bloomberg
AEGIS notes much of the demand is coming from China, which has managed to remain insulated from the drop in demand observed in other countries around the globe.
The country matched a refining record in October of 14.14 MMBbl/d

Natural Gas
Natural gas is up 1.7c to $2.899/MMBtu

ExxonMobil has decided to not develop much its natural gas assets in North America and Argentina (Reuters)
The company wrote down natural gas properties valued at $17 billion to $20 billion – its biggest ever impairment
Exxon paid $30 billion in 2010 for U.S. shale producer XTO Energy, laying bare the size of the miscalculation that the company made

LNG feedgas flows reached an all-time high on Tuesday of 11.3 Bcf/d, according to Bloomberg data
Today’s estimate is about 1 Bcf/d higher than the trailing 30-day average
Record LNG demand comes as Lower 48 gas production hovers around 91 Bcf/d, near a six-month high

[sundance]

Really liked your cartoon "The Great Delusion". Recently had a conversation with my 50 year old daughter about electricity. She had no idea that any electricity was created by natural gas.

[dan_s]

I've made presentations to college students at SMU and U of H. When I ask the question "Where does our electricity come from?" I get a lot of blank stares.

[dan_s]

In 2019 natural gas helped the US achieve the largest absolute decline of energy-related carbon dioxide emissions of any country in the world, surpassing all signatories of the Paris Climate Accord.

Read more: https://euobserver.com/opinion/150227