Oil & Gas Prices - Dec 17

[dan_s]

Opening Prices:
> WTI is up 28c to $48.10/Bbl, and Brent is up 23c to $51.31/Bbl.
> Natural gas is up 0.2c to $2.679/MMBtu

Aegis Energy Morning Notes:
Crude Oil
WTI is up 28c to $48.10/Bbl, and Brent is up 23c to $51.31/Bbl

U.S. congressional negotiators reportedly closing in on a COVID-19 stimulus package (Reuters)
The package is expected to be around $900 billion, which includes a $600-$700 stimulus check for individuals
AEGIS notes the stimulus package is likely to impact oil prices on two fronts. Money injections are likely to pressure the dollar further downward from its two-and-a-half-year low while also increasing consumer spending in the short term, which should boost demand

Indian refiners are currently operating at near full capacity amid strong transportation fuels demand (Bloomberg)
The recovery mirrors that of China, where transportation fuels demand strengthened as the population became reluctant to use public transportation in favor of personal vehicles
The nations top refiner, Indian Oil Corp, had its refinery run rates rise to 100% of designed capacity in November, up from 88% in October and 55% in early May, according to Bloomberg

The market received supportive data reported by the EIA on Wednesday
The EIA reported a crude oil draw of (-) 3,135 MBbls for the week ending December 11, well above the estimate of a (-) 1,088 MBbls draw
Inventories for the U.S. are now at a surplus of 52.178 MMBbls to last year and a surplus of 45.21 MMBbls to the five-year average
In their detailed report, EIA reported U.S. inventory days of supply are 35.2 for crude oil, 30.2 for gasoline, 39.4 for distillates and 30.5 for jet fuel
EIA also reported a 100,000 barrel per day decline in U.S. oil production from week to week

Natural Gas
Natural gas is up 0.2c to $2.679/MMBtu

Joe Biden is close to announcing Cabinet nominees who will be key to his incoming administration’s plan to fight climate change (Reuters)
Pete Buttigieg has been selected to lead the U.S. Transportation Department. “This is a moment of tremendous opportunity-to create jobs, meet the climate challenge, and enhance equity for all,” Buttigieg said in a tweet after being chosen by Biden
Biden is also expected to pick former Michigan Governor Jennifer Granholm to be secretary of energy in his new administration. If confirmed, she is expected to play a role in the department’s support of advanced batteries, energy efficiency and electricity generation from renewable and nuclear power, according to Reuters.
For interior secretary post, U.S. Rep Deb Haaland of New Mexico appears to be Biden’s favorite choice. Haaland told Reuters she would usher in an expansion of renewable energy production on federal land to contribute to the fight against climate change, and undo Trump’s focus on bolstering fossil-fuels output

A major nor’easter hit the eastern United States with the official start of winter just days away
Many areas across central and northern Pennsylvania had picked up 1-2 feet of snowfall as of Thursday morning
Meteorologist have been predicting the snowy blast for about a week now, and it may be the December highlight for the gas bulls
December as a whole is trending moderately warmer than climate normals, which has contributed to lower gas prices

[dan_s]

Closing Prices:
> WTI prompt month (JAN 21) was up $0.54 on the day, to settle at $48.36/Bbl.
> NG prompt month (JAN 21) was down $0.041 on the day, to settle at $2.636/MMBtu. < I expect EIA to report a big draw from storage next week.