November 28 was a wild day for oil price

[dan_s]

Trading Economics:
WTI crude futures rebounded to above $77 per barrel on Monday, having hit an 11-month low of $73.50 earlier this session, as rumors of an OPEC+ production cut offset concerns about weak demand. Eurasia Group said major oil producers were considering a new production cut when they meet on December 4th, after in October agreed to reduce its output target by 2 million barrels per day through 2023. Protests against strict COVID-19 restrictions in some major Chinese cities, including Beijing and Shanghai, intensified during the weekend, exacerbating concerns about weaker growth and subdued demand for oil. At the same time, advanced economies, especially the US and Europe, are witnessing a drop in economic activity due to tightening financial conditions. Meanwhile, investors continued to track developments surrounding a G7 plan to impose a price cap on Russian oil. However, reports of a high price cap eased worries that Russia would retaliate by cutting supply.

US natural gas futures were trading around $6.6/MMBtu, moving further away from an almost two-month peak of $7.3/MMBtu hit on November 23st, on expectations of lower demand. Forecasts released recently are pointing to milder weather over the next two weeks. Still, prices are due to remain elevated amid prospects of robust heating demand during the winter months. Meanwhile, investors remained concerned about possible coal supply disruptions. Workers at the largest US rail union voted against a tentative contract deal reached in September, raising the possibility of a year-end strike that could disrupt coal deliveries and force power generators to burn more gas. At the same time, the Freeport LNG export plant in Texas, forced to go offline in June following a fire, expects to begin bringing operations back online in mid-December, while Europe is clamoring for US exports after Russia threatened to cut supplies even further.
MY TAKE: The JAN23 contract will go over $8.00 next week.