Oil & Gas Prices - Dec 19
Posted: Thu Dec 19, 2019 9:35 am
Opening Prices:
WTI is up 1c to $60.94/Bbl, and Brent is up 6c to $66.23/Bbl.
Natural gas is down 3.7c to $2.249/MMBtu.
EIA Weekly Report Details:
> U.S. oil production was 12.9 million barrels per day the last two weeks of November and it has dropped to 12.8 million BOPD the first two weeks of December.
Days of Supply in U.S. commercial storage
> 27.0 : Crude Oil
> 26.0 : Gasoline
> 20.5 : Jet Fuel
> 31.7 : Distillates
See more details of the EIA weekly petroleum report here: https://www.eia.gov/dnav/pet/pet_sum_sn ... _nus_w.htm
Raymond James comments on EIA weekly report (12-18-2019):
"With the phase one U.S.-China trade deal in place, and Brexit uncertainly also reduced, oil prices have bounced in recent days to three-month highs. However, there remain some demand-related concerns. The much more bullish supply side of the equation is still mostly being overlooked: the larger U.S. producers are exhibiting restraint in capital allocation, and U.S. well productivity improvements are slowing down; OPEC plus Russia’s production cuts include especially strong Saudi discipline, which is set to continue following the recent OPEC meeting and the IPO of Aramco; U.S. sanctions against Iran continue to be impactful, and Venezuela’s domestic crisis shows no signs of ending; and IMO 2020is on deck two weeks from now. The 12-month futures strip ($58.77/Bbl for WTI and $62.83/Bblfor Brent) shows modest backwardation for both Brent and WTI; for comparison, our new 2020 forecast is $65.00 WTI/$70.00 Brent. There remain several key question marks: 1) on the bullish side, the possibility of supply disruptions above and beyond the current ones, such as a potential scenario of military escalation vis-à-vis Iran, and 2) on the bearish side, the uncertain global macro landscape and resulting read-through for oil demand." < RJ is forecasting that WTI averages $60 in 1H 2020 and then rises steadily to an exit price of $75 by December 31, 2020.
WTI is up 1c to $60.94/Bbl, and Brent is up 6c to $66.23/Bbl.
Natural gas is down 3.7c to $2.249/MMBtu.
EIA Weekly Report Details:
> U.S. oil production was 12.9 million barrels per day the last two weeks of November and it has dropped to 12.8 million BOPD the first two weeks of December.
Days of Supply in U.S. commercial storage
> 27.0 : Crude Oil
> 26.0 : Gasoline
> 20.5 : Jet Fuel
> 31.7 : Distillates
See more details of the EIA weekly petroleum report here: https://www.eia.gov/dnav/pet/pet_sum_sn ... _nus_w.htm
Raymond James comments on EIA weekly report (12-18-2019):
"With the phase one U.S.-China trade deal in place, and Brexit uncertainly also reduced, oil prices have bounced in recent days to three-month highs. However, there remain some demand-related concerns. The much more bullish supply side of the equation is still mostly being overlooked: the larger U.S. producers are exhibiting restraint in capital allocation, and U.S. well productivity improvements are slowing down; OPEC plus Russia’s production cuts include especially strong Saudi discipline, which is set to continue following the recent OPEC meeting and the IPO of Aramco; U.S. sanctions against Iran continue to be impactful, and Venezuela’s domestic crisis shows no signs of ending; and IMO 2020is on deck two weeks from now. The 12-month futures strip ($58.77/Bbl for WTI and $62.83/Bblfor Brent) shows modest backwardation for both Brent and WTI; for comparison, our new 2020 forecast is $65.00 WTI/$70.00 Brent. There remain several key question marks: 1) on the bullish side, the possibility of supply disruptions above and beyond the current ones, such as a potential scenario of military escalation vis-à-vis Iran, and 2) on the bearish side, the uncertain global macro landscape and resulting read-through for oil demand." < RJ is forecasting that WTI averages $60 in 1H 2020 and then rises steadily to an exit price of $75 by December 31, 2020.