Oil & Gas Prices - Nov 17
Posted: Tue Nov 17, 2020 9:43 am
Opening Prices:
> WTI is down 56c to $40.78/Bbl, and Brent is down 53c to $43.29/Bbl.
> Natural gas is up 0.5c to $2.702/MMBtu.
Closing Prices:
> WTI prompt month (DEC 20) was up $0.09 on the day, to settle at $41.43/Bbl. < $41.50 is STRONG RESISTANCE level. A few closes above that price set up the August high as the next level.
> In contrast, NG prompt month (DEC 20) was down $0.005 on the day, to settle at $2.692/MMBtu. < We just need "real winter" to start.
Gas market steady after Monday's price rout; WTI near $41 as OPEC+ mulls continued cuts. Big swings in the price of natural gas are common in November because traders seem to over-react to weather forecasts and weekly storage reports. Over the last 8 weeks the total natural gas storage builds have been 255 Bcf below the 5-year average. That trend should continue as gas supply is falling and LNG exports are expected to be almost double what they were a year ago (~4.5 Bcfpd higher).
(Bloomberg) -- As OPEC+ began talks on whether to postpone January’s oil-production increase, ministers sounded cautious about the strength of global demand.
Saudi Energy Minister Prince Abdulaziz bin Salman said he could see a light at the end of the tunnel thanks to the development of Covid-19 vaccines, but the market had some way to go before getting there. His counterparts from Algeria and Russia talked about bumps in the road and an uncertain winter, adding to the impression that the group is open to considering a delay.
“There has been very good news of possible vaccines against the Covid-19 virus, allowing us to see some glimmer of light at the end of the tunnel,” Prince Abdulaziz said at the opening session of an OPEC+ video conference on Tuesday. “But the good news was counterbalanced by a surge in cases in the second wave of infections.”
The Organization of Petroleum Exporting Countries and its allies are considering whether to postpone a 2 million barrel-a-day production increase scheduled for January by between three and six months. The online talks of the Joint Ministerial Monitoring Committee could make a recommendation, but the final decision won’t come until a full OPEC+ meeting on Nov. 30 to Dec. 1.
In addition to the medical breakthroughs, signs of a strong demand recovery in Asia are giving cause for optimism, said Prince Abdulaziz. Yet he also emphasized the negative impact of another round of lockdowns in Europe and the supply increase from Libya.
“The world has a better understanding of how to fight the pandemic, new restrictions have a milder effect on demand and we see a significant progress in development of vaccines,” said Russian Deputy Prime Minister Alexander Novak. “We need to continue showing commitment to our obligations, taking into account today’s uncertainties and the market situation amid winter demand.”
While crude prices rallied to $45 a barrel in London last week following news of a breakthrough on a Covid-19 vaccine, they remain far lower than most OPEC nations need to cover government spending. There’s also a risk that oil demand will remain depressed for many months during the slow rollout of vaccines.
“There is still a way to go before we reach the other side of the long-awaited pandemic tunnel,” Prince Abdulaziz said.
> WTI is down 56c to $40.78/Bbl, and Brent is down 53c to $43.29/Bbl.
> Natural gas is up 0.5c to $2.702/MMBtu.
Closing Prices:
> WTI prompt month (DEC 20) was up $0.09 on the day, to settle at $41.43/Bbl. < $41.50 is STRONG RESISTANCE level. A few closes above that price set up the August high as the next level.
> In contrast, NG prompt month (DEC 20) was down $0.005 on the day, to settle at $2.692/MMBtu. < We just need "real winter" to start.
Gas market steady after Monday's price rout; WTI near $41 as OPEC+ mulls continued cuts. Big swings in the price of natural gas are common in November because traders seem to over-react to weather forecasts and weekly storage reports. Over the last 8 weeks the total natural gas storage builds have been 255 Bcf below the 5-year average. That trend should continue as gas supply is falling and LNG exports are expected to be almost double what they were a year ago (~4.5 Bcfpd higher).
(Bloomberg) -- As OPEC+ began talks on whether to postpone January’s oil-production increase, ministers sounded cautious about the strength of global demand.
Saudi Energy Minister Prince Abdulaziz bin Salman said he could see a light at the end of the tunnel thanks to the development of Covid-19 vaccines, but the market had some way to go before getting there. His counterparts from Algeria and Russia talked about bumps in the road and an uncertain winter, adding to the impression that the group is open to considering a delay.
“There has been very good news of possible vaccines against the Covid-19 virus, allowing us to see some glimmer of light at the end of the tunnel,” Prince Abdulaziz said at the opening session of an OPEC+ video conference on Tuesday. “But the good news was counterbalanced by a surge in cases in the second wave of infections.”
The Organization of Petroleum Exporting Countries and its allies are considering whether to postpone a 2 million barrel-a-day production increase scheduled for January by between three and six months. The online talks of the Joint Ministerial Monitoring Committee could make a recommendation, but the final decision won’t come until a full OPEC+ meeting on Nov. 30 to Dec. 1.
In addition to the medical breakthroughs, signs of a strong demand recovery in Asia are giving cause for optimism, said Prince Abdulaziz. Yet he also emphasized the negative impact of another round of lockdowns in Europe and the supply increase from Libya.
“The world has a better understanding of how to fight the pandemic, new restrictions have a milder effect on demand and we see a significant progress in development of vaccines,” said Russian Deputy Prime Minister Alexander Novak. “We need to continue showing commitment to our obligations, taking into account today’s uncertainties and the market situation amid winter demand.”
While crude prices rallied to $45 a barrel in London last week following news of a breakthrough on a Covid-19 vaccine, they remain far lower than most OPEC nations need to cover government spending. There’s also a risk that oil demand will remain depressed for many months during the slow rollout of vaccines.
“There is still a way to go before we reach the other side of the long-awaited pandemic tunnel,” Prince Abdulaziz said.