Energy Prospectus

Opening Prices:
> WTI is up 24c to $41.98/Bbl, and Brent is up 34c to $44.54/Bbl.
> Natural gas is up 8.4c to $2.676/MMBtu.

WTI has struggled to break through resistance at $41.50.
Aegis Energy : "Crude prices set for third consecutive weekly gain following positive vaccine news."

Closing Prices:
> WTI prompt month (DEC 20) was up $0.41 on the day, to settle at $42.15/Bbl. < If WTI stays over $42 next week is should make $41.50 a strong support level.
> Also, NG prompt month (DEC 20) was up $0.058 on the day, to settle at $2.650/MMBtu.

Read this:
An Important Day For Oil Prices
By Anna Coulling
An important day for oil prices today, but purely from a technical perspective as we can see from the daily chart. Why? Because the commodity is once again approaching a key price level and one which has been tested many many times before. https://www.investing.com/analysis/an-i ... -200545308

The leader of the "Wall Street Herd" (Goldman Sachs) sees the "structural change" in the global oil market (caused my under-investment in finding and developing new oil supplies) that I've been trying to prove in my weekly podcasts. If OPEC+ extends their quotas when they meet at the end of November, it just might cause the "herd" to rotate a lot of money back into the grossly oversold upstream companies. The "Elite Eight" are the safe bet to get the most attention because they are well know.
I watched a webinar presentation by the Dallas Fed this morning that was very bullish for oil demand coming on strong in a few months. One topic was how much oil we will need from OPEC+ (kiss energy independence good-bye). Another topic was if Biden bans fracking on just Federal lands it will cause U.S. oil production to drop by a million BOPD and cost over a half a million jobs. Other topic was how lack of spending on our energy infrastructure could be a big problem as the economy rebounds in a post-pandemic world. If you think the Democrats aren't going to raise taxes on people making under $400,000; they are discussing a big tax hike on gasoline and diesel.

Headline News:

Oil prices pared recent gains as investors nervously watch the spread of Covid-19, which has tempered bullishness following positive vaccine news. “It’s not good news,” Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis, told Bloomberg. “This is probably going to be a disappointing travel holiday coming up, and that’s going to weigh on demand.” Still, there are signs of life in global oil demand visible beyond the near-term coronavirus wave.

Asia’s oil demand looks strong. While oil demand in Europe and the United States continues to disappoint, refiners in Asia are racing to procure crude from around the world, giving the oil market some hope that at least in one region, demand is strengthening in the fourth quarter.

China’s oil binge to extend into 2021. China stockpiled oil this year when prices were cheap, offering an extra bit of demand to the market. Reuters reports that China’s private refiners will stockpile an additional 100 million barrels in 2021.

Oil demand primed for recovery. Crude oil demand is likely to rebound next year following the promising news about a vaccine against the novel coronavirus, according to Fitch Ratings.

Goldman Sachs: Structural bull market on the way. Goldman Sachs said in a new report that not only will oil prices rise next year, but we could soon see a “structural bull market on par with the 2000s.” The bank says under-investment in new commodity supplies, fiscal stimulus to rebound from the pandemic, and the risk of higher inflation all point to a bull market in the 2020s.

(Bloomberg) -- Money managers have increased their bullish
ICE Brent crude oil bets by 50,650 net-long positions to
180,610, weekly ICE Futures Europe data on futures and options
show.
* The net-long position was the most bullish in 11 weeks
* Long-only positions rose 30,062 lots to 261,608 in the
week ending Nov. 17
** The long-only total was the highest in 11 weeks
* Short-only positions fell 20,588 lots to 80,998
** The short-only total was the lowest in almost three months

To view this story in Bloomberg go here: https://blinks.bloomberg.com/news/stories/QK3YG3DWRGG3