Oil & Gas Prices - Oct 18
Posted: Mon Oct 18, 2021 9:09 am
Opening Prices:
> West Texas Intermediate's NOV21 contract traded for $82.99 at the time of this post, up $0.71
> Henry Hub's NOV21 contract traded at $5.131, down $0.279
Platts reported that OPEC+ boosted crude oil output by 470,000 b/d in September, but with many members still struggling to reach their quotas, the coalition is producing far below what it said it would. The 19 members with production quotas under the OPEC+ supply accord were a combined 570,000 b/d below their allocations for the month.
Reuters reported that a global energy crunch is expected to boost oil demand by half a million b/d and could stoke inflation and slow the world's recovery from the COVID-19 pandemic, the IEA said on Thursday. Oil and natural gas prices have soared to multi-year highs recently, sending power prices surging to record levels as widespread energy shortages engulf Asia and Europe. "Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming," the IEA said in its monthly oil report. "Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery."
Bloomberg reported that air travel has recovered gradually in the U.S. and is almost back to normal while the more fragmented European airline industry is taking longer to claw its way back to pre-pandemic levels, according to high-frequency data. A five-day average of the number of passengers passing through U.S. airport turnstiles surpassed 2 million a day for the first time since mid-August, and the level on October 11 was only 10% below the equivalent weekday in 2019, according to government data.
As a result, global oil demand next year is now projected to recover to pre-pandemic levels, the Paris-based agency added. It made upward revisions to its demand forecasts for this year and 2022, increasing them by 170,000 b/d and 210,000 b/d respectively. An upsurge in demand in the past quarter led to the biggest draw on oil products stocks in eight years, it said, while storage levels in OECD countries were at their lowest since early 2015. Meanwhile, the IEA estimated that producer group OPEC+ is set to pump 700,000 b/d below the estimated demand for its crude in the fourth quarter of this year, meaning demand will outpace supply at least until the end of 2021.
> West Texas Intermediate's NOV21 contract traded for $82.99 at the time of this post, up $0.71
> Henry Hub's NOV21 contract traded at $5.131, down $0.279
Platts reported that OPEC+ boosted crude oil output by 470,000 b/d in September, but with many members still struggling to reach their quotas, the coalition is producing far below what it said it would. The 19 members with production quotas under the OPEC+ supply accord were a combined 570,000 b/d below their allocations for the month.
Reuters reported that a global energy crunch is expected to boost oil demand by half a million b/d and could stoke inflation and slow the world's recovery from the COVID-19 pandemic, the IEA said on Thursday. Oil and natural gas prices have soared to multi-year highs recently, sending power prices surging to record levels as widespread energy shortages engulf Asia and Europe. "Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming," the IEA said in its monthly oil report. "Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery."
Bloomberg reported that air travel has recovered gradually in the U.S. and is almost back to normal while the more fragmented European airline industry is taking longer to claw its way back to pre-pandemic levels, according to high-frequency data. A five-day average of the number of passengers passing through U.S. airport turnstiles surpassed 2 million a day for the first time since mid-August, and the level on October 11 was only 10% below the equivalent weekday in 2019, according to government data.
As a result, global oil demand next year is now projected to recover to pre-pandemic levels, the Paris-based agency added. It made upward revisions to its demand forecasts for this year and 2022, increasing them by 170,000 b/d and 210,000 b/d respectively. An upsurge in demand in the past quarter led to the biggest draw on oil products stocks in eight years, it said, while storage levels in OECD countries were at their lowest since early 2015. Meanwhile, the IEA estimated that producer group OPEC+ is set to pump 700,000 b/d below the estimated demand for its crude in the fourth quarter of this year, meaning demand will outpace supply at least until the end of 2021.