Oil & Gas Prices - Dec 6

[dan_s]

For some reason I stopped getting the daily notes from AEGIS. I sent them an email yesterday to see if they stopped sending them out.

At the time of this post:
> WTI down $1.45 to $70.87
> HH ngas flat at $2.71

Trading Economics
Oil
> WTI crude futures fell for a fifth consecutive day to trade below $71 a barrel on Wednesday morning, the lowest level since early July, as surging US crude exports raised worries about increased global supply and as traders continued to doubt the impact of OPEC cuts. Data showed that US crude exports are nearing a record 6 million barrels a day, with flows to Europe and Asia showing a steady increase.
> Meanwhile, OPEC pumped 27.81 million bpd in November, down by 90K bpd from October, according to Reuters. Saudi Arabia kept November output close to 9 million bpd, while output from Iran increased. < Current U.S. administration not enforcing sanctions against Iran despite repeated attacks on U.S. military basis in Iraq and Syria.
> Last week, OPEC+ members announced additional cuts of 2.2 million bpd, but more than 1.3 million bpd were extensions of voluntary reductions by Saudi Arabia and Russia.
> Russian Deputy Prime Minister Alexander Novak said that OPEC+ stands ready to deepen oil production cuts in the first quarter of 2024 to eliminate "speculation and volatility" if existing actions to reduce output were not enough.
> EIA's weekly Petroleum Report will be released at 10:30AM ET.

Trading Economic
Natural Gas
> US natural gas prices futures traded at $2.7/MMBtu, the lowest in three months, as supply is outpacing demand.
> Recent forecasts predict colder weather, increasing the need for heating and supporting gas prices.
> Additionally, the volume of natural gas sent to US liquefied natural gas (LNG) export facilities has hit record levels.
> However, the US is also producing a near-record amount of natural gas domestically. This excess production allows utilities to build up gas reserves to meet the higher demand for heating.
> EIA Natural Gas storage report for the week ending December 1st will be released tomorrow. It should show the first significant draw from storage for this coming winter, but storage level will still be more than 280 Bcf above the 5-year average for this time of year. < A normal winter + LNG exports staying near 14 Bcf through the winter to get storage levels back to normal by April.