Oil & Gas Prices - Dec 7

[dan_s]

Russia and Saudi Arabia Call On OPEC+ Members to Join Production Cuts
By Tsvetana Paraskova - Dec 07, 2023, 7:49 AM CST
After Vladimir Putin met with Saudi Crown Prince Mohammed bin Salman in Riyadh, both countries emphasized the need for all OPEC+ members to adhere to production cuts.
The Kremlin originally used the word "join" but a later translation used the phrase "adhere to", a phrase that was repeated by Saudi Arabia.
With oil prices having fallen dramatically since the last OPEC+ meeting, the two countries are eager to push prices higher.
Read more: https://oilprice.com/Energy/Energy-General/Russia-and-Saudi-Arabia-Call-On-All-OPEC-Members-to-Join-Production-Cuts.html

Prices at the time of this post:
> WTI up $0.65 at $70.01
> HH ngas flat at $2.57

Trading Economics
Oil
WTI crude futures rose toward $70 per barrel on Thursday in a likely technical rebound, but remained close to the lowest levels since late June after falling for five straight sessions amid robust global supplies and softening demand.
Official data from EIA showed that US gasoline inventories jumped by 5.4 million barrels last week, the biggest increase in nine weeks and much higher than forecasts of 1 million barrels, indicating weaker demand.
Adding to woes, BEA data showed US crude exports were near a record 6 million barrels a day in October, with flows to Europe and Asia showing a steady increase.
Meanwhile, OPEC pumped 27.81 million bpd in November, down by 90K from October, according to Reuters. Saudi Arabia kept the output close to 9 million, while output from Iran increased.
Last week, OPEC+ members announced additional cuts of 2.2 million bpd, but more than 1.3 million were extensions of voluntary reductions by Saudi Arabia and Russia.

Natural Gas
US natural gas futures fell to below $2.6/MMBtu, the lowest in five months, as supply is outpacing demand.
Domestic production of natural gas in the US is at a record high, enabling utilities to accumulate reserves to meet increased heating demand.
Analysts estimate that as of December 1, US gas stockpiles were approximately 7.2% higher than the expected levels for this time of year.
Despite the current oversupply, recent forecasts for colder weather are anticipated to boost heating demand.
Additionally, the volume of natural gas sent to US liquefied natural gas (LNG) export facilities has reached record levels.
EIA weekly natural gas storage report will be released at 10:30AM ET