Oil & Gas Prices - Dec 11

[dan_s]

Trading Economics

WTI Oil
WTI crude oil futures climbed over $70/bbl on Wednesday afternoon, marking a third consecutive session of gains as demand prospects brightened and investors anticipated a Federal Reserve rate cut next week.
> China's announcement of a looser monetary policy for 2025 to revive its economy boosted sentiment, along with a 14% year-on-year increase in China's November crude imports, the first rise in seven months.
> However, OPEC lowered its global oil demand growth forecasts for 2024 and 2025, citing ongoing challenges. The group now expects 2024 demand to grow by 1.61 million barrels per day (bpd), down from 1.82 million bpd last month, and revised its 2025 forecast down to 1.45 million bpd.
> On the supply side, US crude inventories fell more than expected for the third consecutive week, while gasoline and distillate inventories rose more than expected.
> Meanwhile, US inflation data aligned with forecasts, reinforcing bets on a 25 bps Fed rate cut at its upcoming meeting. < This is the primary reason for today's increase in the oil price. Oil was up before the bullish storage report.

U.S. Natural Gas
US natural gas futures climbed above $3.35/MMBtu, the highest in over a week, mainly due to forecasts of colder weather and higher heating demand.
> Additionally, more natural gas is flowing to liquefied natural gas (LNG) export plants, averaging 14.0 billion cubic feet per day so far in December, up from 13.6 in November.
> While warmer-than-usual weather is expected through December 26, projected gas demand has been revised higher, adding to price support. On the supply side, production has also increased to 102.8 bcfd, up from 101.5 bcfd in November.
> Analysts expect further production increases in 2025, driven by strong export demand and recovering prices.