December 11, 2019

December 11, 2019
Print Friendly, PDF & Email
  • WTI is down 22c to $59.02/Bbl, and Brent is down 35c to $63.99/Bbl
  • Oil prices are slightly down this morning as crude oil stocks rose last week, according to the American Petroleum Institute (API)
    • The API reported a 1.4 MMBbl increase in crude stocks on Tuesday afternoon, surprising analysts
    • Government data is due out later this morning
  • The Energy Information Administration (EIA) lowered its US crude production estimates for 2019 and 2020 on declining rig counts
    • Domestic production will average 12.25 MMBbl/d this year, down 0.3% from the previous forecast, according the agency’s Short-Energy Energy Outlook (STEO) report
    • The EIA also lowered its forecast for 2020 by 0.9% to 13.18 MMBbl/d
  • EIA weekly data is due at 9:30 AM CST
    • U.S. Crude Inventories:                  –     2,924 MBbls (Bloomberg surveys)
    • U.S. Gasoline Inventories:             +     2,534 MBbls
    • U.S. Distillate Inventories:             +     1,563 MBbls
    • U.S. Refinery Utilization:               +     1.00% change
  • Natural gas is up 2.4c to $2.288/MMBtu
  • Chinese companies are trying to offload LNG cargoes on the spot market due to high storage, a slowing economy, and a milder-than-expected winter (Reuters)
    • Most volumes heading into the country are comprised of term volumes, which were committed under long term contracts, or spot volumes from last month
    • China, the second largest purchaser of LNG, could push these spot volumes into Europe and further saturate the global market
  • The EIA predicts production growth to slow in 2020 due to a lag between price changes and drilling activity
    • The agency also forecasts dry gas production to average 95.1 Bcf/d in 2020
    • Consumption forecasts saw 2 Bcf/d gains for 4Q2019 and 1Q2020, totaling 92.51 Bcf/d and 104.54 Bcf/d respectively

Access Our Deeper Market Insights

Product Factor Matrix

Proprietary view of priced-in factors driving the market vs. potential bullish and bearish surprises.

Learn More

Trading Recommendations

Clear trading recommendations based on real market opportunities that enable clients to take action.

Learn More

Market Data

A comprehensive suite of the latest curves, spot pricing, settles, and strips to drive confident hedging decisions.

Learn More

Benchmarking and Trade Analytics

Real-time access to analyze your hedging strategy against AEGIS benchmarks and current market activity.

Learn More