December 16, 2019

December 16, 2019
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  • WTI is up 7c to $60.14/Bbl, and Brent is up 27c to $65.49/Bbl
  • Oil prices are holding near three-month highs as last week’s U.S./China trade deal announcement continues to buoy the market
    • WTI prompt month is currently at/near the highest level since late September
    • WTI Calendar 20 is at the highest level since early July
  • Hedge funds drastically increased their net-bullish position on WTI for the week ended December 10
    • The reporting period includes the December 6 OPEC+ meeting where the cartel agreed to make deeper supply cuts
    • The net-long position for speculators increased from 150,311 contracts to 228,425, a whopping 51% increase
    • Bullish bets from funds have helped oil reach the upper-end of the multi-month trading range
  • U.S. drillers increased oil-directed rigs by four to 667 last week, according to Baker Hughes
    • The oil rig increase followed seven weekly declines
  • Natural gas is up 2.1c to $2.317/MMBtu
  • The CFTC reported long positions increased by 2,564 contracts to 115,641 total contracts
    • Short positions increased by 18,559 contracts to 360,178 total contracts
    • Long positions are 10,000 contracts away from the 52-week lows, short positions are less than 8,000 contracts away from 52-week highs
  • U.S. natural-gas-directed rig count fell by four to 129 total rigs
    • The biggest decline came in the Utica, which fell by 4 rigs, however the Marcellus also gained 4 rigs in the basin
    • Other reductions came from the Barnett, Haynesville, and “Other” basins
  • Elba Island has officially shipped its first commercial LNG cargo
    • The company is in the process of commissioning Train 6 of 10
    • LNG feed gas demand is coming in at 8.3 Bcf this morning

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