December 17, 2020

December 17, 2020
Share
Print Friendly, PDF & Email
  • WTI is up 28c to $48.10/Bbl, and Brent is up 23c to $51.31/Bbl
  • U.S. congressional negotiators reportedly closing in on a COVID-19 stimulus package (Reuters)
    • The package is expected to be around $900 billion, which includes a $600-$700 stimulus check for individuals
    • AEGIS notes the stimulus package is likely to impact oil prices on two fronts. Money injections are likely to pressure the dollar further downward from its two-and-a-half-year low while also increasing consumer spending in the short term, which should boost demand
  • Indian refiners are currently operating at near full capacity amid strong transportation fuels demand (Bloomberg)
    • The recovery mirrors that of China, where transportation fuels demand strengthened as the population became reluctant to use public transportation in favor of personal vehicles
    • The nations top refiner, Indian Oil Corp, had its refinery run rates rise to 100% of designed capacity in November, up from 88% in October and 55% in early May, according to Bloomberg
  • The market received supportive data reported by the EIA on Wednesday
    • The EIA reported a draw of (-) 3,135 MBbls for the week ending December 11, well above the estimate of a (-) 1,088 MBbls draw
    • Inventories for the U.S. are now at a surplus of 52.178 MMBbls to last year and a surplus of 45.21 MMBbls to the five-year average
  • Natural gas is up 0.2c to $2.679/MMBtu
  • Joe Biden is close to announcing Cabinet nominees who will be key to his incoming administration’s plan to fight climate change (Reuters)
    • Pete Buttigieg has been selected to lead the U.S. Transportation Department. “This is a moment of tremendous opportunity-to create jobs, meet the climate challenge, and enhance equity for all,” Buttigieg said in a tweet after being chosen by Biden
    • Biden is also expected to pick former Michigan Governor Jennifer Granholm to be secretary of energy in his new administration. If confirmed, she is expected to play a role in the department’s support of advanced batteries, energy efficiency and electricity generation from renewable and nuclear power, according to Reuters.
    • For interior secretary post, U.S. Rep Deb Haaland of New Mexico appears to be Biden’s favorite choice. Haaland told Reuters she would usher in an expansion of renewable energy production on federal land to contribute to the fight against climate change, and undo Trump’s focus on bolstering fossil-fuels output
  • A major nor’easter hit the eastern United States with the official start of winter just days away
    • Many areas across central and northern Pennsylvania had picked up 1-2 feet of snowfall as of Thursday morning
    • Meteorologist have been predicting the snowy blast for about a week now, and it may be the December highlight for the gas bulls
    • December as a whole is trending moderately warmer than climate normals, which has contributed to lower gas prices

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