December 2, 2020

December 2, 2020
Print Friendly, PDF & Email
  • WTI is down 7c to $44.48/Bbl, and Brent is down 2c to $47.40/Bbl
  • Oil is trading slightly lower (-0.5%) this morning, after having its worst day in over two weeks
    • OPEC+ and its allies are continuing informal negotiations, seeking to reach an agreement before the group’s next scheduled meeting on Thursday, December 3
    • The American Petroleum Institute reported a build of 4.1 MMBbls last week, well above analysts’ expectations of 2.4 MMBbls (Reuters)
  • OPEC+ is scheduled to meet tomorrow to reach an agreement to extend oil output cuts as coronavirus cases continue to threaten demand
    • The cartel’s standing agreement would return over 1.9 MMBbl/d to market beginning in January
    • Tensions flared during Monday’s meeting as the UAE aired grievances with the current output quota, and the increase in non-OPEC production that threatens the cartels market share, according to Bloomberg
  • EIA weekly data is due at 9:30 am CST
    • S. Crude Inventories: – 1,900 MBbls (Avg. Bloomberg surveys)
    • S. Gasoline Inventories: + 1,554 MBbls
    • S. Distillate Inventories: – 1,092 MBbls
    • S. Refinery Utilization: + 0.63% change
  • Natural gas is up 4.6c to $2.926/MMBtu
  • Gas prices rose Wednesday morning amid cooler changes to the weather forecast
    • Over the past 24 hours, cooler temperatures mostly in the 11-14 window, contributed to the addition of 1.6 HDDs or about 3 Bcf
    • The January (prompt) contract has recovered about 20c to $2.92 since November 19 as heating demand has started to pick up
  • U.S. LNG exports favored the United Kingdom in November amid Panama Canal delays (Platts)
    • The U.K. was the preferred destination for U.S. LNG as wait times of up to more than a week for LNG tankers passing through the canal delayed Pacific shipments
    • All LNG facilities in the U.S. look to be operating at or near full rates after reaching a record 11.3 Bcf/d on December 1, according to Bloomberg data

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