December 23, 2019

December 23, 2019
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  • WTI is down 2c to $60.42/Bbl, and Brent is up 6c to $66.20/Bbl
  • Hedge funds increased bets on rising US crude oil prices to the highest level in more than seven months (CFTC)
    • Net-bullish wagers from speculators rose 19% in the week ended Dec. 17, data released Friday showed
    • AEGIS notes the improving the improved/improving outlook for trade and OPEC+’s decision to deepen supply cuts have boosted market confidence
  • The US rig count rose by 14 to 813 last week, the first gain in nine weeks (Baker Hughes)
    • The increase was driven by oil rigs, which rose by 18 to 685, their largest one week gain for the year
    • Texas accounted for almost all of the net-gain in rigs
    • Natural gas rigs fell by four to 125
  • AEGIS notes that the oil inventory report from the American Petroleum Institute (API) will still be Tuesday afternoon as usual. More closely followed government data from the EIA will be delayed one day to Friday at 11:00 AM ET due to the holiday
  • Natural gas is down 11.4c to $2.214/MMBtu
  • Weather models for the next two weeks are not looking pretty for the bulls
    • The 1-10 day window shows vast swaths of above-average temperatures across the Lower 48
    • 11-15 day models return closer to climate norms, but are still above average east of the Mississippi where most of the demand resides
  • President Donald Trump is set to sign a bill with new Nord Stream 2 sanctions into law on Friday (Platts)
    • It is unclear if the new sanctions will have an impact of the pipeline’s construction
    • The nearly 800-mile Nord Stream 2 will deliver Russian gas to Germany under the Baltic Sea and expected to double the capacity of the gas corridor
    • Many nations have been critical of Germany since allowing Nord Stream 2 to be placed into service changes European gas markets and bolsters Russia’s influence

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