November 30, 2020

November 30, 2020
Print Friendly, PDF & Email
  • WTI is down 14c to $45.39/Bbl, and Brent is down 41c to $47.77/Bbl
  • OPEC+ members to begin formal talks on extending oil cuts or increasing output
    • The group met on Sunday but failed to reach an agreement prior to Monday’s formal talks
    • The group is set to ease production cuts by 2 MMBbl/d starting in January; however, the decision has been complicated by rising Libyan output and an increase in coronavirus infections
    • OPEC+ members Kazakhstan and the UAE have expressed concerns about extending the oil cuts, according to Reuters
  • Oil may reach $65/Bbl in 2021 as an inflection point is reached in 2H2021 (Goldman)
    • The market will be supported by a vaccine-led rebound in demand, and a “modest” non-OPEC supply response
    • The price forecast is contingent on an extension of the OPEC+ output cuts. If the cuts are not extended, Goldman foresees $5/Bbl in downside from current levels
  • The Baker Hughes oil rig count gained 10 rigs to bring the total gas rig count to 241
    • The major basins, Permian, Eagle Ford, and Denver-Julesburg, added five, three, and one rig, respectively
  • Natural gas is up 7.9c to $2.922/MMBtu
  • After this morning’s rise, natural gas for January is close to $3.00 MMBtu once again
    • In the mid-$2.90’s, January is up over 30c from just 11 days ago, but still about 40c from its high of $3.35 on Oct. 30
    • Weather models showed an overall cooler shift in the Lower 48, most in the west for the 6-10 day window and southeast and east for the 11-12 day time-period
    • A total of 3.7 HDDs, or about 7 Bcf, was gained from Friday to Monday, according to Commodity Weather Group
  • The Nord Stream 2 pipeline, led by Gazprom, is set to resume pipe-laying work in German waters sometime between Dec. 5 and Dec. 31, according to a notice to sea-farers (S&P)
    • The 765-mile pipeline under the Baltic Sea only lacks about 75 miles in German and Danish waters to be complete (Pgjonline)
    • U.S. sanctions against pipeline vessels operated by Swiss-Dutch Allseas halted work last December
    • Nord Stream 2 is seen as a threat to LNG imports into Europe as more piped gas will reach Germany, and thereby other parts of Europe, from Russia

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