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- WTI is up 58c to $56.78/Bbl, and Brent is up 69c to $62.38/Bbl
- Hedge funds reversed the trend of bets on falling crude oil for the first time in six weeks (CFTC)
- Outright short positions were reduced by 12k contracts to 112,297
- The net position, longs plus shorts, is still net-long about 100k contracts – near 2019 lows
- The oil-directed rig count fell by five last week to 691, according to Baker Hughes
- By state, Oklahoma lost the most total rigs, at three
- The total US land rig count, inclusive of oil and gas, stands at 822 active rigs
- Continental Resources CEO Harold Hamm said the US need 800 land rigs to balance oil supply and demand (Argus)
- Drilling activity is expected to slow further as some producers further reduce spending plans – a trend seen so far in upstream 3Q earnings calls
- The Keystone pipeline disruption continues to weigh on Western Canadian Select (WCS) oil prices
- TC Energy’s Keystone pipeline transports crude from Alberta to the Midwest and the Gulf Coast
- The fall in WCS crude prices has been focused on the front of the curve
- This suggest the market sees little impact past a month
- Natural gas is up 9.6c to $2.810/MMBtu
- Cheniere is moving up the in-service date of their Corpus Christi Trian 3 to 1H2021, as opposed to 2H2021
- The Sabine Pass Train 6 is also having its in-service date moved up to 1H2023
- A Final Investment Decision for the Corpus Christi Stage 3 Midscale expansion will be made in 1H2020
- LNG feed gas demand reached a new high of 7.7 Bcf/d
- Natural gas long positions increased by 12,085 contracts to 118,785 contracts total, according to the CFTC
- Short positions fell 21,951 contracts to 298,878 contracts total
- The December contract saw its biggest weekly price spike since January 2019, rising approximately 10%
- Weather forecasts continue to show colder than normal temperatures through the middle of November
- Gas-Weighted Heating Degree Days for November are forecasted to come in at 639, 1-degree day away from breaking into the top ten coldest Novembers of all time according to the Commodity Weather Group
- The Cold weather will be concentrated in the Midwest and East Coast through the 11-to-15-day forecast
