Week Ending November 29

Oil Heads for a Weekly Loss Amid Thin Trading

WTI prices finished the week lower, falling back below $70/Bbl in this shortened trading week. This week's headlines focused on the recent ceasefire between Israel and Hezbollah, which has reduced the geopolitical risk premium in oil prices. In addition, OPEC announced they will delay their next meeting from this weekend to December 5. This next OPEC meeting is expected to provide clarity on whether the group will begin restoring production in January or further delay the plan to bring supply back.

Natural Gas Prices Advance on Colder Forecasts

The January Henry Hub contract posted another weekly gain as Lower 48 weather forecasts continue to show temperatures below the ten-year average for the next two weeks. According to Commodity Weather Group, December is expected to come in as the eighth coldest of the past 25 years. If these forecasts materialize, it should result in higher demand for space heating and larger withdrawals from storage.