DMU: December 11, 2023
Analysis of the latest trends in oil and natural gas markets, including OPEC+ decisions, macroeconomic factors, geopolitical influences, and EIA inventory data.
On Today’s Daily Market Update:
The Mobius strategy desk gives you perspective on today’s updates, including:
Today's crude market exhibited stability, with the WTI contract showing minor price fluctuations within a $1 range. Mergers and acquisitions are active, highlighted by Oxy's acquisition of CrownRock in the sought-after Permian Basin. The future impact of these deals on oil and natural gas production is under scrutiny, especially considering the Permian's declining rig activity and potential efficiency gains.
EIA reports indicate a significant decrease in the Permian's uncompleted wells, hinting at a possible slowdown in oil production growth. Given current export and refining capacities, the strategy for managing incremental oil production is crucial.
Internationally, escalating tensions between Guyana and Venezuela over a disputed oil-rich region could influence global oil supply dynamics.
In contrast, the NYMEX natural gas market faces downward pressure due to milder weather and increased production, challenging price stability. Key developments in LNG projects like Golden Pass also shape the market outlook.
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