DMU: December 4, 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 oil market experienced a surprising turn with prices falling despite OPEC's announcement of production cut additions and extensions. The prompt month WTI (Jan) dropped to $75.96, and losses were observed across all contracts through May 2024. The decline was more pronounced in product markets, notably RBOB. This reaction suggests the market may not view the OPEC decision as a sufficiently bullish factor to counteract recent bearish inventory data.
Natural gas prices continued their downward trend amid warm weather and strong production, overshadowing factors like robust LNG feed gas demand and exports. The NYMEX natural gas market is closely watching the upcoming EIA inventory report, which could show a substantial withdrawal, potentially influencing market direction. However, the high inventory levels compared to last year and the current weather forecasts are keeping the market under pressure.
Both markets are at a critical juncture, balancing between bearish current realities and potential bullish catalysts, with key factors like OPEC decisions, inventory data, and weather forecasts in focus.
Oil Complex:
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