DMU: December 6, 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:
Oil Market:
WTI prices saw a significant drop, with the prompt month contract closing below $70 for the first time since mid-2023, ending at $69.38.
DOE inventory data confirmed large complex builds, contributing to the downward price movement.
Cal 24 closed below $70, marking its first sub-$70 close since July.
The market is now pondering the impact of these lower prices on U.S. production and capex decisions.
Natural Gas Market:
Natural gas prices were influenced by LNG export project developments, particularly Exxon's announcement delaying the completion of Train 1 to late 2024.
The NYMEX natural gas market reacted negatively to this news, along with rumors of delays in other LNG projects.
Uniform changes across the gas term structure suggest increased producer hedging rather than a shift in fundamental market views.
The market awaits the EIA’s weekly inventory report, with expectations leaning towards a 105 Bcf withdrawal, which could dictate the direction of prices.
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