DMU: November 14, 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 crude and product markets experienced a calm day ahead of the DOE's upcoming data release. Dec WTI rallied briefly but closed unchanged at $78.26, while Cal 24 saw a minor decrease. Longer-dated tenors like Cal 25 and 26 experienced slightly larger losses, potentially influenced by producer selling and year-end hedging strategies. Diesel and Dec RBOB showed minimal changes, maintaining stability despite being in the midst of refinery outage season. The market is anticipating the DOE data, which will provide insights into the balance between crude draws and product builds and could significantly impact market trends.
In natural gas, a shift to cooler weather forecasts was offset by disruptions at the Freeport LNG facility, affecting LNG production. Fundamental factors such as stronger weather-adjusted power data and increased gas imports from Canada are influencing the market. The Dec NYMEX contract and Bal winter strip both saw declines, with only minor changes in the longer-dated tenors. The upcoming EIA data release, covering two weeks of inventory, is eagerly awaited and expected to provide critical information on market dynamics, especially regarding winter demand and storage changes.
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