DMU: November 2, 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:
Wednesday witnessed a significant uptick across the crude complex, with diesel, gasoline, and crude oil all recording substantial gains. The Dec WTI contract closed at $82.46, bolstered by a 'risk on' market sentiment and escalating Middle East tensions, particularly the Israeli troops' entry into Gaza City. Long-dated oil tenors also saw notable increases, reflecting broader market optimism.
On the supply side, U.S. production is anticipated to rise by 1 million barrels per day, contrasting OPEC's projected decline. Global production trends reveal increases in Brazil, Mexico, and potentially Canada, despite challenges like the Trans Mountain Express pipeline's halt due to compliance issues.
In the natural gas market, long-dated tenors experienced a marked rise, possibly linked to LNG export expansions. However, the front of the curve remained subdued, influenced by mild weather forecasts and EIA inventory reports. The market is now closely watching the evolving global production landscape and LNG export developments for future direction.
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