DMU: November 22, 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:
In the oil market, the WTI contract fluctuated but ultimately ended the day with a minor decrease, reflecting a cautious sentiment among producers. The delayed OPEC+ meeting added to market uncertainty. DOE data confirmed a significant crude build and marginal product offset, causing concerns. Despite this, the market managed a symbolic victory, anticipating potential outcomes from the upcoming OPEC+ meeting. The delay of the meeting stirred rumors of disagreement among member countries, particularly Angola and Nigeria, over production limits.
The natural gas market experienced a bullish day in terms of inventory but saw minimal price changes. The December NYMEX contract recovered slightly after the EIA inventory report, reducing contango. Production strength and a forecasted warm-up after the weekend's cold blast are tempering price responses, with the market looking towards future storage data and weather patterns. Elevated basis pricing in the West has seen a significant reduction, indicating a bearish market sentiment tied to production increases. The natural gas market is now focused on the upcoming EIA inventory report and weather forecasts to determine its short-term direction.
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