DMU: November 28, 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, there's a noticeable shift as product prices, particularly diesel and RBOB, lead a rebound, signaling a potential change in market trends. The upcoming OPEC meeting is in sharp focus, with many expecting an extension in production cuts. This anticipation is influencing the market, with January WTI closing higher at $76.41. Developments in the Black Sea region, notably production cuts in Kazakhstan and Russia, are also impacting global supply dynamics. If OPEC decides to extend cuts, we could see a notable price surge. On the other hand, increasing production might test the lower price support levels.
In natural gas, the December NYMEX contract closed lower, continuing the trend of eroding winter premiums. The market is being swayed by weather forecasts and high production levels. Notably, strong El Nino conditions are influencing weather patterns, which could further affect gas prices. The imminent EIA inventory report will be crucial in shaping short-term market expectations, especially if it differs significantly from the current market consensus.
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