DMU: November 29, 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 was a collective sigh of relief as bearish inventory data didn’t dampen the ongoing recovery from Monday’s lows, especially with OPEC news on the horizon. The front-month WTI contract closed at $77.86, up $1.45, suggesting growing optimism. Product markets showed mixed reactions, with RBOB crack widening and diesel crack contracting. OPEC's delayed meeting is causing speculation, particularly regarding production limits for Angola and Nigeria, and its outcome is keenly awaited.
In natural gas, the market is contending with various factors including mild weather forecasts, record production, and upcoming demand increases from LNG exports. Yet, the focus is on the storage surplus expansion and mild forecasts for early December. The January NYMEX contract closed slightly lower, with market expectations pointing towards a small withdrawal or even a build in the upcoming EIA report. This scenario, combined with strong production and mild weather, could maintain the bearish sentiment. The LNG export developments and their potential market impact are also being monitored.
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