DMU: November 6, 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:
WTI oil prices exhibited a pattern of attempting to break away from the $80/barrel mark, with repeated selling pressure in the afternoon sessions. The Dec WTI contract closed modestly higher at $80.82, struggling to maintain levels above $80 amid ongoing Middle Eastern tensions and OPEC+ supply dynamics. The WTI curve experienced a reduction in backwardation, with near-term contracts seeing modest gains, reflecting a flattening curve. Brent and WTI spreads widened, possibly due to increased freight rates and constraints in North American export capacity.
Refiners witnessed a positive day, with significant increases in diesel and gasoline prices, reflecting market adjustments and ongoing refinery turnaround season. Meanwhile, NYMEX natural gas faced a downturn due to warmer weather forecasts and high production levels, leading to a significant drop in the Dec contract. The market is currently contending with a steeply contango curve and variable winter weather predictions, influencing future market directions.
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