Energies Futures Prices

Dec WTI crude oil (CLZ19) on Thursday closed down by -0.35 (-0.61%), Jan Brent crude oil (CBF20) closed down -0.09 (-0.13%), and Dec RBOB gasoline (RBZ19) closed down by -0.207 (-1.26%).

The energy complex closed lower Thursday on trade uncertainty, global growth concerns, and a larger-than-expected build in weekly EIA crude inventories.

Trade uncertainty between the U.S. and China is negative for economic growth and energy demand prospects after China's Commerce Ministry said on Thursday that removing existing tariffs was an important condition for any trade deal. Also, Bloomberg reported Thursday that a U.S. demand that China detail how it plans to reach $50 billion in agricultural imports annually has become a sticking point in negotiations on a phase one trade deal.

Global growth concerns also weighed on crude prices after Thursday's China Oct industrial production rose +4.7% y/y, weaker than expectations of +5.4% y/y. Also, Japan's Q3 GDP rose by only +0.2%... Read more

Dec Nymex natural gas (NGZ19) on Thursday closed up by +0.047 (+1.81%).

Dec nat-gas prices settled higher Thursday after Maxar said government weather models show colder-than-normal temperatures lingering into next week for the eastern third of the U.S., which should boost heating demand for nat-gas. Dec nat-gas fell to a 2-week low Wednesday on forecasts for warmer temperatures to return to the U.S. in the second half of November. The Commodity Weather Group on Wednesday said it expects normal temperatures in the eastern half of the U.S. during Nov 18-27.

High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production Thursday up +10.9 y/y at 93.684 bcf/d. Strong U.S. nat-gas output has caused U.S. nat-gas inventories to rise sharply in recent months to the current level of +14.9% y/y from -22.3% y/y last March.

Thursday's weekly EIA nat-gas inventories were neutral as they rose by 3 bcf, right on expectations, although well below... Read more