European Energies Futures Prices
Futures Market News and Commentary
Jan Nymex natural gas (NGF20) on Friday closed down by -0.093 (-3.83%).
Jan nat-gas prices fell back Friday on forecasts for warmer temperatures in the U.S. over the near-term. The Commodity Weather Group on Friday said temperatures will be above-normal across most lower 48 states over the next 5 days before turning below-normal during Dec 11-15. Maxar on Thursday said that temperatures will be below-normal across most of the central U.S. and some eastern states during Dec 10-19, with the most intense cold in the Midwest.
Nat-gas prices had negative carry-over from Thursday's weekly EIA report that showed EIA nat-gas inventories fell -19 bcf, less than expectations of -27 bcf, and less than the 5-year average of -41 bcf for this time of year.
High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production Friday up +7.6% y/y at 94.911 bcf/d. Strong U.S. nat-gas output has caused U.S. nat-gas inventories to rise sharply in recent mo... Read more
Jan WTI crude oil (CLF20) on Friday closed up +0.77 (+1.32%), Feb Brent crude oil (CBG20) closed up +1.00 (+1.56%), and Jan RBOB gasoline (RBF20) closed up +0.0263 (+1.62%).
Crude oil prices rallied to 2-3/4 month highs Friday after OPEC+ agreed to a real production cut from current levels. Crude oil prices also saw support from (1) Friday's strong U.S. unemployment report and consumer sentiment report, and (2) positive US/Chinese trade news. A stronger dollar Friday was a negative factor for crude oil.
OPEC+ at its Thursday/Friday meeting agreed to cut production by another 500,000 bpd starting in January, adding to the current 1.2 million bpd production cut agreement and bringing the total production cut to about 1.7 million bpd. However, the new production cut level is just mildly below the actual production levels since OPEC+ has already cut production by more than the 1.2 million bpd official amount. Saudi Arabia agreed to continue to bear the brunt of the product... Read more