Written Commentary
CRUDE OIL
January Crude Oil extended yesterday’s selloff overnight but is back in positive territory the morning in the lower end of yesterday’s range. The API report came in at the bullish end if expectations for crude oil and bearish for the products, but the aside from a surprise increase in distillate stocks, the results did not veer too far. The EIA report will be out later than usual this morning. The US Energy Department said yesterday that it had awarded contracts to buy one million barrels of crude oil for the SPR for deliveries in December and January. In their monthly update, IEA said that Russian oil exports have continued largely unabated despite new the US sanctions on Rosneft and Lukoil, as new entities have already started handling Russian exports as it adapts to sanctions.
PRODUCTS
The API report showed US gasoline stocks were down 1.39 million barrels for the week ending November 7 versus expectation for -1.9 million and that distillates were up 944,000 versus -2.0 million expected.
NATURAL GAS
The weather is turning warmer this week, but World Weather, Inc. is suggesting additional cold surges could occur periodically this winter. An erratic polar vortex that is usually associated with La Nina winters can allow frigid air to sweep down into the US on occasion, even if overall temps trend above normal. US LNG exports continue at a strong pace. So far in November the average amount of gas flowing to the eight large US LNG export plants has risen to 17.8 billion cubic feet per day (bcfd), up from a monthly record of 16.7 bcfd in October. Venture Global’s Plaquemines plant in Louisiana and Cheniere Energy’s Corpus Christi plant in Texas continue to ramp up production.
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