Written Commentary
CRUDE OIL
December Crude Oil is under pressure this morning as the trade may be turning less confident that the latest sanctions on Russian oil will have a big effect on supply, especially after the increases in OPEC+ production this year. OPEC+ is reportedly leaning towards a modest output boost of 137,000 barrels per day for December, similar to the increase they put in place for November. Only a few members of the group, particularly Saudi Arabia, appear to have the capacity to increase output at this point. The group has already increased its output targets by roughly 2.7 million barrels per bpd this year, about half of the 5.85 million of cuts the group had agreed to in preceding years. The higher production also provides a cushion against the sanctions on Russian oil producers.
NATURAL GAS
Natural Gas prices are lower this morning as some of the bullishness off the cooler weather in the eastern US has faded. The outlook for the lower 48 has turned a bit warmer, with the latest 8-14 day forecast having normal and below normal temperatures retreating eastward and covering a smaller portion of the eastern US, with above normal temps from Illinois westward.
PRODUCTS
The products are under a little less pressure than crude oil this morning.
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