Written Commentary
CRUDE OIL
December Crude oil was slightly higher early Friday but was still in the lower end of this week’s range. Talk of excess global supply has emerged this week, for the first time since the war began. Spot premiums for Middle Eastern crude benchmarks returned to levels seen before the Iran war. Saudi Aramco cut its December price for its Arab Light grade for Asian customers by $2 a barrel from November. They also cut prices across all grades for Northwest Europe and the Mediterranean by $1. Prices to for Asia were expected to be unchanged or reduced as well. West African and Brazilian crude sellers have been offering steeper discounts to Chinese buyers to offset high freight costs.
NATURAL GAS
Natural Gas was moderately higher early Friday, as a moderate slowdown in US gas output this week has provided a bit of a boost to a market that just one week ago had fallen to its lowest level since April. LSEG said average gas output in the US Lower 48 states is running around 111.2 billion cubic feet per day (bcfd) so far in November, down from 113.4 bcfd for the month of October. The 6-10 and 8-14 day forecasts call for above normal temps across most of the lower 48, with some near normal temps in the easter, quarter of the nation.
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