Written Commentary
CRUDE OIL
January Crude Oil edged lower early Tuesday following a sharp selloff on Monday that came despite slow progress in Russia/Ukraine peace talks. The fact that Iraq managed to restore production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest, after a leak on an export pipeline slashed its output, points to stronger supply ahead. The field has an output of around 460,000 barrels per day and accounts for about 0.5% of world oil supply and 9% of total output in Iraq.
PRODUCTS
The products are lower today in line with crude oil.
NATURAL GAS
January Natural Gas is down for the second straight day as the market reconsiders how much the current wave of cold weather will tighten situation this year. The market left a spike high on Friday that has the look of a blow-off top. The 6-10 and 8-14 day forecasts show a moderation in the current cold pattern, but below normal temps will stick around in the Great Lakes and New England.
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