Outlook: Energy prices rally higher to start the week with all eyes remaining on OPEC+ developments as the group's monthly supply policy meeting commenced today. According to early reports, the Joint Ministerial Monitoring Committee recommends the group sticks with its current production increase plan of just 400,000 bpd. After reports were released WTI was seen surging to its highest level since 2014. Analysts expect that this decision will keep global crude supplies declining through November, keeping markets tight and supporting further price rallies. Current models for OPEC+ show oil demand outstripping supply for the next two months. Additional support also stems from a weaker dollar this morning, currently down by over 300 ticks.
- Iraq’s oil minister stated yesterday that oil prices of $100 are not sustainable and that OPEC will continue to work towards stable markets. The minister also stated that the country is working on raising its oil production capacity to 8 million barrels.
- Saudi Aramco states that the current natural gas crisis has boosted crude demand by 500,000 bpd.
- The October crude oil contract is trading $1.98 higher at $77.86. The 20-day and 100-day moving averages are $72.31 and $68.89 respectively. The 14-day RSI is 73.35%.
- As of 9:10 am CST: October Brent is up $2.35 at $81.63 and the U.S. dollar index is 0.346 lower at 93.689 while the nearby e-mini S&P 500 futures contract is down 23.75 points at 4320.
- Thailand has announced that it would be capped retain diesel prices at $0.89 per litre in order to help reduce living costs until the end of the month.
- The November ULSD contract is trading $0.0553 higher at $2.4380. The 20-day and 100-day moving averages are $2.2269 and $2.1241, respectively. The 14-day RSI is 78.84%.
- India’s transport minister stated that the country plans to introduce flexible fuel vehicles soon in order to reach a goal of 20% ethanol-blending with gasoline by 2025.
- The U.K. continues to utilize its military in order to aid in the current gasoline crisis as driver shortages continue and dozens of gas stations remain closed.
- The November RBOB contract is trading $0.0514 higher at $2.3014. The 20-day and 100-day moving averages are $2.1293 and $2.0464, respectively. The 14-day RSI is 72.55%.
- Currently natural gas prices in both Europe and Asia are priced near the equivalent of $3 propane. Currently prices sit as just half of that, but strength is expected to continue as supply tightness remains.
- At last look, Conway propane was trading up $0.05250 at $1.54000. Mt. Belvieu was also trading up $0.05500 at $1.54000.
|As of 9:00 AM CST||WTI November||ULSD November||RBOB November||Nat Gas November|