Written Commentary
CRUDE OIL
January Crude Oil gapped lower overnight, as the market assessed comments from Ukraine President Volodymyr Zelenskiy that indicated he is at least open to considering the peace proposal that the US Administration is supporting. Zelenskiy said he was ready for “honest” work with the US on a plan to end the war. The plan calls for Ukraine to give up the entire Donbas region and significantly downsize its military, but the promoters of the plan also say it would give Ukraine security guarantees. Under the agreement Russia would be invited to rejoin the G8 and the US would enter into an agreement with Moscow covering energy, natural resources, infrastructure, artificial intelligence, data centers and rare earth metals extraction in the Arctic. So far the response from Europe has been chilly. Sanctions on Russian oil producers Rosneft and Lukoil are set to take effect today but if an agreement is reached, these sanctions would end.
PRODUCTS
Product prices are being led down by weakness in crude over the peace proposals in Ukraine.
NATURAL GAS
The 6-10 and 8-14 day forecasts show below normal temperatures across most of the nation’s midsection, from the Rockies to the East Coast out to December 4. Northern areas will be the most affects, with some above normal temps in Florida and the Southeast. A Sudden Stratospheric Warming could disrupt the polar vortex and bring cold weather down into North America. The reality may not be as bad as feared. The words “Polar Vortex” bring to mind frigid, sub-zero temperatures, but forecasts so far are not that extreme.
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