Written Commentary
CRUDE OIL
January Crude Oil was lower early Tuesday but inside Monday’s range. The trade is watching for any progress on the Ukraine-Russia peace talks, which if it is achieved would mean the lifting of sanctions on Russian crude oil and the possibility of larger supply. US special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner will meet Russian President Putin on Tuesday for talks on a possible way to end the war. A Russian-flagged tanker loaded with sunflower oil reported a drone attack off the Turkish coast on Tuesday, but its 13 crew members were unharmed. T
PRODUCTS
For the petroleum stocks reports this week, the early Reuters poll has an average expectation calling for US gasoline stocks to show an increase of 2.0 million barrels for the week ending November 28, with distillates expected to be up 1.3 million.
NATURAL GAS
January Natural Gas extended its recent rally overnight as wintry weather boosts near term demand and US LNG exports reach record levels. The 6-10 and 8-14 day forecasts show below normal temperatures continuing in the northeast quadrant of the lower 48 states out to at least December 15. This includes the Midwest, Great Lakes, New England, Mid-Atlantic, Appalachia and into the northern reached of Alabama and George. Above and much above normal temps prevail out west. This pattern points to strong heating demand for heating in some of the key natural gas consumption areas of the US. Preliminary data from LSEG showed on Monday that the US exported 10.9 million metric tons of LNG in November, up from 10.1 million in October and a new record.
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