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Gas industry

Oil Prices Edge Higher Ahead of OPEC Decision

Strategic Insights

— 1 min read

Oil markets are holding steady in anticipation of OPEC's decision, with traders waiting for news on production levels. The meeting in Bali, Indonesia, has seen Saudi Arabia and other members favor a 12-month rollover of the current production ceiling, while others prefer a shorter extension. The outcome will significantly impact crude futures prices. Meanwhile, heating oil futures are seeing upside potential, supported by the approaching winter, but moderate weather and increased refinery utilization suggest adequate supplies.

Key Takeaways:

  • January futures prices for light sweet crude on the Nymex traded in the $17.46-$17.95/bbl range to settle at $17.56/bbl, up 1* from Friday's settlement price.
  • Crude futures near contango with February and March, both settling at the same price as January, as February rose 1* and March rose 4*.
  • January crude settled 9* higher than the last price for the December futures contract, which expired at $17.47.
  • December heating oil moved up 0.48* to 48.56/gallon, supported by the approaching winter but moderated by increased refinery utilization.
  • Analysts see upside potential of 50*/gallon on heating oil before the December futures contract expires on November 30.
  • December reformulated gasoline (RFG) settled down 0.34* at 54.64*/gallon due to expectations of further jumps in RFG stocks through refinery utilization and imports.
  • The December natural gas futures contract expired Monday down 2.4* to $1.661/MMBtu after volatile trading in a range of $1.63- $1.72/MMBtu.

Statistics:

  • January futures prices for light sweet crude settled at $17.56/bbl.
  • Crude futures rose 1*, 1*, and 9* compared to Friday's settlement prices for January, February, and January crude, respectively.
  • Heating oil futures have upside potential of 50*/gallon.
  • December heating oil settled at 48.56/gallon.
  • December reformulated gasoline settled at 54.64*/gallon.
  • The December natural gas futures contract expired at $1.661/MMBtu.

Sources:

  • Washington Post
  • New York Mercantile Exchange (Nymex)
  • Organization of Petroleum Exporting Countries (OPEC)

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