Other news

On Wednesday, API informed that the crude oil reserves in the US were reducing for the second week. This happens amid the common concern of the demand’s prospects on the backdrop of a sharp increase of coronavirus cases in China.

Oil prices continue to show a negative growth, driven by Covid-19 outbreaks in China. Such a complex infectious situation in the country has a negative impact on fuel demand recovery.

On Wednesday, natural gas futures in the United States fell to the lowest value in the last 9 months. This is due to softening of weather forecasts for the next few weeks, which could reduce heating demand. The futures contract fell by 23% last week.

It is reported that Exxon Mobil Corp. is attempting to block the introduction of a new windfall tax against the oil industry. The company is suing the European Union.

Crude oil and petroleum products reserves, natural gas reserves, as well as gasoline and distillate production are on the agenda.

According to S&P Global Commodity Insights, US LNG terminals will stay near maximum capacity amid high volatility in LNG markets next year. Henry Hub prices are expected to settle lower as liquefaction capacity will not boost.

Head of economic and policy research at JPMorgan Bruce Kasman wrote that the slowing GDP growth alleviates the problems with supplies and eases the price shock for commodities.

Gas supplies produced in the Appalachian basin decreased by 27% (which is 9 billion cubic feet) compared with the usual levels. This was reported by BloombergNEF. It is also noted that such reductions in production have not been observed since 2013.

Russia is to ban the supply of its crude to a range of European countries which agreed to the price cap on Russian oil.

Shale oil and gas production in Argentina’s Vaca Muerta has increased sharply over the past years. However, its growth may decelerate now as oil and gas pipelines near capacity.