Al Attiyah Foundation Weekly Energy Market Review | 30 October 2021
Each week, Al Attiyah Foundation publishes its energy market review, bringing you the latest global news from the oil, gas and petrochemicals sector.
Oil Prices Rebound, Edge up Ahead of Next Week’s OPEC Meeting
US crude prices settled higher on Friday, 29 October, turning positive after an early decline, supported by expectations that OPEC+ would maintain production cuts while more Iranian supply may come online. Brent crude rose 6 cents to settle at USD84.38, while US West Texas Intermediate crude rose 76 cents to settle at USD83.57. However, Brent and US crude oil benchmarks both declined on the week after reaching multi-year highs on Monday. Also, prices have been pressured since Wednesday by a report that US crude stocks rose by 4.3 million barrels in the past week. Crude has surged in 2021 as economies recover from the COVID-19 pandemic, but prices fell last week with Brent facing its first weekly decline in about two months. On Thursday, Algeria said a crude output increase by OPEC+ in December should not exceed 400,000 bpd because of market uncertainties and risks. US oil rigs rose one to 444 last week as oil prices soared to fresh seven-year highs, energy services firm Baker Hughes Co. said in its closely followed report on Friday.
Asia LNG Prices Slip Despite Strong Competition
Asia liquefied natural gas (LNG) prices slipped last week but are expected to remain at high levels on concerns over low European gas storage levels due to strong competition from Asia. The average LNG price for December delivery into Northeast Asia was estimated at about USD34.50 per million British thermal units (mmBtu), down USD3.90 from the previous week, industry sources said. ‘Currently, fundamentals in Asia remain relatively stable as demand in China is picking up which is offsetting weak demand in Japan,’ an industry source said. US natural gas futures fell over 6% on Friday to a one-week low, pressured by rising US output and sinking global gas prices after Russia said it would send more fuel to Europe, factors that offset support from rising LNG exports and forecasts for colder weather and soaring heating demand. Also, gas prices in Europe slid more than 11% for a second day in a row after Russian President Vladimir Putin last week told Kremlin-controlled energy giant Gazprom to start pumping gas into European storage once Russia finishes filling its own stocks, which may happen by 8 November.
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