Energy Report: Early Returns

Oil prices may rise even higher as we get today's Energy Information Administration (EIA) report. The market will look at demand numbers to see how it is holding up despite more lockdowns. The American Petroleum Institute (API), in their version, showed a 3.8-million-barrel increase in U.S. crude inventories, according to people familiar with the data. That would be a third straight week of gains if the EIA confirmed.

 The API also reported that gasoline inventories increased by 1.3 million barrels of gasoline for the week ending November 20—compared to the previous week's 256,000-barrel build. Analysts had expected a 614,000-barrel build for the week. Distillate inventories fell by 1.8-million barrels for the week, compared to last week's 5.024-million-barrel draw, while Cushing inventories fell by 1.4 million barrels.

Nat gas looks like it could recover from its recent price crash as the weather might become a factor again. Bret Walts, BAMWX Meteorologist and Assistant Director of Operations, says that November was well advertised as a very warm month. Still, we look to at least briefly see a relatively favorable setup for a cooler period in the southeast U.S. into the Mid-Atlantic to start December. Warmth probably persists in the Central and Western U.S., however. At this point, December looks like the best month of winter to see any kind of durable colder periods in the Eastern U.S., though the month as a whole probably doesn't feature sustained cold, and it could be volatile at times.

To all of my readers, I wish you a very happy, .safe, and blessed Thanksgiving! Remember to thank God for the blessing of living in the greatest country in the world. God Bless you all!

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