MKT Update

Energies are higher --supported by the recent OPEC+ decision to cut output and projections for a decline in US crude supplies in this week's data--according to Reuters Reuters forecast is for a drop of 1,8 mln in crude supplies--Platt's -3,0 mln - -Platts survey is also calling for a build of 0,2 mln bbls in distillate supplies and +1,5 mln for gasoline.

API data will be released today --the DOE stats will come out Friday at 11 AM EST

 The CME will close today at 1:45 PM NY time --with the settlement price today based off of the 2 minute period from 1:28 to 1:30 PM---the market will re-open Wednesday evening at 6 PM NY time ---then stay open until Thursday at 5 PM NY time

 In Asia, the Brent / Dubai spread narrowed as the arb to move N Sea crude to Asia does not work --the long haul and steep backwardation in dated Brent are impediments. Dubai linked prices are under some pressure going forward as refinery maintenance season approaches and as winter demand then recedes.

(Platts) Platts also reports that Japanese refiners are looking at reducing their term volume offtake from the Mideast in 2020 as term barrels have become pricey and as the refiners seek alternative grades to be more flexible in feedstock as IMO begins.

 Chevron says that they see the Neutral territory (Kuwait/Saudi Arabia) oil output reaching full capacity within 12 mths --prior full output was 500,000 bpd - the 2 nations signed an agreement today to resume output. "The two countries are not in a rush to resume production from the neutral zone oilfields due to the production cuts agreement so it will take easily up to six months to resume production," Kuwaiti oil market analyst Kamel al-Haramy

said.(Reuters)

 Technically WTI and ULSD have negative momentum --with RB & Brent overbought --even as Brent spot futures today hit a fresh high for the recent rally.

Brent reached a high today of 6993--above this we see resistance at 6764-73---with support seen at 6579-81

Spot WTI futures support is seen at 6002-10--resistance at 6118-20

Feb RB support comes in at 16990-94--resistance at 17239--then at 17456 via a weekly high

ULSD futures in Feb have support at 2.0118-39---where the prior 4 sessions'

lows lie. Resistance is seen at 2.0327-30 ( the high today is 2.0322)---then resistance lies at 20408.

 Ng is down further as warm temps rule in the coming week or more.

Spot futures have hit the lower DC bollinger band ---that lies at about 2.17--the low today is 2.166---support is seen below that at 2158 --that is the prominent low of about 2 weeks ago --below that we see support at 2120-2122---resistance comes in at 2216 then 2240-44 ---the high overnight is 2223 ---------the front of the curve remains weak --Jan March is down about 1,7 cts The momentum indicator for the flat price futures remains negative.

Platts details reductions recently in Ng output in the U S --Dec output in the US has averaged

91,8 bcf vs their prior balance of winter forecast of 92,9 bcf --this is attributed to declines in the'U S Northeast--at the same time feedgas volumes set a record Friday of 8,51 bcf --exceeding Platts forecast.

Platts sees end of season NG storage at 2,0 TCF --though they caution that that number could possibly be as low as 1,7 TCF if US output holds near 91 BCF for the rest of winter. ..the article concludes with the following statement : "" The tightness would likely extend into summer and present an upside risk to Henry Hub prices, especially if rig declines continue in the Northeast.""

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