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Bloomberg reports that OPEC's promised oil output cuts are lifting crude futures, which encourages more oil drilling. That drilling also produces associated gas, which could add to a U.S. gas supply glut that has already reached a record.
Higher oil output from associated gas could weigh on Henry Hub prices, while the OPEC deal supports crude and energy-linked costs for feed producers.
bloomberg.comNaureen S MalikNov 30, 2016After 59 past bearish macro events, Natural Gas moved a median +1.3% over 5 sessions (58% higher; middle half -5.0% to +5.2%), and -2.0% over 20.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
