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December 19th, 2016

Market Summary for the Week of December 12 - 16, 2016

by Kelsey Berger and Michelle Tham, Energy Analysts

Synopsis of Last Week's Energy Markets

WTI and Brent both continued to move downward last week, a general trend since late June. Both OPEC and the International 
Energy Agency lowered their 2015 global demand forecasts, and the EIA reported a forecast for a 1 million barrel increase in 
domestic production for 2015 over 2014 estimates. Natural gas prices capped a weekly gain last week on forecasts for lingering 
heat and on speculation that low gas prices will boost demand from electricity generators. Thursday's EIA storage report brought 
news of the largest gain in seven weeks, cutting the deficit to the five-year average levels to 14.2%

Crude oil prices rose last week in response to OPEC and other global oil producers moving forward on a production cut agreement. The Fed’s decision to raise interest rates had a temporary bearish effect on Wednesday. Natural gas prices fell from early-December highs as forecasts indicated that cold temperatures would ease in the coming weeks, allowing the supply surplus to sustain well into the winter. Despite last week’s storage draw of 147 Bcf, surplus remains at 5% to the five-year average.

To view the complete Market Summary, click here.

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