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December 27th, 2016

Market Summary for the Week of December 19 - 23, 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 prices ticked up slightly last week as the production cuts organized by OPEC are expected to start next week. Domestically, an unexpected gain in US crude stocks kept WTI prices in check, increasing the discount to London-traded Brent crude. For natural gas, near-term contracts were volatile and ended the week with an overall increase. The EIA reported a weekly storage withdrawal twice as much as the 5-year average, and forecasts of a mid-January cold front also bolstered prices.

To view the complete Market Summary, click here.

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