Natural Gas Supply Shocker

December 20, 2019 08:43 AM
U.S. has proof that Iran was behind the attack on Saudi Oil facilities
Oil analysts and traders are turning more optimistic for 2020
Domestic supplies of natural gas fell by 107 billion cubic feet for the week ended Dec. 13
The Energy Report



The Phil Flynn Energy Report 

Green Christmas!


Democrats are dreaming of a green Christmas! Not green as money in your pocket, but green as far as battling what they believe is our biggest foe, climate change.  Democrats on the debate stage are so worried about the impact of climate change that they are willing to sacrifice the economic welfare of every American to save the planet. Former Vice- President Joe Biden was asked if he was willing to sacrifice up to hundreds of thousands of jobs if it meant transitioning to a green economy.   He said, "The answer is yes.” Probably the highlight of the debate.

In a Reuters exclusive report, it appears that the U.S. says they have proof that Iran was behind the attack on the Saudi Oil facilities.  They say that the United States said new evidence and analysis of weapons debris recovered from an attack on Saudi oil facilities on Sept. 14 indicates the strike likely came from the north, reinforcing its earlier assessment that Iran was behind the offensive.


In an interim report of its investigation - seen by Reuters ahead of a presentation on Thursday to the United Nations Security Council - Washington assessed that before hitting its targets, one of the drones traversed a location approximately 200 km (124 miles) to the northwest of the attack site. “This, in combination with the assessed 900-kilometer maximum range of the Unmanned Aerial Vehicle (UAV), indicates with the high likelihood that the attack originated north of Abqaiq,” the interim report said, referring to the location of one of the Saudi oil facilities that were hit. It added the United States had identified several similarities between the drones used in the raid and an Iranian designed and produced unmanned aircraft known as the IRN-05 UAV.


However, the report noted that the analysis of the weapons debris did not definitely reveal the origin of the strike that initially knocked out half of Saudi Arabia’s oil production.


Oil prices today are on guard for a holiday sell-off. The ghosts of Black Friday loom large. Yet fundamentals for oil are solid as demand expectations continue to rise.


Natural gas had a supply shocker. MarketWatch Reported that U.S. Energy Information Administration reported Thursday that domestic supplies of natural gas fell by 107 billion cubic feet for the week ended Dec. 13. Analysts expected a fall of 93 billion cubic feet, on average, according to a survey conducted by S&P Global Platts. Total stocks now stand at 3.411 trillion cubic feet, up 618 billion cubic feet from a year ago, but 9 billion cubic feet below the five-year average, the government said.

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About the Author

Phil Flynn is a senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. Phil is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets.