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December 30th, 2014

Market Summary for the Week of December 22 - 26, 2014

by Meghan Nee and Michelle Tham, 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%

WTI and Brent both saw a fifth consecutive week of losses. Global supplies are still ample, with no signs of reduced production from OPEC states. The EIA reported large gains in storage for both total US levels and at Cushing, Oklahoma. Natural gas also fell for the fifth week in a row, reaching lows not seen since 2012. Domestic production for 2014 will set another annual record, and warm temperatures last week also had a bearish effect on prices. Revised forecasts calling for below-average temperatures into early January could be bullish for gas. 

To view the complete Market Summary, click here.

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