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May 23rd, 2016

Market Summary for the Week of May 16 - 20, 2016

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 edged up again last week as the global supply glut is expected to retreat in the second half of 2016. Domestic production continued to decline, while international supplies are currently impacted by disruptions in Canada, Nigeria, and Libya. Natural gas futures fell last week as mild weather is expected to limit demand. The EIA reported a smaller-thanexpected and below-average storage injection, lowering the surplus to the five-year average levels for a sixth straight week.

To view the complete Market Summary, click here.

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