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October 20th, 2014

Market Summary for the Week of October 13 - October 17, 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 fell for the third week in a row while Brent fell for the fourth. WTI fell below $80 per barrel in intraday trading on Thursday, and Brent has fallen 16% over four weeks. OPEC members signaled they would allow crude prices to fall rather than cede market share, even while global demand grows at its slowest pace in five years. Natural gas futures fell last week on forecasts for average temperatures at the end of the month. The November contract capped its second consecutive weekly decline, falling to $3.77 per MMBtu on Friday, the lowest prompt-month settlement since July 28.

To view the complete Market Summary, click here.

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