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US English

Gas at three-month low, oil rebounds ahead of OPEC meeting

By Jenal Mehta

12:47, 1 December 2021

Petroleum refinery
OPEC weighs increasing production – Credit: Shutter Stock

Oil prices appear to be in recovery following a substantial sell off at the end of last week.

Brent crude oil is trading at around $72 per barrel, up almost 3% increase from yesterday.

US Crude oil is trading near $68 per barrel today, a 3% recovery since yesterday.

The markets are waiting to see how the Organization of the Petroleum Exporting Countries (OPEC) will react to Omicron. The new Covid-19 variant has raised the possibility of lower oil demand should governments impose new lockdowns and restrictions and economic activity fall.

OPEC is expected to decide this week whether to increase output from 400,000 barrels per day. A survey by Reuters found that even if the OPEC goes ahead with output increase, there is a possibility of missing the 400,000 bpd target. OPEC is due to meet two days on Wednesday and Thursday, with a full ministerial meeting of OPEC+ taking place on the second day.

Oil - Crude

76.90 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0187%
Short position overnight fee -0.0032%
Overnight fee time 22:00 (UTC)
Spread 0.040

Gold

2,037.61 Price
-0.270% 1D Chg, %
Long position overnight fee -0.0191%
Short position overnight fee 0.0109%
Overnight fee time 22:00 (UTC)
Spread 0.50

Silver

24.91 Price
-0.650% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.020

Oil - Brent

81.88 Price
+0.400% 1D Chg, %
Long position overnight fee -0.0067%
Short position overnight fee -0.0152%
Overnight fee time 22:00 (UTC)
Spread 0.032

US Natural Gas traded at under $4.44 per million British thermal units, the lowest since September. Natural gas prices have been on a decline since last week, as demand prospects for January weaken. This comes on forecasts for warmer weather into February in parts of the US that are heavy natural gas users. This may weaken global demand for US gas exports

Performance

Brent Crude Oil

  • Day range: $67.54–$72.88
  • 52-week range: $46.82–$86.70

US Crude Oil

  • Day range: $66.20–$69.49
  • 52-week range: $43.92–$83.83

US Natural Gas

  • Day range: $4.46–$4.69
  • 52 week range: $2.26–$6.47
Price changes in different time periods Price movement – Credit: Capital.com

Read more: Oil stocks to watch: Is the new Covid-19 a threat?

Markets in this article

Oil - Brent
Brent Oil
81.877 USD
0.326 +0.400%
Oil - Crude
Crude Oil
76.898 USD
0.169 +0.220%
Natural Gas
Natural Gas
2.7930 USD
0.004 +0.140%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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