This update corrects the year for the largest one-day percentage gain in natural gas. The year was 2004.
Oil prices ended higher on Wednesday, and the US benchmark oil price ended the record-breaking 1
Meanwhile, natural gas futures saw a spectacular surge of around 18% – their biggest in more than 14 years – as the cold forecasts continued to raise concerns about US shortages.
Read: Wrong bet on assets that rose 20% this week has boosted the flow of oil, says a prominent trader
West Texas Intermediate Oil for delivery in December
CLZ8, + 1.08%
surged 56 cents (1%) to 56.25 USD / barrel after settling at 55.69 USD on Tuesday at the New York Mercantile Exchange , This was the lowest front-month contract closing since November 16, 2017, and the largest single-day percentage of over 7% in more than three years, according to Dow Jones Market Data.
The British Crude Oil Benchmark Index was now 23% higher than its peak in October, with January-Brent
LCOF9, + 1.15%
added 65 cents or 1% to $ 66.12 per barrel on Wednesday. The contract fell 6.6% to hit $ 65.47 a barrel on ICE Futures Europe on Tuesday. The US counterparty was officially represented in a bear market, representing a 20% decline from a recent high.
"The dramatic sale of oil markets in recent days has led to a short break." Wednesday, "but many are stunned by the acceleration of the aggressive momentum that has emerged in recent sessions," said Jameel Ahmad, global head of currency strategy & market research at FXTM.
"We have not seen such a catastrophic day for the oil markets in terms of negative momentum as on Tuesday in about three years," he said. "However, I think that we must accept the step into the future that traders are aware of the significant threat that the slowdown in global growth in 2019 will weaken demand for commodities such as oil."
At the same time, there are signs a strong supply The data could lead to price movements as the US, Russia and Saudi Arabia pump crude oil to record levels, causing global supply to significantly outstrip demand, as a monthly update by the International Energy Agency on Wednesday showed.
Read: Petroleum futures have done something never done before, as Trump calls for lower crude oil prices
The IEA also said that the crude oil production of the world's top three producers is global constant at around 100.7 million barrels a holding day last month. This is 2.6 million barrels per day more than in the same period last year.
Some analysts believe that the movement of oil in a short time has been too dramatic, with a still-unfolding production picture.
"While macroeconomic demand was likely to be exaggerated from October onwards, the fundamental picture of forward supply has deteriorated significantly as US output has been sharply revised upwards and Libyan and Venezuelan output has been stronger than expected. Importantly, this has not materialized in a surge in inventory levels and does not justify today's sell-off, especially as OPEC now talks about a production cut, "said Jeffrey Currie and Goldman Sachs's resource team.
Since May, world oil production has increased by 1.8 million barrels a day. The US has provided 1 million barrels per day for growth, and Saudi Arabia and Russia added 620,000 barrels per day and 445,000 barrels per day, the IEA said.
Read: 5 Reasons why the price of oil is in history
A build-up of supply has driven the downtrend of the market, as well as global economic growth and the decision of the Trump government, the major resignation to grant buyers of Iranian crude after the adoption of sanctions, a factor that was expected to keep most Iranian oil off the market.
The collapse in prices prompted the organization of oil-exporting countries and their allies, including Russia, to signal on Sunday that it could bring about a joint production cutback. Such a step would only take place a few months after the group's decision to increase production after more than a year of production stoppage.
In addition, President Donald Trump consistently campaigned for lower oil prices and on Monday called for another tweet that even triggered calls for lower prices.
Looking ahead, weekly oil supply data from the EIA will be released Thursday, a day later than usual, as Veterans Day was observed on Monday.
Analysts surveyed by S & P Global Platts expect crude oil inventories to increase by 2.3 million barrels for the week ending November 9. This would mean an eighth increase per week. They also expect shipments to decline by 894,000 barrels for gasoline and 2.7 million barrels for distillates.
On Nymex, December gasoline
RBZ8, + 1.22%
added 1.2% to $ 1.561 per gallon and December fuel oil
HOZ8, + 1.93%
rose 1.6% to $ 2.096 per gallon.
Meanwhile, gas remained in focus, with futures prices meeting on Wednesday for a fourth consecutive session.
December natural gas
NGZ18, + 17.75%
increased by 73.6 cents, or about 18%, to $ 4.837 per million British thermal units. This was the largest one-day increase since September 29, 2004, and the highest settlement since February 26, 2014, according to Dow Jones Market data.
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