Oil & Gas Prices - Sept 22
Posted: Tue Sep 22, 2020 8:46 am
Opening Prices:
> WTI is up 29c to $39.60/Bbl, and Brent is up 33c to $41.77/Bbl.
> Natural gas is up 0.4c to $1.839/MMBtu. < October contract
The front month gas contract (October) is down because the "paper traders" got stuck with too many long positions, which they MUST CLOSE before the contract expires. Since storage is so full, the companies that can take physical delivery have enough. Here is the real story for natural gas prices. The paper traders are rolling their positions forward.
Gas prices at the time of this post:
> November contract at $2.62
> December contract at $3.13
> January contract at $3.26
Just remember that natural gas prices are set within regional markets and the North American market is going to be grossly under-supplied early in 2021. During the winter months demand for natural gas can be 40 to 50 bcf per day higher during a cold week than demand is during a "Shoulder Month" like September. Plus, LNG exports should double between August and October.
You can view actual NYMEX strip prices here: https://www.cmegroup.com/
> WTI is up 29c to $39.60/Bbl, and Brent is up 33c to $41.77/Bbl.
> Natural gas is up 0.4c to $1.839/MMBtu. < October contract
The front month gas contract (October) is down because the "paper traders" got stuck with too many long positions, which they MUST CLOSE before the contract expires. Since storage is so full, the companies that can take physical delivery have enough. Here is the real story for natural gas prices. The paper traders are rolling their positions forward.
Gas prices at the time of this post:
> November contract at $2.62
> December contract at $3.13
> January contract at $3.26
Just remember that natural gas prices are set within regional markets and the North American market is going to be grossly under-supplied early in 2021. During the winter months demand for natural gas can be 40 to 50 bcf per day higher during a cold week than demand is during a "Shoulder Month" like September. Plus, LNG exports should double between August and October.
You can view actual NYMEX strip prices here: https://www.cmegroup.com/